New-Style Pyramid Schemes: More Powerful Than You Can Imagine! Do You Still Believe in Free Lunches?!
New-Style Pyramid Schemes: More Powerful Than You Can Imagine!
On-site video reveals the truth Ignorant people, too greedy! Is there such a thing as a free lunch in this world? Common Types of Pyramid Schemes In recent years, the types of pyramid schemes that have had a wide impact and particularly bad nature in China include: financial pyramid schemes, "tourism" pyramid schemes, e-commerce pyramid schemes, "national project" pyramid schemes, "counterfeit direct selling enterprise" pyramid schemes, "fake charity" pyramid schemes, "elderly care" pyramid schemes... Financial Pyramid Schemes Characteristics: They promise high returns to lure investments. Common names for such fund-raising activities include "×× Financial Mutual Aid Community," "×× Financial Mutual Aid Platform," "×× Financial Mutual Aid Wealth Management," "×× Charity Financial Mutual Aid Platform," "×× Financial Mutual Aid Investment," "×× Mutual Aid Community," "×× Wealth Mutual Aid Platform," etc. These activities are highly concealed, often remotely controlled by overseas personnel, and investment funds are usually transferred via personal bank account online banking or through third-party payment platforms. Many financial frauds are currently making a lot of noise under the guise of internet finance. Recently, the China Banking Regulatory Commission, the Ministry of Industry and Information Technology, the People's Bank of China, and the State Administration for Industry and Commerce issued a warning: "This type of operation model violates the law of value, and the capital operation cannot be sustained in the long run. Once the capital chain breaks, investors will face serious losses." At the same time, be wary of financial pyramid schemes under the guise of private equity, equity investment, developing channel distributors, and mutual gifting. Typical Cases: "MMM" "Treasure Coin" "Baichuan Coin" "Jubao Finance" "Huanqiu Lijin" "China Mengshang" "Americas Mining" "Yifudi Fund" "Virtual U Coin" "Fake 20th Century Fox" "ABCD Wealth Network" Online Pyramid Schemes Characteristics: They use the internet, under the banner of e-commerce or WeChat business, with low costs, rapid development, and cheating people without meeting them. Some pyramid scheme operators use the banner of e-commerce to conduct illegal pyramid scheme activities. Promotions like "online marketing," "online direct selling," "online store franchising," "circular consumption," "spend 100 get 100 back," "consumption value-added," and "earn money online while having fun" are very attractive. Currently, the reasons for the rapid spread of online pyramid schemes are: first, pyramid scheme operators use tools such as QQ groups, online games, YY voice, and web forums to spread information very conveniently; second, online pyramid schemes claim "you can start a business at home and earn money in your pajamas," which is highly persuasive; third, online pyramid schemes often recruit strangers, and the cost of recruiting people is relatively low, without the need to accompany them for meals or entertainment, or quit your job. At the same time, the "head-hunting" scams in online pyramid schemes are more concealed, the speed of developing downlines is faster, the number of deceived people is greater, and the means of deception are more diverse. It can be said that they "cheat people of money without meeting them." Typical Cases: "Yunshumao" "WeChat Lighting" "Chongqing Kuailian Technology" "Fan Empire" "4G Mall Fake Platform" "Zhonghe Payment" "Registered Members Recharge Network Phone Bills" "Tourism" Pyramid Schemes Characteristics: They use gimmicks such as "travel direct selling," "low-cost travel," "free travel," and "earn money while traveling" to develop downlines by adding friends on WeChat, recruiting people to join and pay fees, and spreading virally at a very fast pace. "Just pay a small membership fee and enjoy a free high-end trip," "Join us and travel the world for free," "Others spend money on travel, but we can earn money from travel," "Travel plus entrepreneurship"... Currently, there are no travel companies among direct selling enterprises and quasi-direct selling enterprises. Moreover, since "travel" is not within the scope of products permitted for direct selling, it is impossible for travel companies to become legal direct selling in the short term. Typical Cases: "xx Dream Journey" "Hebei Lingyuan Network Technology" "Red Tourism" "National Project" Pyramid Schemes Characteristics: They use banners such as "national support," "government background," "cultural industry," "spiritual civilization," "good project industry alliance," and "agricultural development platform," forge documents from state organs, fabricate companies, and falsely promote under the guise of new industries. They often use means such as "chain sales," "chain franchising," "investment development," and "capital operation," or engage in pyramid scheme activities through inspections, tourism, franchising, "developing agents," and "establishing workstations." Typical Cases: "1040 Project" "Mingmingshang" "Western Development" "Counterfeit Direct Selling Enterprise" Pyramid