Is Shandong Xianda Pharmaceutical a pyramid scheme?

Hello, the questioner, to determine whether it is a pyramid scheme, you have to look at it based on the company's operating model and structure. Since there are many tricks and variants of pyramid schemes at present, it is very difficult to identify. Everyone talks about spreading color. There is actually no need to change, because we only need to understand what MLM is. So what is MLM?

One is the State Council's "Regulations on the Prohibition of Pyramid Selling" which identifies "pyramid selling" as: "pyramid selling as mentioned in these regulations refers to the organizers or operators who develop people by directly or indirectly using their direct or indirect Calculation and payment of remuneration based on the number of people developed or sales performance, or requiring people to be developed to obtain membership qualifications on the condition of paying a certain fee to seek illegal benefits, disrupt economic order, and affect social stability."

The other is the "Opinions of the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security on Several Issues concerning the Application of Laws in the Handling of Criminal Cases Organizing and Leading MLM Activities" which defines pyramid schemes as: "to promote goods and provide services." In the name of other business activities, participants are required to obtain membership qualifications by paying fees or purchasing goods and services, and are organized into hierarchies in a certain order, directly or indirectly using the number of development personnel as the basis for remuneration or rebates, to induce or coerce participants to continue Develop a pyramid selling organization that involves others, defrauds property, and disrupts the economic and social order. If there are more than 30 people participating in pyramid selling activities within the organization and the level is above three levels, the organizers and leaders should be held criminally responsible."

In fact, to sum up, there are three points: one is to attract people, the other is to pay membership fees, and the third is to provide rebates at more than three levels. If these characteristics and conditions are met, then it is definitely a pyramid scheme.

One thing that needs to be reminded is that MLM is a scam, but scams are not limited to MLM, so we still have to abide by the common sense of "pie in the sky will not fall", be vigilant, and do not try to get rich overnight. Only by dreaming can you stay away from pyramid schemes and various scams.