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Is Sea-based Biology Direct Selling or MLM?
Direct selling is a product distribution model, while pyramid selling is a head-pulling model. The essential difference is whether to make profits by selling goods or by developing offline profits.
Direct selling is a kind of distribution mode, which is divided into single-level direct selling and multi-level direct selling. Single-level direct selling refers to an enterprise recruiting salesmen and selling products directly to users. Multi-level direct selling is to form a sales team to sell products to users. Direct selling has four characteristics: a clear target customer base; No intermediate links, as few as possible intermediate links; The products actually sold have measurable sales effect; The remuneration of salespeople is determined according to the performance of the products sold.
MLM is to attract people, and there are three forms, namely, the organizer or operator requires the developed personnel to develop other personnel to join, and calculates and pays the remuneration (including material rewards and other economic benefits) for the developed personnel according to the number of directly or indirectly developed personnel; Organizers or business operators, through the development of personnel, require the developed personnel to pay fees or pay fees in disguised form by subscribing for goods. , and obtain the qualification to join or develop other personnel to join; Organizers or operators, through the development of personnel, require the developed personnel to develop other personnel to join, forming an online and offline relationship, and calculating and paying online rewards according to the offline sales performance.
Baidu netizens have summed up the differences between direct selling and pyramid selling as follows:
First, direct sales: wholesale goods directly from manufacturers and sell them directly to consumers.
MLM: Registration fee is necessary.
Second, direct sales: open your own shop, get goods directly from the company in batches and sell them to customers at one time.
MLM: You need to develop offline. It is necessary to constantly find collaborators to induce others to double their income under the guise of forming a team.
Third, direct sales: determine the income according to the number of products sold.
MLM: According to the number of people below and their business performance, you can decide how much return you have.
Fourth, direct selling: let participants buy one-yuan goods with 1 yuan.
MLM: In fact, to put it bluntly, it means asking offline to give money to online 1 yuan, and online teaches offline how to earn 50 yuan. As a result, when offline gave online 1 yuan, online told offline to find the same ten idiots to do offline.
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