The argument for new user payout not amounting to much doesn't wash with me.
There is really two ways all users need to approach Steemit.
- Use Steemit for purely entertainment purposes
OR - Use Steemit for investment
Everyone here can easily make 25% or more Return On Investment. The problem is that people can't seem to understand that if they don't invest any money, then they won't get great returns. It would be like me wanting to make a killing in the stock market, but I refuse to invest any money. 25% returns of $0 invested is still $0.
The returns are really amazing here. Let's compare to the stock market. If you make 10% on the stock market, you are doing really good. Most people don't do that well and some years they will be negative. Let's compare to a physical business. 10%-20% returns are also good, but think about the massive up-front capital investment, payroll, insurance, massive overhead, and other expenses. It is tough to run a business, and at the end of the year you may have squeaked out 10%-20%.
Let's compare that to Steemit. You can easily make 25% or more with almost no overhead. All you need is a laptop and an internet connection. There is no payroll, no building to buy or rent, no materials to buy, no insurance, no utilities, no employees to hire and manage, and no sales to deal with. Even if you decide not to do any work, you can get great returns just by delegating your voting power and not do any work at all. The other benefit to Steemit is that it is scalable. Your investment can be as small or as big as you want. Imagine trying to scale a restaurant. You really are stuck with the size of the building and the building seating capacity.
Now the new user doesn't even have to want to be an investor. They can do it purely for entertainment purposes and there is no advertisements and the account is free.
I'm going to help you with understanding the reward system. I have to admit that I was confused for quite a while and did a bunch of research and still was confused. Once I understood it, it was an Ah-Ha moment for me. It is actually quite beautiful and ingenious system once you understand it. I felt compelled to make an explanation to use as an aid for helping people understand STEEM. Click this link. It explains the reward system.
https://steemit.com/steemit/@socky/steemit-rewards-breakdown-a-simplified-explanation-with-illustrations