Thirty-One Consultant Review – Is Thirty-One A Pyramid Scheme or Legit

Coffee Talk

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Thirty-One was founded to empower and support women by offering them the opportunity to own a business selling purses, totes, handbags, and personal gifts.

Women love bags and shoes. We do! We have closets full of them.

Maybe, there’s room for a few Thirty-One handbags.

But I am talking about starting a business selling handbags, become a Thirty-One consultant.

Do you have room for this Thirty-One?

Hello and welcome you to our mlm review Coffee Talk.

It smarts for you to stop by and check out our Thirty-One Consultant Review before joining the program.

In this review, you are going to find out the truth about the Thirty-One home-based mlm business opportunity.

When I heard the words “mlm”, I was wondering is Thirty-One a pyramid scheme?

You are looking for ways to earn some extra incomes or an opportunity to achieve the life dream of financial freedom, not joining a pyramid scheme or a scam.

Before signing up to become a Thirty-One consultant, you want to know everything about this opportunity.

  • How to become a Thirty-One consultant?
  • The cost to become a Thirty-One consultant.
  • What about the commission and compensation plan?
  • The consultant income. And
  • Is Thirty-One a pyramid scheme?

From this Thirty-One review, you should be able to determine if Thirty-One a pyramid scheme or a real opportunity to achieve your financial goals and dreams.

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Thirty-One Review Summary

Name: Thirty-One

Competitors:
Younique, Stella & Dot, Scentsy, Zija, Beautycounter, Origami Owl, J. Hilburn

Annual Revenue: $390 Million

Business Opportunity:
Multilevel-Marketing (MLM)

Initial Investments:
$99 or $179

Business Earnings Estimate: 
<$2,000 for the year.

  • Thirty-One is an mlm company that manufactures and sells personalized purses, handbags, and accessories.
  • The majority of Thirty-One consultants are mostly women joining the company for the opportunity to build a home-based business.
  • However, Thirty-One Income Disclosure Statement (IDS) reported 82.7% of consultants earned an annual income of less than $2,000.
  • Success with Thirty-One requires exceptional people and sales skills, especially in Face-To-Face recruiting.
  • Mlm is a recruiting business. I don’t recommend this opportunity to those with no sales and recruiting experiences.

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What Is Thirty-One?

Thirty-One is a multilevel marketing company that distributes and sells personalized purses, handbags, totes, jewelry, and accessories.

The company was launched by Cindy Monroe in 2003 from the basement of her home in Chattanooga, Tennessee.

Cindy adopted the home party business model which she learned as a successful Pampered Chef Consultant.

Thirty-One distributes and sells its unique products through an mlm network of over 80,000 independent consultants throughout the United States and Canada.

The company 2018 estimated sales revenue was $390 million.

According to Thirty-One, 92.7% of consultants earned less than $2,000 per year.

The financial information above suggests your chance of making a profit with Thirty-One is low. This business is not profitable.

It is recommended to compare Thirty-One with other home-based opportunities before investing.

Block—You can use My Writing Business to make a comparison.

How To Become A Thirty-One Consultant?

Thirty-One requires you to have a sponsor to become a consultant. Your sponsor is your upline.

You can visit the Thirty-One website to submit your information, then the company will assign you a consultant.

If you know a local Thirty-One consultant, you can ask that person to be your sponsor and start the application process for you.

But to build a business and earn the commission with Thirty-One, you must be an active and qualified consultant.

Active and qualified required purchasing an Enrollment Kit and meeting the monthly sales quota, which I’ll discuss in the next section of this Thirty-One review.

How Much Does It Cost To Become A 31 Consultant?

The cost to join Thirty-One is $99 or $179 depends on the enrollment kit that you selected.

Thirty-One review enrollment kits

Your enrollment kit comes with all the business tools, such as a replicated Thirty-One website, training, marketing materials, and products to promote your business.

Besides purchasing an enrollment kit, there are expenses to operate your Thirty-One mlm business.

Thirty-One requires all stylist to maintain an active status and qualified to earn the commission:

An Active Consultant must submit at least $200 in Personal Volume (PV) every three months, approximately $66.67 each month.

