Beginning with Super Group Purchase: How can a mobile phone become a pyramid selling business?

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 Beginning with Super Group Purchase: How can a mobile phone become a pyramid selling business?


According to Mr. Li, taking Apple XSMAX (64G) as an example, the price of official website is 9099 yuan. Customers only need 6199 yuan to purchase under the platform of Super Group Purchase, which is 2,900 yuan cheaper than official website. After 45 days, they can get the mobile phone. They can also choose to buy back the mobile phone by the company. The price of the repurchase is 6999 yuan, which is equivalent to the purchase of the machine for customers. Full refund can also earn 800 yuan.

What is Super Group Purchase?

urface

New retail

Super group buying is a website which focuses on the new model of retail group buying. It integrates consumption, sharing and revenue. It subverts the traditional online shopping model, realizes the integration of consumption, promotion and income generation, and creates a harmonious win-win ecological circle for users and businesses.

Actual

Ponzi scheme

At the end of 2019, the company has carried out a comprehensive stock reform; starting in 2020, it will accept Nasdaqs guidance on listing... This is an ambitious beautiful blueprint outlined by Sichuan Zhongtian Xingsheng Network Technology Co., Ltd. (hereinafter referred to as Zhongtian Xingsheng Company).

However, with two police briefings from Shawan District Bureau of Leshan Public Security Bureau in Sichuan Province, this beautiful blueprint came to an abrupt end. On August 5, the police informed that suspected organizations and leaders of pyramid selling activities were investigated, and several key personnel of the company were taken criminal compulsory measures according to law. On the evening of September 11, the police again notified that 20 key personnel, including Longyan and Liang Jing, suspected of organizing and leading pyramid selling activities, were arrested according to law after being examined and approved by the procuratorial organs.

According to Zhongtian Xingsheng Company, in May 2019, Super Group Purchase sold more than 300,000 mobile phones a month, with sales reaching 500 million yuan. Its branches cover eight provinces, including Sichuan, Chongqing, Shaanxi and Guizhou. So, how does Super Group Buying work? How does Zhongtian Xingsheng Company make a mobile phone into a pyramid selling business and expand to eight provinces in the country? Over the past few days, Chengdu Business Daily-Red Star Journalists have made many investigations and visits to uncover the Super Group Buying mode of operation, organizational structure and the layers of money for you. Secret...

Incident

Suspected Organizational Leadership of Pyramid Marketing Activities

The parent company of Super Group Purchase was investigated

On August 30, the Chengdu Headquarters of Zhongtian Xingsheng Company, located on the 6th floor of a square on Tianfu 3rd Street, Chengdu High-tech Zone, was empty with seals on the glass doors. A month ago, people came and went here, and it was very lively. On the 26th floor of an office building on Jiading Zhonglu, 130 kilometers away, the office of Zhongtian Xingsheng Company was sealed up at the same time. This is the headquarters of Leshan, which is also the registered place of Zhongtian Xingsheng Company.

Zhongtian Xingsheng Company introduced itself on its official website as follows: The company was founded in October 2017 and was established in Chengdu and Leshan in the form of double headquarters. Its main business covers many fields, such as new retail, new energy, new agriculture, new cultural tourism, and has established more than 80 branches successively. Its business scope covers the whole country. Several provinces.

On the day of the seizure of Zhongtian Xingsheng Company, the Shawan Branch Bureau of Leshan Public Security Bureau issued the first police report: according to the reports of the masses, the bureau investigated the cases of Longyan and other people organizing and leading pyramid selling activities according to law, and recently adopted criminal compulsory measures against the key personnel organizing and leading pyramid selling activities according to law. According to the circular, Longyan and others registered to set up Sichuan Zhongtian Xingsheng Network Technology Co., Ltd. to buy high-end mobile phones at low prices, recommend incentives and team performance as gimmicks, through the Super Group Buying e-commerce platform, layers of development offline, access to illegal benefits, has been suspected of organizing and leading pyramid selling activities. At present, cases are being investigated and dealt with according to law.

