

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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