An Entrepreneur’s Response To Jamberry Scam “Experts”

jim-rohn-quote The other day I was doing some research on Jamberry and came across a few articles online basically bashing the company I’m an independent consultant for, Jamberry.

And they didn’t stop there…

Some of them proceeded to insult the intelligence of independent consultants and “tell it like it is” that MLMs are nothing more than a pyramid scheme.

Listen, it’s not a pyramid scheme but I can see how some people might think that if they aren’t business savvy and jump to conclusions easily.

I’m a bit frustrated but will try to keep my cool while writing this article because frustration can be good when you use it to reflect and grow.

Below I’m going to list out a number of arguments naysayers about Jamberry use to discredit the company, its independent consultants, and viability to make any real money doing the business.

Please note I do not directly work for Jamberry (I’m an independent consultant) nor do I speak for them in any way. What’s written below are my opinions.

Table of Contents

REPLY TO: People say Jamberry Independent Consultants “spam” people on Facebook asking if they’d like to try nail wraps or join / host a party.

If asking a friend if they’d like to support another friend who is starting a business is considered spam by you, then you probably don’t really care for this person. And while it’s true that you might not closely know everyone you’re attached to on FB, you did become online friends which to some extent means you’d like to listen to what they have to say.

This process isn’t spam. Spam is a disruptive form of advertising which for all intent purposes, comes from places you didn’t want to listen to from the first place. Emailing (extended) friends and family to support you in your new venture isn’t what I’d call spam, it’s what I’d call a good idea for a start up. Heck, with many start ups people will ask friends and family for start up funds, so asking them if they’d like to try a product rather than a loan shouldn’t be a big deal.

And if a friend’s email asking you for support of your new business is so disruptive that you consider it spam, then you must really find commercials on TV extremely disruptive. You’re receiving those many times a day and you never even friended the companies.

REPLY TO: $13.50 is not “financial freedom” and you’d have to sell hundreds of nail wraps each month with a 30% commission just to make any real money.

Since my husband and I are e-commerce sellers outside of Jamberry and have sold a number of products on Amazon, I can tell you there are hundreds, if not thousands, of people making a killing each and every month selling products where their profit margins are around 30% and they make about $5 off each product sold (I know, because we sell products like this).

How is it possible that we make decent money selling products with such low returns?

It’s called marketing, or is that considered spam as well?

But it really doesn’t just stop at marketing, it’s really much more than that. It’s really about:

  • Personal growth
  • Reflection
  • Discipline
  • Improvement

So ask yourself, if a company can sell products and only make $5 off each product (much lower than Jamberry’s $13.50), how is it possible they could make more than minimum wage?

Let’s Do the Math

On Amazon alone we sell a number of products where our net return is around $5 for each product sold. My husband and I sat down to make a plan and figure out how we could make more money from what we currently had going on.

After a good brainstorming session, we came up with the following…

Amazon sells in multiple countries and at the time we were currently selling our products in only two of them, Amazon.com and Amazon.ca (Canada).

If we expanded to 7 countries (USA, Canada, Spain, UK, Germany, France, Italy) here’s how we could make the numbers work.

  • 5 products
  • 7 countries
  • 5 sales a day
  • $5 net profit each

So that’s 5 x 7 = 35

35 x 5 sales a day = 175 sales a day

175 sales/day x $5 net profit = $875 a day

$875/day x 30 days = $26,250/mo.

$26,260/mo = $315,000/yr.

Whhhaaattttt… 😉

So here’s the point.

It’s true that you can’t have financial freedom if all you’re selling is a sheet of nail wraps to people you know and that’s it. If financial freedom (or put another way, to make more money) is what you covet, then you have to become more. Doing the things you have been doing only gets you what you’ve managed to obtain.

If you want more, you have to become more. Don’t wish it were easier, wish you had more skills.

Okay you can’t sell Jamberry in all those countries, but you have lots variables to work with:

  • Variety of products to sell
  • Tons of media you can market through
  • Downlines
  • Uplines
  • Networking
  • Business deals, like working with a wedding chapel
  • Expand into other countries (Canada, UK, Aussie, etc.)

You also have nearly unlimited knowledge through books, mentors, and seminars.

So while it is true that if you only sell a buy 3 get 1 to 86 people per month you’re probably not going to find financial freedom. Financial freedom is achievable through selling Jamberry if you expand your knowledge and take action.

It’s just how the game works.

REPLY TO: In the real world marketing consultants don’t have to pay for the products they market.

