How to prevent MLM in 2017? What are the new models of MLM in 2017
4hw.org: MLM has always been a cancer in the society. In recent years, MLM organizations have not been eradicated, and new forms have emerged, which are impossible to prevent. Many people think that pie will fall in the sky, and they want to make a fortune by themselves. They are brainwashed by entering MLM by mistake, causing harm to relatives and friends. So how to identify MLM organizations? Let's take a look with Xiaobian!
How to identify MLM organizations in 2017
I. MLM concept
Pyramid selling refers to the behavior that organizers or operators develop personnel to seek illegal interests, disturb economic order and affect social stability by calculating and paying remuneration to the developed personnel based on the number of personnel they develop directly or indirectly or the sales performance, or require the developed personnel to obtain the qualification for joining on the condition of paying a certain fee.
II. Characteristics of traditional MLM
1. Strict organization and secretive action
Traditional MLM usually lures people to other places through various means, and then participates in MLM activities. The organization is relatively strict, and the behavior is also more secretive. The upper and lower line personnel are usually in single line contact rather than cross-line contact. The senior level of MLM is usually remote control command from other places.
2. Select acquaintances
In traditional MLM activities, MLM personnel usually cheat their family, friends, fellow townspeople, colleagues, classmates and other acquaintances to participate in MLM in other places under the pretext of "looking for jobs", "doing business together", "gathering friends" and "meeting with netizens".
3. Advocating overnight prosperity
The MLM personnel lure people to a closed place, and then they will use a complete set of seemingly scientific bonus distribution system and related theories to instill the idea of overnight prosperity and encourage people to join the MLM activities.
4. Continuous Brainwashing
The MLM staff usually instill the concept of MLM into the new entrants by means of centralized teaching, exchange and heart-to-heart talk, care and greetings, until the new entrants believe in the overnight wealth and voluntarily carry out MLM.
5. High margin
Any MLM has a 'high rebate plan' that seems fair and attractive. Under such a high rebate plan, it's hard for new entrants to refuse such temptation and it's easy to join MLM activities.
6. False high price of 'goods'
In fact, the commodities sold by MLM activities are just a kind of cover up. The purpose of MLM is to attract people to join in and develop offline, so as to cheat money. Therefore, the commodities sold by MLM either do not exist or their prices are far from their actual values. Many of them are cosmetics, nutrition products, health care products, clothing and "three no" commodities that are difficult to measure the prices. (this article is edited and collated by sihai.com, reprinted and noted with source, original link: http://www.4hw.com.cn/life/)
III. The meaning of Internet MLM
Internet MLM is an upgraded version of traditional MLM. Internet MLM is a new type of MLM mode with Internet as its carrier. Generally, organizers and operators give online members the right to directly or indirectly develop offline members through the Internet, using windfall profits as bait, paying certain fees through members or taking the number of offline members as the basis for calculation and payment of remuneration Illegal and criminal act of profiteering by law.
IV. characteristics of Internet MLM
1. Concealment of means
Traditional MLM mainly occurs between acquaintances, with the help of interpersonal network, using emotion to cheat. Internet MLM provides cover for MLM activities with the help of the carrier of Internet. The head of MLM hides behind the scenes, contacts members with anonymous identity, develops offline members, publishes relevant information, receives feedback information, etc. all operate with the help of Internet. The collection of fees and the payment of wages and bonuses are also carried out through the account on the Internet. Once someone is exposed and arrested, the contact person only needs to close the website and cancel his account. The electronic transaction document of the arrested person cannot be opened or downloaded. Internet MLM upgrades the traditional face-to-face MLM mode to point-to-point MLM, which may be unknown to both the upper and lower levels. The head of MLM is behind the scenes, and the server is hosted in different places, even abroad, with strong concealment.
2. The victims have a wide range of stakeholders
Traditional MLM has limited development and communication speed because it is limited between acquaintances and in the same region, but Internet MLM is different. Through the Internet, there are many potential members for development, and there are rich development channels, which are not restricted by the region. Anyone can develop offline with a simple click of the mouse. The communication speed is very fast and the communication range is very wide , the number of people who spread the disease can increase explosively.
Case: in August 2013, the public security organs in Tianjin, Hebei, Inner Mongolia, Liaoning, Shanghai, Jiangsu, Hubei, Hunan and other places successfully cracked the criminal case of "Cloud Data Trade Alliance Network" related personnel suspected of organizing and leading pyramid selling activities, and seized 33 criminal suspects. Investigation found that since 2012, the suspect song, relying on the website of "cloud data trade union", used high rebate as bait, required participants to pay different amounts of fees, becoming individual certified merchants, enterprise certified merchants and Alliance certified merchants, and then paid rebate and bonus according to the development of participants. The participants are organized into a certain level according to the time sequence of joining and the amount of capital invested. There are more than 190000 people involved in this process, and the victims have a wide range of stakeholders.
3. Subject virtualization
In the Internet age, high technology is a very advanced concept, but for many netizens, it is a very virtual thing. The MLM personnel make use of this, under the guise of "capital operation", "high technology", "promoting national related industries", etc., with the help of the concept of high-tech products and the support of national policies to carry out MLM in disguise. Unreasonable netizens are easy to be induced Come, the virtual MLM logo also makes it difficult for netizens to judge, mistakenly thinking that the MLM logo is an advanced concept, and then fall into the MLM trap.
