Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to a take look into clothing for the gym, work and play with my Peach MLM Review. The online sale of clothing can be extremely lucrative with many making a good living selling items via online stores and affiliate marketing. Added to this obviously is the array of clothing based multi level marketing programs that are available. So, what is the Peach 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, of course within the beauty/cosmetics, supplements and essential oils markets. It is not as prevalent within the clothing industry but as MLMs have become more popular in recent times – mainly due to the fact that much of the sales and marketing is now being 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 Peach?
Peach was founded by Janet Kraus and Derek Ohly on a “simple yet big idea that a fashion brand could help women elevate their every day”. Their focus is on the 20% of the wardrobe that women wear 80% of the time whether it be walking the dog, going to work or out to dinner.
Peach is based in Waltham, MA in the United States.
What do they Sell?
Peach work within the ‘athleasure' wear realm of clothing with options for work, play and the gym. They offer a good range of fashion items within this area including:
- Tops
- Tanks
- Tees
- Long Sleeve
- Sweaters
- Wraps
- Bottoms
- Capris
- Leggings
- Shorts, Skorts and Skirts
- Pants
- Dresses and Rompers
- Jackets
- Sports Bras
- Sleepwear
- Panties
- Accessories
- Bags and Totes
- Socks
- Scarves
- Water Bottles
- Berets and Beanies
- Jewelry
Item costs appear to fall into the low to medium price range of around $30 to $100 per piece.
MLM Program outline
The Peach MLM program calls their members ‘Stylists' who are part of what appears to be a simple program with a common retail and downline commission structure and a good number of bonus options included. Their compensation plan is available on their website so here are the basics as I have found them…
Base Commission rate: 20% to 25%
Stylist Discount: 40% (first 30 days) and up to 25% off thereafter
Down line commission rates: 3 – 10% to 3 levels (level 1 down line is 3% – rank Senior Stylist and above)
Minimum monthly spend to qualify for commissions
To qualify for downline commissions, Stylists are required to meet monthly PV targets of at least 500 per month. This can be made of personal or customer sales. Base 20% sales commissions however can be earned without the need to meet or maintain sales targets.
Payment terms: Monthly.
Application required?: Yes, Application form on website.
Purchase requirements to join: Yes
New stylists are required to purchase a Starter kits at a cost of $199 which includes:
Ongoing seasonal collection purchases are not mandatory however the documentation does highlight discounts of 25 – 40% for the purchase of further samples for use within trunk parties or pop up events. The Peach website also ‘recommends' that Stylists sample 8 to 10 pieces per season in a variety of sizes and showcase a few different fabrics and styles. It can be assumed from that 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 Peach MLM program, PV is calculated at 100% of the USD retail sales price however downline commissions (non personal sales) are paid on 70% only. This means that if a product is sold for $100 with a Commissional Volume (CV) of 70, then payments are calculated on $70 of the sale cost not the full $100. Hence, then if a downline commission rate is 5% then the payment to the stylist would total $3.50 (i.e. 5%of $70).
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How can I get paid?
Ok, so from what I can garner from the compensation plan, there are 8 ways in which Stylists can make money when they promote and sell Peach items. These are fairly straight forward and there are a few of the extra bonuses found in many other MLM arrangements (and more than others within the clothing niche such as Matilda Jane and Cabi). The 8 payment options for the Peach MLM program are outlined as follows:
1. Personal Sales Commission
These are the base commissions earned by the general day to day retail sales that Stylists can generate via parties, popups, social media or online via their personalized website. There are two tiers of personal commissions based on sale volume as follows:
- 20% – 0 – 499PV
- 25% – 500PV and above.
As above, to qualify for the 25% retail commissions, Stylists are required to meet a minimum sales target of 500PV or above. For the base 20% rate however, no minimum sales targets apply.
2. Power Seller Bonus
Should a Stylist be able to achieve 2,400 PV in sales within the current calendar month, they can earn a Power Seller Bonus on the retail value of their personal purchases and/or customers’ orders. These increase based on sales targets met as follows:
Power Seller Bonus payments are made in addition to Personal Sales Commissions.