A Qualified Consultant must submit at least $1,000 PV. This is a onetime requirement.

The minimum amount to start your Thirty-One consultant business is $1,099.

The monthly Active Expense doesn’t begin until after 4 months of enrollment.

Thirty-One is a Pay and Play business opportunity. If you want to earn, you have to pay.

Any consultant that fails to maintain an Active Status is not allowed to receive bonuses and commissions from Thirty-One.

Remember, the expenses above do not include your time, party expenses, marketing costs, traveling, and gas.

The monthly active expense can destroy your business profit if you cannot resell the products. This becomes the business losses.

Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no need to be active and qualified.

Do you know why Thirty-One has this monthly active requirement?

Well, to sell products and to avoid being classified as a pyramid scheme under the FTC guideline. (Check our MLM vs Affiliate Marketing for the discussion on the FTC MLM Guideline.)

Thirty-One Consultant Commission

The Thirty-One compensation plan is the document that outlines the commissions and compensation structure for the consultant to make money with Thirty-One.

I’ll provide a quick analysis of the Thirty-One compensation plan. To see it in detail, just download a copy.

As an mlm opportunity, Thirty-One offers you two options to earn: Sell Thirty-One Products and/or recruiting others to join as a consultant.

Make Money Selling Thirty-One Products

Thirty-One Consultants sell products through the home parties, or they can direct customers to purchase from their replicated Thirty-One website to earn retail profits.

Once you are active and qualified, you will earn a 40% discount on personal order and a 25% commission on personal sales.

This sounds easy to make money, right?

Well, here what happens.

I did a search online and found women tote bags selling online for $13.

The cheapest tote bag on the Thirty-One website selling for $20.00.

Can you make a retail profit selling Thirty-One products on the market?

It will be a challenge.

Overprice is the reason why consultants have a hard time to make money selling Thirty-One products.

Make Money Recruiting Consultants

When you cannot sell products, the only option to make money is recruiting others to join as a consultant.

But you must recruit two active and qualified consultants before you can receive these commissions.

Override Commission

Qualified consultants earn between 2% to 9% override commission based on team sales volume and rank.

The minimum team sales volume is $4,000 and the highest is $36,000.

Personal Sale Bonus

This leadership bonus is only available at the Director rank and above.

You earn an additional 2% to 9% personal bonus as you move up the rank.

Consultants must purchase or sell more Thirty-One overpriced products to qualify for rank promotion. Please refer to the compensation plan for rank qualifications.

As you can see, there are multiple ways to earn with Thirty-One. However, no money is paid unless you are active and qualified.

This is how mlm work. Ways to earn is not the same as qualifying to receive the money.

Qualification requires more product purchases or recruiting more people.

You can potentially earn nothing under the Thirty-One compensation plan because the costs staying active and qualified might exceed the commissions received.

When evaluating mlm opportunity like Thirty-One, you cannot rely on the compensation plan to determine the business income.

You must look at the actual bonuses and commissions received by Thirty-One consultants to understand the business profit and loss.

Can You Make Money Selling Thirty-One?

The Thirty-One compensation plan is not the right document that finds out if you can make money selling Thirty-One?

Here’s what I mean,

The Thirty-One compensation plan offers POTENTIAL EARNINGS, not real income.

To know the actual income, you need a copy of the Thirty-One Income Disclosure Statement (IDS). This financial document provides ACTUAL INCOMES received by consultants from Thirty-One.

But, where can you get a copy of the IDS?

You can request one at the time of enrollment. The law requires Thirty-One to provide you a copy together with the compensation plan.

As a business review writer, I look to the actual incomes to advise clients on an investment.

If Thirty-One refuses to provide you a copy of the IDS, don’t join. This is a sign of a scam.

But not to worry, I have a copy of for us to use with this Thirty-One consultant review.

Thirty-One Consultant Income

Always start with the footnotes first when analyzing an income disclosure statement.

According to Thirty-One, 82.5% of consultants earned less than $1,000 per year.

Before you get excited and concluded, “Yes, I can make money!”, I like to point out that this is gross commissions, before taking out taxes and expenses.