Case: since February 2012, Xiangtan Public Security Bureau has received reports from the masses. Liu and others, in the name of selling "ung" e-stocks, adopted the method of activating and distributing e-stocks through receipt to attract members to join in, rented Internet servers in the United States, and used the "ung" company's network platform through false publicity of the member loyalty feedback plan of Italy's "ung Investment Co., Ltd." , directly take the number of electronic shares purchased and the number of development members as the basis of remuneration and rebate, engage in pyramid selling activities, illegally seek huge profits, and fully virtualize the target.
4. Low illegal cost
In traditional MLM activities, leaders usually spend a lot of manpower, material resources, financial resources, energy and other costs to establish pyramid MLM level. At the same time, they also spend a lot of costs for operation and management. The illegal cost is relatively high, and the risk is relatively large. However, Internet MLM is not the case. MLM leaders only need to establish a website and use the virtual identity of the network to borrow Help the website to carry out the propaganda, operation, personnel management, fund distribution, etc. of MLM. Once there is a problem, the fund can be transferred abroad quickly. Not only the operation cost is low, but also the fight is difficult. Therefore, many lawbreakers take the risk and embark on the road of Internet MLM. (this article is edited and collated by sihai.com, reprinted and noted with source, original link: http://www.4hw.com.cn/life/)
Case: EFT international directional investment fund (hereinafter referred to as EFT Fund) calls itself the directional investment private fund of EFT group company of the United States. It takes high margin and dividend as bait, develops offline through the Internet, and constructs a huge new online marketing kingdom. In just one year, more than 40000 people were cheated, including 1525 Hubei people and a large number of highly educated talents, businessmen, civil servants & hellip & hellip; with a total amount of 540 million yuan, involving 31 provinces and cities in China. Police said that four core leaders, Wu Tao, Zhou Xiaohong, Zou DA and Zou Xiao, were arrested only by Zou Xiao, while others fled overseas. The organization's network management system has been frozen and new members can no longer be developed. Most of the money has been transferred abroad and is difficult to recover. In addition to the core members, the majority of the members of the foundation only take education as the main way of punishment, without criminal responsibility, and the cost of violation is very low.
5. High intelligence of leaders
The head of Internet MLM needs to build a website with professional Internet knowledge to promote, establish a business system and a fund operation platform, and set up different login entrances with many encryption methods to distinguish the agent and the member system. In addition, he needs to build a set of automatic office platform for organization and management Taiwan, but also master the maintenance technology of the website, the relevant MLM personnel are also proficient in various operations of the website to develop the offline, carry out fund transfer agent, query salary, etc., so many of the Internet MLM leaders and some of the relevant personnel are highly educated, and the trend of high intelligence is increasing.
Case: in the case of Guangxi Beihai '307' high value franchised MLM, most MLM personnel are people with high education, certain economic strength and social status. They carry out MLM activities in some high-end residential quarters in Beihai City, and adopt a separate way to 'brainwash'. Each participant pays 69800 Yuan 'joining fee'. The organizer claims that as long as the three downlines developed can develop normally, 10.4 million yuan (known as the 1040 project) can be earned back within one year. The temptation is very strong, there are many participants, which seriously infringes the vital interests of the masses, and seriously damages the image of development and construction of Beihai and even the whole Beibu Gulf Economic Zone. (this article is edited and collated by sihai.com, reprinted and noted with source, original link: http://www.4hw.com.cn/life/)
V. forms of Internet MLM
At present, there are various types of MLM on the Internet, but in terms of specific forms, the classification standards of different places and institutions are different, but they are essentially the same, roughly including the following six types:
1. "Virtual Internet" type.
This type mainly includes "online earning", "webpage game", "money game", etc. it requires new members to pay membership fees, become website members, obtain the qualification of offline development, and then get rewards according to the people they pull.
Case: on June 25, 2013, Guangdong public security organ filed a case to investigate the criminal case of Bao XX, who was suspected of organizing and leading pyramid selling activities. Since August, the public security organs in Inner Mongolia, Shandong, Guangdong, Guangxi and other places have jointly carried out a network collection operation, seizing 17 suspects and dismissing 320 people involved in pyramid selling. Investigation found out that since 2011, Bao XX has taken the website of "AHK Australia Huijin financial management game" as the platform, under the guise of recruiting game players, and vigorously developed offline profits. According to the website, players must purchase points, register their game accounts and obtain membership. On the website platform, they can use points to purchase game tokens or sell game tokens back to earn points, and get commission through offline development by level.
2. Capital operation.
This kind of internet pyramid selling is mainly under the false guise of listing financing, purchasing original shares, financing investment, etc., which lures people to pay dues to obtain membership with high returns.
Case: '1040 sunshine project', a lie woven into 'national secret policy' by illegal MLM personnel, 'capital operation project supported by the state secretly', also known as' voluntary chain operation ',' chain sales' or 'capital operation', is actually MLM activities. It is understood that this kind of capital operation has a set of theory of "five levels, three Jin systems and outgoing systems".