Best World

[Boon]

Yang Min PD

Yang Min:
-      She is from Huihua, Hunan. 
-      She belongs to the Chao Yue network in China.
-      She was owner of beauty/hair salon before joining BWL
-      She closed down 2 hair salons and left one to be operated by her husband to pursue a full time business career with BWL.
-      She said the 663 system introduced by Dora was the system she had been dreaming for。
-      663 系统“是进人和创造业绩的水龙头”。
-      She uses 663 system to recruit new members and built up her network team.
 
In short: She has been downsizing her beauty/hair salons retail business by selling away 2 shops in favor of pursuing a career with BWL that involve the recruitment of downline and building up a network team, an act of 传销,which is considered illegal in China.

[Stocker]

There are many who don't follow the rule of the game but got away with it . Do what they like as long as they are not caught . Maybe BW really know who they know , besides what they know ?

[Value Explorer81]

There seems to have been a confusion of 传销 and 直销 over here. 传销 is known as pyramid scheme. 直销 is known as direct selling. 
 
传销-Pyramid Scheme is illegal and why is it deemed to be illegal by the authorities is because:
 
Firstly because of its compensation plan which would over payout as it grows larger and larger with no long term sustainability. 
 
Secondly, pyramid schemes are people focus and any scheme which requires the continuation of pulling more people into the scheme to keep it sustainable is deemed to be illegal. 
 
Thirdly, there are no real business operations or product that is deemed of value and it is merely money merry go round operations. Some would call it financial engineering but the concept is just simply put as "robbing Peter to pay Paul".
 
The whole idea behind a pyramid scheme is to use the new downlines $ to pay the people who joined the scheme earlier. As the scheme gets larger and larger it gets to a point whereby there are lesser new downlines to pay off the earlier people who join and it starts to collapse. Causing a larger % of people who are below to lose $ as compared to the top people who benefitted from it. It is also referred to as a Ponzi Scheme. Why is it called a Ponzi because it started from this person called Charles Ponzi who ran an elaborate Ponzi Scheme. You can read more about it over here to know more about the difference with Ponzi Schemes and Direct Selling: https://www.biography.com/people/charles-ponzi-20650909
 
On the other hand, 直销-Direct Selling is a legitimate and sustainable business be it whether you have license to operate or not. The main reason why Direct Selling is deemed to be legal by authorities is because:
 
Firstly, its compensation plan is sustainable. Companies like Amway, Nuskin, Herbalife are still around to date doing billions of dollars in revenue with millions of members and distributors. The compensation plan does not over payout because it does not promise quick get rich commissions to attract more new members like 传销-pyramid schemes.
 
Secondly, Direct Selling is product focus unlike Pyramid Schemes which are people focus. The Direct Selling model would be sustainable because customers would consume/use the product and would re-order after they finish consuming/using it provided that the product is effective and works for them. This ensures recurring cashflows from the customers due to the effectiveness of the products that are offered through the Direct Selling model allowing it to be sustainable and able to grow long term.
 
Thirdly, there is a legitimate business in successful Direct Selling companies with millions of dollars put into R&D every year to come up with effective products and also a lot of investment put into growing the business in order to keep up with ever changing consumer demand and consumer purchasing behaviours. 
 
I was involved in an elaborate pyramid scheme when i was young and naive and was invited by our SG authorities for questioning to support and ongoing investigation. It was then that i know the difference between Pyramid Schemes vs Direct Selling. BWI is NOT running a pyramid scheme. They are a Direct Selling company and i must say a pretty successful one. 
 
Are they illegal in China? 
No they are not illegal in China because they are not a pyramid scheme. 
 
It was also highlighted by one of our fellow members that BWI has been operating Direct Selling in China before they got their license and this would get BWI into a lot of issue with the Chinese government. From my understanding, there are tons and tons of Direct Selling companies in China that do not even have a license but yet are operating in China. Do the authorities know about it? The answer is Yes, the authorities know about it. Are the authorities doing anything about it? The answer is No. Why is that so? Many people do not know how do the authorities operate. Everyday they have tons and tons of cases to solve and tons and tons of investigation going on. Direct Selling is a sustainable business and people get "self-employed" making a decent living by promoting a product that works for them. Why would they waste their time to catch these companies when they are clearly not causing any problems? 
 
