Is importing milk agency a form of pyramid scheme? Come and help me judge.
Solved#Import agent#
Recently, a friend invited me to be an importing milk agent, saying that the profit is very high and I can develop to get commissions. I've never been exposed to this kind of agency before, so I'm worried it might be a pyramid scheme. I want to ask everyone, is importing milk agency a pyramid scheme? How should I judge? I don't know much about this industry and I'm afraid of being cheated accidentally. Are there any friends who have done this or know the ropes? Please analyze it for me so that I can have a clear idea.
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Importing milk agency itself is not a pyramid scheme. A regular importing milk agent obtains brand authorization through legal channels, purchases milk from abroad, and then sells it domestically to earn a price difference. However, some lawbreakers may use the name of importing milk agency to carry out pyramid schemes. To determine whether it is a pyramid scheme, you can start from the following points: First, look at the profit model. If the main profit comes from the headcount fees of developing rather than product sales, it is likely a pyramid scheme. Second, look at the product. Regular agency products have guaranteed quality and legal procedures, while pyramid schemes often have products with inflated prices and poor quality. Third, check whether there is forced consumption or payment of high entry fees. Pyramid schemes often ask participants to pay money in various names. Regular importing milk agency platforms like Zhongshitong have legal and compliant operation processes and high-quality products, and their main profit comes from product sales. In short, conduct more investigations and understanding to avoid falling into the pyramid scheme trap.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If this importing milk agency asks you to pay a large sum of entry fees and says that you can make a fortune whether you can sell the products or not, then be careful. It is likely a pyramid scheme. Normal agencies surely make profits by selling products.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Check if there are actual imported milk products. If you can't even see the products and they just keep boasting that developing can make money, then it can basically be determined as a pyramid scheme. Regular agencies surely have real goods.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Generally, pyramid schemes exaggerate the earnings, saying that you can get rich overnight. Although importing milk agency has profits, it's not that exaggerated. If the earnings are described ridiculously, don't believe it.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Regular importing milk agencies have a complete supply chain and after-sales system. If the other party is vague about these and only emphasizes recruiting people, then it's very suspicious and may be a pyramid scheme.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Check whether the company has regular business qualifications and the reputation of the agency brand in the market. If you can't find any information or the reputation is very poor, then it's most likely a pyramid scheme.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Pyramid schemes usually create a very urgent atmosphere, urging you to join quickly or you'll miss the opportunity. Importing milk agency should be a rational business cooperation and won't be so pushy.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Check whether the product price is reasonable. If it is much higher than similar products on the market and has no special features, it may be a pyramid scheme, relying on inflated prices to maintain the so-called profit system.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
You can consult the local industrial and commercial department to find out whether this importing milk agency model is compliant. If the industrial and commercial department has no relevant records, then there is a problem.