Can I make money selling Atomy products, or is it too good to ...

The US-based Direct Selling News website recently published a “Global 100” list of direct sales companies which featured Amway in first place ... SkiptomaincontentSkiptonavigationAdvertisementNewsOpinionSportCultureLifestyleShowMoreShowMoreNewsWorldnewsUKnewsCoronavirusClimatecrisisEnvironmentScienceGlobaldevelopmentFootballTechBusinessObituariesOpinionTheGuardianviewColumnistsCartoonsOpinionvideosLettersSportFootballCricketRugbyunionTennisCyclingF1GolfUSsportsCultureBooksMusicTV&radioArt&designFilmGamesClassicalStageLifestyleFashionFoodRecipesLove&sexHealth&fitnessHome&gardenWomenMenFamilyTravelMoneyMakeacontributionSubscribeSearchjobsHolidaysDigitalArchiveGuardianPuzzlesappGuardiancontentlicensingsiteTheGuardianappVideoPodcastsPicturesNewslettersToday'spaperInsidetheGuardianTheObserverGuardianWeeklyCrosswordsSearchjobsHolidaysDigitalArchiveGuardianPuzzlesappGuardiancontentlicensingsiteBusinessEconomicsBankingMoneyMarketsProjectSyndicateB2BRetailTheObserverMoneyCanImakemoneysellingAtomyproducts,orisittoogoodtobetrue?AstheKoreanbeautyfirmlaunchesintheUK,somecriticsareconcernedaboutso-called‘multilevelmarketingschemes’Atomysaysitscustomersareundernopressureandloveitsbeautyproducts.Photograph:GhislainandMarieDaviddeLossy/AlamyAtomysaysitscustomersareundernopressureandloveitsbeautyproducts.Photograph:GhislainandMarieDaviddeLossy/AlamyRupertJonesSun8Aug202109.15BSTASouthKoreancosmeticscompanyismakingamajorpushintoBritain,andclaimsthatthosewhosignuptobeasalesrepresentativescanearnthousandsincommissioneachweek,andbonusesofupto£720,000.Foundedin2009,Atomyhasbecomeoneoftheworld’sbiggest“multilevelmarketing”(MLM)companies–whereindividualsmakemoneybysellingitemsandgettingpeopletosignup–andclaimstohave15millionmembersglobally.AfterlaunchingintheUS,Canada,Australiaandotherterritories,ithassetitssightsontheUKandEurope,andsaystensofthousandsofpeoplehavealreadysignedup.Itisthelatestinalineofdirect-salesbeautycompanieslikelytoparticularlyattractwomenwhomaybestrugglingfinanciallyandlookingfornewwaysofearningcash–atrendthathasbeenacceleratedbythepandemic.Thecompany’slaunchvideosandpromotionalmaterialemphasisethelargesumsitsayscanpotentiallybeearnedasa“distributor”–including,forthosewhoreachthetopoftheprogramme,six-figurecashbonusesandperks,suchasapersonalassistantandpersonaldriver.MLMschemesaretypicallymadeupoflargenumbersofpeoplesellingitemssuchasbeautyandcleaningproducts,candlesandbooks,fromhome.Theyarecontroversial,andintheUKtherearescoresofindividualsandgroupscampaigningagainstthemonsocialmedia.CampaigninggroupHeyHun...#BanTheScamclaimsMLMisa“predatorybusinessmodel”thatshouldbebanned,andisplanningaprotestincentralLondonon28August.Meanwhile,anothercriticofthistypeofschemetoldtheObserverthat,inhisopinion,Atomywasan“economiccult”.However,thereisnoevidencethatanyUKauthoritiesareinvestigatingMLMs.Criticshavelabelledthem“pyramidschemes”,butAtomydeniesthis.Itdescribesitselfas“aconsumer-orientednetworkmarketingcompany”,addingthatpeoplecanjoinforfree,withnoobligationtosellproducts,andthatthevastmajorityofitscustomersare“consumer-only”–thatis,notearningcommissionfromsales.IthelditsofficiallauncheventattheNewTheatreRoyalinPortsmouthon28July.TheUKcompanyiscalledAtomyDistribution.IthasanofficeinGuildfordandplanstoholdseminarswherepeoplecanfindoutmoreaboutthis“businessopportunity”.Itspecialisesinbeautyandskincareproductsandhealthsupplements,andsaysitisofferingpeoplethechancetobecometheirownbossandearnadditionalincomebybecomingadistributor.Initsvideomessagetopotentialrecruits,itclaimsthatthroughitscompensationplan,“youwillbeabletofulfilallthedreamsinyourlifescenario”.Insimpleterms,membersearnpointsfromtheirpersonalpurchasesandfrompurchasesmadebytheir“legs”–thatis,theteamofcustomerstheyhaverecruitedasmembers.Pointsthentranslateintocommissionandotherpayments.Beforeyoucanstartearningcommission,youneedaminimumnumberofpersonalpoints,plusthoseforeachofyourlegs.Howeverunlikesomesimilarcompanies,membersbuyfromanonline“shoppingmall”,notfromanotherdistributor.Thismeansthatdistributorsdonothavetohold,andpayfor,stockthattheymaynevermanagetosell.Atomyhasfivelevelsofsalesrep,called“dealerships,”andseven“masterships”,eachwithitsownrules.Thereisacomplexsystemofcommissionpayments,bonusesandotherincentives.Inonevideo,RubyMcGrath,theUKandEuropemanagingdirector,saysthatintermsofgeneralcommission,distributorsgeta“score”forreachingeachdealership,andeachscoreis“roughlyabout”fiveUSdollars.“Themaximumscoreyoucanearnperdayis300,”sheadds.Thissuggestsamaximumof$1,500(£1,080)commissionaday.Thentherearethemastershipbonuses,describedas“once-in-a-lifetime”awardsforreachingeachlevel.Thosereachingthelowestrungreceivesomecompanyproducts,whileAtomyclaimsthosereachingthetoprung,knownas“imperialmaster”status,wouldreceive£720,000cash,plusotherbenefitsincluding“officerental,personalassistantanddriverhire”.Tojoin,anindividualmustprovidethemembershipnumberofthepersonwhoisreferringthem.Atomy’swebsitesaysitoffersmorethan400products,althoughlastweektheshoppingmallontheUKsiteappearedtolistasmallerrange,from£5forfourtubesoftoothpasteto£180forthe“AbsoluteSkincareSet”.TheUKlaunchfilmonYouTubeincludesasequencewherethecompanybossestakeafternoonteawith“averyspecialguest”–whoturnsouttobealookalikeoftheQueen.ThelookalikeflicksthroughanAtomybrochurewhiledrinkingteaandeatingsandwichesontheterraceofastatelyhome,andisthendelightedtobepresentedwithabasketofthecompany’sproducts.TheUKtradebodyforthedirectsalessector,theDirectSellingAssociation(DSA)–whosemembersincludecosmeticscompanyAvonandthehealthandbeautyfirmAmway–estimatesthereare631,000directsellersintheUK,96%ofwhomarefemale.TheDSAisanassociationcontrolledbyitsmembers,andoperatesacodeofconductwithwhichtheyhavetocomply.TheObserveraskedtheDSAifitwasawareofAtomyUKandwhetherithadappliedformembership.Itrepliedthat“thiscompanyisnotknowntous”.TheDSAhassaid,inthepast,thatwhilemultilevelmarketingstructures“mayseemsimilartopyramidschemes,”–whichareillegalintheUK–“inrealitytheyaresubstantiallydifferentandaremoresimilartoaconventionalcorporatebusinessmodel”.TheUS-basedDirectSellingNewswebsiterecentlypublisheda“Global100”listofdirectsalescompanieswhichfeaturedAmwayinfirstplaceandAtomyat12.Thesitesaidthatin2020,Atomy’sannualrevenuewas$1.48bn(£1.06bn).DavidBrear,whodescribeshimselfasanauthorwhohasstudiedcults,toldtheObserverthat,inhisopinion,Atomywasan“economiccult”thatwaspeddlinga“cruelillusion”.However,McGrathsaysthat“youdon’thavetobeadistributormembertoenjoyAtomy’sproducts,”andthat“97%ofourcustomersareconsumer-only(ie,non-commissionearning)”.Sheadds:“Ourmembersloveourproductsandrecommendthemtopeopletotry…thereisnopushingpeopletobuy,nojoiningfee,nostockholding,nominimumrequirementtopurchaseanyproducts.“Additionally,unlikeothernetworkmarketingcompanies,ourconsumerspurchaseviatheonlineshoppingmall,notviaaperson.”McGrathsaysthatofthe$1,500maximumcommissionadaythat“reachingthisleveltakesalotofhardworkanddedication.Typically,forsomeonetomakeAtomytheirfull-timejob,wewouldsayittakesoverthreeyearsofdedicationandhardwork”.SheaddedthatAtomywas“lookinginto”applyingtojointheDSA.TopicsMoneyTheObserverConsumeraffairsConsumerrightsRetailindustryBeautyHealth&wellbeingfeaturesReusethiscontentMostpopularMostpopularBusinessEconomicsBankingMoneyMarketsProjectSyndicateB2BRetail