The authorities will take full action when a scheme causes social unrest and got many people affected. Another way to say it would be only when enough people get hurt then the law will do something about it. It is sad to say this but it is true. Ponzi Schemes are only investigated when it grows too big, causing social unrest and when many people get cheated unable to get their $ back and they start reporting to the authorities. This is the flaw of the law. 
 
Moreover, Best World has gotten their license to operate DS in China they just became even more legitimate. i am confident that BWI will not get into any issues with the Chinese government and took advantage of Mr Market when there was a sell down on BWI to buy some BWI shares... 

[dreamybear]

Thanks Value Explorer81, Millionfaith and others who have shared your experiences on MLM/DS.

Adding to Value Explorer81's post on 传销 vs 直销, the following was stated on page 8 of Nuskin 2016 Annual Report :

"Mainland China Business Model
....... We have structured our business model in Mainland China based on several factors: the guidance we have received from government officials, our interpretation of applicable regulations, our understanding of the practices of other international direct selling companies operating in Mainland China, and our understanding as to how regulators are interpreting and enforcing the regulations ........"

IMO, the regulations seem to be subjected to interpretations.

Vested in BW, but not in Nuskin or MLM/DS

[Boon]

直销与传销的区别

发布时间：2010年01月14日     信息来源：国家工商总局直销监督管理局

1、传销的概念。传销是指组织者或者经营者发展人员，通过对被发展人员以其直接或者间接发展的人员数量或者销售业绩为依据计算和给付报酬，或者要求被发展人员以交纳一定费用为条件取得加入资格等方式牟取非法利益，扰乱经济秩序，影响社会稳定的行为。其表现形式包括“拉人头” 传销、骗取“入门费”传销、团队计酬传销。　　

2、直销与传销的区别　　

⑴在法律方面。直销是一种合法的销售商品的经营活动；传销是法律禁止的行为，是一种欺诈活动。直销活动依照《直销管理条例》调整，传销活动依照《禁止传销条例》查处。　　

⑵在招募人员方面。直销招募的对象是有条件限制的，不得招募在校学生、教师、医务人员、公务员等人员为直销员。传销招募的对象一般没有条件限制。　　

⑶在培训方面。　　

①培训内容上，直销培训的内容包括《直销管理条例》、《禁止传销条例》等法律法规及直销员道德规范、直销风险提示、直销业务知识，客观介绍企业的情况和报酬制度。传销培训多数打着“直销”、“电子商务”、“特许经营”、“加盟连锁”等名义，宣传快速发财致富、许诺能够获得高额回报，传授发展下线的方法。　　

②培训形式上，直销培训是正常公开的活动，直销企业将事先在公司网站公布培训信息，培训不收取任何费用，不以购买商品为条件。传销培训一般是暗中、私下进行，诱骗参加人员交纳入门费或购买商品。　　

③培训场所上，直销培训的场所有具体的限制，如不得在政府、军队、学校、医院的场所及居民社区、私人住宅内举办。　　

④授课人员上，直销培训人员不从事直销销售，其培训员身份在商务主管部门备案并在直销企业网站公布；在培训时将佩戴所属直销企业颁发的《直销培训员证》。传销培训的授课人员一般都从事销售活动，是传销组织网络的一员，有的是传销网络的上线、传销团队的头目和所谓“成功人士”，培训时不出示或根本没有培训员身份证明。　　

⑷在计酬方面。　　

①形式上，直销企业的报酬计算方式是公开的，可以通过该企业网站查询。传销组织的报酬计算方式是不公开的，是暗自运作的。　　

②报酬计算上，直销以直销员个人销售业绩为计算报酬的依据，其他任何人的销售业绩都不与自己的报酬挂钩。传销以发展团队人员的数量或以团队人员的业绩，即以“个人发展人员数量+下线发展人员数量”或“个人销售业绩+下线销售业绩”为计算报酬的依据。传销常用的计酬方式有五级三阶制、双轨制、级差制＋双轨制等。　　直销中，支付直销员的报酬总额，不超过其直接向最终消费者销售产品的收入的30%。传销活动允诺的报酬绝大多数超过30%，有的根本不限制报酬。　　

③商品销售上，直销企业以向消费者销售商品为获得报酬的前提，直销员销售商品越多，获取报酬越多。“拉人头”传销和骗取“入门费”传销不销售商品或只是打着销售商品的幌子，以发展人员的数量为提取报酬的依据，发展人员越多，获取的报酬越多；“团队计酬”传销虽然销售商品，但在报酬中含有其下线人员销售业绩的提成。　　