Am I missing something here? So they’re saying that in order for me to “make a sell” I have to first buy the product and then resell it to the customer?

Are they saying that people who take part in my parties and want to buy heaters, UV lights, and some nail wraps can only buy them from me once I purchase them first?

Come on, really? This is your argument?

This is cake, let’s move on and see what else people who think Jamberry is a scam have to say.

REPLY TO: Jamberry scams independent consultants because in other business structures marketing consultants don’t have to pay (a join fee) in order to have the “privilege” to sell a product.

I’m sorry, but this is an absurd argument.

First, there is no universal way every business is or should be structured. Some might:

  • hire employees
  • outsource 3rd party employees (e.g. they might outsource their environmental services department)
  • contract out work and go through a bid process
  • have a multi-level marketing structure
  • franchise

The list goes on and there’s no right or wrong way. It really is up to you in deciding which kind of business you want to take part in and how you want to make your money.

In the case of Jamberry, you’re not just paying a fee for the privilege to sell; you’re paying for access to training materials and tons of help along the way.

And if you don’t think businesses ask entrepreneurs to pay money up front for access to training, continued help, and the purchase of startup tools, then please watch this video.

 

As far as the argument that in the real world businesses hire employees as marketing consultants and they get paid for selling rather than having to “pay to play”, then you’re comparing apples and oranges.

This argument tries to say marketing employees (i.e. sales reps) and independent consultants are the same. Well, let’s compare them in regards to this notion.

 

Employee Independent Consultant
Can work from home Can work from home
Company pays for travel expenses Consultant can write off all travel expenses in taxes
Files a W2 Can build an email list of their own customers
Can only sell company products Have the ability to market other products to their customers (e.g. Origami Owl)
Marginally can work on their own schedule Can work on their own schedule
Builds another business’ assets Ability to build their own personal assets
Restricted to company marketing strategies Has more direct control over marketing strategies

 

The fact is that there are many ways in which to operate a business and depending on how it’s structured, there are different kinds of benefits available to you.

REPY TO: Jamberry is trying to avoid paying employee paychecks or their benefits by going the independent consultant route. This must mean they are only out for their self-interest and not really interested in whether or not women become successful.

Well yeah, probably to some extent this is true in regards to not having to pay out paychecks and benefits.

Like I said at the beginning of this article, I can’t speak for Jamberry and I don’t pretend to know all the details of how their business was formed; but I can say a thing or two about knowing what it’s like trying to start a business from thin air.

It’s comments like these that get me so irrigated because it’s people who don’t know much about business that make certain assumptions and accusations when they really don’t understand the process.

When you first start a business, unless you have lots of money or venture capital to start with, you’re looking for creative ways to start and grow your business. It’s important to try and grow lean. And if you’re starting a business where you’re considering employees or independent consultants, then the first two people you need to hire will be:

  • an accountant
  • a lawyer

Think these come at a discount?

Cash flow is key when you’re a new business, so putting your company into a ton of debt before you even make a sale is not a good idea.

So like we did in the point I made above about brainstorming to find solutions to your problems (the Amazon product in 7 countries discussion), I bet Jamberry had the discussion about how to get their products marketed all the while having whatever their startup capital was.

For some businesses this is an affiliate program, others it might be a MLM system, and for others it might be grow much slower and sell everything yourself.

What about Jamberry not caring about whether or not Independent Consultants make money or not? Are they really still only interested in themselves and not your financial freedom?

There are certain laws of success that are out there and if you’re in my downline or part of my community we talk about this in detail.

One of the laws of success is that you have to reinvest to grow your business.

Jamberry spends huge amounts of time, money, and investments in tools to help their independent consultants be a success. You have to give them credit for at least trying to help women learn more and become more.

Jamberry Las Vegas Convention 2016
Jamberry convention I attended in Las Vegas 2016

But ultimately, it’s up to each of us to invest our time and effort to grow and become more ourselves.

Listen, Jamberry is a for-profit company… of course it’s out to make money. But they are certainly investing in their independent consultants heavily in order to build their brand.

Does this mean they don’t care if women are successful?

If it were your business and you invested all this time and money into your independent consultant program, would you care if they were successful or not?

REPLY TO: Jamberry is not going to give you financial freedom.

I pretty much answered this above I but felt this one statement alone needed a specific response because I’ve seen it worded like this a few times.

Congratulations, the people who make this statement actually got something right and I agree with them.

Oh crap… does this mean Hilary and Trump are going to become best buds again?