On the evening of September 11, the Shawan Branch Bureau of Leshan Public Security Bureau issued the second alert: after investigation, suspect Longyan and others registered in June 2018 to establish Sichuan Zhongtian Xingsheng Network Technology Co., Ltd., set up a super group purchase e-commerce platform, false propaganda of information such as state-owned enterprise holding, under the banner of the new retail economy, in order to group. The mode of physical shopping is gimmick, fictitious order quantity, false transaction, using short-term investment and high return as bait, pulling peoples hair off the line and gaining profits illegally.

Bottom up

New retail or new pyramid marketing?

Like the snowball game, nobody cares about how many mobile phones are sold. Mr. Li said that in fact, the number of real mobile phones sent out by the company is very small. Most of the orders are just a number, but the funds are circulating. No matter the service providers, distributors or customers, people who are involved in them want to make a big profit from it.

management model

Mobile Phone Buy High and Sell Low

Business Model of Full Return of Consumption

What is Super Group Purchase?

According to the public information of Zhongtian Xingsheng Company, Super Group Buying is a website which focuses on the new mode of retail group buying. It integrates consumption, sharing and income. It subverts the traditional online shopping mode, realizes the integration of consumption, promotion and income generation, and creates a harmonious win-win situation for users and businesses. The state circle. At the same time, the company also said, Super group buying is also a money-saving artifact, so that consumers can really enjoy preferential treatment. So, how can such a money-saving artifact save so-called money for consumers? Why is it suspected of pyramid selling crime?

In fact, it is a kind of business model ofall consumption returns. Recently, Chengdu Business Daily - Red Star journalist contacted Mr. Li, an insider who had worked in Zhongtian Xingsheng Company.

According to him, customers buy mobile phones on the Super Group Purchase platform. After that, they can pick up or choose not. The company sells them to wholesalers on behalf of them, and they can also earn hundreds of yuan.

At present, the company mainly buys mobile phones of Apple, Huawei, millet and other major brands. According to a price adjustment announcement of Zhongtian Xingsheng Company provided by Mr. Li, the mobile phone products purchased on the Super Group Purchase platform are priced between 1000 yuan and 3000 yuan cheaper than the official price, and the price is really very attractive.

In order to dispel customersdoubts, Zhongtian Xingsheng also promised in the buy-on-behalf contract that delivery delays of more than three days would result in additional compensation for a certain amount of cash. For example, the delivery is delayed by more than four weeks, with a refund of 1000 yuan per customer.

Everything looks good, but can Zhongtian Xingsheng really get in at a super low price?

According to Mr. Li, Zhongtian Xingsheng Company first purchased goods at Taisheng South Road in Chengdu City, and then purchased goods through Chengdu Branch of a company. The purchase price is almost the same as the normal price, which is not much cheaper. Sometimes, when the supply is tight, it is even slightly more expensive than the market price. The company will bring in high-priced Apple phones and sell them cheaply under the Super Group Buy model.

Buy high and sell low. Such an obvious loss-making business cant be sustained for a long time. Mr. Li told reporters that at first, the companys capital chain almost broke several times. Later, only by raising the group purchase price, prolonging the delivery time, and constantly attracting more new customers to join, accumulate funds to fill the hole.

The Secret of Profit

Profit from head count

Setting up hierarchical rewards

Mobile phones are bought at a high price and sold at a low price. It is obvious that Zhongtian Xingsheng Company will not always make a loss sale. So, how can they make a profit?

Mr. Li said that when some customers questioned, Zhongtian Xingshengs explanation about profit was as follows: First, they buy mobile phones at factory price directly through a companys Chengdu Branch, and they will get a reward after they complete a certain sales task. In addition, it is to collect the management fees paid by lower service providers and distributors.

In fact, the company has designed a hierarchical payment incentive model. The company has several levels, such as operation center, service provider, distributor and customer. Through the development of new customers, the company gains illegal benefits by the number of head. The human head here is not only a traditional human, but also a mobile phone. Its like a pyramid organizational structure, with different rebates at each level through the development of new customers or new mobile phones.