⑸退换货方面。直销活动是有商品的销售活动，包括完备的退换货办法。传销活动多数无商品销售，不提供售货凭证，不办理退换货。　　如果仍不能辨别或为慎重起见，可咨询当地的工商机关。

http://www.saic.gov.cn/hd/gzly/cjwt/zx/2...64066.html

[Boon]

There seems to have been a confusion of 传销 and 直销 over here. 传销 is known as pyramid scheme. 直销 is known as direct selling. 
 
传销-Pyramid Scheme is illegal and why is it deemed to be illegal by the authorities is because:
 
Firstly because of its compensation plan which would over payout as it grows larger and larger with no long term sustainability. 
 
Secondly, pyramid schemes are people focus and any scheme which requires the continuation of pulling more people into the scheme to keep it sustainable is deemed to be illegal. 
 
Thirdly, there are no real business operations or product that is deemed of value and it is merely money merry go round operations. Some would call it financial engineering but the concept is just simply put as "robbing Peter to pay Paul".
 
The whole idea behind a pyramid scheme is to use the new downlines $ to pay the people who joined the scheme earlier. As the scheme gets larger and larger it gets to a point whereby there are lesser new downlines to pay off the earlier people who join and it starts to collapse. Causing a larger % of people who are below to lose $ as compared to the top people who benefitted from it. It is also referred to as a Ponzi Scheme. Why is it called a Ponzi because it started from this person called Charles Ponzi who ran an elaborate Ponzi Scheme. You can read more about it over here to know more about the difference with Ponzi Schemes and Direct Selling: https://www.biography.com/people/charles-ponzi-20650909
 
On the other hand, 直销-Direct Selling is a legitimate and sustainable business be it whether you have license to operate or not. The main reason why Direct Selling is deemed to be legal by authorities is because:
 
Firstly, its compensation plan is sustainable. Companies like Amway, Nuskin, Herbalife are still around to date doing billions of dollars in revenue with millions of members and distributors. The compensation plan does not over payout because it does not promise quick get rich commissions to attract more new members like 传销-pyramid schemes.
 
Secondly, Direct Selling is product focus unlike Pyramid Schemes which are people focus. The Direct Selling model would be sustainable because customers would consume/use the product and would re-order after they finish consuming/using it provided that the product is effective and works for them. This ensures recurring cashflows from the customers due to the effectiveness of the products that are offered through the Direct Selling model allowing it to be sustainable and able to grow long term.
 
Thirdly, there is a legitimate business in successful Direct Selling companies with millions of dollars put into R&D every year to come up with effective products and also a lot of investment put into growing the business in order to keep up with ever changing consumer demand and consumer purchasing behaviours. 
 
I was involved in an elaborate pyramid scheme when i was young and naive and was invited by our SG authorities for questioning to support and ongoing investigation. It was then that i know the difference between Pyramid Schemes vs Direct Selling. BWI is NOT running a pyramid scheme. They are a Direct Selling company and i must say a pretty successful one. 
 
Are they illegal in China? 
No they are not illegal in China because they are not a pyramid scheme. 
 
It was also highlighted by one of our fellow members that BWI has been operating Direct Selling in China before they got their license and this would get BWI into a lot of issue with the Chinese government. From my understanding, there are tons and tons of Direct Selling companies in China that do not even have a license but yet are operating in China. Do the authorities know about it? The answer is Yes, the authorities know about it. Are the authorities doing anything about it? The answer is No. Why is that so? Many people do not know how do the authorities operate. Everyday they have tons and tons of cases to solve and tons and tons of investigation going on. Direct Selling is a sustainable business and people get "self-employed" making a decent living by promoting a product that works for them. Why would they waste their time to catch these companies when they are clearly not causing any problems? 
 
The authorities will take full action when a scheme causes social unrest and got many people affected. Another way to say it would be only when enough people get hurt then the law will do something about it. It is sad to say this but it is true. Ponzi Schemes are only investigated when it grows too big, causing social unrest and when many people get cheated unable to get their $ back and they start reporting to the authorities. This is the flaw of the law. 
 
