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I_Am_Ram

06/16/19 8:32 PM

#212108 RE: shalley #212104

For a small time operation like SFOR. The distributor is given an amount of “product” for free and if their network needs more they distribute it to them. Remember their last distributor went bankrupt and they were apparently shorted money by that. That tells me the distributor is basically paying SFOR a percentage of whatever they sell. The distributor is getting a cut. There could be more terms than that.

It’s possible Kay worked a way to get some of that money up front, but I don’t see a distributor taking the risk of buying $500,000 of their product upfront to sell to their network.