What exactly does MLM mean? What concept?

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.

According to Article 2 of the Regulations on Prohibition of MLM, MLM refers to the behavior that organizers or operators calculate and pay remuneration to the developed personnel on the basis of 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, so as to seek illegal interests, disrupt economic order and affect social stability.

Article 7: The following acts belong to pyramid selling:

1. The organizer or operator requires the developed personnel to join other personnel through the development of personnel, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on the number of personnel directly or indirectly developed, so as to seek illegal benefits;

2. The organizer or operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities. , and obtain the qualification to join or develop other personnel to join, and seek illegal interests;

3. The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, thus forming a relationship between the upper and lower levels, and calculating and paying online rewards based on the sales performance of the lower line to seek illegal benefits.

Extended data:

MLM hazards:

Disturbing social and economic order, affecting social stability and unity, causing social unrest such as the rise of social criminal cases and family destruction. The essence of MLM is that it does not create social value by illegally transferring and gathering finance offline, which is the essential difference between MLM and normal marketing. MLM is not an act of the state, nor can it be an act of the state. Although it stimulated the local economy and promoted consumption, its own organizational behavior caused irreparable harm to most participants and violated the normal life and activities of human beings.

Terms commonly used in pyramid selling activities:

1, "Beibu gulf construction", "capital operation", "1040 project", voluntary chain, private mutual financial management;

2. Consumer rebate, chain sales, joining, profit from click advertising, love and mutual assistance, consumer pension, overseas funds, original stock investment, and electronic currency transactions;

3. Static income, dynamic income, direct promotion award, layer promotion award, touching award, seeing award, leadership award, cultivation award, declaration award, management award and community performance award.

Baidu encyclopedia: MLM