Like Gremlins thrown into the sea, a lot of multi-level marketing (MLM) opportunities sprout everywhere. If there is one thing that they all do have in common, that’s the “green pasture” all of them have been bragging about. From countless Benjamin bills on the bed to luxurious cars as backgrounds of their photos, these MLM folks would do all things into making anyone believe that there is a pot of gold at the end of MLM rainbow. One of them is the Paparazzi Accessories or most commonly known as Paparazzi Jewelry. Just like other MLMs saturating the market now, it promises “changing people’s future and their lives”. Nevertheless, how close is it to reality? Is it really a life-changing opportunity capable of giving you financial freedom? Can you really make money selling Paparazzi jewelry? Let’s find that out!
The Basics
- Company: Paparazzi Accessories
- Founders: Misty Kirby, Trent Kirby, Chanie Reeve and Ryan Reeve
- Products: $5 to $25 jewelries
- Website: paparazziaccessories.com/
- Cost to Join: $99 to $499 for Starter Kits
I know that you gritted your teeth so hard when Titanic Rose dropped the Heart of the Ocean into the water. Though it is a fictional blue diamond necklace, we just can’t help but scream “Nooo!” on our minds. I bet no one would dare doing that to a million dollar necklace and perhaps, anyone would dare diving into that abyss just to retrieve such beauty. But there is no need to do that for we are reviewing a company that offers a variety of jewelries: the Paparazzi Accessories.
The company started by the initiative of sisters Misty Kirby and Chani Reeve who “just enjoyed showing people how to accessorize”. It was established in 2010 in Hurricane, Utah and soon expanded through the help of their husbands, Trent Kirby and Ryan Reeve.
The company sells all sorts of accessories. However, unlike the conventional jewelries we know, the Paparazzi Accessories prides itself by selling costume jewelries for $5 each! Yes, five-freaking-dollars, Babe.
Because of its remarkable low price, the company managed to make sounds in the industry and “grew 900% in just six months” (or at least that’s what they claim).
It uses MLM strategy that invites people to serve as their individual Stylists (consultants) and provides them with some commissions based on the numbers of products they sell. With individuals hooked at the craze of wearing $5 MLM jewelries, we just can’t help but wonder if it’s really worth all the troubles and effort and we will see about that after a few more reads.
The $5 Gems
Imagine yourself on a posh date with your Instagram-famous girlfriend and it’s your fifth year together. She has been leaving you hints here and there for years now. Accepting your fate of marrying a woman who knows nothing but taking glam shots, you mustered all your courage and kneeled. You imagine her jumping in excitement and absolute happiness. You opened a tiny red box and revealed a shiny… huge… fat… PAPARAZZI JEWELRY RING! To your surprise, her expression is a hybrid of blankness and disappointment. What’s wrong? Is it your suit? Your kneeling? The food? The ambiance? Your face? Or perhaps, the ring? Oh, c’mon! What is wrong with the ring? It is a thing of beauty and most of all, it only costs $5!
That same price that lured you is the one that is said to be the most inviting characteristic of China-made Paparazzi products among people. Of course, who wouldn’t be amazed by owning a variety of fashionable jewelries for such a low price? Who doesn’t want to be a fashionista for the price of five bucks?
All products are said to be individually designed by the founders themselves with all pieces being Lead-free and nickel-free. Some of their products include necklaces, earrings, bracelets, and rings which all vary in materials. The company also offers $25 necklaces called the “Zi Collection” which offers more fashion and beauty. However, some individuals who previously purchased the products tell different stories about them.
Compensation Plan: Precious Gem or Dull Stone?
Just like other MLMs, Paparazzi Accessories promises fair compensation “depending on the time, dedication, and effort a Consultant puts into their business”. Of course, that’s true. Despite the fact that a lot of MLM representatives swear of lucrative life by diving into the business, it would be too impossible without struggle, time and dedication. However, the model of compensation plans being offered by these MLM companies can also be a contributing factor. It dictates whether that rewarding life would be a realistic thing to reach or a taunting bait to believing business individuals.
