Dot Dot Smile has knowledgeable distributors its MLM alternative “now not is sensible for us to keep up as a sustainable enterprise.”
The announcement was made final Friday, giving discover Dot Dot Smile will stop MLM operations on June thirtieth.
Acknowledging ‘there have been loads of issues and questions across the present state of DotDotSmile’, the corporate went on to state;
up to now couple of years, now we have seen an evolution from a give attention to constructing groups, and as an alternative, the group is diving into wholesaling.
Except I’m lacking one thing, that is Dot Dot Smile acknowledging nearly all of its gross sales income is derived by way of affiliate purchases.
However as an alternative of simply saying that (and admitting it’s working as a pyramid scheme), Dot Dot Smile frames inner consumption as “wholesaling”.
That is vital throughout the context of Dot Dot Smile being tied to LuLaRoe – and LuLaRoe’s regulatory previous.
In February 2021 LuLaRoe paid $4.7 million, to settle a pyramid scheme case introduced by the Washington AG.
The Washington AG charged that LuLaRoe’s
compensation (was) completely primarily based on the recruitment of different individuals as contributors within the LuLaRoe MLM.
In BehindMLM’s mid 2019 Dot Dot Smile overview, I famous similarities between it and LuLaRoe’s enterprise mannequin – particularly the lottery distribution mannequin, which wholly inspired affiliate stock loading (“wholesaling”).
If Dot Dot Smile are below regulatory investigation, they haven’t disclosed it.
Getting again to Dot Dot Smile closing down its MLM opp, the corporate advises distributors will nonetheless be capable of buy product. In the event that they wish to promote to clients, this will probably be attainable “on a special platform with completely different necessities”.
There will probably be extra particulars to return on the alternatives above, however relaxation assured that if you want to proceed promoting DotDotSmile or referring clients to buy, we’d like to have you ever proceed to take action.
Studying between the traces, sounds to me like Dot Dot Smile desires distributors to proceed buying merchandise – however with out the MLM regulatory baggage.
What this implies for distributors isn’t any extra profiting on product purchases by your downline – one thing they haven’t taken properly.
To their credit score, Dot Dot Smile isn’t censoring distributor suggestions on their social media pages.
Pending any additional updates, which appear unlikely, Dot Dot Smile will stop working as an MLM firm on June thirtieth.
Replace seventh September 2022 – Dot Dot Smile has filed for Chapter 11 chapter.