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Went to a training once when I needed a job. It is basically an affiliate program. They buy the shit in bulk and sell it for what my math at the time indicated must have been 4 times the cost, given everyone's cut.
The sales concept is an old one, called "fear of loss" where the seller tries to come up with a story to make the customer feel he has to act on a rare opportunity. Just like in the movie "boiler room" but on a much smaller scale.
How many times have you seen the words "limited time offer"? It is the same concept.
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