My American magical life
Chapter 895 - 895 62 Come Watch the Fireworks4

895: Chapter 62: Come, Watch the Fireworks4 895: Chapter 62: Come, Watch the Fireworks4 When faced with significant public opinion issues, the attitude and response of the concerned parties are examined very closely.

The concerned parties here don’t necessarily refer to specific individuals, but as the representative figure of Shanhaiguan, Cheng Daqi, who introduced himself on TikTok as the founder of Shanhaiguan, indeed needs to bear this heavy responsibility.

He exhaled lightly, speaking with an innocent tone.

“Shall we make a bet—I should be trending tomorrow.

Alright, everyone, don’t look at me with the eyes you’d use to watch someone on trial.”

At times like this, jokes are useless, at least few people in the audience are laughing.

But President Cheng needs to demonstrate his attitude in this manner.

“Everybody knows, I am the chairman and founder of Shanhaiguan Media.

As a worker in the cultural and entertainment sector, my team and I always pay close attention to all kinds of public opinions about us, such as occasionally checking Zhihu to see if I’m being called out today.

There are many interesting questions on Zhihu, but most of the top responders like to say one thing, ‘First, see if it is so, then discuss why.’

Just now this student said Family Good Items is a pyramid scheme, deceiving a cancer-stricken child’s mother out of her life-saving money, and my company has become an accomplice in this matter; there are at least two points in this allegation that are very imprecise.

Firstly, as the concerned party, I must point out—Family Good Items is an e-commerce platform centered on private domain traffic, not a fraudulent company profiting from a pyramid scheme, from a legal standpoint, it’s even considered an innovative internet enterprise.

A distributor of Family Good Items encountered family misfortune, which is regrettable.

I am willing to donate to help this mother through difficult times.

However, here comes the second point—the pursuit of profit by commercial companies and the ambiguous state of business ethics have no clear standards that can be referred to, and it isn’t easy to determine whether legal business practices are committing wrongdoing and how they are doing so.

Well, to put it simply, we entrepreneurs and business controllers are not omniscient geniuses.

Perhaps some students who follow the news occasionally get the impression that businesses, social organizations, and even government agencies make laughable errors or even tragic mistakes from time to time.

This is a normal phenomenon.

Accidents in the process and uncontrollable outcomes do not alter with the will of operators and managers.

Once you enter the workplace, you will have a clearer understanding.

Lastly, I would like to say…”

Cheng Daqi hesitated for a moment as if the following words were hard to express.

His response was already controversial, but what he was about to say next was even more unexpected.

“If this poor mother wishes to seek assistance through judicial means, I am willing to reach out!

Consider it a response from Shanhaiguan to various doubts.

The significance of this matter is that I hope everyone can feel our sincerity, and that’s all.”

You say Shanhaiguan is an accomplice, fine, then now I’m going to help this mother who is suspected of being cheated!

Standing by the weaker side, this is certainly the correct stance.

No one is better at responding on the fly than President Cheng.

In just a few minutes, he offered the hottest and most media-sensitive response.

—————–

Being questioned in a conference with thousands of people, President Cheng can find a dignified way out, which is an inevitable outcome prepared by him over the long term.

However, on the other side, Wang Xiaoxiao of Family Good Items is not so graceful.

Inside the office, suppressing the anger in his heart, Wang Xiaoxiao explains to the investors.

“Our promotion model doesn’t have any issues; it has all been vetted by you.

You must understand, doing e-commerce isn’t something that can be done carelessly with everyone’s well-being in mind.

Without boldness, would you believe I could succeed?”

Is Family Good Items a pyramid scheme?

Yes and no.

Because the multi-level agency, layered commissions, and increasing commission rates with higher ranks are in themselves not incorrect; many sales-oriented companies do this, can you say they are all pyramid schemes?

That would be chaos!

“Senior managers can get more rebates, but their rebate margins aren’t high.

Overall, the saved promotion costs can completely cover these rebates, moreover, all our transactions are real.”

Wang Xiaoxiao continued to explain to the investors.

Family Good Items’ ‘Family Shop’ has owner rebates, a profit-sharing model based on traffic sharing, which can promote store owners to expand Family Good Items within their own social circles.

The issue lies in what is the basis for these commissions.

Specifically, even if you sell combs to monks, there’s still a product being delivered, which can be simply understood as a normal sale.

But the problem with Family Good Items lies in the fact that its ‘products’ are virtual and worthless outside the platform.

Its product is ‘rank.’

Its mechanism allows, or even encourages, newcomers to pay money to level up or make purchases to level up.

Once leveled up, they can develop new ‘Family Shop’ owners, and new owners continue the cycle of making purchases and leveling up.

From a data perspective, this model is incredibly suitable for financing; with just a minor investment, the whole system can start running.

Once the system is up and running, new money will continuously flow in from the pockets of greedy individuals.

So, from a practical perspective, Family Good Items also possesses the characteristics of a Ponzi scheme.

This is why Family Good Items was caught in the trap so easily set by Cheng Daqi.