Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to a take look into a somewhat non-traditional MLM niche with my Discovery Toys MLM Review. Toys is not an area that I have come across very often when it comes to network marketing however that is not to say it is not something that could work here. So, what is the Discovery Toys MLM all about? Let's have a look and find out…
What is MLM?
Multi-level marketing (MLM) programs are the traditional mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, most prominent within the beauty/cosmetics, supplements and essential oils markets. As mentioned above, the toy niche it is not something I have seen as much but as MLMs have become more popular in recent times – mainly as much of the sales can now be managed online – companies in other niches are starting to get in on the action.
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The ‘multi level' aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign' into membership arrangements as well.
In short, the process works as follows:
- You join the program, either via referral from another person (known as your up line) or directly through their website.
- You promote the products of the company via parties, workshops or online.
- As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
- That new member is then placed ‘underneath' you in a hierarchical arrangement (known as your down line).
- You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
- If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.
The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.
Who are Discovery Toys?
Founded by an early childhood educator called Lane Nemeth, and working to a mission to Teach, Play and Inspire, Discovery Toys has been around for over 40 years specialising in “premium quality, kid-powered learning products for children ranging from newborns to school-aged.” The network marketing side of operations was established after realising their main processes involved “selling to groups of eager parents in the home”.
Discovery Toys is based in Livermore, California in the United States.
What do they Sell?
As the name suggests, Discovery Toys sell, you guessed it, toys! All are designed as “highly engaging learning toys, books, games and music that help parents and others teach learning skills through play” with ranges based on age as follows:
- 0 – 5 months
- 6 – 12 months
- 1 year old
- 2 year old
- 3 – 4 years
- 5 – 7 years
MLM Program outline
The Discovery MLM program calls their Discovery Toys consultant members ‘Play Advisors' (PAs) who are part of what appears to be a very simple and traditional program with a common retail and downline commission structure only. Sales processes appear to focus heavily on the party plan model with hosted sales parties however the starter kit information does mention a personalised DT website so I am assuming that there is the ability to sell online here as well.
I was unable to find much online about their compensation plan however there is a little information on the website and within other Discovery Toys reviews outlining the following (please comment below if any of this information is inaccurate or I have missed anything):
- Base Commission rate: up to 25%
- Down line commission rates: up to 7%
- Minimum monthly spend to qualify for commissions
- The site outlines no sales quotas in order to earn sales
- Payment terms: Monthly.
- Application required?: Yes, Application form on website.
- Purchase requirements to join: Yes
New PAs are given the option of two starter kits as below:
Ongoing purchases are not mandatory however the party plan model does traditionally necessitate the need for further samples for use within parties or pop up events. It can be assumed from that then that some further purchases of samples may be required to ensure demonstration stock is available at all times.
Marketing materials provided: As per starter kit above.
Within most MLM programs, rankings and commissions are determined by the total personal volume (PV) generated by the Stylist and their down line within a calendar month with points assigned to each product. These point allocations can range from 50 to 100% of the retail price of each product (before tax and shipping) and vary from item to item and currency of sale.
In the case of the Discovery MLM program however, there does not appear to be any ranking structure or mention of points on products in any way. So again, based on my assumptions it would appear that commissions are paid here on the actual sales price only (minus tax and shipping).
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How can I get paid?
Ok, so from what I can garner from the website, there are only 2 ways in which PA's can make money when they promote and sell Discovery Toys. These are outlined as follows:
1. Personal Sales Commission
These are the base commissions earned by the general day to day retail sales that PAs can generate via parties, popups, social media or online via their personalized website. Sales commissions start at 25% and can reach 34% (not sure of criteria for this however).
2. Downline Commissions
Downline Commissions appear to be the Discovery Toys version of the traditional unilevel commission structures prevalent within many MLM programs. Within the Discovery Toys MLM program commission are paid at 7% of downline sales.
Party Host Bonuses
I mentioned earlier that one of the roles of a PA is to run hosted parties in order to sell Discovery Toys products. These are known as a PoP Party (Purpose of Play) parties and although hosts do not earn commissions, they are rewarded with discounts and free product for their hosting troubles. These are outlined as follows:
Ranking structure
Most MLM programs uses ranking structures on which to base commission payments and other bonuses upon. However, again, it does not appear that this is utilised within the Discovery Toys MLM program.
What is good about it?
So, after a good look around the site and looking at all the options I could find, I do like the following:
- Commission rates for entry level sales are good.
- Commissions can be earned without the need to meet sales targets.
- Commissions appear to be earnable without rank influences.
What is no so good about it?
There are also some things to be aware of including:
- Some information is not clear or easily found.
- Whilst not mandatory, ongoing demonstration purchases may be required.
- No extra bonuses or commissions found in most other MLM programs
How much can you make?
Discovery Toys does not appear to provide an income disclosure statement on its website however as with most MLM programs, it has to be assumed that the percentage of members earning a living from the sales of these products is very low (usually less than 1%).
My final thoughts
Look, MLM is not an easy platform to make money in and although this program removes the need for meeting sales targets and achieving higher ranks, there is not much that I have seen here to put it above the many others I have seen. However, the program is pretty straight forward with good base sales commission arrangements and the ability to make sales online or via hosted parties. So if you are passionate about these products with a large customer list at your disposal (or you have access to a lot of mother's groups etc.) and the ability to generate good sales via online processes, then the 25% base commission rates might just appeal here.
Once you have joined, there are not the usual financial pressures of needing to make minimum personal purchases in order to qualify for commissions. Although from what I can see, I think if you are going to succeed within this MLM program, you will need to have a good array of demonstration stock on hand.
I was unable to locate any negative reviews in terms of non-payment etc. although there were some negative comments (not as many as most others however) about the quality of customer service and the MLM program itself – although it was not really anything that is uncommon in regards to MLM programs or products within this niche.
Conclusion
So there you have it, my honest review and appraisal of the Discovery Toys MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.
Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.
Do you want further assistance with any of the above or need help to build your own toy or children's education based website?
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Until next time
Have fun
Paul
Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price. This may include sales made via Wealthy Affiliate.
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See you there
Paul
