Amway does not belong to pyramid selling, which originated in postwar America. The word MLM has different meanings in different Chinese-speaking areas. In Hong Kong and Taiwan, it generally refers to all legal direct sales, whether it is single-level direct sales or multi-level direct sales. In Chinese mainland, the official definition of the word pyramid selling is the combination of multi-level direct selling and hierarchical sales, which is an economic crime. Multi-level direct selling is a marketing strategy to realize sales through interpersonal communication. This is especially effective in places with vast territory and low population density. Therefore, MLM is very popular in North America and Oceania. General companies adopt membership system, introduce new users to become members, and calculate the remuneration according to the sales performance of direct or indirect development personnel. As a marketing method, MLM is often confused with "hierarchical marketing" (commonly known as "mouse club"), so it has become a Chinese word for piracy or hierarchical marketing in China. The most famous case abroad is Ponzi scheme. According to the interpretation of MLM Prohibition Ordinance, MLM refers to the behavior of organizers or operators to develop personnel, calculate and pay remuneration to the developed personnel based on the number of personnel or sales performance directly or indirectly developed by them, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, seek illegal interests, disrupt economic order and affect social stability. The main difference between direct selling and pyramid selling: 1. Direct selling can be divided into single-level direct selling and multi-level direct selling. The former is a business model permitted by the current Regulations on Direct Selling Management in China, while the latter is a pyramid scheme explicitly prohibited by the MLM Prohibition Regulations. 2. From the point of view of payment method: there is no connection between direct sellers, and payment is made by personal performance; There is a joint relationship between MLM personnel, and team compensation is implemented. 3. Direct selling operation specifications and relevant information disclosure can be inquired online; The information of MLM is not public, organized and deceptive. 4.MLM should get ticket income. Illegal pyramid selling companies have to charge a hard entry fee, and the participants of illegal pyramid selling gangs get the qualification to join, introduce or develop others by paying the entry fee or paying the entry fee in disguised form by subscribing for goods, and get remuneration from it. Direct selling companies do not charge admission fees. 5. Direct selling companies sell qualified products recognized by relevant state departments, while MLM companies sell "three noes" products. 6. The products sold by 6.MLM Company are not circulated in the market, but only used as samples or promotional materials for "pulling people's heads". The products of direct selling enterprises sell well in the market. 7. There is no return guarantee system for 7.MLM products, and once purchased, they cannot be returned. The products of direct selling enterprises have the same "three guarantees" system as the products on the market. 8. Direct selling operation: An enterprise that has been approved to become a direct selling enterprise shall set up branches in the provinces, autonomous regions and municipalities directly under the Central Government that intend to engage in direct selling activities, set up service outlets in relevant administrative districts (counties), recruit direct sellers, and conduct direct selling activities only after obtaining the certificate of direct seller through training and examination. The operation of pyramid selling: introducing and joining-paying fees (admission fee, commodity purchase fee)-cheating, inviting others to join-extracting rewards from the fees paid by the deceived-the deceived will cheat others-and so on. China's "MLM Banning Regulations" stipulates that those who organize and plan pyramid schemes shall be confiscated of their illegal property and income, and shall be fined from 500,000 yuan to 2 million yuan; If a crime is constituted, criminal responsibility shall be investigated according to law. Those who introduce, trick or coerce others to participate in pyramid schemes shall have their illegal property and income confiscated and be fined between 654.38 million yuan and 500,000 yuan; If a crime is constituted, criminal responsibility shall be investigated according to law. Those who participate in pyramid schemes shall be fined up to 2000 yuan. Those who provide business premises, training places, sources of goods and storage conditions for pyramid schemes shall have their illegal income confiscated and be fined between 50,000 yuan and 500,000 yuan.