This is the multi-level marketing. Where their main goal is to get you to sign people up, but to avoid being 'technically' a pyramid scheme they do have real products they push out and sell. And on face value it looks like yes you can up-charge and make a little, but no you can't. 99% of these companies (mary-K, lularoe, etc, etc) all MAKE you buy $X per month of their product. Thus you can try to peddle it off but you're basically trying to sell a popsicle for $10 on every item they FORCE you to buy EVERY month. Oh, and htey have contractually obligated mins and maxes you can sell the products for, so even though you're an "entrepreneur" you can't even set your own prices or take a smaller loss on your inventory by selling it at 90% value. They want you to fail. They don't care if you sell it or not, because you're basically a CONTRACTED CUSTOMER when you PAY to sign up to work for them. After definitely failing to push the product and getting caught up with thousands of dollars sitting in your garage, you'll realize the only way to make money and get out of the hole is to RECRUIT OTHERS because that's when you don't have to spend money yet you get a direct revenue stream. Thus, they pretend like there's a product you can sell (and make money) but you can't, and in the end you're driven to recruitment, which is what it's all about, always.Quote: RS
...HOWEVER, yes, they absolutely can (I did not say DO) make money, I think. At least the one I was "introduced" to, you buy like $500 or some BS amount of some nonsense every month. I think the theory or something is that you can sell that $500 worth of nonsense to regular folk who aren't part of the pyramid system. IF you can sell that much, then you're making money.
Oh, for fun stories I'll give one more. I went away to college, but driving distance in a day away at least. After college I was looking to move back to my hometown, so while I had a job near my college city, I was going home on the weekend for interviews in my home town.
I had 3 interviews set up one weekend and made the drive home. The first one, I get to the location and it looks a little sketch, but eh, could look worse. I go upstairs and am greeted at the door by someone that says "are you hear for the seminar?" I said no, I'm here for a computer programming interview (the guy found me on Monster and had sent me a real rec for a computer programming job in the area). He said, oh, everyone here today is here for this, so grab a name tag and have a seat in here. Sure enough, there's old, young, and people who I'm sorry but looked like they didn't even know what a computer was sitting in this room.
So my BS detector is through the roof at this point and I'm pretty pissed about it (had already heard these scams a couple times in my life at this point). So someone comes out and they launch a video immediately about how your life could be so easy if you were financially independent and here's how you can do it (without actually giving any specifics other than our company rocks join us). It was only a few minute video (short production budget hmmm no wonder) and as soon as the lights came on I made a move towards the door.
The idiot presenting actually had the idea to stop me and say "hey where are you going? don't you want to be financially independent?" Wrong guy to say that to... So of course I calmly and politely expalin that I was lured here with a real programming position and that what they're selling is a pyramid scheme and after all what real company has ever CHARGED you money to be trained? etc, etc... at that time the guy that actually got me there came up and was like "Hey Romes, I'm X I was the one you spoke with on monster!" I'm like, what the hell is this? I'm here for a computer programming position you sent me. He mostly ignored me and said yes we're looking to on board a lot of people just listen to the rest of the seminar!
At that point I got up in his face and told him he's lucky I have other REAL interviews in the area this weekend since I drove from quite a ways to be here and that I don't either beat the sh*t out of him or sue his ass. At that point he realized I wasn't falling for the BS and he just got really white faced and didn't say anything for a moment then walked away. I've never hit a random person, but in hindsight that's one person that really frickin deserved it.