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What exactly is Amway? What's the difference between direct selling and pyramid selling?

Amway belongs to direct selling, which has actual product sales and the price is in line with the actual value of the product.

The essential difference between direct selling and pyramid selling is that direct selling relies on selling products, and the price of products conforms to the value of products, while pyramid selling relies on developing members to make money.

Direct selling: As the name implies, it is direct selling. Manufacturers sell their products directly to consumers without going through agents.

MLM: If there is no product for sale, or the price of the product exceeds its actual value, the remuneration is mainly calculated and paid on the basis of developing membership or performance, and the membership fee is paid for MLM.

Extended data:

Direct selling can also be called factory direct selling, and it can be sold directly without agents. It refers to a sales model in which direct selling enterprises recruit direct sellers to sell directly to final consumers.

The World Direct Selling Association defines the concept of direct selling as follows: Direct selling refers to the direct introduction of products and services to consumers and the marketing of consumer goods by independent marketers in places other than fixed retail stores (such as personal residences, workplaces or other places) in a face-to-face manner.

MLM refers to the illegal behavior that organizers and developers calculate and pay remuneration to the developed personnel on the basis of the number or performance of the directly or indirectly developed personnel, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee. The essence of pyramid selling is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the pioneers.

New pyramid scheme: no restrictions on personal freedom, no ID cards and mobile phones, no group classes. But under the banner of capital operation, attracting people to cheat money, using luxury cars, wearing gold and silver, etc. Use money to attract your relatives and friends, and finally let you lose everything.

1April 2, 9981day, the government of China announced a total ban on pyramid selling. Public security organs throughout the country adhere to the "zero tolerance" attitude towards pyramid schemes, continue to focus on key cases, key areas and key areas, keep a close eye on new means, new trends and new trends of pyramid schemes, and constantly crack down on pyramid schemes.

References:

Baidu Encyclopedia-Direct Selling? Baidu encyclopedia -MLM