Research On MLM Trap In The Operation Of Cashback Websites

Some cashback websites went on the road of pyramid variation duringthe period of innovation and breakthrough when suffering. They were able todevelop rapidly and even survive for a few years, and eventually causedserious damage and bad influence to the whole society and the electric fieldbecause the community failed to judge timely and accurately on MLM trap inthe operation of those cashback websites. So it is a research direction of greatpractical significance to identify and prevent MLM trap in the operation ofcashback websites.Based on theories of e-Marketing and Virtual Value Chain, and from theviewpoint of value creation sources and value flow, there will be acomprehensive analysis on the operation modes among general cashback sites,full cashback pyramid sites and integration cashback pyramid sites, fromwhich a general operation process and a practical process to judge the MLMtrap in cashback websites’ operation will be obtained. The root of MLM trapof cashback websites, which will be revealed, is that cashback websites areused by MLM organizations and fail to follow the development of e-Businessand the value chain activities. The essential difference between generalcashback sites and pyramid selling sites in ways of e-Business value chain andMLM activities will be clearly pointed out and the practical verify of theprocess to judge the MLM trap in cashback websites’ operation will be carriedout, which will be helped to prevent the pyramid risk of cashback websites.