What is the difference between WeChat three-level distribution and pyramid scheme?

When it comes to pyramid schemes, many people are shivering, so what is the difference between WeChat tertiary distribution and pyramid schemes? Comparing the two, you will find many wonderful things. Let's have a look!

There may be a vague understanding of pyramid selling, but it is not exact. What is the precise definition of pyramid selling? MLM refers to selling products without substance. Sellers often win people over through various unscrupulous means to get money, and more and more money. They think their products are models, but there are no physical products at all. In this mechanism, the more the unknown money of the upper class converges.

Judging whether it is illegal depends on the following conditions:

First, is there a difference between products?

Normal sales are mainly commodities, while the so-called pyramid scheme has no products, while micro-distribution is derived from commodities. All businesses that want to do micro-distribution must have a business license of a regular company, must be authentic, and must have goods that are allowed to be sold in their own country. Therefore, they can be distinguished by the presence or absence of products.

Second, is there a huge entry fee?

Judging whether it is pyramid selling or micro-distribution, you can also see whether you need to charge a huge membership fee when you get started. Normal sales require members to sell products through their own continuous promotion and publicity, and there is almost no threshold for becoming a distributor. The biggest feature of pyramid selling is that people are constantly brought in, and membership fees are charged in various names to maintain the expenses of this organization, so that online personnel can make money.

Third, the difference in the final cycle

The cycle of pyramid selling is a vicious circle, which will not bring any return to offline salesmen, but will only harm the interests of salesmen and cause losses. Micro-distribution is a marketing channel, which directly establishes contact with consumers. The traffic fee originally paid to the platform is converted into profits, which directly benefits consumers, increases customer stickiness and promotes the word-of-mouth spread of brands on social media, thus achieving a virtuous circle.

As long as the profit source, profit model and final cycle of MLM and WeChat distribution are clear, it is not difficult to distinguish them. Wechat tertiary distribution is not MLM. Whether you can make money through this model depends entirely on your personal ability. The current law protects the normal three-level distribution of WeChat, but it is also a state of severe attack on MLM.

The third-level distribution of WeChat is legal. At present, the three-level distribution system of WeChat has been widely used.

After reading the detailed introduction of WeChat three-level distribution and pyramid scheme, can you clearly feel the difference between WeChat three-level distribution and pyramid scheme? Did those confused friends have an epiphany? Is it possible to bravely move towards the three-level distribution of WeChat?