The Difference Between Online Earning and Pyramid Selling
People who have made money through online earning all know that it is different from pyramid selling, but what exactly is the difference? Some people involved in online earning have written about this. I think this issue should be clarified. At first, I looked up a lot of information on this topic online, but none of it was satisfactory. After reading some books on economic theory and marketing, I summarized some experience and wrote it down below for everyone to discuss:
1. Joining online earning is free, while pyramid selling charges a fee.
This might sound like a small difference, but it's actually significant. As you know, in pyramid selling, the upper line introduces the lower line to join, the lower line pays money, and then the upper line and the pyramid selling company earn money from the lower line. Is that correct? But you should know that joining online earning is free. So where does the money come from for online earning and the upper line? I'll tell you, it comes from manufacturers advertising on websites. Therefore, regardless of the website, upper line, or lower line, they all earn advertising fees. This is similar to a production enterprise, where after the product is sold, the employees and boss of the enterprise earn money from the consumers. Thus, online earning has actual products (in this case, services), and these products are obtained through legitimate market behavior. In contrast, pyramid selling companies also have products, but their products are sold to members by collecting membership fees, which is a forced sale rather than market behavior.
2. Aren't both pyramid selling and online earning about the upper line profiting from the lower line?
If we look at this question broadly, it becomes easier to understand. I would like to ask friends who raise this question: besides online earning and pyramid selling, are there no other cases of the upper line profiting from the lower line? What about the relationship between private enterprise bosses and their employees? Or the relationship between wholesalers and retailers? And what about the relationship between manufacturers and agents? Someone might say, they all earn money from consumers by selling products. This brings us back to the first point: online earning also sells products, and they also earn money from consumers. All of these are market behaviors, whereas pyramid selling is not a market behavior; it is a forced sale.
3. The number of levels in the lower line is limited in online earning, but unlimited in pyramid selling.
Some may ask, what is the difference? I will tell you: this is also a question of whether it is a market behavior. If there is a limit on the number of levels in the lower line, then it is very normal for the performance of the lower line to far exceed that of the upper line. This reflects fair competition in market behavior. However, with unlimited levels, the lower line cannot possibly surpass the upper line, so it does not reflect fair competition. For example, one of my subordinates in New Qin Survey is a friend of mine in real life, and his performance exceeds mine by more than double.
4. The content of loss is different.
Assume that a pyramid selling company and an online earning company go bankrupt at the same time. What losses would each member incur? Members of the pyramid selling company, especially those at the bottom, lose both time and money. On the other hand, members at the bottom of the online earning company only lose time.
5. Different consequences for not recruiting subordinates.
If a member of a pyramid selling scheme does not recruit subordinates, they cannot make money because they must introduce subordinates to forcibly purchase the products of the pyramid selling company. In contrast, online earning can still generate income without subordinates. Having subordinates just means you receive payments faster and with less risk of non-payment. This is akin to a manufacturer; if you find more agents, your products sell faster and in larger quantities, increasing profits. If the manufacturer sells directly, it takes longer and generates less profit.
6. The content of "transmission" is different.
When the upper line develops the lower line, it is called "transmission." What exactly is being transmitted? From the fifth point, we know that online earning can still make money without subordinates, meaning it is work. Therefore, in online earning, "transmission" refers to passing on work. In pyramid selling, "transmission" refers to passing on sales. Someone might say, isn't sales just work? You're right. My point is that the work in online earning is like regular work, where a leader assigns specific tasks to us, and we just need to execute them. For instance, the leader says, "Print out this document today." In contrast, business personnel in a company do not get assigned tasks; they must plan, arrange, and execute their work themselves. Some might say, "I enjoy doing sales," and that's fine, you can pursue it. However, in pyramid selling, you are a salesperson, and the subordinates you develop are also salespeople. Many Chinese people dislike doing sales work, so your development space is quite limited. Of course, this is different from real business personnel in companies, who do not need to develop more business personnel but only focus on developing consumers.
7. "Transmission" and "sales" are not the same family.
"Transmission" and "sales" are not the same thing. Just as in the saying "Judge Qiao randomly pairs couples," someone has forcibly combined these two concepts. "Transmission" refers to geometric progression, known mathematically as a geometric sequence. The application of geometric progression is widespread. People object to "transmission" aimed at sales, or "forced sales disguised as transmission." These two words...