The essence of MLM is a "Ponzi scheme", that is, the income of the previous person is distributed with the money of the latecomer.
Types of MLM:
1. Financial MLM
Features: Promise high returns and induce investment. Common projects for attracting funds include “XX Financial Cooperation Community”, “XX Financial Mutual Assistance Platform”, “XX Financial Mutual Assistance”, “XX Charity Financial Cooperation Platform”, and “XX Financial Mutual Assistance Investment” , "XX Mutual Aid Community", "XX Wealth Mutual Aid Platform", etc.; this kind of behavior is highly concealed and is mostly controlled remotely by overseas personnel. Investment funds are often transferred through personal bank accounts, online banking transfers or through third-party payment platforms.
Nowadays, many financial frauds are making noise in the guise of Internet finance. Recently, four ministries and commissions, including the Banking Regulatory Commission, the Ministry of Industry and Information Technology, the People's Bank of China, and the State Administration for Industry and Commerce, issued an early warning about this. It is difficult to maintain it for a long time. Once the capital chain is broken, investors will face serious losses. "At the same time, we also need to be wary of financial pyramid schemes in the name of private equity, investment, channel development, and mutual gifts."
2. Online MLM
Characteristics: Using the Internet, under the banner of e-commerce or micro-business, the cost is low, the development is rapid, and it is deceptive without meeting people.
Some MLM elements carry out illegal MLM activities under the banner of e-commerce, such as "online marketing", "online direct sales", "online store franchise" and "cyclical consumption", "100 back for purchases over 100" and "increased consumption". Promotions such as "Entertain online and make money online" are very attractive.
At present, the reasons for the rapid spread of online MLM are: first, it is very convenient for MLM elements to disseminate information through QQ groups, online games, YY voice, website forums and other tools; second, online MLM is known as "you can do it at home" "Start a business and make money in your pajamas" is very inspiring; thirdly, online MLM attracts strangers to a large extent, and the cost of attracting people is relatively low, and there is no need to accompany them to eat, play, or resign.
At the same time, the "people-pulling" scam of online MLM is more subtle, the speed of development and offline is faster, the number of people being deceived is larger, and the deception methods are more diverse. It can be said that "defrauding money without seeing anyone" ".
3. "Travel" MLM
Features: Under the guise of "travel direct sales", "low-price travel", "free travel", "making money while traveling" and other gimmicks, through The form of adding mobile WeChat friends was developed offline, attracting people to join and pay fees, and the virus spread very quickly.
“You only need to pay a small membership fee to get high-end travel for free” “Join us and you can travel around the world for free” “Other people spend money traveling, we can make money traveling” “Travel plus entrepreneurship”... ...Currently, there are no travel companies among direct selling companies and quasi-direct selling companies. At the same time, since "travel" is currently not within the scope of direct selling licensed products, it is impossible for short-term travel companies to become legal direct sales.
4. "National Project" MLM
Characteristics: Under the banner of "national support", "government background", "cultural industry", "spiritual civilization", "good project industry" "Grand Alliance", "Agricultural Development Platform" and other banners, forged state agency documents, fictitious companies and enterprises, and falsely promoted new industries under the guise of new industries.
Often through "chain sales", "chain franchise", "investment development", "capital operation" and other means, or through inspection, travel, franchise, "development agency", "establishing workstation" and other methods Engage in pyramid schemes.
5. "Fake Direct Selling Enterprise" MLM
Characteristics: Directly pretending to use the name of a regular direct selling enterprise to carry out other MLM activities, or pretending to use the name of a direct selling enterprise to open a WeChat official account False propaganda, recruitment of sales personnel through the Internet, and criminals using Taobao stores and WeChat stores to sell counterfeit products with exclusive rights to registered trademarks of formal direct companies.
Tiens, Sansheng, Perfect, Suntech, Luomai, Mary Kay, New Era, Keti, Kangting and other well-developed direct selling companies have all been counterfeited by criminals. Many direct selling companies invest a lot of money every year. Spend time and energy fighting counterfeiting.
6. "Fake Charity" MLM
Characteristics: Claiming to have an official background, under the guise of "charitable aid", "loving mutual aid", etc., to "do charity, build "Harmonious Home", "Love Supporting Poor Students" and other forms deceive kind-hearted people into being deceived.
