Multi-level marketing- the game end-.doc

 PAGE \* MERGEFORMAT 8 Multi-level marketing: the game end? ‘Direct method’ and ‘regulations prohibiting pyramid schemes’ The introduction of multi-level direct marketing seems to have already blocked the road to. However, in 1998 after the pyramid scheme crisis ‘direct sales’ company and the government has long been used to playing with those ‘cat and mouse’ game, ‘direct method’ is introduced, is a multi-level marketing is neither the beginning nor an end. ‘Direct method’ after the Amway model If the laws and regulations strictly in accordance with these two, then the Amway model is bound to end. Since the Van Andel and Di Weishi Amway business nearly 60 years, the operation has been the essence of ‘multi-level’, is precisely ‘to prohibit direct sales regulations’ as identified in the pyramid: the organizers or operators through the development of staff, calling for been developed for staff development of other staff to join to form the offline relationships, and the following line sales based on-line calculation and payment of remuneration, to obtain illegal benefits. (The Ordinance Chapter II Article VII Disan Kuan, regulations identified as one of the pyramid.) However, Amway is not no countermeasures? Well versed in ‘China’s national conditions’ in Amway understood early on that the Chinese Government and the unspoken rules and regulations, they will certainly not foolish to close away - in fact, if so, I am afraid that the Chinese government to be more anxious because of the huge salespeople teams will no doubt be a huge social problem. Amway through the following series of means to circumvent the laws and regulations, issues, and to continue its de facto multi-level marketing path. 1) how to solve the problem 30% of the commission Amway itself is not very high capitation company, its major commission from five sides, namely the retail gross margin 20%; Second, team performance bonuses of 3% -24%; three leading bonus 4%; Fourth, Pearl bonus 1% Fiv