3. Stylist Credits
Stylist Credits are paid in the form of discounts towards product samples and business tools that are required as part of Stylist's business operations. These can be earned as follows:
- 5% in Stylist Credit is earned when Stylists are Active ($500 or more in monthly PV) within their Fast Start period.
- $100 in Stylist Credit is earned when Stylists are Active, and $200 every 3rd month if they are Active every month.
- 5% in Stylist Credit is earned when Stylists are a Power Seller (i.e. 2,400 or more in monthly PV).
The Fast Start Period is the period covering the month of enrollment plus first full three months of membership for all new Stylists.
4. Fast Start Coaching Bonus
This is a common bonus option within many MLM programs where Stylists can earn bonus commissions on personally recruited members into the program. In this case the Fast Start Coaching Bonus earns sponsors 5% (of the CV) of sales made by their personally recruited Stylist within their Fast Start Period.
To qualify for the Fast Start Coaching Bonus (and all ongoing commissions and bonuses below) a Stylist must maintain a status of ‘Active'. Stylists are considered to be Active when they have generated at least 500 PV in sales that month.
5. Down line Commissions
Down line Commissions are Peach's version of the traditional unilevel commission structures prevalent within many MLM programs. Within the Peach MLM program, commissions are paid to 3 levels based on the rank of the Stylist as follows:
Stylists must be at rank of Senior Stylist and above to qualify for Down line Commissions.
6. Personal Advancement Bonus
The Personal Advancement Bonus (and the next few options moving forward) is another commonly utilised network marketing payment option that rewards Stylists for advancing up to the higher ranks within the program. In this case, one-time bonuses can be earned as follows:
7. Matching Advancement Bonus
The Matching Advancement Bonus is designed to entice Stylists to support those within their down line in rising through the ranks as well. In this case, if a Stylist within the Sponsor's down line qualifies for the Personal Advancement Bonus as outlined above, then the same payment is also made to the sponsor as the Matching Advancement Bonus.
8. Generation Commissions
Generation Commissions are paid to Stylists who are able to assist those within their down lines reach the rank of Executive Director (ED) or higher. For Stylists at rank of Partner or higher, a commission based on the CV of the sales of entire generations that develop within their down lines are paid as follows:
A Generation is created when a Stylist anywhere within the sponsor's downline reaches a career title of ED or higher and includes their entire group, down to but not including the next ED or higher.
Ranking structure
Peach, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the Peach MLM program are as follows (note personal and team sales qualification targets as well):
Again, as is common with almost all MLM programs, rank progression is determined by both the number of members within the Stylist's down line, and the total sales made by those members per month. Ranks can rise and fall based on the ability (or dis-ability) to reach the required member and sales targets.
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.
- Program is simple and easy to follow.
- Commissions can be earned without the need to meet sales targets.
What is no so good about it?
There are also some things to be aware of including:
- There are some joining costs.
- Whilst not mandatory, ongoing demonstration purchases are required.
How much can you make?
Peach does not provide an income disclosure statement on its website however as with most MLM programs, it has to be assumed from the compensation plan that the percentage of members making the upper rank levels – and hence earning a living – is very low (usually less than 1%).
My final thoughts
Look, MLM is not an easy platform to make money in and there is not much that I have seen here to put this program above the many others I have seen. However, the program is pretty straight forward with common commission arrangements and the ability to make sales online or via trunk parties. So if you are an absolute fashion nut with a large customer list at your disposal and the ability to generate good sales via online processes, then the 20 – 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 as long as you can make them within your down line. 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. You may also need to bump up your personal purchase quota if customer sales alone are not enough for you to remain ‘Active' and qualify for commissions and/or discounts within a particular month.
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 Peach 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 fashion based website?
Are you looking for a comprehensive training platform that can give you step by step training, 24/7 support, tools to develop and host your very own website, ongoing assistance with SEO and social media and access to some of the best affiliate marketing minds on the planet, then click on the following link to read more about Wealthy Affiliate.
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.
Peach MLM Review
$199.00
Pros
- Commission rates for entry level sales are good.
- Program is simple and easy to follow.
- Commissions can be earned without the need to meet sales targets.
Cons
- There are some joining costs.
- Ongoing demonstration purchases are required.
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