The origin of the name MLM and how MLM was introduced into China!

The word MLM is translated from the English word "multi level marketing". It means: the multi-level associated management mode is not called pyramid selling abroad, but multi-level distribution. In the United States and other western countries, it is very smooth, which is a good development direction and a way to manage goods by using the multiplication principle of physics.

MLM is a modern commodity economy management model introduced from the United States in 1990. At that time, the State Administration for Industry and Commerce signed 50-year contracts with 10 companies, including Amway, Perfect and Mary Kay, headed by Avon. , allowing them to operate in China in the form of MLM.

At that time, China was in the process of transforming from a planned economy to a market economy. In order to speed up economic development, many advanced production technologies and business models have been introduced from abroad, among which MLM is one. Seeing that pyramid selling can really solve the employment problem, achieve great economic development and increase part of tax revenue, the state re-approved more than 40 companies in 1994.

Extended data:

During the period of 1998, in the adjustment of China's pyramid selling policy, the word direct selling was gradually replaced by the word pyramid selling. According to the national policy at that time, people called the multi-level business model of "specialty stores plus direct sellers" "direct sales". The multi-level business model without specialty stores is called "illegal pyramid selling"

Promulgated on September 1 2005, and implemented on September 1012005, the Regulations on Prohibition of MLM once again clarified "What is MLM? What is a biography?

Sell? The latest clear definition is given. MLM refers to the behavior that organizers or operators calculate and pay remuneration to the developed personnel based on their direct or indirect number of personnel or sales performance, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability.

References:

Baidu encyclopedia -MLM