Distributors have been notified that Dot Dot Smile’s MLM opportunity “no longer makes sense for us to retain as a sustainable business.”
According to an announcement published last Friday, Dot Dot Smile’s MLM operations will end on June 30th. “We have seen an evolution from an emphasis on developing teams, and instead, the community is delving into wholesaling,” the firm said, acknowledging “there have been a lot of worries and queries regarding the current condition of DotDotSmile.”
Unless I’m missing something, Dot Dot Smile acknowledges that affiliate purchases account for the majority of their sales revenue.
Instead of just stating this (and acknowledging it’s a pyramid scam), Dot Dot Smile refers to internal consumption as “wholesaling.” This is significant given Dot Dot Smile’s ties to LuLaRoe – and LuLaRoe’s regulatory history. LulaRoe paid $4.7 million to settle a pyramid scheme action brought by the Washington AG in February 2021.
LulaRoe’s pay (was) totally predicated on the recruitment of other people as LulaRoe MLM participants, according to the Washington AG.
I saw similarities between it and LuLaRoe’s business plan in different articles in mid-2019 of Dot Dot Smile evaluation – notably the lottery distribution process, which completely incentivized affiliate inventory piling (“wholesaling”).
If Dot Dot Smile is under investigation by the FTC, they haven’t revealed anything. Returning to Dot Dot Smile’s MLM opportunity, the company states that distributors will still be able to buy merchandise. Customers can be sold to “on a separate platform with different criteria.”
More information on the above prospects will be forthcoming, but be assured that if you like to continue selling DotDotSmile or directing clients to purchase, we would be delighted to have you do so.
Reading between the lines, I get the impression that Dot Dot Smile wants distributors to keep buying things, but without the MLM regulatory baggage. Distributors will no longer profit from product purchases made by their downline, which they haven’t taken well.
To their credit, Dot Dot Smile, to their credit, does not filter distributor comments on their social media platforms. Dot Dot Smile will stop operations as an MLM company on June 30th, pending any future upgrades, which are doubtful.