Ruby Ribbon Scam: A Strip of Reality?

The Basics

I Wanna be a Ruby: Cost of Being a Gem

The Gems: Ruby Products

The Ruby Ribbon offers a variety of women clothing products like bras, camis, leggings, and swimwear. Despite the fact that the company just started in 2011, Ruby Ribbon products received positive reviews and feedback from a lot of their female customers.

Far from the typical intimate wear in the market, Ruby Ribbon found the secret way to its customers’ hearts: by providing plus-sizes clothes. Well, I haven’t tried any of their products for two reasons: First, I’m a dude and two, I’m a dude. Nevertheless, a lot of their customers expressed their satisfaction about the company’s initiative in providing products with a lot of sizes to choose from.

Besides the freedom the Ruby Ribbon provided to its customers in choosing their sizes from XS to XXXL, the customers also praise its wire-free bras. Again, I haven’t tried using one but having a girlfriend who always complains about the agony of wearing bras with wires somehow tells me that RR’s wire-free bras are actually wonderful.

If you are one of the women trying to find RR products (or a dude curious as I am), you can freely visit their website that openly showcases their products in various categories such as Intimates, Collections, Leggings and Swims.

I decided to give their products a quick glance to check on the prices. And as you know, since Ruby Ribbon is an MLM, expect that the product prices are quite higher than the normal products available everywhere in public. One item that caught my attention is Ruby Ribbon’s Ultra Sport Crop Leggings Unicorn that cost $89. The pair is quite pricey compared to other products like those on Amazon where there are leggings with prices starting from $9. There are even Tommy Hilfiger leggings that cost $27.57! Nevertheless, Ruby Ribbon fanatics claim that the cost is worth the comfort the product is providing. So, you mind purchasing leggings for your girl, Brother? Well, as for me, I think my girlfriend’s having a rose on her birthday, instead.

Compensation Plan: Real Ruby or Fool’s Gold?

You know what sucks about MLMs? Their sucking-compensation-sucking-plans! That’s how terrible this part is. I mean, there are other companies who try to produce comprehensible plans. Nevertheless, most of them simply fancy to present their so-called compensations in sugar and spice and everything nice mixed with fairy dust and BS. As far as they can, they sugarcoat things just to make a recruit’s future in their company look grand. Do you know why? Because complexity sells better than simplicity, as studies show. That is called complexity bias. That is why a lot of MLM companies try to use confusing words and insignificant details a lot of time in introducing the compensation plan.

Luckily for us this time, Ruby Ribbon’s compensation plan is quite comprehensible though some people new to the field might still find it quite puzzling. So, let me explain this in the best possible and simplest way I can. Let’s have a look on the ways you could earn at Ruby Ribbon.

• Personal Qualifying Sales Commission - Whew! Numbers! I know we all hate numbers but Ruby Ribbon’s compensation plan, I mean all of them, promises you riches. But, really, how close is it to reality? According to RR’s compensation plan, to remain active, a Stylist (that’s how they call their sellers) must sell a minimum of $300 in qualifying sales in a calendar month. The Stylists’ commission percentages vary depending on their level. Ruby Ribbon Stylists need to progress in these five levels and meet the given quotas to earn commissions on their Personal Qualifying Sales (PQS).

1. Bronze              $1 to $1,499 PQS                 20 percent commission
2. Silver                 $1,500 to $2,499 PQS        25 percent commission
3. Gold                  $2,500 to $3,499 PQS        30 percent commission
4. Platinum          $3,500 to $4,999 PQS        35 percent commission
5. Ruby                  $5,000 above                      40 percent commission