Unfortunately, comprehending a compensation plan could already impose challenge among individuals. That is one of the unflattering things about MLM companies: its intricacy of compensation plans. Adorning it with complexity to make it more appealing and compensating to possible recruits, MLMs continue the practice in presenting individuals idealistic compensations. Let’s see the Paparazzi's Compensation Plan and let’s decide later if it’s one of those mind-boggling and cunning plans in the MLM industry.
According to Paparazzi's Compensation Plan, these are the ways to earn fair profit and compensation in selling the $5 accessories.
- Retail Profit - All Paparazzi Consultants are entitled to buy inventory products at wholesale pricing and sell them to possible customers at the suggested full retail price. This gives a Consultant immediate 35% - 45% commission in every product sale or less than $2.50 per item. This could be a small commission due the low price of the product items. Nevertheless, expect that the products could be sold easier unlike other MLM company products that commonly cost $50 above.
- Personal Volume - In order to remain active, a Consultant needs to at least purchase a minimum of 50 Personal Volume (PV) within the commission period. This is where the Paparazzi Jewelry takes a different path in granting its people commission. The company uses points instead of dollars in determining the commission earned by the Consultant. PV is assigned to all commissionable at the rate of 2 PV for every standard $5 item and 10 PV for Zi Collection necklaces. Thus, in order for you to remain active, doing the math, you need to make $125 sale within the commission period.
- Show Rebate - Paparazzi Accessories is also famed for holding a lot of shows as a way to showcase and make sales. With this, the company grants 10 percent Show Rebate when a Paparazzi Consultant purchases 1000 PV or more. Converting the 1000 PV requirement for this perk to dollars, a Consultant must at least make a $2,500 purchase in order to be eligible for the Show Rebate.
- Business Building Bonus - Just like other MLM opportunities, Paparazzi Accessories motivates its Consultants to have their own recruit to expand the sources of their commissions. One of the parts of Paparazzi’s Compensation Plan highlighting this is the Business Building Bonus (BBB). This entitles a Consultant who sponsors or enrolls new recruits to get 15 percent of their initial Starter Kit purchase (in PV).
- Unilevel Bonus - This bonus starts at the Star Consultant position and entitles the individual to earn between 5 to 10 percent of the organization’s activities. The levels are made of the downline recruits. The Unilevel 1 consists of the Consultant’s personal recruits. If these recruits manage to get their own recruits, a Unilevel 2 would be formed and the flow continues. This bonus starts at the Star Consultant rank entitled of 5 percent bonus from its Unilevel 1; Director rank entitled of 10 percent from Unilevel 1 and 5 percent from its Unilevel 2; and Premier Director rank entitled of 10 percent from Unilevel 1, 5 percent from Unilevel 2, and another 5 percent from Unilevel 3.
- Generation Bonus - When the Consultants advance to the Executive Director rank, they would be eligible for the Generation Bonus from their Generation 1. This continues up to the Fashionista rank which is entitled for bonus down to the Generation 3. The qualified individuals would be able to gain 1 to 3 percent bonus from the efforts of all Consultants under them. This continues down to the Consultants (Under the said Generation) who could be promoted as next Executive Directors or higher.
- Legacy Bonus - Just like the previous bonuses, the Legacy Bonus requires specific ranks to be able for the Consultants to enjoy them. This starts at A-Lister up to Jetsetter rank. The qualified individuals can earn an additional of 1 to 2 percent on the Volume generated in the Legacies within their organizations. This continues down to the Consultants (under the said Legacy) who could be promoted as next A-Lister or higher.
- Infinity Bonus - This bonus starts at Luxe Jetsetter that is entitled for a 0.5 percent bonus on the volume generated by the entire team down to (and including) the next Consultant that could be promoted as the next Luxe Jetsetter or higher. When one reaches the Impressionista rank, the percentage would be increased to 1 percent.
- Cash Bonus - The Cash Bonus is one of the most motivating compensations in the Paparazzi Accessories. Nevertheless, in order to be eligible for this, you need to reach the two highest ranks: the Luxe Jetsetter and the Impressionista rank. There are also requirements that should be met for two consecutive months to gain this bonus. Once there, a qualified individual ranked as Luxe Jetsetter could receive $25,000 while the Impressionista rank could receive a whopping amount of $50, 000!
