Is Paparazzi Jewelry a Pyramid Scheme?

Is Paparazzi Jewelry a Pyramid Scheme? – Why You Shouldn’t Join This Company? [Honest Review]

Hey, and welcome back to my other post today! I bet you’ve landed on this page through Google to learn more about Paparazzi Jewelry. Most probably, you are a woman who wants to support her family cause that’s the exact category Paparazzi appeals too. But before plunging headlong into this Paparazzi business opportunity, it helps a lot doing at least a little bit of due-diligence about it to better understand is this the right business opportunity for you or Is Paparazzi Jewelry a Pyramid Scheme? 

Let’s figured it out together in this honest and unbiased Paparazzi Accessories Review.


Paparazzi Overview Is Paparazzi Jewelry a Pyramid Scheme? - The Logo

Full Name: Paparazzi Accessories

Type: MLM Business Opportunity

Website: https://paparazziaccessories.com/

Founder: Misty and Trent Kirby, Chani and Ryan Reeve

Year of Establishment: 2011

Price to Join: $40+$300/$2 700

Recommended? No


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What is Paparazzi?

Based in Utah, USA, Paparazzi is a multi-level marketing company that is offering affordable accessories sold through its network of independent consultants. 

Because their products are so cheap, you’ll need to sell a lot of items in order to make any good money. Another way to earn here that is typical for lots of the MLMs out there is through recruiting other people to do the exact same thing as you do. 

Although when reading Paparazzi’s official website, they try to make their business opportunity look so easy to accomplish, only a small percentage of people are managing to make a sustainable income with Paparazzi. 


Who is the Founder?Is Paparazzi Jewelry a Pyramid Scheme? - The Founders

I’m not sure whether they’re couples or not but please meet the founders of Paparazzi Accessories: Misty and Trent Kirby, and Chani and Ryan Reeves.

What I’ve learned though is that Misty and Chani are sisters, who’ve initially started to sell jewelry with the intent of showing people how to accessorize.

Well, that’s almost always the case of many of the MLM companies out there are family businesses.

As it reads on the Paparazzi’s official website:

“Paparazzi founders Misty and Trent Kirby, and Chani and Ryan Reeve, continue to expand the company with hands-on leadership and clear purpose.

They individually design and source materials for Paparazzi products while working directly with manufacturing partners to create fashion-forward results.”


What is Paparazzi’s Financial Situation?

If you was reading my blog for a while, you may have noticed that when reviewing different MLM companies, I like to have a look at their overall current financial situation.

That’s because I’m sure you wouldn’t want to join a company that’s going nowhere in terms of the revenue, right? If a company is not growing then, most probably, either will you.

So, let’s take a look at what we’ve got here: according to www.BusinessForHome.org, between 2015 and 2016, Paparazzi managed to double its early revenue which is definitely a good thing.

Then, in 2017 and 2018, it continued to grow, and Paparazzi’s revenue constituted $100 mln, and $150 mln, accordingly.

 

Is Paparazzi Jewelry a Pyramid Scheme? - Financial Situation

 

It might be because many people were joining Paparazzi, as according to Paparazzi’s official website, there were approximately 750 000 Paparazzi consultants in total from all around the world.

But then, in 2019, something happened and their revenue didn’t grow at all. Well, I understand that any company out there has its ups and downs and God knows what was the reason for this little stagnation.

Anyway, this is not the worst financial situation I’ve seen in the MLM industry. If you’re curious about what was the worst financial situation I’ve seen since I’m reviewing MLM business opportunities on this blog, take a look at Zija International MLM.


What Are Paparazzi Products and Are They Worth the Price?

So, Paparazzi is selling all sorts of jewelry pieces and accessories like necklaces, bracelets, earrings, and rings.

Each and every item costs $5, except for their occasional fancy lines that come out and are between $10-$30 for a piece.

 

Is Paparazzi Jewelry a Pyramid Scheme? - The Products

Paparazzi accessories are made in China from such materials as aluminum, steel, and some other mixed metals.

