Direct selling: refers to the distribution mode that manufacturers sell products and services directly to consumers, that is, bypassing the intermediate links of traditional sales, direct selling companies recruit direct sellers to communicate and share directly with customers. Different from the traditional model, direct selling not only improves the public's consumption consciousness, but also reduces the unnecessary expenses of enterprises. At the same time, as a new marketing model, it has made important contributions to the national economy and charity.
MLM: Simply put, MLM is a pseudo-model, a virtual product, and an empty concept, which will only make you get ahead of others and continue to develop offline. All pyramid schemes have only one unchanging purpose, that is, by brainwashing and controlling the mind, to defraud the participants of the joining fee and constantly attract people to join, so as to obtain more huge profits.
There are also great differences between direct selling and pyramid selling:
Different entry thresholds
Direct selling: According to the Regulations on Direct Selling Management, participants do not need to engage in direct selling in the form of paying fees or purchasing products. In other words, the direct seller does not need to pay a high entry fee, but only needs to sign a sales contract with the direct selling enterprise or its branches to participate in direct selling entrepreneurship.
MLM: It exists to obtain illegal income, so it always cheats under the guise of "legitimate and regular" undertakings, "state-supported" projects and "charity to help others". It not only charges high entry fees, but also continuously invests funds to develop offline in the future and satisfy the greed of online and pyramid tips.
Different product quality
Direct selling: Not all products of the company with direct selling license can be sold through direct selling mode, and the scope of direct selling products is limited to six categories: health food, cosmetics, cleaning products, small kitchen utensils, health care equipment and household appliances. Products that want to be sold through direct selling must undergo strict examination and be made public in official website or the Ministry of Commerce for inquiry and guarantee.
MLM: Usually, participants are allowed to spend money to join by using fake products and virtual models. Most products have no substantive content or poor quality, which not only causes serious economic losses to investors, but also destroys the market economic order.
Different payment methods
Direct selling: According to the Regulations on Direct Selling Management, direct selling enterprises must pay monthly remuneration to direct sellers, and the total remuneration received by direct sellers shall not exceed 30% of the income of direct sellers selling products to consumers, while direct selling enterprises must advocate the principle of distribution according to work and more pay for more work.
MLM: There is only one way to pay income, which is to develop the number of offline products. Pulling people's heads makes MLM snowball, but without developing offline, there will be no income and even more losses.
Different price systems
Direct selling: The price of direct selling products must conform to the market rules and demand, and the products must be clearly marked and found in direct selling companies or service outlets, and the direct sellers shall not change them without authorization.
MLM: MLM products are not only expensive, but also the value and price do not match. It is often packaged as a "good product" with the concept of "false sky" to deceive the public. Not only is there no unified price system, but it has multiplied under the expansion of greed and desire, just to get more profiteering.
Different management methods
Direct selling: Direct sellers are managed and trained by direct selling enterprises in a unified way, and the management is very strict. At the same time, when engaging in direct selling business activities, direct sellers must abide by the direct selling industry regulations and relevant systems formulated by direct selling enterprises, otherwise they will be severely punished or even disqualified.
MLM: Traditional MLM conducts brainwashing training in a certain place by controlling personal freedom, adopting violent means, and holding a unified meeting. Although the new MLM is also "in class", it is more about spreading false projects through social software, controlling thoughts, misleading the public and confusing people.
The fundamental purpose is different
Direct selling: The fundamental purpose of direct selling is to let consumers know more about good products, let entrepreneurs find better career opportunities, gather more loyal customers for direct selling companies, and let people who participate in buying know how to consume correctly.
MLM: From the beginning to the end, there is only one purpose, that is, to collect money quickly and make huge profits, without paying attention to product quality, let alone the development of participants, and just want to get more illegal income.