Moreover, Best World has gotten their license to operate DS in China they just became even more legitimate. i am confident that BWI will not get into any issues with the Chinese government and took advantage of Mr Market when there was a sell down on BWI to buy some BWI shares... 

To CONvince or CONfuse?
 
Be CONvinced or CONfused?
 
Without a product, what do you sell? It has to be people focus…………….
 
People focus without a product is not sustainable for sure. This is pyramid scheme and it is illegal.
 
With a product, but without people, how do you sell?
 
To sell a product under DS model, you need to pay someone to do it.
 
How do you compensate a salesperson?
 
A)  Single level commission (based on his own sales only)
B)  Multi- level commission (based on his own sales + commission from his downline)
 
BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them.
 
But in China, B is illegal, for ALL business model be it retail, online, DS etc - that’s the MAIN difference.

B is an act of 传销 under the Chinese law

Has BWI been granted a DS license to sell Drs Secret? NO !

From the videos, CGL/BWI had been engaging in DS without a DS license

From the videos, CGL had been receiving passive income under BWL, which is an act B above or 
传销

Double violation of the Chinese laws. 

[Value Explorer81]

There seems to have been a confusion of 传销 and 直销 over here. 传销 is known as pyramid scheme. 直销 is known as direct selling. 
 
传销-Pyramid Scheme is illegal and why is it deemed to be illegal by the authorities is because:
 
Firstly because of its compensation plan which would over payout as it grows larger and larger with no long term sustainability. 
 
Secondly, pyramid schemes are people focus and any scheme which requires the continuation of pulling more people into the scheme to keep it sustainable is deemed to be illegal. 
 
Thirdly, there are no real business operations or product that is deemed of value and it is merely money merry go round operations. Some would call it financial engineering but the concept is just simply put as "robbing Peter to pay Paul".
 
The whole idea behind a pyramid scheme is to use the new downlines $ to pay the people who joined the scheme earlier. As the scheme gets larger and larger it gets to a point whereby there are lesser new downlines to pay off the earlier people who join and it starts to collapse. Causing a larger % of people who are below to lose $ as compared to the top people who benefitted from it. It is also referred to as a Ponzi Scheme. Why is it called a Ponzi because it started from this person called Charles Ponzi who ran an elaborate Ponzi Scheme. You can read more about it over here to know more about the difference with Ponzi Schemes and Direct Selling: https://www.biography.com/people/charles-ponzi-20650909
 
On the other hand, 直销-Direct Selling is a legitimate and sustainable business be it whether you have license to operate or not. The main reason why Direct Selling is deemed to be legal by authorities is because:
 
Firstly, its compensation plan is sustainable. Companies like Amway, Nuskin, Herbalife are still around to date doing billions of dollars in revenue with millions of members and distributors. The compensation plan does not over payout because it does not promise quick get rich commissions to attract more new members like 传销-pyramid schemes.
 
Secondly, Direct Selling is product focus unlike Pyramid Schemes which are people focus. The Direct Selling model would be sustainable because customers would consume/use the product and would re-order after they finish consuming/using it provided that the product is effective and works for them. This ensures recurring cashflows from the customers due to the effectiveness of the products that are offered through the Direct Selling model allowing it to be sustainable and able to grow long term.
 
Thirdly, there is a legitimate business in successful Direct Selling companies with millions of dollars put into R&D every year to come up with effective products and also a lot of investment put into growing the business in order to keep up with ever changing consumer demand and consumer purchasing behaviours. 
 
I was involved in an elaborate pyramid scheme when i was young and naive and was invited by our SG authorities for questioning to support and ongoing investigation. It was then that i know the difference between Pyramid Schemes vs Direct Selling. BWI is NOT running a pyramid scheme. They are a Direct Selling company and i must say a pretty successful one. 
 
Are they illegal in China? 
No they are not illegal in China because they are not a pyramid scheme. 
 
It was also highlighted by one of our fellow members that BWI has been operating Direct Selling in China before they got their license and this would get BWI into a lot of issue with the Chinese government. From my understanding, there are tons and tons of Direct Selling companies in China that do not even have a license but yet are operating in China. Do the authorities know about it? The answer is Yes, the authorities know about it. Are the authorities doing anything about it? The answer is No. Why is that so? Many people do not know how do the authorities operate. Everyday they have tons and tons of cases to solve and tons and tons of investigation going on. Direct Selling is a sustainable business and people get "self-employed" making a decent living by promoting a product that works for them. Why would they waste their time to catch these companies when they are clearly not causing any problems? 
 
