The companies work like this. They require you to recruit more people in order for you to make real money. But those people are also supposed to go out and recruit more people. All the while you are supposed to also be selling products. But those products are not where the real money comes from, it comes from recruiting more people. At some point you're just going to run out of people.
Now when we questioned this family member about the soundness of this company, implying that it sounded like a pyramid scheme, he replied that it the company said it was not an illegal pyramid scheme. Of course it's not, it's a perfectly legal one. Since there is some product involved that acts as the medium to push the money upstream, it doesn't fall into the same legal problems as a typical pyramid scheme does.
And their products always stink.
The Rational Moderate