Peach Review: Is Peach a MLM or a Pyramid Scheme?

Welcome to my Peach MLM review..

You probably came to this page because you wonder if Peach is legit or a pyramid scheme?

No need to worry you’re in the right place for the answers to these questions.

Over the last few years, I’ve been busy creating reviews about all kinds of online products.

Some turned out to be fake others were legit ways to make money online but in the process, I learned how to spot scams.

In this post, I’ll show you absolutely everything you need to know about Peach and after reading it you’ll know exactly if you should give it a chance.

Is Peach A MLM or A Pyramid Scheme?

What is Peach Clothing MLM?

Peach is a multi-level marketing company created in 2004 by Janet Kraus and Derek Ohly. Peach its mission is to help you and your community thrive — from the inside out and the outside in.

The company does this by manufacturing and distributing women’s casual and sports apparel. The company does this by using the MLM model where independent sellers promote and sell their products.

Peach headquarters is located at Based in 204 2nd Ave, 3rd Floor, Waltham, MA 02451

How does Peach Clothing MLM work?

In short, Peach distributes women’s casual and sports apparel Instead of directly selling it to consumers they have chosen to use the MLM model which gives you the choice to earn money by:

• Selling the products for a commission
• Recruiting people to earn bonuses.

What is MLM?

MLM (a.k.a network marketing or direct selling) stands for multi-level marketing.

According to Wikipedia, multi-level marketing is a marketing strategy for the sale of products or services where the revenue is derived from a non-salaried workforce.

As a part of this workforce, you sell the products from the company, and/or you recruit people to do the same thing. This group of people you recruit will work under you and is referred to as your downline.

The bigger your downline is the more money you can earn passively (technically speaking) because you’re getting paid a percentage based on the performance of your downline.

This also means the person that recruited you which is called your upline is making money based on your performance.

The act of recruiting turns an MLM company into a pyramid-shaped organization where the first people to join make the most and are on the top of the pyramid and those last to join are at the bottom.

Source: Wikipedia

MLMs have been around for a long time. There are Multi-level marketing companies active today that were founded in the 1950s. MLM has a lot in common with pyramid schemes which is why scammers often use MLM to disguise their pyramid scheme.

Is it absolutely necessary to recruit people? No.

You can also stick to just selling products that you can order and re-sell to make a profit. This is easier said than done for multiple reasons which are why most members try to recruit others so they can earn more money.

How to join Peach MLM

You have to be introduced by a member or you can sign-up through the website. After that, you have to purchase a starter kit. You need to at least purchase 1 of 3 starter kits.

Gym starter kit $300 (Original price $476)
Play Starter kit $300 (Original price $476)
Work Starter kit $300 (Original price $476)

According to the website, these fees cover:

• 4 Clothing pieces (based on the kit you choose work, gym. play)
• $20 coupon to share w/ clients
• Replicated website
• Digital business tool kit

You’ll get training and after that, you’re ready to start earning money.

Peach MLM Training

As a new stylist, you start with the virtual “new stylist” training which is a practical step-by-step training where you’ll be: 

• identifying prospects
• Inviting them to the Peach community
• Engaging your prospects and enrolling them
• Gather them for an event
•  Follow-up in case it’s necessary

The training can be found in your personal back office and consists of mostly text lessons and worksheets. 

After that, you’ll get sales, recruiting (online and offline), and product training.

They’ll show you in steps how to do each of these things and give you a few fake scenarios and a bit of script that you can follow when engaging with prospects or your team.

Is Peach a pyramid scheme?

To answer this question we need to know what a pyramid scheme is.

What is a pyramid scheme?

A pyramid scheme is a type of scam where people are promised money for joining the scheme and recruiting other people. No selling of a product or service is involved whatsoever.

So you might be wondering where the money comes from?

The people that join are expected to pay a one-time fee and in exchange for that, they get a percentage of the fee of everyone they recruit after that.

The problem is from a mathematical standpoint it’s impossible for everyone to make money because you simply run out of people.

Take a look at this picture below showing how it’s impossible for everyone to earn money.

Source: Wikipedia

As you can see, in this pyramid model it’s required to recruit 6 people. You’ll notice from the 12th level and further, it’s not possible anymore for everyone to earn money.

