One of my law school friends took me on a mysterious meeting to check out “e-business” marketing opportunities. It turned out to be one of those multi-level marketing schemes, although it seems to be technically legal. However, it is an accounting mess. The independent business person has to buy $250 of stuff from themselves each month to gain points toward bonuses. The bonus is in the $40 range at that level. So, you’re paying $250 plus the startup fees to make $40. They don’t encourage marketing the product that they nominally sell, they encourage franchising the business to others. In addition, the high grossing products are not really the stuff that is sold at retail, but the franchise training stuff to continue in the business. Don’t know about this one.
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