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Now the short answer is no. In the beginning of the sugar baby lifestyle, they were mainly arm candy and a companion; sex may have been involved, but that wasn't the only reason the baby would be paid. The old school babies still practice the lifestyle this way. They understand that other means of making money from their daddies can be considered something different.
Now some new school sugar babies are called "sellers" and daddies are calling themselves "buyers." This is because sugar babies are now offering more than their time and looking pretty. This could be a good thing or a bad thing depending on what they are selling and how you look at it. Some girls treat sugaring like being a cam girl or a nude model because all they offer is nude photos and cam sessions. But in my opinion, cam girls and nude models are something different then being a sugar baby. Not all cam girls do sexual acts on camera. Some may, but most don't. Seriously one girl shaves her legs on camera for a guy.
Honestly, I feel like cam girls, sugar babies, nude models, and sex workers are all different. These new babies act like there isn't a difference, but they are sadly mistaken. Now daddies come to expect cam girls, nude photos, and sex because girls don't know that they could just be arm candy and a companion. There is one thing that sugar babies can offer that some old school and new school sugar babies can agree on, and that is kink. Kink can be done without sex. When sex is involved, I feel like it crosses the sex worker line.
Some sugar daddies basically want their own personal prostitutes. That's wrong because that's still prostitution, which is illegal. Sugar babies can offer a wide variety of things and the main thing is companionship. If you take companionship out of it, then yes, maybe sugar babies would also be sex workers.
Sugar babies have to be smart and safe. They shouldn't do anything that makes them uncomfortable or seems illegal, immoral, wrong, or dangerous. Daddies will ask for a lot of things because they think they can get it if the girls are desperate enough for the cash. Other daddies realize that it's not that the girls are desperate, the girls are just getting the finer things in life in this way.
Sugar babies have to watch out for scammers. Typically they run into guys who ask for bank info. They also run into men who promise stuff then don't deliver on promises. These guys aren't dangerous, they're just scammers or salt daddies. There are dangerous guys out there and we all know that there are ways to stay safe from the creepers and the other unsafe people.
At their core, sugar daddies are generous older men that really do want to help young women. Now there are men who just see it as a way to get what they want and not really have to have a real relationship. I'm not sure if you can consider the sugar relationship, but some people treat it like one. Most people think that all sugar daddies just want sex with young women and that's not it at all. There are men that only want that though.
Make your own call, are sugar babies sex workers? Are they sex workers if they are cam girls? Is it OK if they have sex with the daddies, but don't get paid for that side of the relationship? What do you think about these sugar babies and their lifestyle?