Paparazzi Accessories Review: Ponzi Scheme- MLM Scam

Paparazzi Accessories is a jewelry multi-level marketing firm founded in late 2010.

On their website, Paparazzi Accessories does not disclose a business address. Yet, per the official Facebook page, the firm is situated in Utah. 

Misty and Trent Kirby, as well as Chani and Ryan Reeve, are co-founders of Paparazzi Accessories. 

So goes the story: 

“Misty and Chani’s intention when they started selling jewelry was not to create a national sensation. We just liked showing folks how to accessorize,” Misty says. However, what began as a whim was meeting a need. This was the impetus for the creation of Paparazzi Accessories.” 

Stay tuned for an in-depth examination of Paparazzi Accessories’ MLM structure.

Paparazzi Accessories’ Products

Per the firm’s website, the cornerstone of Paparazzi Accessories is in selling stylish products: 

“Accessories that are stylish yet not overpowering. Classical, yet never dull. And, best of all, it’s cheap.”

The jewelry at Paparazzi Accessories costs a flat $5 per item. 

The jewelry collection at Paparazzi Accessories includes necklaces, bracelets, earrings, and rings. 

Paparazzi Accessories’ founders state that each of their jewelry items is unique.

They claim all the items to be:

  • Lead-free and nickel-free; 
  • One-of-a-kind with unique design, style, and feel; 
  • Always changing; 
  • Created in China.

It is worth noting that, while Paparazzi Accessories has an enormous inventory catalog on their website, users must “login or subscribe to access all (of Paparazzi Accessories’) items.” 

Compensation Plan

Paparazzi Accessories affiliates earn retail sales; however, most reward plans are based on affiliate recruiting and continued monthly spending. 

Affiliate Ranks

Paparazzi’s payout structure includes fourteen affiliate ranks. 

They are as follows, along with their respective qualification criteria: 

  • Consultant- Sign up as a Paparazzi affiliate;
  • Star Consultant – produce and keep 50 PV every month; 
  • Director – maintain 50 PV every month while also recruiting and retaining three Star Consultants; 
  • Premier Director – maintain 50 PV per month, 3000 GV per month, and three individually recruited employees;
  • Executive Director – create and maintain 100 PV and 6000 GV each month, as well as three individually hired consultants;
  • Producer – keep 100 PV per month, create and keep 12,000 GV per month, and keep three individually recruited Star Consultants; 
  • Premier Producer – maintain 100 PV per month, produce and maintain 25,000 GV per month, and keep three individually recruited salespeople;
  • Executive Producer – maintain 100 PV per month, generate and maintain 40,000 GV per month, and keep three individually recruited Star Consultants; 
  • Fashionista – keep 100 PV each month, produce and keep 75,000 GV per month, and keep three personally recruited Star Consultants;
  • A-Lister – keep 100 PV per month, produce and keep 150,000 GV per month, and keep three personally recruited Star Consultants; 
  • Maven A-Lister – keep 100 PV per month, produce and keep 250,000 GV per month, and keep three personally recruited Star Consultants; 
  • Jetsetter – maintain 100 PV per month, 500,000 GV per month, and three individually recruited Star Consultants; 
  • Luxe Jetsetter – create and keep 250 PV and 1,000,000 GV every month, as well as three individually selected Star Consultants (must qualify for two consecutive months before promotion); 
  • Impressionista – keep 250 PV per month, produce and keep 1,500,000 GV per month, and keep three individually recruited Star Consultants (must qualify for two consecutive months before promotion).

PV is an abbreviation for “Personal Volume.” Personal Volume refers to sales volume generated by retail sales and orders placed by an affiliate. 

PV is calculated at a rate of 2 PV for every jewelry piece ordered from Paparazzi Accessories. 

GV is an abbreviation for “Group Volume.” 

It should be noted that no more than 33% of the needed GV can come from any single uni-level team leg. 

The GV per leg criterion is decreased to 25% for Luxe Jetsetter and Impressionista.

Commissions on Retail Sales 

Paparazzi Accessories earns commissions on retail customer orders. 

Retail commissions are determined as the difference between the wholesale and retail prices of the items ordered. 

Commissions for Hiring 

When a Paparazzi Accessories affiliate recruits a new affiliate, they receive 15% of the “Starter Kit” PV earned. 

Commissions on Recurring Sales 

The paparazzi use a uni-level compensation scheme to pay residual commissions. 

In a uni-level compensation system, an affiliate is put at the head of a uni-level team, with every individually recruited affiliate placed right under them.

If any level 1 affiliates bring in new members, they are assigned to the original affiliate’s uni-level team at level 2. 

If any level 2 affiliates bring in new members, they are promoted to level 3, and so on for an unlimited number of groups. 

The residual commissions at Paparazzi Accessories are capped throughout three uni-level team levels. 

Residual commissions are calculated as a proportion of sales volume generated at each of the three tiers, as follows: 

  • Star Consultants earn 5% on level 1. (personally recruited affiliates);
  • Directors earn 10% on level 1 and 5% on level 2;
  • Premier Directors and above earn 10% on level 1 and 5% on levels 2 and 3;
  • Executive Directors and higher-ranking Paparazzi Accessories affiliates are eligible for a Generation Bonus. 

Generation Bonus

The Generation Bonus is distributed by the same uni-level team distributing residual commissions.

When an Executive Director or above is identified, Paparazzi Accessories identifies a generation inside a uni-level team leg. 

This ranking affiliate completes the leg’s initial generation. Following that, the second generation begins. 

