Have you been approached to join Thirty One Gifts and want to know if it's a scam or not?
If so, this post is for you.
Below you'll find everything you need to know about this company including background information, price to join, compensation plan, product overview and more.
By the time you're done reading you'll know if Thirty One Gifts is right for you.
Let's get into it.
Thirty One Gifts Summary
Company: Thirty One Gifts
Price to join: $99
Do I recommend? Not really but it's better than most MLM's.
Summary: Thirty One Gifts is a Multi-Level Marketing company that sells various clothing items and purses - it's mainly focused on women products.
While the products this company offer may be quality and fashionable I don't recommend that you join because of its business model.
The sad truth with MLM's is most people lose money instead of make money (some studies show 99% of people lose money).
Overall all, though, there's much worst MLM's out there.
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Thirty One Gifts FAQ'S
1) What is Thirty One Gifts? Thirty One Gifts is a MLM that focuses on women's apparel, clothes and accessories. It was started in 2003 which means it's been around 16 years.
This is a good sign for a MLM as most don't last more than 2 years. The company is headed and was founded by Cindy Monroe.
2) How do you make money here? Like I mentioned before this is a MLM which stands for Multi-Level Marketing.
With these companies you sign up as a distributor and sell their products on your own for a commission.
Additionally, you get rewarded for recruiting and building your downline. The recruiting aspect may sound good but it's a flawed way to make money which I'll explain in the next couple of sections.
3) Are there any red flags with this company? In 2016 the company closed one of their factories in Ohio that cost 74 people their jobs. The original plan was to create 500 jobs in the area with this plant but it never happened.
4) Are there any similar companies? There's many women's clothing MLM's out there including Lularoe, Stella and Dot and more.
Is Thirty One Gifts A Pyramid Scheme?
Here's the thing about MLM's - some are pyramid schemes which are illegal to operate in basically all countries.
But to be an illegal pyramid scheme you have to fit a pretty specific criteria and have a commissions structure that ENTIRELY looks like the picture below:
The picture above happens when the only way to make money with a company is through recruitment and there's no product or the product is a scam.
Again, sometimes this happens and the company will either collapse when recruiting slows down (there's no other revenue source to pay everyone) or a regulatory body catches on and shuts them down.
Thirty One Gifts has real products to sell (some of which are very popular) and they reward retail sales without recruitment.
I'll dig into the the compensation plan a little later but Thirty One Gifts does a better job rewarding retail sales than most MLM's.
So while there may be elements of a pyramid scheme, Thirty One Gifts certainly isn't an outright illegal pyramid scheme.
Success Is Rare Here
Overall the MLM world is filled with scams and bad opportunities.
If you look at all MLM's together you get about 99% of people losing money and 1% that make money.
Thirty One Gifts is better than most MLM's and the success numbers are still terrible.
They released an income disclosure statement that shows how many people are making money and how much and you can look at the chart below that sums everything up:
As you can see 82.5% of the people that join Thirty One Gifts make less than $999 per the year (34.2% make less than $99 for the year)!
People in third world countries make MUCH more than this.
Only 1% of the people that join make more than $10,000 in the year which still isn't very good. There's many online businesses that you can start that can make you $10,000 a month.
Below is a chart that shows some eye raising stats about MLM's in general:
As you can see not only is Thirty One Gifts not a very good opportunity neither is really any MLM's.
How Much To Join Thirty One Gifts?
The good thing about Thirty One Gifts is it only costs $99 to become a distributor for this company.
There's another fee to factor in as well and that's the cost of the stock you buy to sell.
The main way to make money here is to throw a party and show off the clothes to your friends and other people.
In order to have a successful party you'll need to have Thirty One Gift products for people to buy.
You don't have to buy too much because people can go to Thirty One Gift's website and buy their size and specifically what they want. Before they complete their order they'll be prompted to name the consultant that sent them there.
You'll get credit for the sale that way.
You'll still need something to model, though and that'll likely cost a few hundred every couple of months or when the seasons change.
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Thirty One Gifts Compensation Plan
MLM compensation plans are usually very complicated and long (some are 30+ pages).
Thirty One Gifts compensation plan is probably confusing to a beginner but it's not the worst out there.
The whole thing is summed up in the graph below:
I'll summarize everything in the graph if you need a little help understanding.
At Thirty One Gifts there's 6 different affiliate ranks you achieve and you go from one rank to another by hitting certain goals.
You also get different rewards and bonuses for going from one rank to another.
The ranks you achieve are:
- Senior Consultant
- Senior Director
- Executive Director
- Senior Executive Director
The main thing that gets you from one rank to another is your personal sales and the sales of your downline.
Retail commissions are the commissions you get when you sell directly to customers. You can earn anywhere from 25% to 34% depending on your affiliate rank.
Here's what you can earn at different ranks:
- Director and below earns 25%
- Senior Director earns 30%
- Executive Director earns 32%
- Senior Executive Director earns 34%
Residual commissions are the commissions you earn from your downline. The commission structure here is unilevel and looks like the following:
How much you make and to what level you earn from depends on your downline's overall sales volume and your affiliate rank.
You can't earn past the third level at Thirty One Gifts.
You get a one time bonus of $1000 when you hit the Director affiliate rank.
You also get rewarded when personally recruited affiliates rank up as well. Depending on what level your recruit hits you can earn $1000 to $7500 per affiliate ranking up.
Thirty One Gifts Products
My expertise is in the business side of MLM's. I can decode compensation plans, I can look at the stats and tell you how likely you are to have success and stuff like that.
I'm in no way shape or form a fashion expert and I'm not even the audience this company is targeting with their products.
So my opinion on the product line is basically irrelevant.
Having said that the products here seem to be pretty popular and they seem pretty cool/stylish to me.
As far as price goes they seem about how much I would expect these products to cost.
The best part about their product line up is there's a WIDE VARIETY of goods.
Here's the different categories of products they offer:
- Handbags and accessories
- Personalized gifts
There's hundreds and probably thousands of different products for you to sell.
So as far as a product line goes Thirty One Gifts seems to be pretty strong.
What I Like About Thirty One Gifts
There's actually a few things to like here and the main things I like are:
- Reasonable price to join: Some MLM's can cost thousands to join but that's not the case here. All you have to do is pay $99 and you can sell their products
- Strong product line up: Thirty One Gifts seem to have a good product line and many people like what they sell.
- Good focus on retail sales: MLM's that focus heavily on recruitment are pyramid schemes. Thirty One Gifts, however, rewards retail sales nicely which prevents a pyramid scheme from taking place.
What I Don't Like About Thirty One Gifts
At the end of the day I'd say the bad outweighs the good here and the main things I dislike are:
- Low success rate: You're here to make money right? The problem with Thirty One Gifts and most other MLM's is almost no one makes any real money. In fact, more than 80% of the people that join this company make less than $1000 for the entire year.
- Bothering friends and family: This to me is the worst part and most people aren't going to want to go to your party or be recruited. The awkwardness of recruiting friends and family is one of the main reasons people quit MLM's.
Is Thirty One Gifts A Scam?
In fact, as far as MLM's go this one is probably a top tier one.
BUT being a quality MLM is like being a tall midget. Even though this MLM has a strong product lineup, low startup fees and a compensation plan that rewards retail sales most people still will fail or make very little money.
It's not a very good business opportunity for most people because of this. The only people I would recommend this company for are people who already have an audience or customers.
If not, you'd be better off looking for a different way to make money.
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