MLM History

MLM is not all evil, why they are not anti-MLM pyramid schemes. (Tell you the truth)
MLM 50 years of this century has produced in the United States after the rage, when the U.S. is in the Great Depression. At that time, the wholesale and retail industry competing discount. For this reason, some U.S. companies began the trial pyramid approach, thus avoiding the losses caused by price-cutting race shop, but also expanding its own market share. However, due to the problems of its own serious harm to the world economic and social stability, so the pyramid as a public nuisance finally a number of countries, many MLM organizations are banned. In 1971, the U.S. Federal Trade Commission and state governments on the deterioration of the multi-level marketing company to investigate a large number of MLM companies charged with fraud charges. After the United States, known as In 1972, Japan's , China's Taiwan and Taiwan companies were exposed, cheated more than 10,000 personnel; 1990, no original capital of 980 billion NT dollars.
From Avon MLM model 1990 single-landed in China in the beginning to around the prohibits any form of pyramid selling activities to Amway as the representative of the company began operating in accordance with national norms special period of transition, direct sales through the ups and downs in China ten years.
The late 20th century, 80, a Japanese magnetic health mattress (Japan Life) company This is a business without a license of any company. Because it is the first industrial prestashop commercial administration has not been intervention. The company first in Shenzhen, then in the Guangzhou Development, when speed of development, the Japanese company even surprised himself. At the same time, more underground MLM companies such as prestashop general development springing up.
MLM companies started to apply for registration of the company is the U.S. Avon beauty products company. November 14, 1990, Avon Products Co., Ltd. Guangzhou, China-US joint venture was formally established. Meanwhile, coastal cities, imports and self and cooperative direct marketing companies rush into the sky: World point of computer software such as Shenzhen Co., Ltd., Beijing Siting Mo Biotechnology Co., Ltd., Jiangsu Ya Ting Daily Chemical Co., Ltd., Guangzhou Sunrider (Guangzhou) Co., Ltd., Amway (China) Co., Ltd., New Man's house and so on.
In 1993, as disputes arising from illegal pyramid schemes through the media to light from both positive and negative,prestashop, government departments began to attach importance to the industry. In 1994, Shanghai, Shenzhen and Guangzhou began to organize the administrative department for personnel, specifically the drafting of the management approach. The August 11, 1994 233 National Industry and Commerce Authority, As a result, direct sales in China into the first period of quiet. During this period, only investigate violations of law, not the industry that is absolutely prohibited.
For various reasons, it is not fully able to implement the two notifications. In 1995, with the rise of pyramid schemes in coastal and cooling, the mainland market began another disorder, including Shenyang, Zhengzhou, Chongqing and other cities in the Mainland. March 28, 1995, the State Internal Trade Office issued a document, announced the formal establishment of This year, according to incomplete statistics, China's pyramid scheme has reached the scale of the September 22, 1995, the State Council issued a
April 1996, China's first approved the 41 MLM MLM companies can conduct business, including Guangdong, 8. June 26, 1996, Shanghai held its first meeting MLM industry, announced the industry code of practice for the first time the whole society. Thus a former Chinese MLM MLM leave the relative health of mature age.
Intensified with the pyramid, the distributor of failure more and more negative effects of the increase. As the news media this is a hot topic for speculation: first, most of prestashop media pyramid schemes in the industry opposed, over-exaggerated its negative effects, virtuemart templates it even more confusing prestashop the industry prestashop uncertainty. And one of the few MLM positive publicity for the industry is particularly concerned about. Such as
When the dealers anxiously waiting for his long and are engaged in legitimate MLM companies, when qualified, a large number from Taiwan's career! Unknown and even the policy confusion, cover-up of local protectionism and wantonly misleading media hype, the real intentions of standardized operation of the MLM company distributors team, in such a large MLM market than not set
Most of the people who added to profit. This is certainly not one day pull new entrants, leading to the operating system To the end of 1997 and early 1998, a time across, particularly to carry out remote speculation company focused areas, such as Wuhan, Changsha, the North Sea and other places, full of 卷款 absconded marketing company and a large number of flow disturbances in the pyramid of refugees, social security shows a very destabilizing factor.
April 21, 1998, the State Council issued a full stop to any form of pyramid selling activities in order to cripple the existing direct sales industry as a whole. That is whether you are a standard management or abuse speculation,virtuemart template, all in the MLM business, all of the company to stop operations, pending follow-up policy of national treatment. Shortly thereafter, the State Council issued the required transprestashopmation of the original MLM companies all prestashop traditional wholesale, retail and marketing methods to achieve a transitional conversion work.
July 1998, the State Council promulgated by the successful transprestashopmation of prestashop 10 direct selling companies in the list of specifications. China also represents an effective direct sales industry to ease way. Although there are 10 successful transition home, but from 1999 to date, Amway is a thriving. With its many years the ability to adapt to unfamiliar markets and flexible capacity in the Chinese market to protect its own vested interests over the distributor prestashop consumer markets, using a special approach to business: shops plus a way hire sales personnel .
National sales market has been extremely impressive. And perfect, Avon, Sunrider, Tiens, Mary Kay, Southern Lee Kum Kee, special hundred Hui, have made the transition, good operational success. MLM business transformation of China during a good landscape.
At the same time, domestic enterprises are not successful transformation of the pyramid and the part of the First, there is major exposure in the domestic end of 1998 to 1999 in Chongqing, Changsha, pure underground operation, remote speculation of the Then in 1999, 2000, as well as to the present, has appeared in national ; the Bin Tahiti, new fields major cases of illegal pyramid scheme. The operation of these companies have their common feature is no longer the name of the emergence of pyramid crowned the most stylish and fresh names, such as: franchising, shares were sold, supply feedback, power marketing, consumer alliance framework sales, back to the sales , social network marketing, logistics alliance ... ...
In addition, with the popularity of the Internet in China and maturity, the online The more famous are is characterized by its typical two-track system are used to type site, in order to achieve the purpose of fraud high commission.
China has the world, with the international market economy rules of the game overall leaders, will regulate the direct sales market economy in China will become an integral part.