The authorities will take full action when a scheme causes social unrest and got many people affected. Another way to say it would be only when enough people get hurt then the law will do something about it. It is sad to say this but it is true. Ponzi Schemes are only investigated when it grows too big, causing social unrest and when many people get cheated unable to get their $ back and they start reporting to the authorities. This is the flaw of the law. 
 
Moreover, Best World has gotten their license to operate DS in China they just became even more legitimate. i am confident that BWI will not get into any issues with the Chinese government and took advantage of Mr Market when there was a sell down on BWI to buy some BWI shares... 

To CONvince or CONfuse?
 
Be CONvinced or CONfused?
 
Without a product, what do you sell? It has to be people focus…………….
 
People focus without a product is not sustainable for sure. This is pyramid scheme and it is illegal.
 
With a product, but without people, how do you sell?
 
To sell a product under DS model, you need to pay someone to do it.
 
How do you compensate a salesperson?
 
A)  Single level commission (based on his own sales only)
B)  Multi- level commission (based on his own sales + commission from his downline)
 
BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them.
 
But in China, B is illegal, for ALL business model be it retail, online, DS etc - that’s the MAIN difference.

B is an act of 传销 under the Chinese law

Has BWI been granted a DS license to sell Drs Secret? NO !

From the videos, CGL/BWI had been engaging in DS without a DS license

From the videos, CGL had been receiving passive income under BWL, which is an act B above or 
传销

Double violation of the Chinese laws. 

Hi Boon, thank you for your reply. 

Yes you are right: "BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them."

And yes you are right that B is also illegal in China IF:

报酬计算上，直销以直销员个人销售业绩为计算报酬的依据，其他任何人的销售业绩都不与自己的报酬挂钩。传销以发展团队人员的数量或以团队人员的业绩，即以“个人发展人员数量+下线发展人员数量”或“个人销售业绩+下线销售业绩”为计算报酬的依据。传销常用的计酬方式有五级三阶制、双轨制、级差制＋双轨制等。　　直销中，支付直销员的报酬总额，不超过其直接向最终消费者销售产品的收入的30%。传销活动允诺的报酬绝大多数超过30%，有的根本不限制报酬。http://www.saic.gov.cn/hd/gzly/cjwt/zx/2...64066.html

You highlighted the earlier part of the paragraph but i think u missed out the 2nd half of the paragraph. According to Chinese regulators, commissions are to be kept under the 30%. Most pyramid schemes would not be able to operate if their commissions are capped at 30% and below. 

[Value Explorer81]

Thanks Value Explorer81, Millionfaith and others who have shared your experiences on MLM/DS.

Adding to Value Explorer81's post on 传销 vs 直销, the following was stated on page 8 of Nuskin 2016 Annual Report :

Mainland China Business Model
....... We have structured our business model in Mainland China based on several factors: the guidance we have received from government officials, our interpretation of applicable regulations, our understanding of the practices of other international direct selling companies operating in Mainland China, and our understanding as to how regulators are interpreting and enforcing the regulations ........

IMO, the regulations seem to be subjected to interpretations.

Vested in BW, but not in Nuskin or MLM/DS

Your welcome dreamybear.

To add on to my earlier posts, different countries have some slight differences in the laws on how they govern Direct Selling companies. Best World has a good track record so far and i am confident that the management will seek guidance from Chinese government officials if they need to, to structure their compensation plan and other business practices to run a lawful and upright business in Mainland China. What gives me even more confidence is also Best World COO stepping up to send an announcement clarifying the issue that the announcement released on the SAIC website is targetted at 传销，pyramid schemes or ponzi schemes, not the licensed one like Best World. https://www.facebook.com/SharesInv/video...203848736/

We know in our hearts that if a company is running a legitimate business that adds value to its customers and society, it can continue to thrive even in tough economic conditions. All the best to all Best World shareholders and Best World management.

[weijian]

There seems to have been a confusion of 传销 and 直销 over here. 传销 is known as pyramid scheme. 直销 is known as direct selling. 
 
传销-Pyramid Scheme is illegal and why is it deemed to be illegal by the authorities is because:
 
Firstly because of its compensation plan which would over payout as it grows larger and larger with no long term sustainability. 
 
