Today we will be reviewing a company called Paparazzi. Is Paparazzi a pyramid scheme or scam?
We will look at the company, its products, and how you can make money with it.
Should you consider investing in it? Find out as you read the review.
There are many ways to make money online, but scammers seemed to have jumped on the bandwagon.
These days, you should watch out for scams, since they have proliferated in the online world.
Many people have fallen victim to scams, and some even lost their life savings in the process.
A popular scam to look out for are called pyramid schemes.
Pyramid schemes are illegal, and if you invest in them, you will not see your money again.
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What is Paparazzi?
Paparazzi, formerly known as Paparazzi Jewelry, is a multi-level marketing company founded in 2011.
The company sells jewelry and accessories, and is known for selling jewelry pieces for $5 per piece.
The company sells its products exclusively through its consultants.
You can browse their products at their website and to purchase, you would need to pick a consultant who will be the one preparing your order for you.
The product selection includes:
- necklaces
- bracelets
- earrings
- rings
- hair clips
The company is currently based in Utah, United States.
Is Paparazzi a Pyramid Scheme?
Since Paparazzi members earn money both by selling products and recruiting new members, then it is safe to say that Paparazzi is not a pyramid scheme.
I do not advise joining Paparazzi.
A business is supposed to market its products and train its employees to sell them.
I do not think that Paparazzi is doing that, since they insist on recruiting more members instead.
It is almost a pyramid scheme, except they have products they can use to make people believe that they are a legitimate company.
Like Pampered Chef, Optavia, and Juice Plus, Paparazzi is not a pyramid scheme.
90% Fail Ratio
According to the 2018 Paparazzi Income Disclosure Statement, only 6.42% of members in the Consultant level earned an average of a measly $12.94 a month for that year.
This is quite disappointing as $12.94 is not even enough to be considered as minimum wage.
Since the company has quite the reputation of having their members recruit people in their shows and parties, it is safe to say that the majority of the company consisted of people in the Consultant rank.
If only 6.42% of those in the lowest level earned that little, then I do not think that joining MLM is a good idea.
$12.94 is not even enough to break even with the cost you spent on buying the starter kit that is required for you to start selling Paparazzi products.
I mean, what would you expect if the main focus of the company you are joining in is recruiting people instead of selling products?
Is Paparazzi a pyramid scheme? At this point, it does look like one.
Is Paparazzi a Scam?
No, Paparazzi is not a scam. However, you may want to watch this video.
According to our data above, there are still people who make money from it.
Even though most of the people who joined Paparazzi did not make money, that does not mean that the company is a scam.
Like other MLM companies, you would have to recruit people to earn more money.
Money cannot be earned by selling products alone.
Since MLMs also emphasize recruiting more than selling, you can earn more money from recruiting members rather than from selling the products.
How To Make Money From Paparazzi
Like other MLM companies, there are two major ways to make money from Paparazzi.
- Selling products. Paparazzi offers wholesale prices for their products, which you can sell for retail price for your profit.
- Recruiting people to your downline. You earn commissions from the sales of those you recruited.
Before you start making money, you should spend money first. Now that is a red flag.
How to Join Paparazzi
Before you join Paparazzi, you should watch this video first.
To become a Paparazzi consultant, click this link.
Here are the steps you need to follow to ensure a smoother application process.
- Find a sponsor. You can do this providing your zip code. The website will present you with consultants that are located in your area.
- Pick a starter kit.
- Organize a party. A party is a gathering where you can showcase your products to your friends and family. With parties, you have the capability not only to make sales, but also to boost sales and to recruit new consultants.
Registering online is pretty easy and would not take much time.
You just need to provide your personal information, choose a starter kit, and check out. Just wait for your starter kit to arrive and you are all set.
Paparazzi Starter Kits
Paparazzi has 3 starter kits to choose from. I will elaborate them in this section.
The $99 pack, known as the Preview Pack, consists of 35 pieces of jewelry, with a total retail value of $175.
The $299 pack, known as the Small Home Party Kit, consists of 120 pieces of jewelry, with a total retail value of $600.
Lastly, the $499 pack, known as the Large Home Party Kit, consists of 200 pieces of jewelry, with a total retail of $1000.
The jewelry included in each kit are all randomized, so you can definitely expect variety in the pieces you will be getting.
The prices of the starter kits are quite steep, in my opinion. I am not really a fan of jewelry. Some pieces of Paparazzi jewelry also do not look stylish and do not help compliment your outfit and appearance.
Things I Like in Paparazzi
Well-Established
Paparazzi has been around for a while, which means that they are a pretty stable company. They would not last a year if the company is not making any money.
It has been around for almost 10 years so I am pretty sure that they are making money. Lots of it, I bet.
Unique Perspective
There are not many MLM companies that sell jewelry, since most of them focus on vitamins, skin care, and weight loss products.
The market is overly saturated with these health based MLMs that any health product you can think of probably has an MLM already founded for it.
Cheap Products
Let us face it, most people are not willing to part with their cash on products that they do not want. However, it is quite easy to sell products if their cheap, even if their quality is subpar.
Things I Dislike in Paparazzi
Recruiting Recruiting Recruiting!!!
In order to make money with Paparazzi, you have to focus on recruiting.
It is just another MLM company which focuses on recruiting more than anything.
In order to make money with Paparazzi, you have to keep recruiting people into your downline.
No matter how hard you work hard on your own, downline dependency is evident in most MLM companies. There is no escaping this inevitable moneymaking tactic.
MLMs often pay you more for recruiting than actually selling products. No matter how good you are at marketing products, you would not earn much for it if you do not recruit people. That is the painful truth.
