Pure Romance ditches MLM, now retail sales only
Adult toys themed Pure Romance has ditched its MLM business model.
Speaking with WWD in an April 28th published interview, CEO Chris Cicchinelli cited the “anti-MLM movement” as a contributing factor.
Over the past three to five years, we’ve seen this kind of movement around people talking about anti-MLM, and it was becoming more of a hindrance for us to reach a generation that needs education, that needs our products and needs the things that we’re able to provide.
Ciccinelli (right) also claimed that only 1% of Pure Romance’s distributors qualified for MLM commissions.
It didn’t make sense to have this label on where 99 percent of people were selling product and being able to do what they love.
Pure Romance’s changes to its business model became effective May 1st. I learned of the transition a few days ago along with everybody else, but figured I’d wait a bit for the dust to settle before taking a look.
Going forward, Pure Romance is essentially a retail only business model.
The party plan business model is still there, with distributors paid on sales to retail customers who attend the parties.
Commissions can also be generated via direct and online replicated storefront retail sales.
Retail commissions appear to have been bumped up to 40% to 50%, depending on monthly retail sales:
Pure Romance distributors also receive a 10% credit on products if their party sales exceed $250 (per party).
The other significant change is Pure Romance, through its own website, will now also compete directly against its own distributors.
All products are available for purchase on the Company’s website or through Consultants.
I haven’t really seen anyone complaining about Pure Romance ditching MLM. Typically when this happens we see distributors moaning about little to no notice and destroyed businesses.
If Pure Romance really did only have 1% of distributors qualifying for MLM commissions, perhaps this time they read the room correctly.
I tried to suffer through that recorded call, and I’m not willing to give them an easy pass. Anyone have a printed copy?
It seems to me they are just recruiting wide, not deep. And if I’m not mistaken, they are crediting retail “value” on consultant ORDERS, like Mary Kay. (Need confirmation, but I’m pretty sure.)
While maybe technically not multi-level, I’m not so sure they aren’t scamming people by front-loading them with products. Lularoe vibes for me. Something just isn’t kosher, which is why we probably aren’t hearing too many complaints from current consultants.
Could we be looking at a new type of scam? A product-based, single-level, albeit network marketing scam. In what world would sellers want to recruit new competitors? Fishy, fishy.
It’s also curious how he basically admits he was running a recruitment-based scam. Lol.
People should be wary of the type of organization they’re associating with. Is he a reformed scammer, or just changing the lure a little for a cash grab? Just like MLM, affiliates buy the products; and they are required to buy $200 every quarter to stay qualified.
It also appears you can just buy your way into better status. And why would I pay retail at a party when I can join for $250 and receive $750 in products? (I think I heard that right. The video kept freezing up.)
Point is, this all needs a closer look, IMO.
It could be worse.