Is Zhizhonghe a pyramid scheme?

Neutralization is pyramid selling.

According to the news obtained by the reporter of China Times from the Zhejiang Provincial Department of Commerce, Zhi Zhonghe is applying for a direct selling license, and Zhi Zhonghe is still in the material application stage.

According to the reporter's investigation, Zhi Zhonghe has been carrying out direct sales activities, constantly developing offline members through the pyramid structure, and claiming that the commission obtained by developing members can be as high as 10 million yuan with the theory of "saturation multiplication".

According to Article 3 of Chapter 1 of the Regulations on the Administration of Direct Selling promulgated by the State Council, direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, who directly sell products to final consumers outside the fixed business premises.

Chapter III Article 14 stipulates that direct selling enterprises and their branches shall not publish advertisements promoting the sales remuneration of direct sellers, and shall not make payment of fees or purchase of goods as a condition for becoming direct sellers.

It is illegal to engage in direct selling activities without obtaining direct selling qualification.

Extended data:

Neutralization mode

There will be regular training courses every week, and the monthly courses will change. Every time the conference room is full, there are no fewer than 100 people, including men, women and children, Hangzhou locals and outsiders.

The content of the training course is to explain the direct selling called "neutralization mode", and the core is "how to make money".

If you want to do Zhizhong's direct sales business, you must first become a member of Zhizhong, provided that you buy Zhizhong's drinks. It is divided into three packaging levels, with 3000PV, 6000PV and 9000PV as calculation units. The starting price of each level is about 3888 yuan, the second level is about 7000-7500 yuan, and the third level is about 10620- 10850 yuan.

The next step is to develop membership. Everyone can only develop two members, called "the first generation", which are replaced by A and B respectively, symbolizing two departments (or two markets). A and B will develop their own two members, called "the second generation", and then the second generation will develop two members, called "the third generation", and so on.

In this way, under the neutral direct selling mode, you are introduced by others, and at the same time you belong to the tower foundation and body of others. You also become a member by introducing others and become the top of your pyramid.

The three packages purchased by members are divided into three kinds of commissions, namely 10%, 15% and 20%. Every generation of members develops, and the previous generation even the "steeple" has a progressive commission. The more advanced algebra is, the more commission spire gets.

Every member, if his/her weekly income reaches a certain amount, must also spend a certain proportion of money on neutralizing products, and the next generation will get a commission on consumption, which is called "running water".

Zhizhong's staff also said that they don't want to do it in the future, and the extra drinks can be returned. When the reporter wanted to ask in detail, the originally cheerful staff looked gloomy and their tone was a lot stiff. "If you take out one or two thousand dollars to start a business and always want to pay it back, then the business will not be done well." "Joining Zhonghe and finally returning the goods means that your motivation is not good and your business is definitely not good."

During the training, most lecturers emphasized the century-old brand of Zhizhonghe and the strength of the acquirer Juniper Holdings, reminding lecturers that they would not be cheated if they joined Zhizhonghe, and all of them would be shareholders when it went public three years later.

According to public information, in the first half of 20 10, Zhejiang Juniper Holding Co., Ltd. established Zhejiang Zhizhonghe Industrial Co., Ltd. to acquire the original Zhizhonghe Company according to the relevant approval of the jiande city Municipal Government. Juniper Holdings owns Juniper Ji Ye Investment Co., Ltd. (600077), one of the largest listed real estate enterprises in Zhejiang.

Regarding the original intention of Juniper Holdings to acquire He Zhi, the official Jiande News Network 20 10 reported that "He Zhi needs a lot of capital to go international and modernize." Therefore, we need to find a "gold owner" like Juniper Holdings.

Another way of saying this is that the jiande city government facilitated the acquisition of Zhonghe by Juniper Holdings in order to achieve the goal of listing as soon as possible. Yu Jianwu, the actual controller and chairman of Juniper Holdings, also publicly stated in March 20 1 1 that it would take three to four years to build Zhonghe into an excellent listed company.

References:

China Economic Net: Zhi Zhonghe is suspected of pyramid selling: accused of being lured to develop offline at a high price.

Phoenix Network: Neutralization, Direct Selling or MLM? Pyramid building development member industry refers to its violation.

Baidu Encyclopedia: Regulations on Direct Selling Management