The example I gave above is similar to that of the defunct site Factoidz.
Originally, it set itself to be the ultimate, with excellent writers, brilliant articles, and was extremely well paying.
Beginning with the plagiarised stuff just to make the site look busy, it was touted by the Shills from Hubpages to Triond from Bukisa to Xomba.
Writers came, looked around, and joined.
One joined as member. If one could write five good items they’d be pushed to Writer. Members did not earn, their work earned for the site.
Writers had their work moderated earned for each item. If they were good, were made Staff Writers. Staff writers were not moderated and earned more than writers.
The site did a lot of things right until the Owner messed up.
Unable to pay the writers and Staff Writers, he created the scenario where his Shills would attack a Staff Writer for nothing. The Staff writer would respond, be dropped to Writer, then to member, where all their work was confiscated and all their earnings used by the Owner.
Then, the site went down.