The 2.2 Billion people on the 12th level need 13.1 billion recruits in total for them all to make money which is more people than there are currently on Earth.

Looking at the description of what a pyramid scheme is, Peach cant be classified as a pyramid scheme from a legal perspective. Peach sells products and has given people a method to make money without recruiting people.

That being said, there definitely is something that worries me about earning money with Peach. Read below to find out what I mean.

Who can benefit from Peach MLM?

Who would benefit from joining Peach MLM:

• Expert salesmen
• Expert recruiters
• Fashion lovers 

Who shouldn’t join Peach MLM:

• People that hate sales jobs.
• People that hate recruiting
• People that don’t have the budget for it
• People that expect to earn passive income
• People outside of the United States 
• People younger than 18

Peach MLM Company products

A good MLM should have quality products that you can sell so I thought it was appropriate to look at what they offer. Peach is a clothing company geared towards women that have divided its catalog into multiple collections: 

• The season collections (fall, spring, winter, summer)
• Simply soft
• signature 
• Essential 
• The gym

Each of these collections sells products such as leggings, dresses, jumpsuits, layers, sports bras, tops, accessories, and more.

The price range on some of these products is insanely high compared to other non-MLM companies. $60 for a sports bra is a bit much in my opinion.

Pros and Cons

Pros

• Peach products have tangible benefits
  Unlike MLM’s that sell essential oils you know exactly what you’re getting and how it works. This makes it easier to sell to people.
• Peach has shown strong signs of stability
  It has proven to be a stable company which even survived the last financial crisis.
• High Commission rates
  You start at a commission rate of 30% which is high compared to other companies.

Cons

• Expensive products
  The products Peach sells are insanely expensive making them hard to sell to others. I can imagine brand partners having a lot of trouble with getting rid of the stock they purchased with the goal of reselling.
• You have to pay to play
  You have to purchase a specific amount of Peach products to stay eligible for earning commissions and bonuses. The same applies to getting commissions based on your downlines. The higher the rank, the more you have to purchase.
• There is nothing unique about Peach
  The clothing line is very expensive and it has not a single feature that can justify the prices.
• Limited to the United States
  The MLM program isn’t available for people outside of the United States.

Peach MLM Company Compensation Plan

Peach can be considered a traditional MLM when you look at their compensation plan. You either re-sell their products for a commission or you can recruit people and receive residual income, climb up the ranks, and earn bonuses.

In total there are 10 ranks that all come with their benefits such as getting a higher commission percentage of all your sales starting at 20% to a max of 47%

• Stylist
• Senior Stylist
• Executive Stylist
• Director
• Senior Director
• Executive Director
• Partner
• Senior Partner
• Executive Partner

Here’s a screenshot of the Peach compensation plan with all the commission rates for every rank.

How much does it cost to start a Peach “business”?

This question can be answered by looking at the compensation plan.

Like a lot of MLM compensation plans, the Peach compensation plan is confusing at first sight. This is why I’m going to only share with you the most important aspects.

The initial cost for starting a Peach business is a minimum of $300 by purchasing a starter kit.

By paying the initial costs you get the rank of Senior Stylist.

There is a title under Senior Stylist named Stylist but you aren’t eligible to earn commissions while having that title.

To be eligible to earn commission you must sell a minimum PV of 250 (Products with a total value of $250) in that given month.

In summary, to start your business (and start earning) it’ll cost you a minimum of $300 and after that, you’ll have to spend money on products that you’ll have to sell for a commission.

This only applies to remaining in the lowest rank. The higher ranks will require you to sell an even higher minimum PCV.

How much can you earn with Peach MLM?

The commission rate starts at 20% (through personal sales) which is decent and becomes higher every time you increase rank. There are multiple bonuses you can earn while recruiting and climbing the ranks such as:

• Fast start bonus
  3 month period in which you can earn up to $125 on every 1000 PV sold and can earn at a commission rate of 30%.
• Downline commissions
  Bonuses that are based on the performance of your downline.
• Advancements Bonus
  Bonuses that are based on the first time reaching a new rank.
• Matching Advancement Bonus
  Bonuses that are based on your downline advancing to a new rank for the first time.
• Generation overrides
  Bonuses that are based on your downline reaching the rank executive and higher for the first time.