• Unilevel Bonus - To be eligible for this bonus, a Stylist must reach certain levels. It includes the Associate Director Rank, Director, Associate Vice President, Vice President and Executive Vice President. Of course, it won’t be easy reaching the said levels. They all require certain requirements such as Personal Qualifying Sales, Level Qualifying Volumes, and numbers of Personally Sponsored Qualified Actives Recruits. As Stylists achieve higher ranks, they would be eligible to get bonuses down to Level 3.
• Mentoring Bonus - It is generated from the Personal Sales and Unilevel Bonus of Personally Sponsored Stylists. You need to at least reach the Associate Director rank to be qualified for this bonus. The percentages for this bonus, of course, vary depending on the rank. The Associate Director is entitled for a 2 percent bonus, Director for 3 percent bonus, Associate VP for 5 percent bonus, VP for 8 percent bonus and EVP for 10 percent bonus.
• First Order Bonus - It is paid on commissionable volume from new Stylist’s first order. With this, the sponsor gets a 25 percent bonus while the first upline gets 5 percent bonus.
• VP Pool - As you know, not all levels are qualified for this compensation. This perk starts at the Associate VP level and continues up to the EVP level. According to the Ruby Ribbon's Compensation Plan, the Associate VP is entitled for 1 share, 2 for VP and 3 for EVP.

Income Disclosure Statement: Ruby or Rusty?

We always tell our readers that an MLM company unable to produce its annual Income Disclosure Statement is a red flag. That is true! But we are lucky today that we are reviewing an MLM company that doesn’t conceal figures… Or maybe not. We’ll see. For now, let us see the 2019 Ruby Ribbon's Income Disclosure Statement.

If you noticed, the ranks in Income Disclosure presented above are quite different from the ranks presented in the Compensation Plan we discussed earlier. It’s because of the change in the structure of the company. Nevertheless, no matter how different the names might be, one thing’s for sure: it’s the same basic pyramid structure and similar results are expected. MLM is still MLM.

Ruby Ribbon’s Income Disclosure Statement is quite satisfying to look at than other MLM companies’ statements. Nevertheless, I am referring to its simplicity and not to its data.

According to its Income Disclosure Statement, 84 percent of its people were under the Stylist level with the top 25 percent earning $3500 and bottom 25 percent earning $200 for the entire year. This is quite bothersome. With the luring advertisements of companies like this stating that such an opportunity could grant you financial freedom, you better think twice or more before diving in and deciding to make it your full-time job.

Furthermore, the chart shows that only 9.1 percent of the population enjoyed the 40 percent Personal Sales Volume commission while only 3.7 percent of the population was qualified for the Generation Team Bonus. Comparing both extreme ends of Ruby Ribbon's Income Disclosure Statement is truly something to worry us. With the numbers presented, it is obvious that a LOT of Ruby Ribbon Stylists earn too little while only FEW at the extreme top received the company’s “overwhelming” compensations.

Oh, you’re asking about the “High” column part? An amount of $16,900 for a Stylist? Well, that is just a possibility. Pow-see-bee-lee-tey. Nevertheless, we can’t conclude the numbers of Stylist that made those earnings since the chart is quite vague. That is right. It is vague no matter how simple it looks. First off, the chart fails to show the percentage of Ruby Ribbon's population earning those so-called “High” earnings. Most of all, the chart doesn’t show the exact numbers of Ruby Ribbon’s PO-PU-LA-TION!

Such concealment of data can be quite alarming. With an Income Disclosure Statement like this, the public won’t be able to determine the exact numbers of people earning this and that. Despite Ruby Ribbon’s Income Disclosure Statement simplicity, it lacks data. And no one needs a company that hides the truth. We need companies braving the facts.

Is Ruby Ribbon a Scam or Legit MLM?

MLM companies have always been possessing a negative reputation. Most MLMs, if not all, are always accused of pyramid scheming and we just can’t simply blame these folks.

MLM is a marketing strategy that is quite controversial due to its nature that somehow resembles the system of a pyramid scheme. Unlike the pyramid scheme that relies on the continuous stream of paying recruits for non-existing investment, legit MLM focuses on selling concrete products while recruiting more individuals to branch out the system. However, some scammy companies are disguising as MLMs. While there are products to be sold, these companies focus on finding recruits to whom they forcibly sell their products to ensure the flow of money.

