March 7, 2016 MLM & Affiliate Marketing News
Multi-Level Marketing: China Isn’t Buying It However, with the MLM Pyramidal Structure, the highest position always gets a percentage of the sales from those who are in the bottom positions. Some companies that wish to set up this type of structure want to incorporate a five or more level system.
Even if allowed, Direct Sales must follow several rules. The company is required to: have a business license, can only pay out one level of commission, the sellers have to follow an advanced training course offered by the company and by the end of the course they have to get a license and the direct sellers must wear a badge to prove their status. In addition, the personal seller’s commission it set at 30% of the sales, including bonuses, commission, and other benefits. Because of the multi-level payment structure, the organizers and the members at top level obtain interest illegally and, according to the Chinese Government, disturb normal economic order, and affect social stability Read more on China Briefing
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