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While "scam" might be a harsh word in comparison to some of the other companies in this thread, I still don't think they are very legitimate. I've watched as several naive friends got caught up into the possibility of making some extra money "while having fun" and ended up spending their savings trying to build up enough inventory to get up and running. Then, after all of their friends had attended an awkward party and bought something, their friends weren't anxious to buy more only 2-3 months later. Then they had to sell everything for whatever they could just to break even.
While the compensation itself might not be a classic pyramid scheme, the fact that friends are encouraged to make their own friends into saleswomen for incentives makes it seem pyramid-like and just a little shady to me.
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