Schemes Characteristics: They directly use the names of legitimate direct selling enterprises to carry out other pyramid scheme activities, or use the name of direct selling enterprises to open fake WeChat public accounts for false publicity, recruit sales personnel through the internet, and some criminals use Taobao stores and WeChat shops to sell counterfeit products that infringe on the registered trademarks of legitimate direct selling enterprises. Well-developed direct selling companies such as Tiens, Sunrider, Perfect, Shanghe, Luomai, Mary Kay, New Era, Kelti, and Kangting have all been counterfeited by criminals. Many direct selling enterprises invest a lot of time and effort in anti-counterfeiting every year. "Fake Charity" Pyramid Schemes Characteristics: They claim to have official backgrounds, use banners such as "charity relief" and "love mutual aid," and deceive kind-hearted people into falling for scams through forms like "doing charity to build a harmonious home" and "love supporting poor students." Typical Cases: "Jishan Home Network" "World Harmony Foundation" "Elderly Care" Pyramid Schemes Characteristics: They use names like "consumption for elderly care" and "investing in nursing homes" to develop a large number of members and achieve the goal of raising funds and accumulating wealth. As China's aging population accelerates, while the government encourages private forces to participate in elderly care, there are also some models in the market that use the banner of "elderly care" but are actually about raising money, grabbing land, or even committing fraud. Typical Cases: "Shanghai Jia Dihao Consumption for Elderly Care" "Tianquan Investment Management Nursing Home Project" With the development of the times and internet technology, pyramid schemes have also become "diversified." Some pyramid schemes are a cross or combination of several types, making them more deceptive. At the same time, pyramid schemes often use the internet for dissemination, which is fast and makes investigation more difficult. Therefore, we need to be vigilant at all times. Follow WeChat: Heibaihua WeChat: heibaihua911 Reply "pyramid scheme" to view the "2016 Latest Financial Pyramid Scheme List" How to Identify Pyramid Schemes? First, there is no such thing as a free lunch. When others describe a business or return in glowing terms, you should be vigilant. Second, no matter how the form of pyramid schemes changes, their essence is still to pay an entry fee by purchasing shares, develop downline personnel, recruit heads to form levels, and use the "performance" of downline personnel as the basis for profit. Therefore, to identify pyramid schemes, you need to look at three characteristics: 1 Entry Fee Whether you need to purchase goods or pay a fee to obtain the qualification to join or develop others to join, in order to seek illegal profits; 2 Head Recruiting Whether you need to develop others as your downline, and pay compensation based on the number of people directly or indirectly developed, in order to seek illegal profits; 3 Compensation Method Whether compensation is calculated based on the sales performance of directly or indirectly developed personnel, in order to seek illegal profits. If it meets the above characteristics, it may be suspected of being a pyramid scheme. How to Distinguish Direct Selling from Pyramid Schemes? Direct Selling License The simplest and most direct criterion is the direct selling license. Currently, 71 direct selling enterprises in China have obtained direct selling licenses, and another 19 quasi-direct selling enterprises have applied for direct selling licenses. Product Judgment According to regulations, direct selling products should comply with national certification, licensing, or mandatory standards: cosmetics, health foods, cleaning products, health equipment, small kitchen utensils, etc., a total of 5 categories. Financial investment, tourism, and other products are not within the specified scope. At the same time, the products of direct selling and pyramid schemes also have the following differences: A. Legitimate direct selling companies do not encourage direct sellers to hoard excessive goods, and provide opportunities to join and exit the direct selling plan. Those who exit can return unused, sellable goods to the company.
Illegal pyramid scheme companies, on the other hand, use "get rich quick" as bait to encourage or even require new members to purchase large quantities of products to hoard. And there is no follow-up guarantee.
B. Direct selling enterprises are oriented towards selling products and always put product sales and consumer interests first.
Illegal pyramid schemes usually focus on selling virtual products and opportunities, with no specific products, or products that do not comply with the Ministry of Commerce's regulations on direct selling products.
C. In direct selling activities, if consumers or direct sellers return products within 30 days from the date of purchase and the products are unopened, they can exchange or return the products to the direct selling enterprise and its branches, local service outlets, or the direct sellers who sold the products, using the invoice or sales voucher issued by the direct selling enterprise.