Secondly, pyramid schemes are people focus and any scheme which requires the continuation of pulling more people into the scheme to keep it sustainable is deemed to be illegal. 
 
Thirdly, there are no real business operations or product that is deemed of value and it is merely money merry go round operations. Some would call it financial engineering but the concept is just simply put as "robbing Peter to pay Paul".
 
The whole idea behind a pyramid scheme is to use the new downlines $ to pay the people who joined the scheme earlier. As the scheme gets larger and larger it gets to a point whereby there are lesser new downlines to pay off the earlier people who join and it starts to collapse. Causing a larger % of people who are below to lose $ as compared to the top people who benefitted from it. It is also referred to as a Ponzi Scheme. Why is it called a Ponzi because it started from this person called Charles Ponzi who ran an elaborate Ponzi Scheme. You can read more about it over here to know more about the difference with Ponzi Schemes and Direct Selling: https://www.biography.com/people/charles-ponzi-20650909
 
On the other hand, 直销-Direct Selling is a legitimate and sustainable business be it whether you have license to operate or not. The main reason why Direct Selling is deemed to be legal by authorities is because:
 
Firstly, its compensation plan is sustainable. Companies like Amway, Nuskin, Herbalife are still around to date doing billions of dollars in revenue with millions of members and distributors. The compensation plan does not over payout because it does not promise quick get rich commissions to attract more new members like 传销-pyramid schemes.
 
Secondly, Direct Selling is product focus unlike Pyramid Schemes which are people focus. The Direct Selling model would be sustainable because customers would consume/use the product and would re-order after they finish consuming/using it provided that the product is effective and works for them. This ensures recurring cashflows from the customers due to the effectiveness of the products that are offered through the Direct Selling model allowing it to be sustainable and able to grow long term.
 
Thirdly, there is a legitimate business in successful Direct Selling companies with millions of dollars put into R&D every year to come up with effective products and also a lot of investment put into growing the business in order to keep up with ever changing consumer demand and consumer purchasing behaviours. 
 
I was involved in an elaborate pyramid scheme when i was young and naive and was invited by our SG authorities for questioning to support and ongoing investigation. It was then that i know the difference between Pyramid Schemes vs Direct Selling. BWI is NOT running a pyramid scheme. They are a Direct Selling company and i must say a pretty successful one. 
 
Are they illegal in China? 
No they are not illegal in China because they are not a pyramid scheme. 
 
It was also highlighted by one of our fellow members that BWI has been operating Direct Selling in China before they got their license and this would get BWI into a lot of issue with the Chinese government. From my understanding, there are tons and tons of Direct Selling companies in China that do not even have a license but yet are operating in China. Do the authorities know about it? The answer is Yes, the authorities know about it. Are the authorities doing anything about it? The answer is No. Why is that so? Many people do not know how do the authorities operate. Everyday they have tons and tons of cases to solve and tons and tons of investigation going on. Direct Selling is a sustainable business and people get "self-employed" making a decent living by promoting a product that works for them. Why would they waste their time to catch these companies when they are clearly not causing any problems? 
 
The authorities will take full action when a scheme causes social unrest and got many people affected. Another way to say it would be only when enough people get hurt then the law will do something about it. It is sad to say this but it is true. Ponzi Schemes are only investigated when it grows too big, causing social unrest and when many people get cheated unable to get their $ back and they start reporting to the authorities. This is the flaw of the law. 
 
Moreover, Best World has gotten their license to operate DS in China they just became even more legitimate. i am confident that BWI will not get into any issues with the Chinese government and took advantage of Mr Market when there was a sell down on BWI to buy some BWI shares... 

To CONvince or CONfuse?
 
Be CONvinced or CONfused?
 
Without a product, what do you sell? It has to be people focus…………….
 
People focus without a product is not sustainable for sure. This is pyramid scheme and it is illegal.
 
With a product, but without people, how do you sell?
 
To sell a product under DS model, you need to pay someone to do it.
 
How do you compensate a salesperson?
 
A)  Single level commission (based on his own sales only)
B)  Multi- level commission (based on his own sales + commission from his downline)
 
BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them.
 
But in China, B is illegal, for ALL business model be it retail, online, DS etc - that’s the MAIN difference.