Technically, the sky is the limit but in reality, we know because of factors such as your ability to recruit, your competition, and the performance of your downlines there’s is often a limit. 

Unfortunately,Peach hasn’t published an income disclosure to see what current members are earning but I do see it shares the same “handicaps” most MLM companies have which prevents members from earning decent money.

Why aren’t people earning decent money with MLM companies like Peach?

I have summed up the reasons why it’s hard to make money with Peach and MLM companies in general into 3 points.

1. MLM’s are often associated with pyramid schemes
MLM’s have a pyramid recruiting structure that you often have to join to be able to make decent money or at the very least not lose money. The problem is a lot of pyramid schemes disguise themselves as MLM programs making it difficult to differentiate the two.

This is the biggest problem why most distributors have a difficult time recruiting people. The moment people hear about how you can make money by recruiting people red flags appear in most people’s minds.

2. You have to consistently invest your money to earn commissions
You’re only eligible for bonuses and commissions if you buy their products. The bigger the bonuses the more product you have to buy. You do get discounts but if you can’t sell the products I can see you easily fall into a financial deficit (which happens to the majority of MLMs).

3. The price of the product often isn’t aligned with the market

It’s hard for a multi-level marketer to sell products because most MLM products tend to be a lot more expensive than similar products sold by non-MLM companies. This means even if you’re really good at recruiting your downline still needs to sell those same expensive products for you to make decent money.

You can see that translate in these statistics I found about Multi-level Marketing.

• Nearly half (47%) of MLM participants reported that they lost money.
• One in four (27%) MLM participants reported that they broke even (made no money).
• MLM participants are 7% more likely to declare bankruptcy during their lifetime.
• Direct sales have risen 79% in the last decade, but MLM participants continue to lose money.
• 90 – 99% of distributors in multilevel marketing only receive a couple of hundred dollars commission per year.
• Out of 33,000 interviewed, 90 people made enough money to cover costs in building their business.
• 50% of the people who start a network marketing enterprise abandoned it in the first year.

Sources:
FTC
AARP
Jobsinmarketing.io

Peach MLM Reviews, Opinions, and Ratings

To keep this as objective as possible I wanted to look at what others had to say about Peach. Peach has been around for a while but it hasn’t been reviewed a lot. I did find a few bloggers that reviewed the Peach MLM program and here’s what they had to say.

Most bloggers don’t consider Peach a pyramid scam but they don’t think it’s a great idea to join them. Start-up costs are too expensive and it’s hard to succeed with the MLM model.

My Personal Take

Peach can’t be called a scam it’s a legitimate MLM program. That doesn’t mean it’s a great opportunity to earn money. I don’t mind investing money in a business opportunity that takes a while to start up but if I’m going to do that I’d go with an opportunity that has a higher chance of succeeding.

MLM’s in general have a bad reputation because pyramid schemes often pretend to be MLM’s. This makes it hard to recruit people and also keeps them motivated to earn group bonuses.

I wouldn’t feel comfortable recommending this opportunity to anyone.

Verdict

Is Peach a legitimate MLM or  A Pyramid scheme? Peach is a legitimate MLM but can’t be called a great opportunity.

You have to invest a lot of money just to start and stay eligible for earning commissions. The problem is that the MLM structure makes it very hard to earn a decent income.

Peach Alternative: No Selling, No Recruiting, No Overpriced Products

Let’s be honest unless you’re very skilled at selling and recruiting, MLM’s seem like a bad deal.

What if I said to you there’s a method to make money online that doesn’t require you to recruit people or resell products?

Sound like a better option for most right?!

If you want to make money online from anywhere including your own home I recommend looking into affiliate marketing.

I think this method is a better option for most people because you can earn just as much as with multi-level marketing but you don’t have to bother people to join your downline.

There is no need to dig yourself into a financial hole of $1600 without knowing if you can succeed and you aren’t required to sell a minimum of products to stay eligible for commissions.

I learned how to do affiliate marketing with the help of a step-by-step beginners course on an affiliate marketing training platform called Wealthy Affiliate.

Interested in doing the same? Learn more about the training platform and try out their FREE starters course.

If you have experience with MLM companies like Peach leave a comment.

I’d love to hear what you think about it.

That’s all for today.

See you at my next post!