1. Regular direct selling companies will have a registered capital of 80 million yuan and a deposit of 20 million yuan in the industrial and commercial bureau.
However, illegal pyramid schemes do not exist, or they are engaged in illegal pyramid schemes under the banner of other legal companies. Of course, there are also some pyramid schemes in which local companies register a small traditional company or a fictitious registered company to increase their credibility.
2. Products:
Regular direct selling companies have a variety of products, most of which are developed and produced by their own companies, and only a few of them are agents or not.
Generally speaking, the products of MLM institutions are relatively simple, and most of them belong to three-no products. There are also many illegal pyramid schemes that borrow products from other well-known companies (however, their products are fake and shoddy). In recent years, some new forms of pyramid selling have emerged, such as distance education, fund-raising, government projects, online stores, original stocks and so on.
3. Education system
Regular direct selling companies have a perfect education system and a team of education experts and lecturers.
MLM only organizes training organized by team members.
4. Regular direct selling companies will have specialty stores, while MLM institutions do not.
5. Whether there is a perfect return system.
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