What's the difference between insurance and pyramid selling? Is the essence the same?

The difference between MLM and insurance:

1, different ways to generate income

The income of pyramid selling depends on the offline (entrance fees for newcomers or selling products to newcomers), and the income of insurance depends on performance (the practice of selling stable income);

2. The names of the fees charged are different.

Participating in pyramid selling (direct selling) occupation is an entrance fee (irrecoverable), and participating in insurance occupation is a deposit (generally refundable);

3. Different personnel requirements

There is no entry threshold for pyramid selling (direct selling). In addition to the threshold (textual research), insurance also needs certain reputation protection;

4. The legal level is different.

MLM is illegal, insurance is legal, and it is supported by the state.

MLM and insurance are completely different in nature. Insurance is legal, pyramid selling is illegal.

The state strongly advocates the development of insurance industry and regards insurance as an important industry. Insurance plays an unparalleled role and plays an irreplaceable role in maintaining the stability of people's livelihood.

MLM religion is the root of destroying the family, which is not allowed by law. Many people dream that MLM will bring a surge in wealth.

note:

Insurance and pyramid schemes are actually equated, because the increase of insurance employees is very similar to pyramid schemes. The interests at all levels and the chaos caused by the insurance industry have caused this statement. However, the relationship between them is somewhat similar, only on the surface.

The positive role of insurance is incomparable, and at the same time, the state vigorously develops encouraged industries, which is the future of development; MLM, which violates the law and destroys family harmony, is an industry that should be spurned and abandoned.