Am I a Part of a Pyramid Scheme??

Published by Adrienne Marie,





Hi, my name is Adrienne Marie, and I may be a part of a pyramid scheme...

So did I get your attention. While in my mind I know I'm not in a pyramid scheme, there are some people who would think otherwise.

There's a mindset that direct sales and MLM's are pyramid schemes. For those that don't know, a pyramid scheme is a "business model" where the whole purpose is to get your money, then use you to recruit others to get their money. so those at the top get richer, while those at the bottom lose money.


I'm with Paparazzi jewelry which is a direct sales company. It could also be considered a MLM. Does MLM always equal pyramid scheme? Short answer? No. Long answer? Well strap in because here we go.

So I told you what a pyramid scheme, so what's a MLM. MLM stands for multi -level marking. What that means is you become a distributor (or in my case a consultant). You then earn money by selling products (jewelry) and recruiting others to do the same.

Wait! I'm sure your thinking that sounds familiar, isn't that what they do in a pyramid scheme??? Yes it is, but the difference is that the purpose of an MLM is to move product.

Paparazzi is the example we're using because I'm a consultant with them. We have a product that we sell. Can we recruit other people to sell as well? Yes we can. Can we make money without recruiting more people? YES!! Absolutely! There are people in the company absolutely killing it retail sales alone! Some are making 20k + a month selling jewelry alone, so its possible!

There's a great article that goes well into more details. I'll link it Here. They provide a checklist to tell the difference which I've included and will answer about Paparazzi



Stay with me, we're almost done!

First point - Is the startup costs high: While there is a start-up cost, it's very low compared to other companies. With any business that you want to start, there will be costs. $99 isn't that much, I've seen companies where their startup starts at $299

Second point - Is there a buyback program: Paparazzi does offer a buyback program. They will buyback unsold, unopened inventory.

Third point - Is there a market for the product: Yes! who doesn't love jewelry. They keep up with hottest trends and colors for the season. Our style staff is amazing!

Fourth point - More emphasis on recruiting than selling: Nope! we have a saying in our groups SOS - Survive on Sales, they push us to survive on sales and not on team commissions. Team commissions could one day stop, but as long as you are selling jewelry, you will always have a way to make money.

Fifth point - Do you make more recruiting than selling : Same as above, Nope! As mentioned before, we have consultants making 6 figures on sales alone. That doesn't include any commission they get from their team.

Sixth point - Do you get offered commission for new recruits: Not in the way they explain it. We don't get bonuses for signing up people, but we do get commission on their purchases. With Paparazzi, you aren't obligated to sign people up. At the time of this post, I'm about 3 years in and I don't have a team, but I'm still making money.

I hope this helps clear up any confusion about Paparazzi jewelry, MLMs and Pyramid schemes!

(Insert recruitment pitch here!) But seriously, if you do want to sell $5 jewelry with me, as an equal, leave a comment, or shoot me a message!