The selling of costume jewellery via hosting aka tupperware parties was kind of popular with high-income families about 15+ years ago - at that time products sold were the Bulgari / high price style of objects redone with false stones as costume jewellery.
Now this is basically the same concept with similar products catering for a different population group (lower income - less market knowledge).
The companies, like with many others selling products via such a scheme, after the pyramid has grown to a certain size, become stagnant or disappear (after those in at the beginning have cashed out).
Have a look at the people and particularly their previous companies mentioned in the article to know what this model is about. First buy low and find many that sell / buy high for you - after a while it quickly becomes a seemingly today very popular model - FABI (find a bigger idiot)