Real Costs of Selling Paparazzi
Costs to get started
To get started a new consultant needs to purchase a starter kit. These include marketing materials, 35-200 pieces of jewelry, and “business tools.” The lowest priced kit is $99.
The Paparazzi model encourages buying inventory for you to sell. The goal is to sell the purchased inventory at a profit. This is can be risky. What if you can’t sell it?
Paparazzi’s return policy is extremely limited. It only allows returns within 3 days for defects and damage. If a consultant can repair the jewelry isn’t eligible for return. End customers (not consultants) have 10 days to return damaged products. An inventory buyback is available to consultants (for less than the purchase price) but there are many strict rules.
Purchasing lots of inventory upfront is risky. Certainly a better option is to eliminate the need for consultants to purchase inventory up front. Eventually, this is an option for consultants. It is possible to sell jewelry directly through a consultant’s individual website. However, all consultants must buy upfront inventory via a starter pack in order to become a Paparazzi participant.
Maintaining status as an active consultant
You must purchase 50 units of personal volume to maintain active status. The costs for this PV in $5 jewelry is about $70 each month. You must be an active consultant to show up in the consultant finder, to be eligible for commission checks, and to receive other benefits.
Also, Director levels (and up) must meet their “organizational requirements” by personally sponsoring 3+ active consultants. Sponsors may tell consultants to purchase additional inventory. Pressure to buy additional inventory can be confusing and cause inventory loading.
Costs of doing business
Running a business is expensive. It’s important to look at all of the expenses. Here are a few expenses that can really add up:
- Tax preparation, money management, accounting
- Event, event planning, parties, food, drinks, decorations
- Admission/booth space at fairs, markets, or storefront locations
- Stuff for selling online (camera, lights, software, backdrops)
- Shipping, packaging, cards, pens, supplies
Finally, an often overlooked expense the time you spend selling. Though it can be fun, selling Paparazzi takes many hours and is a big investment of your time. A question you should ask yourself: is this the most effective way to spend your time? Is the return on your time enough that you wouldn’t be better of spending time on another job or opportunity? These questions are hard to answer without data on how much sellers earn. To date, the company hasn’t released anything like an earnings disclosure statement.
No affiliation with PaparazziAccessories. Please contact us with corrections, updates, or questions.