Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to remove the underwire see how it feels with my Ruby Ribbon MLM Review. The online sale of intimates is an extremely lucrative one 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 Ruby Ribbon 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 Ruby Ribbon?
With a vision to “change women's life forever”, Ruby Ribbon was founded in 2011 by Anna Zornosa, with a plan to offer wireless comfort and support the like of which ere not available elsewhere. With a starting question of “Are you still wearing a bra?”, Ruby Ribbon offers Stylists access to the $18 Billion a year intimates market where they can work and succeed as entrepreneurs.
Ruby Ribbon is based in California in the United States.
What do they Sell?
Ok, so we can keep this simple – Ruby Ribbon sells Camis and Demis. These are available in all sizes and designed to adapt to changes in body shape for a perfect fit every day. There are a number of different styles on offer including:
- Second Skin
- Pin-Up
- Lace
- Original
- Sheer
- Nursing
- Light Support
There is also a smaller range of swimwear and leggings as well. Item costs appear to fall into the low to medium price range of around $50 to $100 per piece.
MLM Program outline
The Ruby Ribbon MLM program calls their members ‘Stylists' who are part of what appears to be an extremely simple program with a basic retail and downline commission structure. Their compensation plan (called a career plan) is available on their website (some in the career plan and the rest within a video) so here are the basics as I have found them…
Base Commission rate: 20% to 40% dependent upon rank
Down line commission rates: 1 – 6% to four levels (level 1 down line is 6% – rank Senior Leader and Above)
Minimum monthly spend to qualify for commissions
To qualify for downline commissions, Stylists are required to meet monthly sales targets of at least $750 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 one of three Starter kits as follows:
- Mini Starter Kit – $149 (see example below)
- Core Starter Kit – $249
- Wardrobe Starter Kit – $399
Ongoing seasonal collection purchases are not required.
Marketing materials provided: Business supplies and personalised website supplied as part of starter kit purchase. Training and tracking also included.
Within most MLM programs, downline commissions are usually 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. However, from what I can tell in regards to this program, Ruby Ribbon Stylists are paid commissions (and increase in rank) based on the actual sales price of the products sold and not on point allocations. These are paid on the sales price of the garment only before shipping and tax.
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How can I get paid?
Ok, so from what I can garner from their career plan and within the video, there are 5 ways in which Stylists can make money when they promote and sell products. These are fairly straight forward however there are few of the extra bonuses found in many other MLM arrangements (although more than others within the intimates niche such as Essential Bodywear). The 5 payment options for the Ruby Ribbon MLM program are outlined as follows:
Commission on personal sales volume
These are the base commissions earned by the general day to day retail sales that Stylists can generate as follows:
- 20 – 40% of the purchase value if done so at retail prices via the Stylists personal website and can be made either online or via a trunk show.
The commission rates for personal sales volume vary dependent upon rank as follows:
Note: These commissions are not earned by ‘hosts’ who receive discounts based on sales as a separate process. I will outline those below.
To qualify for the 20% retail commissions, Stylists are not required to meet a minimum sales target. For higher rates however, they must maintain monthly sales targets of $750 up to $1500 dependent upon rank.
Fast Start
Fast Start is a commonly utilised MLM payment option designed to entice new members to hit the ground running in terms of sales and recruitment. In the case of the Ruby Ribbon program, there are a number of fast start options as per below:
Sponsor Bonus
The Sponsor Bonus is a commission that is earned by Stylists at any level based on the total sales made by those members that they have personally recruited. Rates are:
- 3% for Stylists and Senior Stylists
- 4% for Leaders and above
Stylists at the base level are required to reach a sales target of $30o per month to qualify for the Sponsor Bonus. Leaders and above will need to maintain minimum personal sales targets of at least $1500 to qualify for the 4% commission amount.
Central Team Member Commission
The Central Team Member Commission are a flat rate of 4% paid on the total sales made within the Stylist's entire down line (Central Team) within the last month.
Stylists must be at rank of Leader and above to qualify for Central Team Member Commissions.
Generation Team Bonus
The Generation Team Bonus is like a unilevel commission prevalent within most MLM programs. Within the Ruby Ribbon MLM program, commissions are paid to 4 levels based on the number of generations within the Stylist's down line as follows:
Stylists must be at rank of Leader and above to qualify for the Generation Team Bonus.
Note: I was unable to locate an information as to what constitutes a ‘Generation' within this program. In many MLM compensation plans however, generations are a group of Stylists within a sponsor's down line headed by a particular rank. For example, say the sponsoring stylist has 5 members of their downline who are at rank of Senior Leader or above. A generation is all of the members within the downline of that senior leader meaning they would have 5 generations. This may not be the case here however (please comment below if you know how these are designated).
Ranking structure
Ruby Ribbon, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the Ruby ribbon MLM program are as follows (note level personal and central 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.
Trunk Show Host Bonuses
One of the roles of the Stylists is to recruit ‘Hosts’ to take part in the ‘Cami Challenge' via a trunk show. Hosts do not earn commissions however can be awarded with discounts and free product for their hosting troubles. These are outlined as follows:
- 10% of Trunk Show sales goes back to the host in credit towards free product
- 50% off items based on the host's in-person or online show sales
- booking bonus for the host when their guests host shows
- early access to coveted new releases and limited edition items
- free shipping on host's order
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/discount rates for entry level sales are good.
- Program is simple and easy to follow.
- No ongoing personal or seasonal purchases required.
What is no so good about it?
There are also some things to be aware of including:
- There are not the full array of bonuses that are evident in other programs within the clothing niche.
- There are some joining costs
- Some basic commissions are reserved for higher ranks.
How much can you make?
Ruby Ribbon provides an income disclosure statement on its website as follows:
As with most MLM programs, the percentage of members making the upper rank levels – and hence earning a living – is very low (around 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 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% – 40% commissions 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 to be honest, I think if you are going to succeed in any MLM program, you will need to be intricately aware of the products you are promoting – meaning I think some purchases will be necessary – especially if customer purchases alone are not enough to qualify for commissions.
I was unable to locate any negative reviews in terms of non-payment etc. however there was 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 Ruby Ribbon 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?
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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.
Ruby Ribbon MLM Program
$149 +
Pros
- Commission/discount rates for entry level sales are good.
- Program is simple and easy to follow.
- No ongoing personal or seasonal purchases required.
Cons
- Not the full array of bonuses that are evident in other programs within the clothing niche.
- There are some joining costs.
- Some basic commissions are reserved for higher ranks.
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See you there
Paul