In pyramid scheme activities, the so-called "products" or entry fees paid are usually not refunded, and the rights and interests of participants cannot be guaranteed. Financial scams are emerging one after another, so be extremely vigilant! Attachment - Why Direct Selling Makes People Increasingly Poor Recently, many incidents of college students being lured into pyramid schemes have been exposed. Not to mention how harmful pyramid schemes are, even in state-approved direct selling companies, making money is not easy. Due to historical reasons, foreign direct selling companies have dominated the entire Chinese market for as long as 16 years. Some companies have sales exceeding 10 billion, and the smallest are over 1 billion. According to the principle that if the big pot has food, the small bowl will be full, our distributors should be more or less well-off. But the fact is just the opposite. Most direct sellers not only fail to get the due returns but become increasingly poor...! The reason is that foreign companies, on the one hand, input the attractive "pipeline theory" to distributors, magnify your dreams, and make you greedy, while at the same time constantly inputting the contradictory concept: "Making money is not the most important thing; there are many more important things in the world than making money"! For example: family affection, love, friendship, responsibility, filial piety, health, and happiness, improving personal ability and conduct, etc. When your mind is filled with so many important things, you won't blame others for not making money in that company, because you are already willing to spend 3-5 years or even longer of your life soaking in such a company to learn these so-called more important theories, expecting success. Therefore, you naturally won't analyze and compare the differences in operation models between companies, bonus distribution systems, or delve into the root causes of not making money. After being fooled by the so-called "culture" of foreigners for a long time, you almost forget what your original intention was in doing direct selling? You have been sculpted by the "culture" of foreigners into a tool for them to make money, but you haven't awakened. "Making money is no longer the purpose, let you ultimately..." You have deviated from your original intention, treating the direct selling company as your second classroom in life, or simply reading it like a university! Reading day and night, tirelessly...! If you solve all problems in the process of development, then they are not problems. Because development is the absolute principle, and making money is even more so. Only by making money can you cure "all diseases"! Let every distributor active in the market make money. Besides gratitude, they will still be grateful! For those who stubbornly cling to the concept that "making money is not the most important thing; there are more important things than making money..." and refuse to understand other companies, I really feel sad for such direct sellers in reality! Such people are of two types: One is those who have just joined the company and have been fooled by their leaders with the concept that "making money is not the most important thing" and have lost their rationality. The other is those who know they have been fooled but must continue to fool others for the sake of their performance and income. I wonder how far such people, influenced by such companies, can go in China? There was a man over fifty who had been in a certain company for five years and was still penniless. When asked what perseverance allowed him to stay in that company for five years without compensation and with debt, the answer was: "The company's training is really good. I learned a lot of useful things in it, such as first learning how to be a person..." It's really ridiculous. A man over 50 still doesn't know how to be a person? And he has to go to a company to pay to learn how to be a person? Hasn't he been being a person for the past 50 years? There are indeed many important things in this world that we need to use wisdom to categorize and prioritize. When you choose to do direct selling, you must put making money first, because direct selling is a business. Even if you are doing health products, you cannot put the so-called "health" first, because making money and health are two different concepts, both indispensable in life. Once you are penniless, even if you are critically ill and hospitalized, the hospital will not treat you for free. Who will guarantee your life and health then? Which hospital would use expensive drugs on a beggar? Money is the best stimulant to inspire people to strive and start businesses! When you have money, you can solve many important problems you encounter in life. You say making money is not the most important thing, but you must not get the order wrong. The person qualified to say this should be a billionaire, not ordinary people like us! When this sentence comes from an ordinary person, it is clearly misleading or even deceiving others... If it is replicated in the industry, it can only be said that it replicates the biggest lie! Because the company has not prepared the system and tools for everyone to make money, the entire network will quickly collapse, and you, sitting at the top of the pyramid, will definitely fall hard! The only way to avoid falling hard is to quickly let your friends below you make money. For a company to develop long-term and sustain operations, it must have a general effect of distributors making money. When a company sees few people making money and most distributors are about to become refugees, the company is sitting on a volcano, very dangerous...!" This requires "not staying too long in a place where you shouldn't stay, and not looking for the right answers in the wrong place!" Even if Zhuge Liang were alive with the power to turn the tide, it would be difficult to go against the trend. Life choices lie in keeping up with the times, and being good at recognizing the times and seizing opportunities to start businesses can achieve twice the result with half the effort. Today is no longer the era of heroism in direct selling! It is the era of consumption with surplus goods! Direct selling has been running for so many years, why are most direct sellers getting poorer and poorer? Because the prices of direct selling companies' products are surprisingly high, making it difficult for ordinary people to accept consumption! If direct sellers can't even afford to consume, how can others accept it? How can they market it? If they can't sell, they have no income. Afraid of expiration, they have to use some themselves or sell at a discount, so they get poorer and poorer! Now some direct selling companies have formed a bad trend: if you can't sell, you have no performance; if you have no performance, you have no income! So they simply buy the products themselves and hoard them. If they hoard for a long time and can't keep up with funds, they sell at half price. After several years like this, they turn their savings into inventory and debt! So some direct selling companies have cultivated many "forward-thinking" poor people! In the cruel competition of the market economy and the surplus of labor, how many friends who don't want to work for others want to start their own businesses, but suffer from lack of start-up capital, so they dream in the direct selling world, and everywhere is crowded with poor people chasing dreams! When it's time to wake up, wake up. Struggling to hold on really won't work. Don't let your hesitation harm your precious time. - END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent Article Selection | 002 Distributor Market Operations | 003 Terminal Visit Management | 004 Sales Supervisor Skills | 005 Sales Improvement Techniques | 006 Channel Expansion | 007 Managing Distributors | 008 Distributor Development | 009 Distributor Internal Operations Management | 010 Team Management | 011 Efficient Distribution Techniques | 012 Sales Manager's Skills | 013 KA Operation Methods and Strategies | 014 First Lesson for New Salespeople | 015 Internet, Brands | [Long press QR code to follow]