Make big profits by selling SMC products from home?

Has anyone seen that ad on tv with the actor Tom Bosley telling us we can start our own home business and make thousands of dollars? The name of the company is SMC and the membership fee is $300. They claim their prices are below wholesale, so my question is how do they make money? For example they show a hammock that you can sell for $59.95 but you pay only $19.95 so your profit is $40!?