It is pretty obvious that the first group of people you will try to recruit are your family and friends.
However, I do not recommend this action. You will end up pushing away people from you if you do this.
Many people often refer to Paparazzi as a pyramid scheme since you earn money by recruiting people. Just like any other MLM company, Paparazzi focuses on recruiting more than anything else.
As I have seen that many people do not even make money with it, this company should be banned by the FTC.
Ugly Network Marketing
Whenever I promote something, I focus on two things before I think about promoting it.
The first thing I look at is if the product gives value for money. I would likely recommend it to my friends if it is cheap and it functions properly.
The other thing is if it worth spending money on. Unfortunately for Paparazzi, I am not really a fan of jewelry, especially tacky looking ones.
I mean, sure, it is pretty cheap for $5 per piece, but I would not spend $5 on something like this. I would rather spend that on things I actually like.
If you recommend Paparazzi to your friends and try to recruit them to join it, I do not think you will continue to be friends with them.
Paparazzi has many bad reviews on the internet. Most of the time, people are saying that this product was recommended by their friends and family members, and they regret ever buying products for them.
I do not think it is worth it losing friends over a shady company that sells cheap jewelry.
Spend Money But Not Earn Money
If you want to make money with Paparazzi, you must look at their compensation plan. It is as worse as the other MLM companies out there.
You have to spend a lot of money just to be able to rank up, and ranking up does not even give you that much additional benefits.
You have to spend money to make money, but the problem with Paparazzi is you would not even make money no matter how much you spend.
The words that could be lingering on your mind right now is probably “Why do I need to spend money to earn money? I thought I am going to be my own boss? Is Paparazzi a pyramid scheme and they only plan to bleed me dry?”
Paparazzi Compensation Plan
The Paparazzi compensation plan can be viewed and accessed through this link.
You can make money with Paparazzi through the following:
- Retail Profits. These are earned through selling your products. Paparazzi consultants get their products for discounted wholesale prices and sell them for retail prices.
- Show Rebate. When doing larger parties or shows, you will need more inventory to showcase to potential customers. Paparazzi will grant you a 10% rebate if you meet a certain purchase requirement for buying huge stacks of inventory.
- Business Building Bonus. This is where recruiting comes in. If you sponsor a new consultant, you will be earning 15% of what they spent on their starter kit.
- Unilevel Bonus. As you recruit more people in your downline, you will start to earn 5 to 10% of their sales amount.
- Generation Bonus, Legacy Bonus, Infinity Bonus, Cash Bonus. These bonuses are earned as you climb to the higher ranks and have teams of people under you.
I found a video on YouTube that could explain the compensation plan better. You can watch it here.
However, no matter what angle you look at, you would still ask yourself: Is Paparazzi a pyramid scheme? What are these bonuses? How much money should I spend to finally get these bonuses?
Paparazzi Consultant Levels
There are 11 total ranks that you can reach in Paparazzi. To advance to the next rank, members should meet specific requirements and maintain them on a monthly basis.
- Consultant
- Star Consultant
- Director
- Premier Director
- Executive Director
- Fashionista
- A-Lister
- Maven A-Lister
- Jetsetter
- Luxe Jetsetter
- Impressionista
You can probably guess how much money you would need to spend to rank up. Two words: too much.
I do not think you will be able to rank up by selling jewelry alone; you would have to recruit people into your downline, and even buy some unneeded inventory just to reap some benefits.
10 Shocking MLM Statistics That You Need To Know!
- Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
- There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
- Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
- The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
- According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
- In the remaining 26% that actually make money, 53% of them make less than $5000/year.
- 39% of those 53%,who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
- Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
- 75% people that joined MLMs say that they will never again join any kind of MLM.
- A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.
SOURCES:
Should I Join an MLM?
Most MLMs are not good since the members that recruit you only want a share from selling you the starter kit.
After that, they do not care anymore, even if they are the ones who recruited you to their team.
Team leaders do not train the members under them to properly market and sell the company’s products, but instead show them the predatory techniques of how to lure people to joining.
I have seen several people on social networking sites complaining about MLM members who would message them out of the blue.
There are some MLM members who even get in touch with people whom they have not seen or heard from in years just to recruit them.
It is quite embarrassing, because instead of having a proper sales outlet, MLM members stoop so low just to earn very little commissions since selling the products seems to not work for them.
I believe that there are more Make Money Online opportunities out there that are better than MLMs.
Aside from not properly training their members, some MLMs even give false claims about their products which ends up in lawsuits.
I do not recommend joining MLMs unless you have a network of people who will be constantly buying products from you. I also do not recommend it unless you are properly trained in marketing.
You will just end up losing money if you join an MLM if you do not know what to do.
Final Verdict – Paparazzi
Still thinking to join this MLM? Okay, I have a question for you.
Why would you join an MLM when there are more sustainable and long term business models out there?
Not only Paparazzi, but all MLMs are destined for failure.
After reviewing 300+ MLM companies, I have reached a verdict that it is the worst business model to start in 2020 and moving forward.
I have a better business model for you.
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This is a long term, sustainable and scalable business model.
Sorry, I am not fond of MLMs. Been there, done that. I hate selling to my friends and family members. MLMs are not what you call a business. In fact, you are going nowhere with multi-level marketing.
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That’s it for today’s review.
Before leaving, check out my #1 recommendation to making money online after reviewing 300+ MLM companies.
>>>Free Training Reveals 3 steps formula to Make $10k/month With High Ticket Affiliate Marketing<<<