If a second Executive Director or above is discovered more profound in the leg, the second generation is terminated. Following them is the third generation. 

If there is no such ranking affiliate, the second generation extends along the whole length of the leg. 

Executive Directors and above earn on sales volume generated on up to three generations per leg using the system below:

  • Executive Directors receive a 1% commission on one generation per leg;
  • Producers receive 3% on each generation per leg;
  • Premier Producers get 3% on the first generation and 1% on the second;
  • Executive Producers earn 3% on up to two generations per leg;
  • Fasionistas and above get 3% on up to three generations per leg. 

Legacy Bonus

Another generational advantage is the Legacy Bonus. 

Unlike Generation Bonus, the Legacy Bonus is based on A-Lister or higher rated generations within each uni-level leg. 

Aside from that, the generation structure is identical to the Generation Bonus. 

  • A-Listers receive a 1% bonus on up of one Legacy Bonus generation every leg; 
  • Maven A-Listers earn 2% on the first Legacy Bonus generation and 1% on the second;
  • Jetsetters get 2% on the first two Legacy Bonus generations and 1% on the third. 

Luxe Jetsetters and above receive a 2% bonus on up to three Legacy Bonus generations for each leg. 

Infinity Bonus 

The Infinity Payment is a percentage-based bonus granted on overall uni-level team volume. 

  • Luxe travelers receive a 0.5 percent Infinity Bonus rate; 
  • Impressionistas receive a 1% Infinity Bonus rate.

Rank Achievement Bonus

New Luxe Jetsetters and Impressionistas are eligible for a one-time Rank Achievement Bonus. 

  • Qualify at Luxe Jetsetter and get a $25,000 Rank Achievement Bonus;
  • Qualify at Impressionista and get a $50,000 Rank Achievement Bonus. 

It should be noted that these levels must be qualified for two consecutive months before the promotion is granted.

Joining Paparazzi Accessories

Affiliate membership with Paparazzi Accessories is linked to the purchase of a Starter Kit: 

  • $99 for the Preview Pack (35 pieces of jewelry);
  • $299 for a small home party kit (120 pieces of jewelry); 
  • $499 for a large home party kit (200 pieces of jewelry).

Summing Up

Paparazzi Accessories’ low-cost jewelry is so inexpensive that it may fit into almost any budget. 

Does $5 Chinese jewelry pique my interest? Not at all – but I’m not the target demographic for Paparazzi Accessories. 

The risk that such low-cost commodities pose is inventory loading. 

Affiliates of Paparazzi Accessories are urged to acquire significant quantities of goods right away. 

The necessary Starter Kits range in size from 35 to 200 items. You also don’t get to select what you get: 

“200 items of inventory hand-picked to provide your consumers with a wide range of the greatest Paparazzi styles in every hue.” 

Because inventory appears to be constantly changing, consistency is also thrown out the window. It’s pointless to ask a Paparazzi Accessories affiliate what they thought of their Kit since you’ll get entirely different merchandise. 

You’re looking at $125, $250, or $625 in sales or purchases every month after the initial obligatory inventory purchase. 

A forced purchase when signing up is already pay-to-play, which is one of the characteristics of a pyramid scam. The basis of Paparazzi Accessories’ credibility is whether affiliates spend $125 to $625 each month to qualify or make retail sales. 

Apart from conventional retail commissions, there is nothing in Paparazzi’s incentive structure that suggests retail is a priority. 

Recruiting commissions tilt the compensation scheme in favor of recruitment, allowing your ordinary Paparazzi affiliate to continue purchasing merchandise. 

Of course, this is not going to be presented in this manner. Instead, you’ll hear something like this: 

“As a Papparazi Independent Consultant, you may buy goods for your events or parties at wholesale prices and sell it at the indicated full retail price.” 

Then, to keep you purchasing every month:

“A Show Rebate of 10% is handled and included in that month’s commission check when a Consultant purchases 1000 PV or more on a single order.” 

Residual commissions and generational incentives are modest. Therefore Paparazzi Accessories affiliates must prioritize recruiting over leverage. 

Again, there is nothing in Paparazzi Accessories’ pay scheme to discourage this activity. Neither does the corporation say if it verifies retail sales when the monthly affiliate orders mount up. 

The good thing is that as a prospective affiliate, you can quickly learn how your potential upline runs their business. 

Ask them what rank they are, their monthly PV, and how much they’ve generated in confirmed retail sales in the last several months. 

If it is less than half of their monthly needed PV, that Paparazzi Accessories affiliate operates a pyramid scam. 

I feel this is common throughout the organization since I’ve seen nothing to warrant even the benefit of the doubt. 

Even if you discover an upline that works in retail, remember that Paparazzi Accessories is a “party plan” MLM firm. 

One final point I’d want to mention is Paparazzi Accessories’ recent COVID-19 super-spreader event in Las Vegas. 

As of early September, eleven people had died due to their attendance at the Paparazzi Accessories event. That figure has most certainly subsequently risen in terms of both directly and indirectly linked deaths. 

Paparazzi Accessories’ response to this calamity has been appalling. 

Initially, the business warned affiliates not to mention COVID-19 spreading during the event. Those who did not cooperate were threatened. 

Anyone who enquired outside of the company was either banned on social media or ignored. 

“Paparazzi Accessories has not replied to several requests for feedback from Inside Edition Digital.” 

To put it frankly, this is some of the most heinous behavior I’ve witnessed from an MLM management team to date.

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