Chapter 283: Knowledgeable in Astronomy but Paralyzed in the Legs

"Direct sales?" Hearing this term, Wang Hongfei took off his wig and scratched his bare scalp, "What is that?"

Seeing Wang Hongfei's confused expression, Li Xian couldn't help but laugh. It seems like this term isn't even known in China yet.

Li Xian organized his thoughts and explained the rules of direct sales. 

Essentially, a direct seller gets a 35% discount on purchases. If they can recruit 25 people and each recruit buys a one-month supply, the direct seller can become a sponsor. Both the customers and their downline distributors can place orders directly with the sponsor. The direct seller can take 35% profit from the sales to customers. The sales from downline distributors can be up to 25%. When the sponsor and their downline accumulate 150 customers, they become "agents" at the top of the pyramid. If the downline also becomes agents, the sponsor can take 20% of their total sales.

It's a standard pyramid sales structure.

Seeing Wang Hongfei counting on his fingers, Li Xian smiled slightly, "So, Wang Bro, are you interested?"

"Geez," 

Wang Hongfei gave up on calculating the discounts and scratched his head again.

"You kid, this thing sounds... kind of like a pyramid scheme?"

Li Xian was startled by the term "pyramid scheme," as if his tail had been stepped on. He jumped up and said, "Nonsense! A pyramid scheme is illegal, making money by recruiting people and earning from their contributions with no guarantee of product quality! Our direct sales mission is to let more people achieve health with the lowest price and most direct channel! One is cheating people out of money, while the other is bringing health to others. How can they be the same?"

His words were righteous and forceful.

Li Xian almost believed himself.

What is a pyramid scheme?

It's essentially a fraudulent multi-level marketing scheme. It uses high payout ratios as bait, relying purely on inflated bonus systems to achieve geometric growth in sales, allowing a few people's income to skyrocket in a short period. This is a scam to recruit newcomers to buy a bunch of products they don't need and can't sell.

What is direct sales?

In essence, it's similar to a pyramid scheme. It also recruits downlines and uses a pyramid structure. The only difference might be that the products in direct sales are real, usable by consumers and the direct sellers, and can achieve the advertised effects. It's not like a pyramid scheme that sells a bar of soap for 1000 bucks and relies solely on recruiting downlines for profits.

If we exclude the product aspect, direct sales is just legal pyramid selling.

But in 1994, legality didn't matter much.

Direct selling or pyramid schemes in China originally came from Japan.

In the late 1980s, Japan Life Company smuggled itself into Shenzhen, selling a product called a magnetic health mattress via pyramid schemes. At that time, Shenzhen had just opened up. Although Japan Life didn't have any official business permits, it quickly expanded from Shenzhen to Guangzhou and swept across the province with its unique sales model and the development wave in Shenzhen.

Since China was new to pyramid schemes, the工商行政部门 (industrial and commercial administration) didn't pay much attention or management. Numerous underground pyramid scheme companies sprang up like mushrooms, with thousands of people flocking to them.

Later, in November 1990, the first officially registered pyramid scheme company in mainland China, China-US Joint Venture Guangzhou Yafang Ltd., was established. Pyramid schemes began to be included in China's工商管理 (industrial and commercial administration). During this period, various foreign, national, and cooperative pyramid scheme companies emerged in the reform and opening-up cities.

Notable examples included Shenzhen Shidian Computer Software Co., Jiangsu Yating Daily Chemical Co., Guangzhou Xianni Lai De Ltd., and Newman's Home, which focused on electronics and daily chemicals.

At the same time, pyramid schemes of the worst kind also arrived. Unlike later pyramid schemes that focused on cosmetics and health products, this early stage of illegal pyramid schemes was absurd, involving things like fitness vibration machines and magnetic therapy devices, causing a wave of disorder.

However, these things were mostly still prevalent in coastal cities and not common in the north.

Seeing Li Xian's determined expression, Wang Hongfei blinked.

"But can this method of yours... um, direct sales, really work?"

Can it work?

Li Xian chuckled.

If such a bold approach doesn't work, then what will?