Thankfully, Ruby Ribbon seems to be a legit MLM despite the tricky Income Disclosure Statement it provided. A legit MLM, that is. And it is quite sad. Oh, why? Because MLM companies use compensation systems the same as pyramid scams.

It might sound good to earn compensation through a recruit’s personal sales but the truth is, you are that “recruit”. Let’s face it; joining an MLM company always puts anyone at the bottom of the pyramid system. There, you would be motivated to make sales “for your own good” but the fact is that it is for the benefit of those above you. They suck away their commissions from your own hard work and that’s how MLM systems work.

It is legal by all means but ethically, we don’t think so. No one deserves to be a part of a theft-inspired system.

Weighing Things: Pros and Cons

Before you come up to your judgment, let us first have a look-back of the things we discussed earlier.

PROS:

1. Ruby Ribbon is being patronized by a lot of female customers and that’s good. Despite the fact that the company is new to the industry, it managed to catch the attention of the public.
2. It is a company that focuses on a single target market: women. That means that the company has the capacity to focus on improving its products for the comfort of its subjects.
3. Its bras are wire-free! As you know, I don't use them but the fact that a great population of women prefer their brassieres without wires confirms the possibility of more customers patronizing the products. More customers, more sales!

CONS:

1. The prices of the products are obviously higher than other products. You can always contest the “quality” of the products but there are also other products in the market that are also comfortable yet cheaper.
2. Given that the products are quite pricey, it could be quite difficult for you to persuade the market to buy the products. People are economical, you know.
3. Despite the good point that it focuses on one target market which is women, it could also be a downside since your target market is limited to just one.
4. Ruby Ribbon’s Income Disclosure Statement is vague and incomplete. That means a red flag. Who knows what is actually happening behind those figures? Well, we’re clueless until we are provided with complete data.
5. It is a legit MLM and that’s still a big downside. Remember: pyramid system means sucking away parts of your earnings.

Should I Take Risk Wearing a Ruby Ribbon Crown?

We all know that all of us are always taking risks to find the perfect job that would compensate us really well. We all do. Be a cop, a teacher, an engineer, a doctor, an office worker, a corrupt politician, a writer, an artist. We all take risks but as possible as we can, we try to find and gamble on the positions that have the higher possibility of us winning. Perhaps, that’s the reason why you are here, scrolling down this review and trying to obtain an answer whether Ruby Ribbon is worth the trouble or not. We already provided you the facts but let us still tell you pointblank: MLMs have high rates of failure. We are not saying that the companies themselves are on the brink of failure but we are pertaining to those under the system: people like you.

According to a 2017 report by the Consumer Awareness Institute, 99 percent of MLM individuals lose money. To support this, a website named MagnifyMoney made a poll among 1,049 MLM sellers from various companies. It concluded that nearly 60 percent of the participants earned less than $500 in sales over the past five years while nearly 20 percent never made a sale. At the end of the poll, most sellers said that they earned less than 70 cents per hour in estimate.

This is not the only reason that contributes to high possibility of failure among MLMs. It is the system itself. The idea of earning commissions from people below you sounds great but the fact is that it serves as a burden to those people. With this, those at the bottom might end up quitting and without those individuals supporting the bottommost of the system, the entire structure could end up in total destruction.

Is it worth the risk? Pointblank: No.

Conclusion: The Verdict

Ruby Ribbon is an MLM company that has a good reputation in the industry. Despite the fact that it is a new company that started in 2011, it offers quality products giving comfort to its target market. Despite all that, joining this company and considering it as your primary source income could be quite an issue. We are not pertaining to Ruby Ribbon alone but to all the MLM opportunities in general. From the studies conducted, we saw what is clear: its inevitable failure.

We do hope that this review provided you the best factual information and rational opinions. If you are still looking for a way to earn well, we can help you. There’s no need to pester your friends! No need to share your earnings to anyone! Click here and we’ll help you out!