Is Tiens Group a pyramid scheme? Is Tiens Group a formal company?

In China, there are many very good companies, one of which is Tiens Group. However, this company with annual revenue of several hundred million is suspected to be a pyramid scheme company. So, do you think Tiens Group is a pyramid scheme? In other words, is Tiens Group a formal company? Let’s get to know Tiens Group and its big boss.

Tiens Group is not a pyramid scheme

The editor searched for information and found that Li Jinyuan is currently the chairman and president of Tianjin Tiens Group. Born in Cangzhou, Hebei Province in June 1958, he made his "first pot of gold" by reselling clothes, tape recorders, grains, etc. in the 1980s. He was once investigated and punished by the industrial and commercial department and charged with "speculation" and other crimes. Although it has a disgraceful past, it is now prosperous.

In 1993, 35-year-old Li Jinyuan founded "Tiens" company in Tianjin, mainly engaged in real estate. But faced with the "storm" of the State Council tightening money and tightening supervision, he failed to gain anything. As a result, he transformed into marketing health products. In just three years, Li Jinyuan developed an MLM team of about 3 million people across the country. From the beginning of 1996 to August 1997 alone, Tiens achieved sales of 1.989 billion yuan through MLM, with profits as high as 639 million yuan.

In April 1998, the State Council issued a document prohibiting pyramid schemes, and Tiens had to move overseas. Tiens health products MLM outlets have been established in Russia, Ukraine, Hungary, Poland and other countries. So far, Li Jinyuan has developed his business to more than 100 countries and regions. Li Jinyuan has been dubbed China's "Father of Direct Selling" and "Tianjin's Richest Man" and many other titles. In 2014, he ranked 204th on the 2015 Hurun Global Rich List with a net worth of 35 billion yuan.

In other words, the current Tiens Group is a formal direct selling company, not a pyramid scheme. In fact, there are some similarities between direct selling and MLM, but the biggest difference is that direct selling does not harm people or defraud money, and it is legal. Therefore, everyone should not question Tiens Group, nor spread false rumors to slander Tiens Group to avoid getting into trouble.