Pure Romance

Last updated
Pure Romance
Company type Private
Founded1993
FoundersPatty Brisben
Headquarters Cincinnati, Ohio, United States
Area served
 North America,Australia and New Zealand
Key people
Chris Cicchinelli (President and CEO)
ProductsAdult products and sex toys
Number of employees
170 (2018) [1]
Website pureromance.com

Pure Romance was a United States-based multi-level marketing [2] [3] company that sells adult products including sex toys. In May of 2023, the company announced it was moving away from the MLM model to become essentially a retail business. [4] [5]

Contents

History

Patty Brisben, a former pediatrician's assistant, founded the company, then named Slumber Parties in Loveland, Ohio 1993. [6] Her business used contract salespeople to sell sex toys, lotions, and massage oils through at-home parties. [7] In 2000, the company had six full-time employees and had annual sales of less than $2 million. [7]

Brisben's son, Chris Cicchinelli, joined the company in 2000 and encouraged his mother to expand beyond local sales into markets such as St. Louis, Missouri. [7] [8] By 2003 the company had $30 million in sales, 3,500 consultants, and was active in 46 US states and the US Virgin Islands. [7] [9] The company was renamed Pure Romance in 2003. [7]

In 2011, the Pure Romance expanded into South Africa and Australia. [10] In 2012, Cicchinelli took over the position of President and CEO while Brisben stayed on as chair of the company. At this time the company reported to have $100 million in annual sales and 75,000 consultants, building on the popularity of the recently published erotic romance novel 50 Shades of Grey. [11] [6]

In February 2014, the company moved its headquarters to downtown Cincinnati, Ohio. [12]

In 2014 Pure Romance purchased a separate MLM which was also named Slumber Parties, based in Baton Rouge, Louisiana, which sold similar products. [13] In 2016 the company purchased Passion Parties, yet another multi-level marketing company with a similar product line, expanding the company into the Canadian market. [14]

In January 2016, Pure Romance, among other MLMs, entered into an agreement with the State of Hawaii’s Department of Taxation to obtain a single general excise license and become the represented tax collection agent on behalf of its direct sellers. [3]

The company reported $217.92 million in sales in 2017 and claims to have more than 30,000 consultants. [15] [16] In 2018, it reported $237 million in sales. [17]

Criticism

The MLM model has been criticized since the overwhelming majority of participants (most sources estimated to be over 99.25% of all MLM distributors) participate at either an insignificant or nil net profit. [18] Indeed, the largest proportion of participants must operate at a net loss (after expenses are deducted) so that the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss. [18]

In particular, Pure Romance has been criticized for targeting military spouses in the United States, who often have trouble finding traditional employment, since they have to move frequently for their spouses' careers. [19]

See also

Related Research Articles

<span class="mw-page-title-main">Pyramid scheme</span> Type of unsustainable business model

A pyramid scheme is a business model which earns primarily by enrolling others into the scheme, however rather than earning income by sale of legitimate products to an end consumer, it mainly earns by recruiting new members with the promise of payments. As recruiting multiplies, the process quickly becomes increasingly difficult until it is impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.

Tupperware is an American company that manufactures, and internationally distributes preparation, storage, and serving containers for the kitchen and home. It was founded in 1942 by Earl Tupper, who developed his first bell-shaped container and introduced the products to the public in 1946.

Equinox International was a multi-level marketing company founded in 1991 and headed by Bill Gouldd. In 1996, Equinox was listed #1 on Inc Magazine's list of the 500 fastest-growing private companies in the United States.

Mary Kay Inc. is an American privately owned multi-level marketing company. Mary Kay is based in Addison, Texas. The company was founded by Mary Kay Ash in 1963. Richard Rogers, Ash's son, is the chairman, and Ryan Rogers, Ash's grandson, was named CEO in 2022.

Hawaiian Telcom, Inc., is the incumbent local exchange carrier (ILEC) or dominant local telephone company, serving the state of Hawaii. In 2005, Hawaiian Telcom Holdco, Inc., was formed by The Carlyle Group, following its purchase of the Hawaiian Telcom Inc. assets of Verizon Communications. On July 2, 2018, Cincinnati Bell purchased Hawaiian Telcom Holdco, Inc. for $650 Million,

Nature's Sunshine Products, Incorporated, also known as "NSP", is a manufacturer of dietary supplements, including herbs, vitamins, minerals, and personal care products. It is based in Lehi, Utah, with a manufacturing facility in Spanish Fork, Utah.

<span class="mw-page-title-main">Juice Plus</span> Line of dietary supplements

Juice Plus is a branded line of dietary supplements. It is produced by Natural Alternatives International of San Marcos, California, for National Safety Associates. Introduced in 1993, the supplements are distributed by NSA via multi-level marketing. Juice Plus supplements contain fruit and vegetable juice extracts with added vitamins and nutrients.

Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling the company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.

Discovery Toys is a multi-level marketing company specializing in educational toys. Its products are sold in the U.S. and Canada, and its headquarters are in Livermore, California.

PODS, or Portable On Demand Storage, is a moving and storage company. It was founded in 1998 and is based in Clearwater, Florida.

<span class="mw-page-title-main">AdvoCare</span> American dietary supplement company

AdvoCare International, LLC is an American dietary supplement company. They are a direct sales company and a former multi-level marketing company that was charged with operating a pyramid scheme. The company, headquartered in Richardson, TX, was founded in 1993 by Charles Ragus.

Market America is a multi-level marketing company founded in 1992 by JR and Loren Ridinger. Headquartered in Greensboro, North Carolina, the company employed around 800 people as of 2016. The products offered by the company include household cleaning supplies, jewelry, personal care products, auto care, cosmetics, dietary supplements, custom websites, water purifiers, and weight management products. A 2017 lawsuit accused the company of being an illegal pyramid scheme.

