Is Ring Bomb Party a Pyramid Scheme or Legit? [FULL Review]

Is Ring Bomb Party a pyramid scheme? That’s the question you should be asking if you’ve been approached by a Ring Bomb Party consultant with a “business opportunity.”

Fortunately for you, I’m going to answer that exact question (plus a few more questions you might have about Ring Bomb Party.)

In this Ring Bomb Party review, I’m going to take a deep dive into the Ring Bomb Party products and the Ring Bomb Party business opportunity and share my honest opinion on whether I think you should join as a consultant or take a quick sidestep.

Ring Bomb Party Review Summary

Company Name: Ring Bomb Party

Product Type: Costume Jewelry

Founder: Lillian & Isabella Coleman

Price: $49 starter kit fee plus $350 initial inventory purchase requirement

Best For: The Founders of Ring Bomb Party

Summary: Ring Bomb Party is a multi-level marketing company that sells costume jewelry that is essentially “packaged” in a fizzy “bomb” similar to a bath bomb. The companies primary sales method is through the recruitment of “Consultants” who make a commission for the products they sell. In addition, consultants make bonuses and commissions on the sales of the people that they recruit into Ring Bomb Party.

Rating: 10/100

Recommended: No

What is Ring Bomb Party?

Ring Bomb Party is a costume jewelry company that sells its products via online “Ring Bomb Parties” held by independent consultants.

In a nutshell (or a ring bomb) – consultants invite people to join an online party and pre-pay for a “ring bomb.”

A ring bomb is similar to a bath bomb but rather than being a nice way to relax in the bath, at the center of a ring bomb is a piece of jewelry that, according to the Ring Bomb Party website, is valued at $25-$1000.

The company started off selling only rings but have since expanded into other product including necklaces, earrings and various themed product lines including the “Versailles Collection” and “Poseidon’s Jewels.”

Ring Bomb Parties seem to be quite popular on social media with consultants holding regular parties on Facebook Live, Tiktok, etc.

Sounds like an interesting opportunity, right?

Not so fast, my entrepreneurial friend.

How Much Do Ring Bombs Cost?

The original ring bombs cost $17.95 plus $4.95 shipping.

Prices for the rest of the Ring Bomb Party products are as follows:

• Birthday Bomb – $19.95 plus shipping
• Galaxia Collection – $34.95 plus shipping
• Kids Bomb – $14.95 plus shipping
• Original Earring Bomb – $19.95 plus shipping
• Original Necklace Bomb – $19.95 plus shipping
• Poseidons Jewels – $34.95 plus shipping
• Versailles Collection – $42.95 plus shipping

Are Ring Bomb Rings Worth Anything?

According to Ring Bomb Parties, the jewelry has a “suggested retail price” of between $25-$1000.

You won’t know which piece of jewelry you receive nor how much it is allegedly worth until after you’ve purchased and had your “reveal.”

Each piece of jewelry has a tag attached that states the “suggested retail price” according to Ring Bomb Parties.

The purported value assigned to each ring is somewhat dubious.

A company is free to set the price of their products as high or as low as they choose. It’s up to the customer to decide whether they feel the product is worth the price.

Companies like Diptyque use a Premium Pricing Strategy and sell their candles for $65 (1).

There are people who happily pay $65 for a small Diptyque candle, while there are others who balk at paying $27.99 for a large Yankee Candle.

Diptyque believes their candles are worth $65, Yankee Candles believes theirs are worth $27.99.

How does this relate to the value of Ring Bomb Party rings?

Well – Ring Bomb Party has decided that the “suggested retail price” of their rings is anywhere from $25-$100.

As you can see in the image below, this is the price “that we would charge in our store for these items.”

This is very different from the appraised value of the ring that you would receive from a jeweler.

And, I’ll add – it’s also very different from the price you’d pay for a similar quality ring from a retail store like Claire’s.

If you feel like your Ring Bomb Party ring is worth the price on the tag, that’s great.

However, if you’re planning on buying a Ring Bomb Party ring, expect that it’s going to be of similar quality and worth about the same as a piece of cheap costume jewelry.

How Much Does it Cost to Join Ring Bomb Party?

It costs $399 to join Ring Bomb Party as a consultant. This includes a $49 starter fee plus a $350 initial product inventory requirement.

If that sounds fairly steep, the costs don’t stop there.

In addition to the initial $399 outlay, there is a “350 PQV” monthly requirement in order to stay active as a consultant.

If you’re unfamiliar with the confusing terminology used by almost all MLM companies, 350 PQV means that in order to continue selling Ring Bomb Party products, you must purchase at least $350 worth of products each month.

