business-modelA female friend of mine wants to be sponsored by fitness nutrition companies, and she told me that most of these companies want you to first buy their product, then you can advertise it in your social media accounts, and after that you may get paid.
Is this wrong, aren’t you supposed to be able to start getting paid without investing any money at all?
I don't think its legally wrong, pyramid and ponzi scheme comes to mind
Based on your post, first thing I thought off was Hebalife in the US and a fund manager called Bill Ackman's who labeled Herbalife as a pyramid (it went to court). Financial Times: Bill Ackman’s bet sours as Herbalife settles with FTC - Hedge fund manager’s campaign fails to label nutrition drinks marketing business a pyramid scheme
Variations of what you describe do exist and typically there is a group who see it as a viable business, and another who see it as a scam. I see it as the latter - you should not have to pay for product to promote it no more than you might pay someone for any other job.
Sometimes "profits" might appear to exist initially, meaning you pay 50 bucks for initial product, they might reward you with 75 bucks so you feel successful, you buy 100 next time... they reward you 150... then you buy 1000, and they close up shop.
If its a scam, they will be paying you a profit based on money they got from other "new" people who "join" as promoter. When the number of promoters decrease, rewards typically dry up.
Search and read about Bernie Madhoff who is serving 150years in prison based on his 20year scam that fell apart a few years ago. You might see the similarity that I see in what you are describing.
All content is licensed under CC BY-SA 3.0.