Have you been asking yourself if Paparazzi Jewelry is a scam? Well, you have come to the right place.
In my third party review I am not only going to answer the question 'Is Paparazzi Jewelry a Scam' but I will also show you if you can make money with it or if you should look elsewhere.
First up, Paparazzi Jewelry is also known as Paparazzi Accessories. So I am using either of these names in this review post.
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Anyhow, without further ado, let's have a closer look at Paparazzi Jewelry aka Paparazzi Accessories.
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Is Paparazzi Jewelry A Scam?
The Paparazzi Jewelry Company
I usually start off my review with some insight information about the company but I haven't found much information about Paparazzi Jewelry at all.
This Utah-based company was founded back in 2010 by two sisters who were selling homemade jewelry at local events and fairs with so much success that they decided to build a business with it.
Misty Kirby and Chani Reeve got started with the support of their husbands and build a company that has attracted lots of attention and even more consultants that are willing to sell the bargain jewelry which retails at $5 a piece.
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The Paparazzi Jewelry Products
Paparazzi Jewelry made a name for itself by selling each accessory, whether it is a necklace, bracelet, ring, or hair accessories for $5 each.
Some special collections will cost around $20 to $25.
All items are being manufactured in China and, according to the company are lead and nickel free.
I don't want to talk about the quality but I have seen a few reviews on the Better Business Bureau from customers who were complaining about broken pieces when they received their orders.
Also, the starter kit for new consultants includes a repair kit so broken pieces can be fixed before selling them.
How To Join Paparazzi Jewelry
The picture above shows at a glance how much it costs to purchase a starter kit.
You have to at least invest $99 for the cheapest starter kit.
Besides jewelry pieces, each starter kit contains business supplies like party invitations, party bags, and enrollment forms for new consultants.
The focus of selling is via the party plan model, so your best bet would be to organise a launch party to get your business off the ground.
When I looked at the compensation plan, it looks like that the consultant has to purchase jewelry to sell at the parties rather than the customer ordering them.
More about it in a second.
There are no catalogs available and new items are added on a daily basis, so the stylist/consultant has to keep updating her own collection to be up-to-date with the product range.
One more word about the parties. They don't seem to be any incentives available for hostesses who want to hold a Paparazzi party.
Therefore the question is Why should someone hold a party if there ii no benefit for the hostess?
The lack of incentives could also mean that it is challenging for new stylist to get party bookings as well.
Let's talk about the commission plan...
The Paparazzi Compensation Plan
The Paparazzi compensation plan offers 14 ranks, a 45% commission on the sales plus commission payments on team sales.
In order to be active , the consultant has to purchase 50 PV in a commission period which covers basically a full month.
So that means that the consultants buy the pieces at wholesale price of $2.75 and sells them at $5 each.
The profit of $2.25 is then yours, hence the 45% commission.
As you can see on the image taken from the compensation plan, 1 PV doesn't equal $1.
So, to advance to star consultant (and stay in the rank) you have to have 50 PV which equals the purchase of 25 pieces of jewelry a month.
That means a monthly expense of $68.75 (25 pieces x $2.75 wholesale = $68.75)
Not only is this a lot of money, it is also a substantial amount of inventory each month.
What if no one buys it?
That would leave the consultant with a lot of debt and a mountain of worthless jewelry.
You can read the full compensation plan here.
It will tell you more about the show rebate and various bonuses like business builder bonus, unilevel bonus, and generation level bonus.
Please note, you'll only get these bonuses when you are active.
Can You Make Money With Paparazzi Jewelry
Even though Paparazzi Jewelry has been around for 9 years, they have never published an income disclosure.
Speaking of my own experience as direct selling consultant and reviewing nearly a hundred of MLM companies, it is safe to say that the majority of Paparazzi sales consultants probably only earn a little or no money at all.
Especially considering the monthly minimum purchase of 50 PV if you want to advance in rank.
That is a lot of money to be spend just to remain an active consultant and to qualify for bonuses.
If you want to make money, I would recommend to look at companies that don't require monthly purchases.
Let's have a quick look at the Pros and Cons of Paparazzi Accessories..
The Pros Of Paparazzi Jewelry
The Cons Of Paparazzi Jewelry
Conclusion - Is Paparazzi Jewelry A Scam
I do not think that Paparazzi Jewelry is a scam but I do find a few things I have found out about the company like the compensation plan, missing income disclosure, and complaints on BBB questionable.
A consultant should not be required to make monthly minimum purchases. It leads to a lot of inventory if the product doesn't get sold and the consultant loses money in the process.
There is only a slim chance to make an income. It looks like one would lose money then earn anything at all.
Overall, I would not recommend to sign up with Paparazzi Jewelry.
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