What's wrong with not wanting to spend money? Think about it this way. If I had went the conventional route and hired a distribution company, this would cost me 50,000 dollars all together with paying the company, printing the door hangers, design, copy writer, etc.
Without the distribution company and doing it in a way that I am leveraging money? 10,000 dollars. 20% of what I would of paid if I went the route your talking about. Isn't the key to work smart and not hard?
Your acting as if this is some sort of Ponzi scheme. If they don't get paid, I don't get paid. And vice versa. Simple as that. Legal issues? They'll be signing a contract with all of the terms and conditions inside in which they can read as many times as they'd like. They already know that if they get no sales they would have no payment, I'm not lying or cheating in anyway.
Call it what you want, I call it spending less for more.