I remember when they were telling us about maybe getting started with it I told them how dumb that sounded. We aren't super close friends but I was pretty outspoken about how dumb their plan sounded. They were students at the time and considering spending 5-6k for their start up. Told them I don't know how they plan to make back that much money when all their friends are poor students who don't spend money on clothes. They did it anyway.
We try to avoid the subject when we are together because they know how much I hate it. They like to make comments about how much money they are making from it and how well their business is doing. My wife and I don't buy it at all.
A few days ago my wife was saying how her friend was talking about how the company changed their payout plan and now it's much worse and she doesn't want to keep doing it. She asked why she can't just stop and her friend let slip that she has around 30k inventory in her house that's worth much more if she can sell it all. After that she tried to back track because I think she realized how bad that sounded. I'd love to know the real numbers of their business but there is no way they have made any sort of profit. My wife doesn't know a single person who she has signed up from her group of friends and that is the only way to make any money with those companies.