"The rebate" of the "naked" pyramid scheme color

Abstract: Debunk consumption rebate scam to consumer rebate for marketing means of several home rebate site has crashed and been investigated, let people begin to sigh, this kind of rebate myth business model of harm and destructive power. June this year, with 1.82 million members, including the right to dividend premium

Debunking the "consumption rebate" deception

To "consumption rebate" as a marketing means of several "rebate site" has crashed and investigated, let people begin to sigh, this kind of "rebate myth" business model of the harm and destructive power.

This June, with 1.82 million members, including the right to share a senior member of the more than 700,000 people of Zhejiang Jinhua million shopping was seized the news of the seizure of the electric business field of an earthquake; in the previous April, Jiangxi Wonderful Life under the Pacific Official direct purchase network was investigated, the case disclosure of participants as much as 9.11 million, The amount of money involved is nearly tens of billions of dollars, and the crash of the Fujian hundred rebate NET, Wenzhou Federation of all Trades and professions, also let a lot of people involved.

According to China's anti-marketing volunteer Alliance incomplete statistics, the current "consumption rebate" as the mode of operation of the enterprise organization has reached more than 2000, "consumption of the full return" enterprises have reached nearly 1000.

In fact, the rebate shopping model as an e-business model, itself is not a problem. "Xuefei thinks. In fact, according to the number of sales of products to convert the amount of advertising, that is, the so-called CPS (cost per sales) model, as early as in 1999, Europe and the United States have used, now the largest foreign, but also relatively mature two rebate site is adates.com and fatwallet.com.

"For the Electronic Business site, rebate site not only brought a large number of high-quality online users, huge orders and high repeat purchase rate, but also paid for the effect of the mode of cooperation has greatly reduced the spread of costs and risks." "Ningbo sent Revey e-Commerce Co., Ltd. CEO Reed Min at the 2012 E-commerce Industry (Shanghai) summit to reporters that on the other hand, consumers can bring affordable and shopping convenience.

However, some rebate site because the rebate is not large, unattractive, near death, and some went astray, using improper marketing means, may make the whole industry in the hearts of consumers lose integrity.

and participation in the consumption rebate business model of agents, business members, consumer membership has more than more than 30 million, and with this business model of online promotion and offline development, the number of participants to expand rapidly. So how is the E-commerce model of consumption rebate combined with network marketing?

"The rebate" of the "naked" pyramid scheme color

In the name of "consumption rebate", the member and the participants are required to pay the entry fee or to pay the entry fee in disguise, rely on the development of the line profit, China E-commerce Research Center analyst Xuefei told the first financial daily, this kind of consumer rebate site has more obvious mlm color.

They are in the name of the development of provincial and county agents, require agents to pay "margin", and through the development of channel operators, the partition of "margin" to obtain remuneration; some through the site backstage, members of the free recharge, and then in accordance with the number of times to return; in the promotion and development process, encourage members to abandon consumption, Get paid for investing. Fujian has two companies (Fujian Tian Jian, Fujian million), but also set up a dual-track and the impact of the MLM system, Zhejiang Quzhou 91 consumer treasure set up a five-year points reward.

For example, the "Pacific Direct Purchase Network" sponsored by Jiangxi Wonderful Life Investment Development Co., Ltd. after registering to become a member of the website, pay 7000 yuan ~7000 million unequal expenses, become the corresponding channel business, get the same amount of virtual PV (Electronic consumer coupons), then develop the line, PV sold to get the corresponding level of commission. It is by such "myth of Wealth", "the Pacific Direct purchase Network" since 2010, the rapid spread of registered members of nearly millions of people, pay the security of the participants have reached more than 400,000.

Another typical case is Shenzhen "Shi Lian fa". This 2007 site, its official website looks like a large shopping mall, in fact, they play the guise of online shopping, the development of the offline. Once you join the membership, you can enjoy all the wholesale price of goods on the site on the 90 percent purchase discount, at the same time with agents of the Service center qualification, and is a lifelong agent, life-long enjoyment of other members of the agency, to obtain their commission. The whole model is "pyramid" style, to draw a 3000 yuan of diamond card members, agents can earn 20% of the agency fee, the level of commission, sit enjoy profit.

Similar to the "Pacific Direct purchase Network" Operating companies, the current increase in the "Global Village Shopping Rebate Net", "Taoyuan Line", "The Great Wall Direct shopping mall official website" and other companies have developed relatively large.

Full rebate of the financial game

Another type of rebate site is more covert, they do not require members to pay entry fees, recruitment agents do not need to pay fees, the company through the website shopping platform and Development offline entity Alliance business, registered members of the Web site to the Entity Alliance merchants Shopping, by the merchant to pay intermediary service fees to the company, The company returns to the consumer in accordance with its return policy.

