And yet, I expect you’ll find it surprisingly easy to find people desperately trying to unload that unsold inventory on eBay at rock-bottom prices. How odd.
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Mod note: flagging posts you disagree with is a great way to destroy your flag reputation. Don’t do that. Use your words.
(community guidelines refresher)
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They way it probably works in many cases is that reseller A is encouraged by the company to tell their underlings that an initial investment is required. Since ultimately it is their reseller doing the deed (not an employee or contractor) they are not liable. And individual resellers are probably too small of fish to fry.
(Incidentally, my aunt got into some health product MLM which had a 5k initial product investment similar to Lularoe. This is not made up stuff, it happens all the time, despite being illegal.)
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That’s how the sleazeballs who run these rackets can technically claim they’re not pyramid schemes: they’re not having their own suckers recruit marks on the next level down in a direct cash exchange, which would be illegal. Instead, they mask things by having their suckers convince the marks to buy “starter kits” of whatever overpriced garbage the grifters are selling and then giving the suckers “sales commissions”.
ETA: there may not be an official requirement to buy the junk if one wants to join an MLM, but without buying the junk to supposedly sell or be a distributor of there’s no real point in joining in the first place.
With a pitch like that, you should really buy a Beginner’s Pak of Gracchus’ Tiger Repellent. You’ll make a fortune, especially if you identify friends who could also sell it.
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Yep. That’s exactly how it worked when I was victimized.
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Same deal with the woman I mentioned up above; she ended up buying tons of their product herself, more than she ever sold to anyone else.
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Gee. It’s almost like this is pretty much how it usually works.
It is hard to find documentation which explicitly says an investment is required, and they clearly want it that way. “If it’s not in writing, it didn’t happen”, as the saying goes.
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From everything that I’ve ever personally heard or seen on the subject?
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Have a great weekend!
