"this is an internet business. She does not have a store or store front, but she does not have a website either."

Did you mean, she works with clients via remote sessions (phone, screensharing, video)? Me, too. And I don't bother with a website, either. But I do not deal with products.

"She has no mileage expense because she is not traveling to give the gifts or the conferences. She has no shipping expense to send the gifts."

Yes, she told you: Used Personally.

"I realize that the product that she purchased is not a business expense."

Okay.

"It is supposed to be multilevel marketing and she wants to all her expenses as marketing."

All her Expenses will be whatever they are. That doesn't include Personal, though. All her business expenses would be reported as such. Not everything she Spent. That's different.

"I'm trying to figure out how she got the income."

What you should worry about is if there is business income not reported via 1099-NEC. Because a business reports all of the income. Whether there is 1099-NEC reporting or not doesn't preclude the business from reporting everything that happened.

I can work with clients and gross $millions. As long as none of them is a business, or as long as none of those business people pay me $600 or more, there will be no 1099-NEC issued for my work at all.

I still need to report $millions on my business tax return.

She needs some coaching, herself.