"In this model itself, as the basis for real consumption of the third party shopping guide platform is not a problem, the key lies in the expansion of the model development process of variation, the emergence of a large number of speculators to make this model into financial games and gambling tools." "China's anti-marketing volunteers Alliance chairman Lingyun said."

To million home shopping for example, consumption 500 back to 500, consumption 1000 back to 1000, "consumption = free, consumption = investment" concept of temptation, so that a large number of false consumption, real investment behavior appeared, deviated from the "consumption rebate" essence. The biggest problem with the model is that the company cannot fully supervise the declarations below, but it is also necessary to maintain the performance expansion in order to fulfill the embarrassing situation of the rebate commitment. If the failure to cash, the members identified as fraud, cash and then went into a vicious circle, in the future once unable to pay rebate, will produce unpredictable destructive power.

From the company's operating point of view and the financial situation to understand, in addition to the company to pay the daily rebate expenses, but also to pay the operating costs, tax expenditures, agent Commission and other expenses of the various periods. Purely from the rebate of the data, the company, if no commission outside the premise of investment income, also means that, over time, companies will inevitably have some of the funding gap for consumption, and that part of the funding gap will depend on more merchants to pay commissions to fill, with a snowball-like growth in the performance can support rebate.

"This is actually a typical ' Ponzi scheme '. "Xuefei said. The Ponzi scheme, one of the oldest and most common forms of investment fraud, is a variant of the pyramid scam, invented by a speculator named Ponzi, who uses the money of new investors to pay interest and short-term returns to old investors in order to create the illusion of making money and thereby defraud more investment.

And in China this is called "Peter Paul", Empty gloves White Wolf. The pattern of this confusion and the mutation into financial games is developing very rapidly. According to Lingyun statistics, similar sites reached more than 1000, and can be formed in 3-4 months scale, within six months can bring together hundreds of millions of yuan of funds, tens of thousands of members.

The absence of regulation of electricity quotient in the return-profit network

The spectre of a Ponzi scheme is wandering over the internet, the spectre of a return to the net.

A recent period, a large number of rebate nets have suffered a break in the capital chain, and some sites have been investigated for illegal, this new E-commerce marketing model finally faded the hypocrisy of the halo, exposing the hideous face.

It is more appropriate to call it "Ponzi scheme" than network marketing. The definition of MLM must conform to three elements: the entry fee, the development of the line, the level of compensation, and many rebate network although there are so-called entry fees (that is, shopping expenses), but there is no strict sense of "development offline" and "level of pay." Its level is relatively simple, as long as the consumption of a sum of membership, you can have the so-called dividend rights, that is, "consumption rebate." The profit model of the rebate net is that it is the same as the Ponzi scheme, which is to absorb the money of the new investors to pay the upfront investors.

Similar to the purchase mode of consumption rebate is good, but the paradox is that the rebate is too little, attract participants, the site can not be strong in the short term, too many rebate, can not establish a normal business model, can only anticipates, as for the full rebate, is absolutely Arabian nights business behavior.

Rebate network threshold is lower, as long as the promise of high rebate, there are not familiar with the business law, the mentality of the consumer speculation, a time rebate site everywhere, mixed. Experience this robbery, suspected MLM and fraud rebate website in the difficult to escape, and healthy rebate website also feared to be implicated, this new business model is not mature, the impact of the fatal.

Rebate website is rampant, network fraud is rampant unimpeded, and legislative gaps, the absence of supervision is not unrelated. Recently, a number of electric business giants have been harsh, competitive prices, vicious competition, but also the industry "barbaric growth" of the real mirror.

The rapid development of E-commerce is remarkable, in a sense, this is only the hardware, the cornerstone of software is not solid, legislation is still blank. It is hard to imagine that the 2011 online shopping has been as high as 780 billion yuan, in the field of commercial retailing occupies a place, but there is no specific law on its business practices to regulate, regulate. E-commerce is an extremely dispersed industry, a large number of small sellers become the main transaction, it is difficult to form the industry self-discipline. Can not rely on, no industry self-regulatory organizations, resulting in some network disputes, such as whether the network operators tax, so far the dispute has continued.

According to sources, the State Administration for industry and commerce led the "Internet commodity trading and service regulation" has been included in the State Council plan, which means that e-commerce regulatory legislation has been fully activated, and all kinds of "variant platform operators" is expected to be included in the regulation. Although this is only a "level two law", its positive significance can not be denied.

China's E-commerce benchmarking enterprise-Alibaba last year also broke a fraud scandal, Ali to the "anti-corruption" banner, trying to purify its organization and structure of values, even to let the CEO leave, this may be the absence of supervision of the State of the enterprise. From the back to the network chaos to Alibaba "anti-corruption", from the jungle to the rule of law, from self-discipline to his law, the electric business industry supervision needs to be perfected, hope that the return of the net to become a sign, the electrical business disorderly as the way of his law to rectify.