Friday, January 13, 2017

Pure Romance is still shaking up the MLM scene

Let’s talk about sex baby.

That’s the Pure Romance story, boiled down to one phrase. This MLM is all about sexual health and education and, of course, selling “intimacy products” at their in-home parties.

Does this mean I’m involved?

This video explains everything:


Make sense? Either way, here’s the full review on Pure Romance.

Overview

Pure Romance is home parties meets…sex toys?

As much as I dislike network marketing parties, they’re really a stroke of genius in this case. This is definitely one thing I can see women actually wanting to go to (not just to support a friend), since there aren’t a lot of spaces available for women to openly talk about their sex lives without feeling embarrassment or shame.

On top of that, a lot of women who might be too embarrassed to buy these kinds of products in public can feel safe ordering them in the comfort of their home with only their close friends nearby.

It’s also a great idea for a bachelorette party, a wine party, a girl’s night, or to celebrate a friend’s newfound status as a single lady.

Overview

I talk a lot about how the MLM structure of hosting “parties” is outdated, but if there’s one company that can rally women to drop their plans and listen to a sales pitch, it’s Pure Romance. Estimates show that nearly 5 million women attend a Pure Romance party each year. [1]

Founder and Chairwoman Patty Brisben started out working as a medical assistant and looking for a way to support her four children as a single mother, she decided to join network marketing selling intimacy products back in the early 80s and instantly found success, becoming a top sales earner for 10 years straight.

But the company folded, as so many MLMs do. So she used $5,000 of her own money to start Pure Romance, employing 55 of the consultants from her previous company who had been left stranded. [2]

Now, they’ve got over 30,000 consultants all over the world – from the U.S. to South Africa, Canada, Puerto Rico, New Zealand, and Australia. In just over two decades, they’ve grown into a $150 million company and been named one of Cincinatti’s top 100 private companies for three years in a row. [3]

Her son, Chris Cicchinelli, eventually became the company’s CEO in 2000, and has proved that the apple doesn’t fall far from the tree. This business genius has managed to grow Pure Romance from $3 million in revenue to $200 million since taking charge. [4]

Brisben also runs a charitable foundation called the Patty Brisben Foundation for Women’s Sexual Health, which works to fund and promote clinical research and education on women’s sexual health.

To help them achieve their mission of education and research surrounding women’s sexual health, they’ve even partnered with Indiana University’s Center for Sexual Health Promotion to produce collaborative research studies and training courses. [5]

They’ve truly built up an amazing company culture, and their consultants love them for it. They have a 4.2/5 rating on Glass Door, an employer ratings website, which is very high for any company, let alone an MLM. [6]

They’ve even got an A+ rating from the Better Business Bureau. [7]

Pure Romance has SKYROCKETED in the past decade, snatching up companies left and right. They’ve been called a “bedroom empire.”

In 2014, Pure Romance bought one of their biggest competitors, Slumber Parties. They’ve now got over 100,000 consultants around the world.

Just this year, they purchased another major competitor: Passion Parties. This acquisition is expected to increase sales by a 20% annually. That’s a massive annual increase where most companies would be thrilled to hit double digits. [8]

Slumber Parties was based out of Louisiana, and thus had built up a huge following in the South, while Passion Parties was based out of Las Vegas, so they had a big crowd out West. Pure Romance, being from Cincinnati, already had much of the Midwest and Northeast.

Basically, with these two acquisitions and the new consultants they’ll receive from each one, they’ve cornered the entire U.S. market. Smart move.

Products

While they consultants like to claim they’re “not just sex toy parties!”, the truth is, sex toys are the main draw of this company.

However, they do sell a wider range of products, all focused on sexual health.

They include:

  • Bath & Beauty (between “Coochie Shave Cream” and “Truly Sexy Pheromone Infused Fragrance”, these products have an obvious sexual spin)
  • Massage products
  • Lubes & Creams
  • Sex Toys
  • Couples products (toys, games, and bondage designed for two)
  • Lingerie
  • Sex Health

Their prices are pretty reasonable and on par with similar products from other companies. They’re also pretty well reviewed.

Even though some of their products can be used by males and they do have a couples category, the marketing is 100% geared toward women. In fact, their parties allow female attendees only.

Opportunity

Start up kit price is $179, which is a little steep, but includes some expensive products…beauty products, massage products, designer toys, and lubricants.

However, there are more expensive kits that give you a better head start. The next starter kit costs $479, and the most expensive one is $1,079. Crazy! But if you buy the cheapest one, your product discount is much lower.

Base commission is 40%, which is very good. Those who buy the more expensive kits can get up to 60%. [9]

The model here is one in which you have to buy products in bulk and then try to sell them. While you aren’t necessarily on auto-ship, you’re still stuck with a bunch of sex toys you couldn’t sell. The products aren’t consumable, and it can be uncomfortable to give them as gifts all the time, so the model is particularly obnoxious given the product in this case.

Like so many MLMs, they’re not upfront with the details of their compensation plan. If you want to know more, you have to contact a consultant.

Recap

Unlike most MLMs with played out and shady products, the product idea for this one is on point. The company is clearly doing very well, and I can only foresee them continuing to grow.

The commission rate is great too.

So what’s the problem?

Well, it’s still an MLM, so by definition, a lot of people have to be at the bottom to help the few at the top profit. And those at the bottom are sitting around $1,000 short with a closet full of dildos.

I’m not saying you won’t make any money with this. I just wouldn’t plan on it replacing your 9 to 5 job anytime soon.

If you like automated ways to build passive income, there are better ways.

(and you can trash those old MLM habits, too)



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