First of all, figure out what MLM is.
MLM is a pyramid sales model with actual product and personnel development.
Illegal pyramid selling is an illegal mode without actual products, which restricts people's development online, offline, pyramid and human rights and freedom.
Illegal pyramid selling is an illegal sales model, that is, selling things with improper sales model. Perfection does not mean illegal pyramid schemes. As long as it is properly sold like most commodities, it is not illegal pyramid selling.
There are two kinds of direct selling:
A generalized direct selling. That is, directly from the manufacturer or general agent-consumers. Omitted intermediate links and intermediate costs. For example: TV direct selling, data direct selling, network direct selling, etc.
The second is direct selling in a narrow sense. And direct selling is divided into single-level direct selling and multi-level direct selling modes. Single-level direct selling is mainly represented by Avon direct selling company. Multi-level direct selling is mainly represented by direct selling companies such as Amway, and formal direct selling companies are protected by laws and regulations. In 2005, only the Regulations on the Administration of Direct Selling and MLM was promulgated, but the Direct Selling Law has not yet been promulgated. So it is not completely protected by laws and regulations, but bound by laws and regulations. Illegal direct selling companies are also called illegal pyramid selling organizations, economic cult organizations, pyramid selling organizations and many other titles. It is a product derived from the formal direct selling model.