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Is the import milk agency really a pyramid scheme? Can anyone give an accurate statement?

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Recently, a friend asked me to be an import milk agent, saying that there is a large profit margin and that developing downlines can bring more profits. But I'm not very familiar with this industry and always feel that the model of developing downlines is a bit like a pyramid scheme. I'd like to ask everyone, is the import milk agency a pyramid scheme? How can I judge whether it is a regular agency project? I hope friends who know about it can give some suggestions so that I don't accidentally fall into the pyramid scheme trap.

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Professional consultant answers

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

The import milk agency itself is not a pyramid scheme, but some lawbreakers may carry out pyramid scheme activities in the name of it. To judge whether it is a pyramid scheme, mainly look at the following points. First of all, for a regular import milk agency, the profit mainly comes from product sales, such as making a profit by wholesaling milk to retailers, supermarkets, etc. by earning the price difference. While pyramid schemes often exaggerate the efficacy of products and even don't take product sales as the purpose, focusing on recruiting people. Secondly, a regular agency will not ask you to pay a high entrance fee. If you have to pay a high fee to obtain the agency qualification and this fee is seriously inconsistent with the actual value of the product, there may be problems. Moreover, look at its reward system. The rewards of a regular agency are based on product sales performance, such as giving corresponding rebates when reaching a certain sales volume. While the rewards of pyramid schemes are mostly based on the number of downlines developed. For example, a regular import milk agency like Zhongshitong has a perfect product supply chain and sales system, pays attention to product quality and market promotion, and will not simply rely on recruiting people to make a profit. As long as you carefully distinguish, you can avoid falling into the pyramid scheme fraud.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

If the model of the import milk agency is just simply selling products, it should not be a pyramid scheme. But if it emphasizes that bringing people in will bring high returns and doesn't mention product sales much, it is most likely a pyramid scheme. You should investigate more and don't pay money easily.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

It is crucial to see if there are actual products. In many cases, products in pyramid schemes are just a guise and have no actual value. If the quality of the import milk is excellent and there is market demand, being an agent may be no problem.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

You can check the company's qualifications. A regular import milk agency company must have legal business licenses and other certificates. If it doesn't even have basic qualifications, you must not do it.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

It is also important to inquire about the market reputation. Ask other people who have done similar agencies. If the reputation is good, it means it is relatively reliable. If there are many negative messages, you should be careful.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

If the profit-making settings for recruiting downlines in the agency policy are particularly attractive and far exceed the normal sales profit, this may be a sign of a pyramid scheme and you should consider it carefully.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

Pay attention to the product price. If the price of the import milk is much higher than that of similar products on the market and there is no reasonable reason, there may be problems. After all, pyramid schemes often make a profit through inflated prices.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

A regular agency will have training support to teach you how to sell products. If it only teaches you how to recruit people, it is not right and is most likely a pyramid scheme.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

Look at the division of agency areas. A regular one will divide reasonably to avoid vicious competition. If anyone can do it casually without planning, it is not very reliable either.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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