When I look at those necklaces and bracelets, it’s obvious that the items are cheaply made, there’s nothing quality about this. I mean, what sort of quality could we expect at $5 price?

The quality on these, I would say, for sure worth $5 but not more.

Accordingly, Paparazzi is marketing its products as affordable jewelry which you can choose to wear different items every day.


How Much Does it Cost to Join Paparazzi?

When I first saw what’s the cost of joining Paparazzi Accessories, honestly, I said: “Oh, wow!”.

To be honest, I’ve seen MLMs with even more expensive start-up costs (like Royal Prestige MLM, or Matilda Jane MLM) but I didn’t think that for an MLM company selling so cheap jewelry, they’d have such expensive start-up costs.

In the picture below, you can see that their pricing starts from $300 and all the way up to $2 750:

 

Is Paparazzi Jewelry a Pyramid Scheme? - The Cost of Starter Kits

 

Of course, it’s up to you which of the Starter kits to choose but as you can see, the pricier the Paparazzi Starter kit is, the more items it includes.

But taking into consideration that this is a networking marketing business, you’ll need to deal a lot with people showcasing them products.

And the more products you have upon you, the better are chances to sell them, right? So, that’s one thing worth considering.

Besides the cost for the Starter kits, there’s also a $40 fee you pay upon registration and that’s doesn’t include any products or supplies.

I assume that this is the fee paid for the right to be part of Paparazzi and buy their products at wholesale prices, plus you get a free website.

While paying companies for this doesn’t sit well for me, I prefer more the affiliate marketing business model, where many large or small companies are paying you when you bring them customers and sales, without you having to pay them something!


How to Make Money With Paparazzi?

On the promotional Paparazzi materials, any new Paparazzi consultant reads: “Parties are the lifeblood of any successful Paparazzi business”.

This is what you’ll need to do in order to sell Paparazzi products. Invite people who you know could be potentially interested to buy those products at your location.

You can also organize Facebook lives and sell the products that way.

You get 35%-45% on every item you sell. Given the fact that each of the products costs only 5 bucks, your commission on any sale will be $2.25.

Just imagine, how many items you’d need to sell to make a decent income with Paparazzi?

If you chose to build your team of people who are interested to build their own Paparazzi business, you can make up to 10% commission on those who join your team.


Does Paparazzi Allow You to Use the Internet to Build Your Business?

In short, yes, they do. When you become a Paparazzi consultant, you get a free replicated website from them.

But before you get excited about the opportunity of having your own website that’s selling products on its own, I’m sorry to discourage you by telling you that these replicated websites aren’t selling without you putting in some efforts to promote your website.

And what do I mean by that? Let’s, first of all, figured out what is a replicated website?

A replicated website is where your customers can shop online directly from Paparazzi. These websites are created automatically, and therefore, visually they look pretty much identical to the official Paparazzi website.

The only thing that differs one replicated website from another is a little snippet of code which is usually your Paparazzi Consultant ID or username.

And that’s used to track the sales and that’s basically it. Oh, and maybe there’ll be some sort of places within your website where you can upload your picture and say a few words about yourself.

Now, I want you to think about how your replicated website is going to stand out from the rest of Paparazzi reps who have signed up before you? Why people should buy from you and not from anyone else’s website?

These are the questions worth taking into consideration before you decide to become a Paparazzi representative so that you know “on the shore” what you’ll need to do in order to be successful. Cause that’s your main goal, right?

I’m not quite sure (please correct me if I’m wrong) but my assumption is that these replicated websites aren’t optimized for SEO, or even if they are, to a very little extent.

So, chances that your website is going to drive visitors on its own are very, very low, and that means that you’ll need to drive traffic to it either manually, or through paid PPC campaigns (which can cost you lots of money if you don’t know how to do it right, btw).

There are even more disadvantages to replicated websites. Here’s a Youtube video that explains them in details:

 

 


Is Paparazzi Legitimate?

Finally, we have come to the main question of this post, right? Is Paparazzi a legitimate company or is it a scam?

As I said, Paparazzi uses an MLM business model that’s structured around making your money by recruiting other people, rather than making money by selling the product.

