MLM.
MLM refers to a business model that recruits personnel, requires the recruited personnel to recruit other personnel, and calculates and pays upline remuneration based on the sales performance of the downline. MLM activities are usually characterized by high entry fees and membership fees for developing downlines, and the number of development personnel is used as the basis for remuneration or rebates. The purpose of MLM is to make a profit by constantly developing downline personnel, not by selling actual products or providing real value.
MLM activities usually have the following characteristics:
1.Emphasis on personnel development: MLM organizations encourage members to develop more downline personnel to join in and form a multi-level organizational structure.
2.With recruitment as the main goal: MLM organizations are more focused on developing the number of people rather than selling actual products or providing real services.
3.High entry fees: MLM organizations often require new members to pay high entry fees or purchase product inventory.
4.Remuneration based on head-pulling: MLM organizations use the number of recruits as the basis for remuneration or rebates, rather than on actual sales performance.
5.Pyramid structure: MLM organizations usually present a pyramid organizational structure, with upline members being paid for their development and sales performance.
MLM is considered illegal in many countries because it often involves fraud, false advertising, and illegal economic activities. Participating in pyramid schemes can lead to loss of personal property, breakdown of relationships, and legal risks.
Explore hardcore knowledge