You’ve heard about this fabulous $5 jewelry and you can hardly believe it. Maybe you’ve totally fallen in love with the ever-changing styles and are thinking this could be a fun little side hustle. You casually mention it to a friend and she laughs and says, “Oh, those MLMs are all the same – a bunch of pyramid schemes and scams.” You begin to doubt this idea, I mean, who wants to fall victim to the great Paparazzi Jewelry Scam? Let’s start with some facts and common concerns because decisions are best made when you have all the information.
It’s a Pyramid Scheme
Confusion regarding Multi-Level-Marketing (MLMs) and true pyramid schemes is rampant. Further clouding the issue is that some MLMs really are pyramid schemes. How can you tell the difference? According to the Federal Trade Commission, you should avoid companies where the money you make is based primarily on recruiting a downline. Legitimate MLMs will have a true product to sell for a viable profit.
How does Paparazzi stack up?
As a consultant you earn 45% commission when you sell jewelry at the retail price. In real terms, this is $2.25/piece. That doesn’t sound like a lot but Paparazzi works a lot like the big-box stores and volume is where you will make the real profit on your sales. If the retail price is lower, people will buy more and purchase items more frequently which allows your profit to accrue.
If you choose to build a team you will earn 5-10% commission in addition to your retail sales. So, yes, your upline will earn commission from your orders but it is not the sole means of income and there is no requirement for building a team.
Paparazzi Jewelry is Crap
It’s $5 jewelry your friend says, what kind of crap will you be selling? Here’s the deal, folks, it is $5 jewelry. It is fun and fashionable and follows trends. It is not intended to be passed from one generation to the next. It is lead and nickel-free which means the metals are generally softer than other fashion jewelry. Bonus? It is also cadmium free! Having said all that, the pieces generally hold up very well. I would compare it to fashion jewelry you would buy at Target or Kohl’s – but theirs is usually not lead or nickel-free.
What is the return policy if items are defective or damaged?
As a consultant if you receive items that are defective or damaged you do have 3 business days to notify Paparazzi and return the items. Once you have the items and you sell it to a customer you take on the responsibility for having your own return policy. This varies among consultants but most of us have a pretty generous return policy.
You’ll be Pressured
“I bet your upline demands you build a team and buy a huge inventory. Don’t come asking me to join your team!” your friend says. Because Paparazzi is inventory-based, there can be a lot of fear that the great Paparazzi Jewelry Scam involves pressure from your upline to buy as much of the inventory as you can and to build a team. Obviously, I can only address this from my personal perspective – and is one reason you need to carefully research your potential upline.
Do you need to build a team? See above in the Pyramid Scheme section. No, you don’t need to build a team. I have chosen to do so and I believe strongly in the benefits of team building. It has financial incentive but more than that it develops relationships and leadership skills. Personally, I give my team tips on how to team build but I know everyone has their own journey and will fall into it on their own time.
Do you need a large inventory? There is a definite need vs. want scenario here but first let me explain how this works. As a consultant you will purchase a starter kit which contains jewelry and you will sell that for a profit.. How much inventory do you need? It totally depends on your goals. Are you in it for the discount? Then, no, you don’t need a large selection. Are you building an empire? Then, yes, you will probably want more choices for your customers. But the real bottom line here, folks, is YOUR bottom line. I joined Paparazzi to help my family pay bills and get out of debt. I NEVER advocate going into debt just to have a bigger inventory. You buy the jewelry at a wholesale price and then you reinvest until you have “enough”. The definition of “enough” is entirely up to you.
“They always make it sound so good,” your friend says, “but there are always fees they don’t tell you about and what about having to order a bunch just to keep your consultant status?” Direct sellers that have samples, catalogs and websites do often have these so-called hidden fees. Paparazzi does not have any of these fees. You buy your starter kit and then can pick and choose any other jewelry you want to purchase. The inventory changes daily so there are no catalogs to carry around. The replicated websites are 100% free – Forever!
There are no hidden costs, per se, but other items you might want to consider are business cards and display items. Paparazzi does not provide these (although you can purchase them on the website) but they are also not a requirement. I always tell my team members who are starting out to look around their house and be creative. There are usually some great display items sitting in your living room – just think outside the box! You can design your own business cards on any website (such as VistaPrint) if you choose.
Keeping your consultant status is as simple as ordering 100 pieces of jewelry per rolling 12 months. To qualify for monthly active status you need to order 25 pieces a month. There are benefits to being active every month and I encourage my team to plan for this but sometimes life happens.
Obviously, I’m a current consultant with Paparazzi and a bit biased. 🙂 However, I’ve tried to keep my opinion out of this and just give you the facts so you can draw your own conclusions about whether or not Paparazzi is legit or if your friend has a point. Contact me or leave a comment below to ask any clarifying questions.
P.S. If you’re just here for the fabulous $5 jewelry be sure to join me in The Parlor for first dibs!