In essence and somehow indirectly, this is an illegal pyramid scheme, it’s a Ponzi scheme. It’s legal because they do hide the Ponzi part behind the product.

Because they are legitimately selling the product, they get away with it.


Can You Make Money With Paparazzi?

You don’t actually make any money with Paparazzi products. And I’m going to explain here why.

According to the 2018 Paparazzi’s Income Disclosure Statement (thankfully, they do provide such a document while some of the other MLMs don’t), there are 13 Consultants ranks in total and the majority of Consultants been at the rank called Star Consultant (69,43%) in 2018.

But the problem with this document is that they only list the monthly bonuses.

So, basically, it’s not a true income disclosure statement, they call it so and it’s labeled like that but it’s actually a bonus disclosure statement, and they’re not disclosing anyone’s income here.

Can you imagine that they’re actually lying by calling it an Income Disclosure Statement while it’s not?

So, I take an issue with that because that’s a straight-up lie. Why the FTC is ok with that is beyond me.

 

Is Paparazzi Jewelry a Pyramid Scheme? - 2018 Income Disclosure Statement

 

So, going back to the numbers, Star Consultants’ average monthly bonus was $22,83.

So, the conclusion is that you can’t rely on this source of income, for sure. And those who can, are really a tiny number of people (I guess that’s Producer rank which represents only 0,92%.

Therefore, Paparazzi is another MLM company that proofs the general rule in the MLM industry, that less than 1% of people are making a full-time income.


The Good and The Bad

PROs

#1. Affordable Product Price

Really, who doesn’t have $5 to buy a bracelet or necklaces?

Paparazzi products have acceptable prices and that allegedly could serve as a factor contributing to making more sales.

However, not all people prefer cheap jewelry so that’s also a matter of finding the right audience.

#2. A Variety of Items and New Releases

There are many different models and choices to be made at Paparazzi.

With such a variety, it’s difficult for anyone who likes this product category to go away without purchasing something.

Besides that, items are always changing which adds a fresh breath to accessories shopping. 

#3. Sorry, I Couldn’t Find Any More Pros 🙂


CONs

#1. The Requirement to Buy Products on a Monthly Basis

In order to maintain your Consultant status active, Paparazzi requires you to buy 50 PV (Product Volume) each month. One piece of jewelry equals 2 PV, so that’ means you need to purchase 25 pieces of jewelry every single month just to maintain your Consultant status and be eligible to earn commissions.

Let’s do the math here: as a Paparazzi Consultant, you’re buying the products at the wholesale price which is $2.75 for each item, and that’s a minimum of $68,75 a month, or 825 per year on inventory.

That probably wouldn’t be an issue except with those occasions when you can’t sell these cheap accessories and they’re just stocking in your home, getting you in more and more debt (instead of making money and enjoy life).

The profit margin is $2.25 per piece. So, if we take $5 (that’s the end cost for the customer, and it never could be more, that’s a rule!) and subtract $2.75, you’re left with $2.25, and that represents your net income.

#2. No Support from Your Upline

One of the most important things to succeed in this business is being lucky to get all the support you need, especially if you’re brand new in this industry.

However, according to some of the complaints I had the chance to read over the internet while preparing to write this review, there is little to no support from your upline (or your mentors).

Here’s a screenshot of just one complaint I’ve found:

 

Is Paparazzi Jewelry a Pyramid Scheme? - No Support From Your Upline

 

#3. Most of Paparazzi Consultants Failed to Make a Full-time Income

If you’re required to spend $68,75 on your inventory every month, and an average Consultant bonus is only $22,83, do you see how this business is not profitable for the majority of Paparazzi consultants?

Unless you are a seasoned salesperson who can easily climb the Paparazzi ranks, it’s unlikely that you could turn your Paparazzi business into the one that will bring you time and financial freedom.


My Final Opinion About Paparazzi + A Better Alternative

You see, I’m not at all a fan of MLMs in general and I can’t recommend any of the MLMs out there.

With regard to Paparazzi, this is an MLM that least of all deserves recommending.