I’m going to keep this one simple.

Unless you have someone giving you money for life (like a rich husband or something), the only one who can give you financial freedom is yourself.

Jamberry can give you a means to that end and as far as I know, they never guarantee you’ll have financial freedom; that one’s up to you.

Think about it for a bit and if you’re not sure about it, let’s discuss it in the comment section.

REPLY TO: The MLM (multi-level marketing) business is a sham and most people never make back their money; furthermore, most women will fail at making their Jamberry business a success in any real measurable terms.

So a MLM is not a scam or sham as some would call it, albeit it’s not always the best route to take in my opinion if you’re looking to start your own business.

MLMs are similar to franchises in that you are investing your time and money in a business which is already set up and you have to share profits with the umbrella company. The primary corporation, like many MLMs will then provide lots of tools and resources to help the entrepreneur be a success.

They differ (in the eyes of the franchisee) in that MLMs have as Jamberry calls them, uplines and downlines, and profits or commissions are figured based on how well these factors sell.

The major difference between an illegal pyramid and a legit MLM business is that MLMs have customers.

Okay yes there’s more to it than that, but you get the point I’m trying to make. The MLM business structure is one in which someone can use to make lots of money with.

For more on the difference between MLMs and Pyramids, watch this video…

As far as the numbers of most people will never make a measurable amount of money selling Jamberry as it relates to financial freedom; well look, statistically most businesses fail after their first year of opening.

We’re talking 90 – 95%.

You cannot pull the Jamberry Independent Consultant business out and observationally evaluate it and its failure rate, dooming it to be a not worthwhile venture unless you base test it against what the statistics are of other business startups.

Okay so let’s say I convinced you that a MLM is not a scam (unless the company is a scam), you might then say “Well it would be better to start your own business than join a MLM”.

At first the logic seems sound and as a business owner myself, I tend to like the idea of starting my own business more than joining a MLM business but…

There are certain advantages and disadvantages to joining a MLM vs. starting your own business.

For one, when you join a MLM you typically get lots of tools and training to jumpstart your business.

jam university

On the other hand, when you start your own business from scratch, you’ll have a ton more start up expenses and little in regards to help and training for your particular business.

This then leads us to risk. You have a lot less to lose when you work a MLM business vs. starting your own venture.

REPLY TO: Jamberry really is a Pyramid scheme and not a MLM business because it’s all about recruiting. In other words, selling nail wraps is pocket money and the real money is in building a team of consultants who you sell on the idea that they can make money selling nail wraps. This is a pyramid.

I did sort of answer this one above but I felt the nature of this comment I found online deserved its own response.

Let me ask a question to those who would claim this one…

Do you think it is possible, hard maybe, but is it possible to make a considerable amount of money selling the array of products Jamberry offers all the while maybe signing up a max of 10 consultants under you (if any)?

I didn’t say impossible, I just asked if it was possible.

The answer is, yes.

Yes it’s hard, but I’ll take hard over impossible. Heck, its hard taking any business from nothing to a respectable income.

In my experience as an e-commerce seller, I’ve found that people who don’t really dig into self education and understand the psychology of buying and selling often times will try to take the easy ways to drum up business.

Not always the smartest ways, but the easiest ways because it’s really the only way they know and to those who aren’t educated in buying and selling, their tools to pull from are limited.

The example I see of this all the time is pricing.

When I pick a product to have manufactured and sell on Amazon, I usually look for a product which I see is already selling but the competition isn’t too stiff or saturated.

Over time other people may see what I saw in the product selection and before you know it tons of people are selling very similar products, like a veggie cuter or cutting board or something.

When multiple products become available here’s how I see most other entrepreneurs handle the competition.

They lower their price.

In contrast, I might raise my price and yet I still get good sales.

Why is this?

It’s because they haven’t taken the time to understand why people buy. They think the most important factor at play is price. But this is wrong. I suspect they think this because it’s the “obvious” answer and it’s the easiest one to change.

The reality is, people buy in this order of importance:

  1. Good product. If it’s not a good product they will never buy it again no matter how low the price is.
  2. Convenience. The product has to be easy to buy and return, work well with other products, and in some way improve the life of the buyer.
  3. Price

Notice how price is the last reason why people buy and not the first?

Look at #2, convenience. You and I could be selling the exact same product which is a good product but you’re selling yours for $10 and I’m selling mine for $15. Does this mean you’re going to always get all the sales?

No.