According to Mr. Li, the average customer can become a distributor by paying an agent fee of 36,000 yuan per year, and can return 200 yuan from each mobile phone order. Distributors can apply to become service providers when their orders reach 500 units. Service providers pay an agent fee of 360,000 yuan per year, and a mobile phone service provider can get 400 yuan commission from the company for each subscription.

In addition, for each distributor recommended by the service provider, the company will return 20% of the agency fee to the service provider, and 10% to the upper level of the service provider responsible for the business department. Operating centers are generated from local service providers, which pay management fees ranging from 40,000 to hundreds of thousands of yuan to the company every year. Operating centers can deduct 20 to 30 yuan from the total orders of all service providers in the whole area. Liang Jing, who is in charge of the companys market sector, draws 10 yuan from each of the orders.

Mobile phones are a cover

The more people pull, the greater the return.

No new entrants will crash

According to Mr. Li, a person familiar with the situation, the essence of Super Group Purchase is to deposit funds for a longer period of time by designing the purchase cycle, but the mode of buy high and sell low can not be profitable. Under this mode of operation, service providers and distributors no longer care about how many mobile phones they sell. On the one hand, they constantly raise their own funds or even raise their own funds. Loans increase orders, on the other hand, continue to develop more new customers to place orders. Anyway, it is believed that the more investment, the more talent development, the greater the return.

The so-called mobile phone repurchase is just a cover. Mr. Li told reporters, because after the purchase cycle, the company will return the repurchase funds to them, and they will immediately re-order as quickly as possible, and mobile phones are just a necessary prop, as soon as possible to upgrade to distributors, service providers, operation centers, from the head to make more money faster. Just like the snowball game, nobody cares how many mobile phones they sell. Mr. Li said that in fact, the number of real mobile phones sent out by the company is very small. Most of the orders are just a number, but the funds are circulating. No matter the service providers, distributors or customers, people who are involved in them want to make a big profit from it.

In Mr. Lis view, this is actually a Ponzi scheme. To put it plainly, it means breaking down the East Wall to make up the West Wall, empty glove and blank wolf. With the money of the latter entrant, it gives the first entrant investors (rebates). When there is no new entrant, the capital chain will collapse. But the game of beating drums and spreading flowers which can be seen at a glance still attracts so many service providers, distributors and customers. Besides being brainwashed, it also captures the most critical weakness of human nature - greed. According to the local police circular, pyramid selling activities are explicitly prohibited by national laws. Organizers, leaders and backbone members of pyramid selling commit criminal activities and participate in illegal activities, disturb social and economic order, and violate national laws and regulations such as the Criminal Law. Participants in pyramid selling should actively cooperate with the investigation of public security organs. Those who commit illegal or criminal acts should voluntarily surrender and strive for leniency. At the same time, we invite the masses to enhance their awareness of prevention and consciously resist and stay away from pyramid selling and other illegal and criminal activities. Source: Responsible Editor of Chengdu Business Daily: Chengyu_NBJ11143

In Mr. Lis view, this is actually a Ponzi scheme. To put it plainly, it means breaking down the East Wall to make up the West Wall, empty glove and blank wolf. With the money of the latter entrant, it gives the first entrant investors (rebates). When there is no new entrant, the capital chain will collapse. But the game of beating drums and spreading flowers which can be seen at a glance still attracts so many service providers, distributors and customers. Besides being brainwashed, it also captures the most critical weakness of human nature - greed.

According to the local police circular, pyramid selling activities are explicitly prohibited by national laws. Organizers, leaders and backbone members of pyramid selling commit criminal activities and participate in illegal activities, disturb social and economic order, and violate national laws and regulations such as the Criminal Law. Participants in pyramid selling should actively cooperate with the investigation of public security organs. Those who commit illegal or criminal acts should voluntarily surrender and strive for leniency. At the same time, we invite the masses to enhance their awareness of prevention and consciously resist and stay away from pyramid selling and other illegal and criminal activities.