subject: Shops were able to be shrinkage of state direct sales outlets in the end - direct marketing, direct marketing shops, direct marketing Management - [print this page] Shops were able to be shrinkage of state direct sales outlets in the end - direct marketing, direct marketing shops, direct marketing Management -
2005 years "Direct Marketing Management Regulations" has identified China's direct selling business model to store the so-called service network all over, screamin some awkward-sounding name, in fact, that is, direct sales shops today's popular models. Perhaps, from the perspective of legislators proposed service network name, the one difference with the franchise, the one show that the service network to provide services for the majority of the characteristics of direct sellers. Of course, this is only the author's speculation.
In fact, before the promulgation of the direct selling regulations, a number of direct selling companies to promote their business shop business model, management, direct sales force. The direct legislation, the major direct selling companies to adjust the system, the direct selling company holding a license shops began to appear a serious decline, and no one ever depression scene, and some companies do not get a license but shops blossom everywhere. I conducted market research, this phenomenon may shrink due to the regular corporate franchise stores following factors:
Shops atrophy is not accidental, but inevitable
State direct legislation in such a harsh way to regulate the industry, purporting to want to shop in the end of the operation, its purpose is very simple, one can not have escaped fled to the emergence of a distributor, a large number of people in the situation of victims; 2 there is a card management, local law enforcement agencies easier supervision, management; third, moved around to prevent direct sales force, the formation of social instability. However, why is the government purpose in such direct employees who disregard the law as it is. The reason is simple, take the license limit the proportion of the company set aside 30%, for many small service outlets, as a team pre-payment, the operator could survive, but once the system has changed, the original of the direct seller's desire to flee, as without loss of the original team, a number of service outlets for people to get everyone to take the lead with a new look, do not get into the license, the company allocated to higher and even some simply enter the consumer rebates, rolling circle.
Not quite understand why I started the country on such a severe blow when the pyramid, we all make such choices. In fact, for some old direct sales, they can cite a lot of examples, so and so doing this does not make the number of legitimate companies, making certain to cast a single consumer rebate number, you say no legitimate state against whom , and I think they all kind of good to live, bought a house, car, money for our people is the last word, who fuel ah be profitable. More interesting is the emergence of franchised store filled with a company's direct marketing products companies, ask it to do so would not the company will stop its rights, the operator and consumer, who told the writer responsible for: store rebate is too low, we can not maintain the rent, sales, unable to maintain normal life, following a lot of people running, we bulging pretty good, we do not arrest the person, who will be running another pull. Consequently, I see a company in a city with a population of more than 200 million, more than 10 home service network, shrinking into three, I felt this decline is not accidental, but inevitable.
National regulatory weakness, direct marketing people have nothing to fear
2005 The hit "Lu Jian action", according to the 2001 Supreme Court of Justice explained that in the "Supreme People's Court on serious cases, pyramid schemes or disguised pyramid schemes Reply to qualitative issues" in the serious MLM or disguised pyramid schemes characterized as illegal business; for serious cases of illegal pyramid schemes, or pyramid schemes in disguise, can be sentenced to five years in prison, and be fined not less, to 1 times the illegal income, 5 times fine. MLM leader xiangs finally get justice. However, the xiangs and others suspected of more than 3 million the amount of crime, only sentenced to two years and six months in prison. Pyramid schemes in accordance with the law on judicial judgments crime, can not get the license number of sales personnel is such a voice came: "If I find the 3 million over two years the prison was worth sitting up." Law on pyramid schemes officers sanctions, can play a deterrent role, can be for some people because of light sentences, it is nothing to fear.
In addition, because these do not hold licenses for the network is extremely subtle, very difficult to monitor law enforcement officers to combat naturally do not increase strength, get a license from legitimate companies to flee, many people do not take refuge in the company's license because than the high allocation of these companies, more commitment, more temptations, you can set up the team this reason that many sellers of companies holding licenses huge loss, resulting in shops can not survive, the natural disintegration or direct face-lift.