What happens if we deduct the initial cost of $1,099 to launch your Thirty-One business?

We have 82.5% of Thirty-One consultants made no money.

If we look at the table, the next 10.2% of consultants made between $1,000 to $2,000, did they make money?

NO! If you take out the active expenses of $200 every three months, $800 for the year, together with the $1,099 investment, they made only $101 for the year.

This means you must achieve 10.2% to breakeven.

You can say up to 92.7% of consultant did not make money with Thirty-One.

After reviewing the IDS, I can tell you that your chance of making money with Thirty-One is near zero.

Why I am so confident?

Because 92.7% of consultant did not make money. The small group, 7.3%, that made money must be with the company for years or from the beginning.

How can you possibly achieve the top earner group in the first year?

Is Thirty-One A Scam?

It is normal for a small group at the top to make money with an mlm opportunity.

But this does not make Thirty-One a scam.

Thirty-One is a business opportunity. Every business has risks.

You are responsible to carefully research, study, and investigate Thirty-One before joining.

If you become a Thirty-One consultant, you are willing to accept the 92.7% risk of losing your investment. When your business fails, you cannot call Thirty-One a scam.

Reading this Thirty-One Review is a good way to learn the risks and rewards associated with Thirty-One.

Many entrepreneurs hire professional financial analysts to evaluate business profitability and loss before investing.

As an owner of an Online Business Review, I have evaluated hundreds of mlm businesses to help investors identified and managed the risks.

As a business opportunity, Thirty-One is not a scam.

It’s an unprofitable business with about 92.7% failure rate.

Is Thirty-One A Pyramid Scheme?

Most mlm companies in the US are legit if they follow the FTC guideline.

Thirty-One might be legit under the law, but I don’t use the laws to evaluate a business opportunity.

I am using the financial information and earnings to determine a pyramid scheme or scam.

I believe Thirty-One, like most mlms, is a pyramid scheme.

If you look at the compensation plan, consultants are forced to purchase overpriced products to earn the commission.

The only way to sell Thirty-One products is by recruiting others to become a consultant.

The more people that you recruit, the more money you earn.

Consultants are the primary customers of this mlm company.

Doesn’t this qualify Thirty-One as a pyramid scheme?

Well, you don’t have to agree with me.

But, based on our Thirty-One Review, you must agree that this is not good home-based business. Only a small group, 7.3%, at the top received most of the commissions.

The Thirty-One compensation plan was designed to make money for Thirty-One, not for you.

Is Thirty-One Worth It?

Some people joined an mlm opportunity because they love the products. If this is you, then I guess Thirty-One worth it.

But as a business opportunity, I don’t think so.

However, the decision to invest is yours to make.

I am writing this Thirty-One review to highlight the investment risks and rewards based on the financial information available to the public.

Ask yourself this,

Do you know why you want to start a home-based business?

To earn extra money from home, to be your own boss, or to achieve financial freedom?

And to make money, we invest in a PROFITABLE business!

There are much better and less risky home-based business opportunities. I recommend you look at Affiliate Marketing.

As an affiliate marketer, there’s NO traveling around town to attend late-night meetings and NO face-to-face sales or recruits.

The best part, you are working on the computer in your own home or anywhere you like.

Affiliate marketing is one of the most powerful work from home business opportunity to earn passive income. I recommend you read, MLM vs. Affiliate Marketing to learn.

One more issue that I like to discuss is “Control”.

All Thirty-One consultants have no control over their business. This is a serious problem for me.

You must follow and obey Thirty-One rules and policies to stay in business.

What happens if Thirty-One goes out of business?

Yes, you are out of business! All your hard work disappears and nothing you can do about it. You have zero control over this.

Starting a business is a long-term investment. You want to create a system that generates money far into the future. Isn’t this the #1 reason you want to build a successful business?

If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…

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OK, let assume Thirty-One is not a pyramid scheme, would you join if I tell you that your chance of making money is only 7.3%?

I would not!

It is almost impossible to achieve your financial dream with this home-based business opportunity. This is a fact!

Thank you for participating in our Thirty-One review discussion.

Until next time.

You can share your own Thirty-One review here.

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