2015-10-09 16:33
The new ＂new＂ true colors: the short end Yuanbu yuan?
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[CNDSN10] month 9 days (Chinese food daily) -- people's daily exposure such as bursts of three text is suffered a devastating blow?
When you open unfamiliar street, micro channel, microblogging and other social software, whether or not to see the beauty artifact, such as the new agent advertising or product sales overwhelming hit? Is there anyone who is recommending a "fool for a year to earn a million"?
Today, the United States, one of the five direct selling companies, such as new is experiencing the alleged pyramid scheme, the question about its true nature, is a little bit to open......
The exposure American bursts of three party direct marketing giants such as the new count the crime ""
People's daily open the Multi-National Corporation such as the new lie: it is suspected pyramid scheme for the spirit of control
In recent years, the outstanding performance of the Direct Selling Company such as new, into the pyramid scheme. In January 2014, 15, 16, 17, the people's daily continuously published reports "look" like new "how to weave lies," "look" like new "how captured the hearts of the people," "new" in the United States repeated punishment ", exposing new company false propaganda, suspected pyramid selling and using large gatherings" brainwashed ", causing widespread concern.
According to the investigation, such as the development of the company in the process, there is always a problem of illegal operations, illegal business. January 16th, the State Administration for Industry and commerce, the Ministry of Commerce to respond, will be like new to launch an investigation to verify the information.
Since the creation of new companies in the United States in 1984, after the United States, for its business model of the query and investigation has not been interrupted. It is understood, in the United States, the use of pyramid multi-storey development distribution mode is illegal, the judicial organs throughout the United States will continue to new company charges.
In 1991, the United States has 6 states of the judicial authorities to investigate the new company, including its products for false propaganda, to exaggerate the sales profit and the development of multi-layer distribution. At the beginning of 1992, the new company lost money to quell the charges of 5 states, including the distribution of the 90% payment to the dealer, correction method, etc.. But the Connecticut Attorney General is not willing to settle this, he is the new company to mislead the distribution, the practice of illegal pyramid scheme. The attorney general in an interview, said: in order to absorb members of the level of Pyramid, the profit is mainly built in the collection of contributions, pumping into, rather than selling products on the operating practices, is illegal pyramid schemes." This model need constantly absorbing member to support in the senior members of the top of the pyramid, until the whole system ultimately fell apart. In Connecticut, joining the "new" average can only earn $38 per month, and the new has claimed that members can be added after the "economic independence".
1997, the Pennsylvania attorney general accused the new company through a branch called QIQ to carry out pyramid schemes. Finally, the new company had to close the QIQ, but will members transferred to another branch of the company, the business is actually the same. The personnel structure of the company is MLM organizations in typical pyramid shape, from top to bottom in order to diamond, emerald, ruby, lapis lazuli, gold and ordinary members a total of 5 level.
The U.S. Federal Trade Commission (FTC) has also been on the new company as a pyramid selling means to carry out survey. 1994 after the FTC survey, such as the new company to exaggerate the effectiveness of products and distributors profit, such as the new company promotional materials, sales staff annual income of more than $60000, a lot of people can get more than 160000 dollars in annual revenue. But in fact, 70% of the sales staff only received 300 dollars in annual revenue. Finally, such as the new company promised to truthfully publicize the actual income of the sales staff, and paid a fine of $1230000. 1997, FTC accused the new company to its weight loss, to promote muscle growth and other products to carry out propaganda, such as the U.S. Federal Trade Commission to pay a fine of $1500000.
In August 2012, the Stanford University issued a ban letter, such as the new company to stop the use of its name in the propaganda material, because the researchers and the new company has no relationship.
The brainwashed cooked into oral direct selling license Amulet
Such as the new agent internal information is questioned"
In China, such as the implementation of the "unlimited copy" development of the development of the members of the "Pyramid" marketing model, in order to get rich as a means of reward, has been suspected of illegal pyramid schemes.
In a new agent, such as the information provided by the people, the most common word is "copy", "success", "million", "Dubai", "dream", etc.. "Go to Dubai, make millions" is a lot of new agents of the ultimate dream. Each one as a new agency in the heart has a trilogy of dream of riches, in fact has become the most vulnerable groups, a chicken in the force.
According to who lives in Dongcheng District, Beijing, is sitting alone confinement broke the news of Miss Liu, his mother agency such as has a year many, and this year is her pregnancy, but has turned a deaf ear to her. Spent 3 million yuan to buy new products, listen to family, friends and relatives dissuade her cursed, said "such as new products, can go to the new world, not simply do not believe that" a force for good, the family suspected had been "brainwashed", Miss Lau who told reporters, his mother not only to their children, regardless of whether, even wanted to charge their payroll card "loan", in order to buy new products. Miss Liu said he had also by her mother to listen to such as the new training courses, is actually to brainwash you confuse you join their team. They through the system of education, continuous replication of inheritance, a person to develop four people, and then the four individuals, each of the four, and so on. Each find a person to join the company to reward your 20%-25%'s profit, team performance and other. Input with at least one thousand per person, the team can easily earn a million in the development team a year."
China's anti MLM Association, said, not just as new, and now the so-called direct marketing industry is very confusing. Despite the Ministry of Commerce's direct sales license, but their business model is through the organization of the team, the development of the assembly line. Under the name of direct selling, in fact, pyramid schemes is the essence of.