Solavei was a social commerce network offering contract-free mobile service in the United States, known for its use of incentivized referral plans and its social network advertising program. In addition to its mobile phone services, Solavei operated a social commerce network for its users. Ryan Wuerch founded the company in 2012. As of 2013, Solavei had 140 employees and was valued by investors at $120 million. The company has been described as a multi-level marketing (MLM) company, or of being very similar to a MLM company.

Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American multi-level marketing company specializing in skincare products. Katie Rodan and Kathy A. Fields, creators of Proactiv, started the Rodan + Fields brand in 2002 and sold it a year later. They relaunched the brand in 2007 as a multi-level marketing firm.

LuLaRoe is a United States-based multi-level marketing company that sells women's clothing. It was founded in 2012 by DeAnne Brady and her husband Mark Stidham and is currently based in Corona, California.

SeneGence International, Inc. is a privately owned American multi-level marketing (MLM) company that sells skincare and makeup products, including the LipSense product line. The company was founded in 1999 by Joni Rogers-Kante who is the CEO and chair. The company is headquartered in Foothill Ranch, Lake Forest, California, with facilities in Sapulpa, Oklahoma.

Arbonne International, LLC, known as Arbonne, is an international multi-level marketing company founded in 1980 in the United States by Norwegian entrepreneur Petter Mørck. Its product lines include vegan skincare, cosmetics, and nutrition. Arbonne's CEO is Tyler Whitehead, who succeeded Jean-David Schwartz in April 2021. Arbonne is headquartered in Irvine, California, US, with US offices in Chatsworth, California, Greenwood, Indiana, Addison, Texas, and international offices in Australia, Canada, New Zealand, Poland, and the United Kingdom.

Scentsy is an American multi-level marketing company based in Meridian, Idaho, that sells scented products including wax warmers and other home and body products.

<span class="mw-page-title-main">Younique</span> American multi-level marketing company

Younique is an American multi-level marketing company (MLM) that markets beauty products. The company was founded in 2012 by Derek Maxfield, who is CEO, and Melanie Huscroft, and is headquartered in Lehi, Utah. Between 2017 and 2019, Younique was 60% owned by Coty, Inc. In 2019, Coty sold their share of the business back to Maxfield and Huscroft.

References

  1. ↑ "EXCLUSIVE: P&G manager joins Pure Romance to launch digital marketing". Cincinnati Business Courier. Apr 17, 2018. Retrieved 2020-02-07.
  2. ↑ Shellnutt, Kate (2016-05-12). "Why your Facebook feed is filled with women selling essential oils and press-on nails". Vox. Retrieved 2020-02-07.
  3. 1 2 "State of Hawaii - State Authorized Multi-Level Marketing Agreements". State of Hawaii – Department of Taxation. July 25, 2019. Retrieved 2020-02-07.
  4. ↑ "Sexual Wellness Brand Pure Romance Pivots to Omnichannel Business". WWD. 2023-04-28. Retrieved 2023-04-28.
  5. ↑ "Pure Romance ditches MLM, now retail sales only". BEHINDMLM. 2023-05-03. Retrieved 2023-05-03.
  6. 1 2 Ryzik, Melena (2012-08-03). "Company Finds 'Grey' and Pink Yield Pure Green". The New York Times. ISSN   0362-4331 . Retrieved 2020-02-07.
  7. 1 2 3 4 5 May, Lucy (Dec 8, 2003). "'Pure Romance' takes to Web with new focus". Cincinnati Business Courier. Retrieved 2020-02-07.
  8. ↑ "About Us | Pure Romance". www.pureromance.com. Retrieved 2020-02-07.
  9. ↑ "Pure Romance gains national attention". Cincinnati Business Courier. Oct 15, 2004. Retrieved 2020-02-07.
  10. ↑ May, Lucy (Aug 18, 2011). "Pure Romance set to embark on international expansion". Cincinnati Business Courier. Retrieved 2020-02-07.
  11. ↑ "Private equity firm invests in Pure Romance". Cincinnati Business Courier. Jun 14, 2012. Retrieved 2020-02-07.
  12. ↑ Benson, Lisa (Jul 24, 2014). "Cool Places: Go inside Pure Romance's stylish new downtown headquarters". Cincinnati Business Courier. Retrieved 2020-02-07.
  13. ↑ Wetterich, Chris (Jan 17, 2014). "Pure Romance adds to bedroom empire, buys competitor". Cincinnati Business Courier. Retrieved 2020-02-07.
  14. ↑ Caproni, Erin (Jan 11, 2016). "EXCLUSIVE: Pure Romance acquires major competitor". Cincinnati Business Courier. Retrieved 2020-02-07.
  15. ↑ Caproni, Erin (Feb 1, 2019). "Pure Romance debuts popup shop: PHOTOS". Cincinnati Business Courier. Retrieved 2020-02-07.
  16. ↑ Neff, Jack (2019-09-24). "How this sex-toy business is helping transgender youth". AdAge. Retrieved 2020-02-07.
  17. ↑ Erpenbeck, Meg (2020-05-11). "Quarantine sparks huge sales for Pure Romance". www.bizjournals.com. Retrieved 2022-08-19.
  18. 1 2 Taylor, Jon M. "Reports from Federal Trade Commission website" (PDF). FTC.
  19. ↑ Mondalek, Alexandra (2018-05-29). "Why MLMs Are So Appealing to Military Spouses". Racked. Retrieved 2020-02-07.

17. https://wwd.com/beauty-industry-news/wellness/sexual-wellness-brand-pure-romance-removes-multi-level-marketing-1235633008/

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.