Of course, the goal is to sell these products and make a small profit, but if you don’t, you’re left $350 out of pocket and you’re no longer an active consultant. Ouch.

Ring Bomb Party Compensation Plan

I’m not sure why so many MLM companies have a habit of making their compensation plan so difficult to find, but they do.

Ring Bomb Party is the same – it would seem logical that the actual compensation plan would be included in the “compensation plan” link at the bottom of their website, but it’s not.

Instead, you’re taken to a pretty-looking page containing lots of hyped-up language like “getting paid to party” and “the joy of building your team.”

Not to worry – I managed to find a copy of the actual compensation plan, pictured below.

Based on the Ring Bomb Party Compensation Plan chart, there appear to be 7 ranks with 3 levels in each rank, apart from the first rank of Citrine, which has 2 levels.

Regardless of rank, your personal commission (i.e. the commission you receive on products you personally sell) is 20%.

There is a “personal volume bonus” of 5% once you’ve reached 1000+PV, 1500+PV, and 2000+PV.

As you progress further up the pyramid and recruit consultants into the company, you’ll receive “team bonuses” of 2-5%.

Sound confusing? It is. Confusing compensation plans are part and parcel of most multi-level marketing companies.

Is Ring Bomb Party a Pyramid Scheme?

Ring Bomb Party is a multi-level marketing company (MLM.) MLM’s have several characteristics that are similar to pyramid schemes, but they’re not the same.

According to Investopedia, multi-level marketing (the banner under which Ring Bomb Party falls) is a legal business practice as it involves the sale of tangible goods (2).

However, don’t confuse “not a pyramid scheme” with “profitable business opportunity.”

How Much Money Can You Make With Ring Bomb Party?

It’s the ultimate question, isn’t it:

How much money can you make as a Ring Bomb Party consultant?

The truth is – well, I actually couldn’t find much truth, to be honest. Ring Bomb Party does not appear to have an Income Disclosure Statement available to view (Income Disclosure statements are worthless anyway (3).

However, Ring Bomb Party does have an “income potential” PDF on their website, pictured below.

Let’s dig into this, shall we?

One Ring Bomb sells for $17.95 and as a consultant, you receive a 20% commission which is $3.59.

As the image above shows, if you host a party and sell 15 ring bombs, you’ll make a $53 profit.

Remember, you have to pay tax on your earnings – because you’re self-employed you’re looking at around 25%. That brings your profit to $39.75.

Let’s say your ring party goes for 1 hour, plus 30 minutes of setup time and 30 minutes of clean-up. You’ll also have plenty of customer questions before the party, so let’s say they take 1 hour to answer.

Then you’ll have to package and send off the rings you sold and revealed. Let’s assume that will take 2 hours (for packaging, addressing, and sending at the post office.)

So now you’re about 5 hours into this. $39.75 divided by 5 equals $7.95/hr.

And that’s assuming you actually sell 15 ring bombs. If you only sell 10 ring bombs, you’d make $5.38/hr.

I don’t know about you, but to me, that seems like a lot of work for very little return.

And what happens when you’ve run out of friends who want to buy a ring bomb?

That’s when many MLM consultants turn to private messages strangers on social media, which is something that many people aren’t comfortable with and is likely to result in many angry or aggressive responses.

This doesn’t sound too promising, does it? The unfortunate truth is that 99% of people who join a multi-level marketing company do not make any money – in fact, most actually lose money (4).

Should You Join Ring Bomb Party?

Ultimately, it’s up to you to decide whether you should join Ring Bomb Party given the information you know have.

In my opinion, the answer is no, you should not join Ring Bomb Party if you want to make money.

Final Thoughts

Ring Bomb Party is a multi-level marketing company that’s relatively popular on social media.

Like almost all multi-level marketing companies, it’s extremely difficult to be profitable as a consultant, especially long-term.

Resources:

_{1. Andrew Bloomenthal. What is a Pyramid Scheme? May 07, 2020. Retrieved from https://www.investopedia.com/insights/what-is-a-pyramid-scheme/}

_{2. Jim Woodruff. What Is Premium Pricing Strategy? February 06, 2019. Retrieved from https://smallbusiness.chron.com/premium-pricing-strategy-1107.html}

_{3. Tracy Coenen. MLM Income Disclosure Statements. 18 November, 2019. Retrieved from https://www.sequenceinc.com/fraudfiles/2019/11/mlm-income-disclosure-statements/}

_{4. Jon M. Taylor, MBA, Ph.D. (nd.) MLM’s Abysmal Numbers. Retrieved from https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00008%C2%A0/00008-57281.pdf}