7. "Elderly Care" MLM
Characteristics: In the name of "consumption for elderly care", investment in nursing homes, etc., it develops a large number of members to achieve the purpose of financing and making money.
As the pace of aging in our country accelerates, while the government encourages private sectors to participate in the elderly care industry, there are also some models in the market under the guise of "elderly care", but in fact they are used to encircle money and land, or even industry. cheat.
MLM and disguised pyramid schemes not only seriously disrupt the normal economic order of society, but also seriously endanger social stability and cause huge damage to the business integrity system and social ethics and moral system.
(1) Disrupt the market economic order and infringe on multiple legal objects. Illegal activities of pyramid schemes and disguised pyramid schemes are often accompanied by a large number of illegal activities such as tax evasion, manufacturing and selling of counterfeit goods, smuggling, illegal fund-raising, and illegal trading of foreign exchange. They not only violate national regulations prohibiting pyramid schemes and disguised pyramid schemes, but also violate taxation and consumer protection. , market order management, finance, foreign exchange management and other legal provisions.
(2) Cause harm to participants and their families. MLM and disguised pyramid schemes not only cause financial losses to participants, but also cause huge harm to their families.
(3) Cause criminal crimes and bring harm to social stability. MLM has caused the vast majority of participants to lose all their money. Some people live in other places, live miserable lives, and even commit suicide by jumping off buildings. Some people also participate in illegal activities such as theft, robbery, armed fighting, rape, prostitution, and gathering to make trouble, which puts people's lives and property safety at risk. causing serious damage to social stability.
(4) Cause huge damage to social morality and integrity system. Since most of the targets of MLM personnel are relatives, friends, classmates, fellow villagers, and comrades-in-arms, their unscrupulous deceptive methods have led to a serious decline in trust among people, causing conflicts between relatives and friends, fathers and sons, and even families being broken up.
First of all, you should be wary when describing returns in exaggerated ways. High returns must come with high risks.
Secondly, no matter how the form of MLM changes and develops, its essence is still to pay the entry fee by purchasing shares, developing downline personnel and recruiting people to form a hierarchy, and the "performance" of the downline personnel is used as the basis for profit.
Therefore, to identify MLM, you need to look at three characteristics:
1. Entry fee
Whether it is necessary to subscribe for goods or pay a fee to qualify to join or to recruit others to join Qualifications to seek illegal benefits;
2. Pulling people
Whether it is necessary to develop others to become one's downlines, and the number of people to be developed will be based on the number of people to be directly or indirectly developed on a rolling basis To seek illegal benefits based on payment of remuneration;
3. Remuneration method
Whether remuneration is calculated based on direct or indirect development of personnel and to seek illegal benefits.
If it meets the above characteristics, it may be suspected of pyramid schemes.
Extended information
Avoid pyramid schemes
1. Beware of "killing people" and be wary of the temptation to get rich suddenly.
Be cautious when relatives and friends introduce investment or job opportunities in other places, or when friends who have not been in touch for a long time suddenly ask for travel, introduction, etc. Verified by multiple parties. You can inquire through 114, industrial and commercial registration inquiries, etc.
2. Check the company information carefully.
Not all companies on formal recruitment websites are formal. Be sure to check carefully, including the company's detailed address, phone number, industry reviews and cases it has done, etc.
It is not ruled out that some MLM organizations use other company information. It is best to ask friends where the company is located. Be vigilant.
3. Ask a lot of questions during the phone interview.
During the phone interview, you can ask several in-depth professional questions and project specifics. If the other party is hesitant or avoids questions, you must be vigilant.
4. Be careful when changing your address temporarily.
After arriving at the specified location, be careful if the other party calls to change the meeting address! You can ask people nearby if this company is working.
If the other party says they are sending a car to pick you up, don’t get in the car casually, as they may have colluded with a pyramid scheme.
5. Don’t go to a remote meeting place.
If you find that the meeting address is very remote. Just don't go. The address of the interview location must be sent to family and friends.
Generally, formal companies will sign a contract before working. Be careful when going directly to the construction site or project location.
6. Be more concerned about your family’s situation.
MLM organizations usually ask if their family members are around, if they have any friends in this city, etc. You can deliberately exaggerate your connections, saying that you have many friends in this city and acquaintances in hospitals and police stations. The MLM organization has some scruples, and you also have the opportunity to escape.