He immediately grabbed over ten boxes of the oral liquid from the pile of samples and waved his hand, "Let's go!"

"What are we doing?" Xu Maohua and Wang Hongfei quickly asked.

"I'll give you a live demonstration of whether this method works or not!"

Seeing Li Xian stride out of the product development room, Xu Maohua and Wang Hongfei exchanged glances and followed him.

...

At the Forestry Bureau's retirement home.

Autumn had arrived, the weather had cooled down, and the elderly residents had moved from the outdoors to the activity room.

However, when Li Xian arrived, a group of elderly people was still outside in the courtyard, huddling under the chilly autumn wind and making a commotion.

This scene was unusual. Li Xian quietly approached without disturbing the elderly. As he got closer, he found that a new toy had arrived at the retirement home!

In the two months he hadn't been there, Old Qin had somehow ended up in a wheelchair and was now fiddling with a high-magnification telescope among the crowd.

He was showing a group of old men the sun through the telescope.

"Hey! Why is it black outside when looking through this thing in the daytime?" Among the crowd, Wu Shengli pressed his face against the telescope and shouted.

Old Qin, sitting in his wheelchair, looked a bit pale but was proud when he saw Wu's confusion. "Old Wu, you're clueless. What we see as bright is the reflection of the atmosphere. Outside the atmosphere, it's pitch black!"

"Oh! Oh, oh! The sun is spewing fire! About a foot long!" Old Wu continued to shout.

"That's called solar wind!" Old Qin explained again.

Seeing this Western scene, Li Xian couldn't help but smile, "It's been two months, and the technological level at our retirement home has risen so much? You even have a telescope now? But Old Qin, shouldn't someone knowledgeable in astronomy also be knowledgeable in geography? How come you're paralyzed in the legs?"

Seeing Li Xian arrive, everyone reluctantly moved away from the telescope. They scolded Li Xian for being ungrateful, forgetting the retirement home after getting a house and a new father, and not coming back for months.

Li Xian also missed them, but with so many things to handle, he often didn't have time to come back.

Regarding this, Old Qin sighed.

Since returning to his house, he felt constantly sleepy. He didn't think much of it, but last month, he suddenly had a stroke. Though he was promptly sent to the hospital without major issues, he ended up with moderate paralysis.

"It's okay. The doctor said that with some exercise, I might be able to stand up. It's not bad—at least I'm not drooling or unable to speak. My son worried I might get depressed, so he specially bought this telescope to cheer me up."

Seeing Old Qin's optimism, Li Xian felt a pang of sadness.

What a good person, why did he have to suffer a stroke?

People are too fragile!

With tears in his eyes, Li Xian went back to the car and brought over a large stack of Xinnaokang oral liquid.

When the elderly saw Li Xian bringing a bunch of exquisitely packaged items, they were all excited.

"This kid! Since you've come, why are you still bringing things?"

Li Xian wiped his tears and placed the Xinnaokang oral liquid in front of everyone.

"I recently acquired the berry research institute from our bureau and developed a highly effective health oral liquid that regulates blood pressure, improves sleep, and strengthens the heart and lungs. I'm bringing it to everyone early, so Old Qin's illness might not act up!"

Seeing the pile of oral liquid boxes at Li Xian's feet, the old men were deeply moved.

"How rare! Little Li is doing so well in business and still thinking of us old folks. It's really not in vain that we've cared for you!" Among the crowd, Old Zheng sighed, came forward, and picked up a box, "So how do you take this?"

Li Xian stepped forward, took Old Zheng's dry wrist, and, looking at the emotional Old Zheng, said with heartfelt sincerity, "Old Zheng!"

"Yes!"

"399 yuan per box!"

Old Zheng's hand holding the oral liquid trembled, and after a while, he angrily pushed the box back into Li Xian's arms.

"Li Xian, you old rascal! Last year around this time, you tricked us into buying a whole bunch of coffins, and now you're trying to trick us into buying oral liquid. Can't you find a different batch of people?"

Seeing Old Zheng furious, Li Xian also felt aggrieved.

Why did you have to be rich?