The share price plummeted as new is being destroyed.
According to foreign media reports, the people's daily, the criticism and follow-up survey of the government departments may give such as the impact of new destruction. Because the Chinese district is the new largest market, revenue accounted for 42%. In contrast, the company in the entire American region of this figure is only 12%.
As one of the United States five direct sales, such as the new 2003 to enter the Chinese market, in 2006 to obtain direct sales license, as early as MaryKay and other enterprises. In July 22, 2006, such as the new to get direct sales license, the company responsible person has used this news let us have been encouraged to express their feelings. In July 2013, the Ministry of Commerce approved the new addition of its 5 provinces in mainland China and 30 districts and counties to carry out direct sales business. Up to now, such as new direct sales area has covered 19 provinces, municipalities and autonomous regions in mainland china.
Such as the expansion of the new China's direct sales area to make it a substantial increase in China's performance. Data show that the first quarter of 2013, such as new Greater China revenue was $175700000, an increase of 90% over the same period last year. Revenue growth in mainland China 141% (in local currency terms), compared with the same period last year, the number of large Chinese business partners increased by 91%, an increase of 73% active accounts. In the Greater China region, including Taiwan and Hongkong, such as the 57780 so-called sales manager, accounting for the number of its global sales manager.
Before the latest scandal in China, the company had expected its global revenue in 2014 will be between 3900000000 to 4000000000 U.S. dollars, an increase of up to 25%.
After the people's daily posting criticism, such as the new stock was sold in Wall Street, the 50% decline in nearly two, in January 16th, the largest decline in the 26.41% intraday trading over 40%, intraday volatility of stock price volatility four times.
This is similar to the situation two years ago. Two years ago, the well-known short bodies citron released the report, such as the China suspected of illegal business. As in the Chinese said foreign direct, but that the new citron is prohibited by law Chinese mlm. Such as the new stock price plummeted, the stock price fell more than two in 25% months.
Direct sales? Pyramid schemes? The two are like twins.
In recent years, as the new China has gained 30% of its total revenue in China, it has expanded its market in China in recent years. The company's sales staff through the sale of products, recruit more sales staff and get commission, so as to promote the rapid growth of sales. China is Amway's largest market, in 2012 in China's sales accounted for 1/3 of its $11300000000 in sales. Herbalife sales in China in the third quarter of 2013, an increase of 77%, accounting for the company's overall sales of 11%. MaryKay sold more than $one billion in Chinese through 850000 sales people.
In fact, a lot of direct selling companies have encountered a lot of reports, such as the new case is not a case, but a widespread problem.
According to industry sources, in China, the premise is to have a direct sales license issued by the Ministry of Commerce, to have a product, to have a store. There is a very important point is that the law of our country, "pure single level direct sales to direct sales, multi-level classified as pyramid schemes (i.e., the development of the lower level)".
The distinction between direct selling and pyramid selling, in China's legal definition is very clear, but the actual situation is that the law is not compatible with the market, which is a common problem in China's direct selling industry. China's direct selling regulations, the pure single level direct selling to direct sales, multi-level classified as pyramid schemes. In fact, most of the direct selling companies in China can not avoid multi-level marketing.
In foreign countries, more than 95% of direct selling companies are using multi-level sales model, is the world's recognized mainstream model. But direct marketing, especially the multi-level direct selling, and the pyramid selling behavior, like a pair of twin sisters, has been in the market. Therefore, China in the development of direct sales law, the final confirmation of the legal status of the multi - level model. Chinese direct selling enterprises to avoid the legal risk, to take a lot of adaptive approach, such as a variety of ways to sell, there are direct sales staff, there are dealers, there are stores.
But according to statistics, in recent years, the direct selling enterprises suspected MLM repeatedly hit the newspapers reported. For example, in 2005, the Changchun media after investigation to make MaryKay in Changchun was MLM questioned reported that in 2009, there are media reports, AVON (China) Co., Ltd. Heilongjiang branch alleged pyramid schemes, followed by Heilongjiang Province, the 12 AVON stores to return. Herbalife, Longliqi also have involved in the "pyramid" storm.
Conclusion: there is no free lunch in the world.
Some people say that the so-called "new spirit" induction, people gradually lose themselves, indulge in the so-called "career", buried at the company for their depiction of the "pie". Doubling wealth declaration continue to stimulate the nerve of each agent, in under the control of the powerful "brainwashing technique" and mental abilities, a lot of desire in a short period of time success, eager to receive the respect have added to the mysterious organization, they seemed to be playing the continuous development of chicken like, love to do most of the things is probably, "affinity".
But it is worth attention is, seemingly beautiful award scheme, excluding various taxes, with their own continued to buy goods, do not lose money have to be thankful for. When relationships are completely depleted, waiting for their only failure. World and there is no such thing as a free lunch, don't trust anyone to you weave flourishes dream never because of the crazy and irrational, make endanger themselves or even a generation of things.
In the capital market, investors should also see the real profitability of the company, do not become the driving force to help increase the bubble, once the stock price avalanche, will be the loss of property.
Text source: People's daily, the Beijing News, Beijing Youth Daily, gold online. 3
(original title: secret as the true colors: "like new" short end Yuanbu yuan?)
Editor: Wan Wan
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