What if you didn’t offer a return policy? Or what if your packaging didn’t contain directions and the customers had to spend lots of time figuring out how to make your product work? What if they had to wait 3 weeks to get the product from you or 2 days to get it from me?

Do you think price would be more important to them or convenience in this regard?

So it is with Jamberry.

Most independent consultants aren’t trained well in buying, selling, marketing, advertising, etc. in the beginning, and if ever really.

The easy and seemingly only route to make a profit is what seems obvious up front:

  • Sell products to friends and family via Facebook parties
  • Recruit people under you who will do the same so you make money from that as well

But that really is just the tip of the iceberg and it’s what everyone else is doing. You can (and should) do so much more. It all starts with self education and personal development.

But you see, this isn’t a Jamberry related case…

It’s a case for anyone trying to become a marketer and business owner.

So it’s not a pyramid scheme. The recruitment of others is just one of the many ways you can make money in this business.

REPLY TO: Jamberry misleads people. Consultants aren’t really consultants, they are really customers.

I would argue that they are both, however consider this:

  • Last I checked customers don’t build websites like this one.
  • Last I checked customers don’t buy inventory to use as promotions and giveaways.
  • Last I checked customers don’t file a 1099 or make commissions
  • Last I checked customers aren’t taking part in sales and educational sessions

Conclusion

The point of this article isn’t to try and convince people who believe Jamberry Nails is a scam that it is not a scam, I have a feeling they already have their minds made up and there’s nothing I can do to change that.

What I do hope this article might accomplish is show people that the Jamberry business is a viable model to make some money working in and with something you love.

Is it hard to make “lots” of money (I mean the actual money you pocket) with this business? Well I can’t speak for everyone but in general I’d say yes, it is difficult to achieve complete financial freedom by just selling Jamberry products.

But hey…

I’d take hard over impossible any day of the week.

It’s not easy making tons of money in any new business when you’re an inexperienced entrepreneur. It typically takes years of hard work, if ever, before an entrepreneur who starts a business sees a sizeable income.

Secret Sauce 1

To be successful in whatever it is you decide to do in life, you have to work harder on yourself than you do your job. To get more you have to become more.

Dealing with Naysayers

Also, there will always be naysayers no matter what it is someone tries to do. When you cross these people’s paths, I encourage you to do the opposite of what most people do. Most people engage naysayers in a heated argument.

Instead, I encourage you to listen to them—I mean really listen to them because they will make you a better entrepreneur when you understand their point of view. And when you truly listen to someone, don’t have your argument already loaded up ready to fire away. True listening means you open yourself up to the other argument to the point where it is in the realm of possibility that you could be convinced.

Once you fully understand their point of view, then you can use that information to make yourself smarter / better.

Like I said at the top of this article, when I was doing some Jamberry research I came across a few articles which bashed Jamberry and people who signed up to be consultants.

Truth be told I was a little angered by what I read, but I kept my cool and my approach was to read through the articles and comments so I could learn something from it. I was searching for ideas or logic about Jamberry which perhaps I hadn’t considered and things which might challenge my ideologies.

I made a bunch of notes and then did some critical thinking about many of the points people who were upset with the Jamberry process and business. Doing so has helped me better understand how it all works and can be improved upon.

So when people say don’t listen to naysayers because there will always be some, I encourage the opposite… but do so with the approach that you’re going to learn something from them.

Secret Sauce 2

Diversify your strategies.

Jamberry heavily promotes 2 ways of making money with their company:

  1. Host a party (online or off)
  2. Recruit

That’s great and while this may work well for a while, eventually you’ll find it becomes increasingly difficult to find people who will do either of those. In other words, you’re going to exhaust your resources pretty quick unless you learn more, become more.

Spend time brainstorming ways to generate more business—repeat business. Do this with people who have the same or similar goals for this business as you do.

Spend time learning about marketing strategies and personal development. These things will serve you well because what self education does is allow your mind to have access to a variety of ideas, methods, and systems you can use.

In other words, update and improve the lens in which you view the world through.

So get out there and use Jamberry as an opportunity to grow as a person if Jamberry is something you love doing. Don’t let negativity hold you back…

Use it to grow and become more.

Post author

Lindsey Hoff is a work from home mom and entrepreneur. Her family business manufactures and sells products internationally on Amazon as well as other platforms. In 2014 she joined the Jamberry family and became a Jamberry Independent Consultant. Sign up as an Independent Consultant under her (or one of her Downlines) and gain access to her and her husband's online journal geared toward achieving success and starting a Jamberry business.

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