With that, let us have the succession of ranks you need to go through before being eligible for the coveted Cash Bonus:
- Consultant
- Star Consultant
- Director
- Premier Director
- Executive Director
- Producer
- Premier Producer
- Executive Producer
- Fashionista
- A-Lister
- Maven A-Lister
- Jetsetter
- Luxe Jetsetter
- Impressionista
Compensation Analysis: Realistic or Idealistic?
Looking at the Paparazzi’s Compensation Plan, you might see it as a very promising plan for individuals looking for a future in the marketing world. That is true. All MLM compensation plans want the same thing: to provide a great deal of compensation for consultants. Nevertheless, there is a fine line between the realism they present and idealism they seek.
Scrutinizing the Paparazzi’s intricate Compensation Plan, you might think of it as an effective plan. Nonetheless, with a total of 14 ranks to you need to battle and tons of requirements to meet, it seems like a long, long, long way to go before relishing a fair life at Paparazzi Accessories.
The system of using points (PV) instead of using actual currency might actually simplify the plan. Yes, that’s true… maybe. Nevertheless, it could cause confusion among new individuals in the field by thinking that the requirement is more attainable when the truth is, it just complicates and makes the requirements harder to be attained. Say, in Maven A-Lister position, there is a requirement of 250,000 OV to get into the rank and be qualified for various bonuses. The figure might not bother you since it is just an accumulation of PVs. Nevertheless, do not forget that a single PV point is equal to a $5 purchase. With this, doing the math, the Compensation Plan actually requires the Maven A-Lister a total of $375,000 organizational ACTUAL SALES to maintain the position and get the bonuses! With items worth $5 each, where would your team get the whopping THREE HUNDRED AND SEVENTY-FIVE THOUSAND sale? You don’t simply need a team; YOU NEED AN ARMY! Realistic or idealistic? Get the clue, Honey.
PS: You, as a Maven A-Lister, can’t use your PV point requirement as additional PV points in your OV.
Income Disclosure Statement: Winning or Losing?
If you still don’t believe the truth behind the Paparazzi Compensation Plan, let us dissect the most recent Income Disclosure Statement provided by the Paparazzi Accessories on its website.
Numbers. Do. Not. Lie.
Despite not showing the actual numbers of the population of Paparazzi Accessories folks, the figures above are bothering enough. With a Director rank that already has the perk for bonus down to Unilevel 2 but still gets $15 as the lowest monthly bonus, THIS IS FREAKING ALARMING!
How about a Maven A-Lister with a requirement of 250,000 OV or $375,000 organizational sales? Yep, $16,220.97 as its lowest monthly bonus. And the worst, a consultant just had an average of $12.94 monthly bonus and hit its lowest at $0.68.
As expected, the bottom of the system constitutes the biggest percentage: Star Consultants with the lowest monthly bonus of $0.10 and average monthly bonus of $22.83. On the other hand, nine of the utmost positions starting at the Producer rank didn’t even reach a total of one percent population.
It is true among MLM opportunities but with the figures presented by the Paparazzi Accessories, we are just shocked at how low such positions could earn in a single month!
According to the Usual Weekly Earnings of Wage and Salary Workers Report of the U.S. Bureau of Labor Statistics, the median income for a full-time wage or salary worker on a weekly basis was $936. For a 40-hour work week, this translates to a yearly income of approximately $48,672 or at least $3,744 a month.
It is true that the success of your future in the MLM industry depends on the time and effort you are willing to invest. Nevertheless, devoting it to opportunities like this that guarantee you nothing but the possibility of low income doesn’t worth any second of your time. We all need opportunities that will help us meet the average earnings we deserve and compensate us with sufficient income and clear certainty.
Now, with these numbers, you know the answer. The possibility of earning money from this opportunity is low. Wait, it’s beyond low!
Testimonies: True Claim or Product of Desperation?
We know how MLM consultants glamorize their companies’ opportunities every time they make their own testimonies in front of innocent people. From social media platforms to casual coffee meetings at Starbucks, they always bring the brightest and the shiniest stories they could tell just to grace their companies with glitz and glam. Unfortunately, some people, who are in their right mind, are not buying it.