It’s extremely difficult to make money with Paparazzi, and unfortunately, most of the time, people end up losing their own money rather than earning something.

And that’s because the money you invest initially and then every month in the inventory goes up to people in your upline and this is how they’re making their money.

But let me tell you that there is another, better way to make money. With all the craziness going on with the current pandemic, it’s more and more obvious that if you want to run a business, that should be an online one.

I would suggest looking into making money by blogging. I personally love it since this is something I can do on my own and my income doesn’t depend on other people’s efforts or how many people I’ve recruited like in MLM.

If that sounds appealing to you but you think that you don’t know how to do it, don’t worry, we all started once somewhere! I have started here for free and I’m so thankful that I did.

It doesn’t cost you anything, and I’m sure you are going to love it too! Inside, you’ve got everything you need in order to be successful and build a profitable online business: 24/7 help and support, a keyword research tool, an affiliate program research tool, and even website hosting is included.

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Here you have it, my friend! I hope you’ve enjoyed reading this article, and now, you’ve got your answer to the question: Is Paparazzi Jewelry a Pyramid Scheme?

I’m looking forward to hearing your thoughts on this Paparazzi business opportunity or, if you have any more questions about it, or anything else, please leave a comment down below and I’ll get back to you as soon as I can.

Sending my best wishes to you and until my next post 😉

Natalie

Paparazzi Accessories MLM

$40
3.7

Product

5.0/10

Support

5.0/10

Business Opportunity

1.0/10

Pros

  • Affordable Products Prices
  • A Variety of Items and New Releases
  • Sorry, I Couldn't Find Any More Pros 🙂

Cons

  • The Requirement to Buy Products on a Monthly Basis
  • No Support from Your Upline
  • Most of the People Failed to Make a Full-time Income

9 thoughts on “Is Paparazzi Jewelry a Pyramid Scheme? – Why You Shouldn’t Join This Company? [Honest Review]”

  1. This is a very interesting review of Paparazzi Jewelry.

    I had not heard of this company before so thanks for sharing.

    And I’m glad you have a great alternative that you recommend.

    Best wishes.

    Reply
  2. Hi Natalie,

    I’ve never heard of this company before and it just surprises me how many MLM companies there are now. From your explanation of Paparazzi, it honestly isn’t worth an investment, money or time wise.

    It sounds extremely close to a scam, from how much one has to pay upfront. And for a product of low quality too. Hope people won’t get roped in to this scheme. It’s totally not worth it!

    Thanks for sharing.

    Cheers.
    SAM

    Reply
  3. I signed up with this company years ago and sold jewelry in my brick and mortar store.

    I did not have any problems but again this was many years ago. I did not sign people up underneath me and I had a physical location.

    If I had to depend on parties I would not have signed up. That is not my thing.

    I have this same problem with Mary Kay. Love the Makeup, not the sales pitch or parties.

    The only way these MLM programs really work is if you have a never-ending supply of friends!

    Reply
  4. Hey Natalie!
    I am so happy to read about your detailed review of this company.

    Keeping the prices of jewelry so low, people might think that it will be easy to convince buyers to give in and make sales easily but this can’t be further from the truth!

    I don’t think people are happy buying cheap quality jewelry as you said.

    Good catch on the IDS – can’t believe how they got away with it! If they cannot provide real earnings, how trustable are they really?

    I mean if I am joining a company, I would like to know and understand the numbers; it is only fair and goes hand in hand in how willing I am to make profits in the future.

    I want my time and money to be worth it.

    Anyways, thanks for laying out every detail as it is about Paparazzi. They aren’t getting my money!

    Reply
  5. Been looking for more info on Paparazzi Jewelry and thankfully stumbled on your review.

    I’m having second thoughts now that there are a few red flags that you’ve brought up.

    I don’t like the fact that I’ve got to keep buying each month to keep my status active.

    Reply
    • Hi, Kenny, thank you for reading!

      I’m glad that it made you looking at Paparazzi from a different perspective. It’s always good to know the pros as well as the cons as.

      Cheers,
      Natalie

      Reply

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