See the difference between franchising and disguised pyramid schemes

for the general public, MLM is a dull life of the terminator, people are afraid of the pyramid scheme is not enough to avoid, then franchising and disguised pyramid schemes have what kind of connection and difference? Now look at the detailed analysis.



Direct supervision department director


focus: the franchise and MLM differentiated formal franchise and marketing are essentially different.

from the organizational structure, marketing level is not restricted; and the franchise level is strictly limited, franchise organizations are generally not more than two layers, with a maximum of three layer structure.

from body can also be distinguished to join. MLM is generally a natural person, while the franchise franchisee is a natural person, but generally need to set up a company or other economic organizations to operate. From this point of view, the two biggest difference lies in whether to shop.

from the distribution mechanism, marketing personnel of the Commission according to the offline performance, can also be understood simply as by capitation to make a profit; and the franchise through legitimate business to profit.

two focus: franchise evolution into a disguised pyramid

officially came into effect in September 2005, "direct management Ordinance", a lot of desire to meddle in the direct selling industry enterprises, to enter the direct road began to seem hesitant, began to be "franchise". "Franchising" is the only means to them, "a superficial reform" pull tiger banner when the game is recommended

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