It was a post on a social media account that caught the attention of the Reddit community. I mean, why not? That is quite unbelievable for a moment: $250 a day just at the comfort of your home! That would be very lovely and enticing. Only, earning such an amount for a day at Paparazzi Accessories means spending more than $250 for your inventory. Also, it means that you need to at least make sales of more than 100 items of $5 accessories. That would be possible for someone who has great connections and a market. And when I say great, I mean humongous. With a market saturated with lots of other Stylists out there, you might find it hard to convince people to buy your inventory.
Being one of the first Stylists who signed up to the company could also make that idea possible. But with the fact that there were at least 70,000 Stylists that joined the company when it started in 2010, you would find yourself at the bottom of the system if you would join the craze now. You would be at the bottom of the system. You would be the prey and source of commissions of those above you.
There are two possibilities about the claim above. It is either she’s one of those few first waves of Stylists that joined the company or it is a claim of absolute desperation to lure people. You don’t want to be like that person.
Weighing Things: Pros and Cons
Despite the concrete and actual facts you read, let us still try to be rational and weigh things about Paparazzi.
Pros:
- It is cheap! With $5 items to sell, it would surely be picnic offering it to your customers and perhaps, even in bulk orders!
- The accessories are designed individually and there are lots of designs to choose from. With this, you could attract more customers.
- There are lots of bonuses being offered by the company’s Compensation Plan when you meet the given requirements.
- There is a Cash Bonus for the two top ranks! I mean who would say no to $50,000?!
Cons:
- You get what you paid for. With cheap products like this, you shouldn’t expect quality products no matter how beautiful the products might appear on marketing sites.
- The durability of the products is in question. It has been one of the most prevalent concerns by a lot of the company's previous customers.
- The Paparazzi’s Compensation Plan has a long succession of ranks! This could be a great challenge since reaching for the top could also take you longer time.
- The requirements needed to be eligible for various bonuses are quite tricky and difficult! Perhaps, it is the reason why the company’s Income Disclosure Statement isn’t pleasing at all.
- Selling products worth $5 could take you quite a long time before obtaining great commissions and profits (not to mention that a single $5 item is just equivalent to 1 PV point).
- Paparazzi Accessories is an MLM company. Hence, it uses a pyramid system in distributing compensations to those at the top of the system.
Diving in: Can I Earn Money?
At the end of everything, we know that it is a decision for you to make. Nevertheless, do consider the facts and look back at the twisted reality behind the world of Paparazzi Accessories.
All companies want nothing but to gain and prosper. Despite the luring compensation plans they all present, one thing is for sure at the end of the line: the favor still returns to the company itself and the burden falling at the back of individuals at the bottom of the system.
Sure, it is enticing to make easy sales with those cheap $5 items, but how long will it take you to gain fair profit and compensation? Think of all the time and sweat.
Furthermore, it Paparazzi Accessories is an MLM company. Though it is legal, being an MLM still has its own downsides. As you know, an MLM’s structure closely resembles a pyramid scheme. The latter relies on the stream of investment from unwitting recruits to continue it system. Without concrete product to profit from, the system would soon face its inevitable end once the flow of recruits stops. On the other hand, an MLM has products to offer and sell. There’s nothing wrong about that. Nevertheless, the fact that is uses the pyramid system in recruiting individuals and distributing compensations makes it questionable.
This system is the primary reason why MLMs are considered to have high failure rates. With those at the bottom of the pyramid earning little worsened by the commission being sucked away from them, they are always on the brink of earning nothing. When that happens, the balance of the system could be placed in danger when those at the bottom fall.
So, would you earn fair profit and compensation from this $5 business? You better make sure to make a sale to each citizen of an entire state… or maybe a country.
Conclusion: The Verdict
We all just want to earn well and be compensated with the right amount based on what we do and give. We all want opportunities that would help us to earn better. All workers deserve that. However, picking the right place and opportunity could sometimes lead you to a quicksand of scams.
Though there are companies out there that are considered legal, you should still be cautious of the tricky agreements and conditions set by them like baits for unknowing individuals. This is not new in the MLM industry and Paparazzi Accessories is not an exception to that fact. With its Compensation Plan like a taunting bait for opportunity seekers, it is no surprise that most of its agents earn little to nothing.
We do hope that this article helped you to see what you should see. If you are still looking for a way towards financial freedom, we could help you. It could take time but the certainty of prospering from this is much higher than MLM’s. No more recruits, no more commission sharing! Click here and discover the answer!