B is an act of 传销 under the Chinese law

Has BWI been granted a DS license to sell Drs Secret? NO !

From the videos, CGL/BWI had been engaging in DS without a DS license

From the videos, CGL had been receiving passive income under BWL, which is an act B above or 
传销

Double violation of the Chinese laws. 

Hi Boon, thank you for your reply. 

Yes you are right: "BOTH A & B could be sustainable business and people get "self-employed" making a decent living by promoting a product that works for them."

And yes you are right that B is also illegal in China IF:

报酬计算上，直销以直销员个人销售业绩为计算报酬的依据，其他任何人的销售业绩都不与自己的报酬挂钩。传销以发展团队人员的数量或以团队人员的业绩，即以“个人发展人员数量+下线发展人员数量”或“个人销售业绩+下线销售业绩”为计算报酬的依据。传销常用的计酬方式有五级三阶制、双轨制、级差制＋双轨制等。　　直销中，支付直销员的报酬总额，不超过其直接向最终消费者销售产品的收入的30%。传销活动允诺的报酬绝大多数超过30%，有的根本不限制报酬。http://www.saic.gov.cn/hd/gzly/cjwt/zx/2...64066.html

You highlighted the earlier part of the paragraph but i think u missed out the 2nd half of the paragraph. According to Chinese regulators, commissions are to be kept under the 30%. Most pyramid schemes would not be able to operate if their commissions are capped at 30% and below. 

hi value explorer81,
It is pretty clear that there are 3 definitions that we are discussing here, rather than the 2 you mentioned.
 
Scenario:
Person A “recommends” Person B into the business. Person B sells the product to Person C.
 
(1) 直销 - direct sales : Person B gets a commission. Person A does not.
(2) 传销 as in MLM (multi level marketing) : Person A and Person B gets a commission.
(3) 传销 as in pyramid scheme: Person A and Person B gets a commission, but Person A gets more money from “recruiting B” than “B selling to C”.
 
- For the “30% rule”, unfortunately it does not state whether it applies to Person B only or include Person A as well. But regardless, the earlier part of the statement does state that the difference between (1) and (2)/(3) is that commission for the above scenario should only be paid to Person B.
 
- In this forum, we are clear that BW is not operating a pyramid scheme (at least from the facts and research presented thus far). So let’s focus on (1) direct sales vs (2) MLM, and leave (3) pyramid scheme out of the picture for now.

[holymage]

I have been thinking about Best World's operational legitimacy for several weeks since my first post on Best World, and reached a conclusion about couple of weeks back.

In my opinion, the crux of the "illegal" operation lies in whether Best World is an ethical company.

First, we need to understand why the government is against pyramid schemes (whether multi-level or single-level commission), and why the public have a negative stigma towards MLM companies (me included, which is why I missed the boat). For a better understanding, go watch the movie documentary - Betting on Zero, Starring Bill Ackman and Herbalife.

This is because most MLM companies focus on recruitment rather than sales and quality of the product itself (key risk of MLMs). By doing so, it harms the consumers and the majority of the distributors, benefiting the very few at the top of the pyramid. This is why the Chinese government are starting to crack down those MLM companies for the next 3 months. If Best World actions are beneficial to people, then I believe there is indeed no reason for the Chinese government to shut down Best World's operations in China (unless the Chinese government are rigid and follow the rules literally). Single-level or multi-level commission really shouldn't be the focus, because that is not the primary driver of the Chinese government at the first place.
I think Value Explorer81 and Best World explained this quite well too.

That being said, whether Best World is focused on recruitment or product, I don't know. But I believe scuttlebutt approach is the best way to assure a Best World investor - by pretending to be an interested client and/or distributor. These being said, I guess we will know by end 2017.

Nonetheless, this incident could possibly result in negative sentiments in China, for both product sales and distributor recruitment by MLM companies. We can see that this was the reason that Best World gave for declining sales in Taiwan for 1Q 2017.

Another area of concern would be slowing Taiwan sales. We can see that while direct selling sales can be explosive and ramp up beyond imagination; declining sales can also be drastic as well (TW: 2Q 2017 by -34.1%, 1Q 2017 by -7.6%). Why did Best World not at least maintain Taiwan sales? If Best World's products are really good and competitive, negative MLM perception shouldn't have that great an impact. Economy, competitor's products or execution are more likely reasons.

Not vested in Best World.