Is Dot Dot Smile A Scam or Kids Clothing Pyramid Scheme?

The overview and rankings

Name: Dot Dot Smile

Founders: Nicole & Jeff Thompson in 2013 (became MLM in 2017)

Website URL: dotdotsmile.com

Type: Children's Clothing MLM

Products (Including Pricing): 80 out of 100

Success Stories: 10 out of 100

Price To Join MLM: Buy 25 dresses every 6 months (~$625) or $199.99-$399 starter pack (80 out of 100)

Maketimeonline.com Rating: 58 out of 100 (check out my #1 recommendation, 97 out of 100)

What To Look For In An MLM:

What is Dot Dot Smile?

Dot Dot Smile is a Multi-Level-Marketing company that specialises in children's clothing. 

The company offers everyday people the opportunity to make money from home by promoting their products and recruiting more people into the MLM program. 

The 3-minute promotional video below explains a bit more about the company...

You're smart enough to know that's just a sales video though. So the real question you want answered is...

Is Dot Dot Smile a pyramid scheme?

Technically, no.

Dot Dot Smile is not a pyramid scheme. 

They sell legit children's clothes that some people really like. 

It's also possible for their "merchandiser's" to make money by selling their products and receiving a commission. 

But does Dot Dot Smile have signs of being a "pyramid scheme in a disguise"?

What is a pyramid scheme?

It's when a company promises their "merchandiser's" (also called distributors or consultants etc.) payment by recruiting more people into the company.

There are no products or services sold in an outright pyramid scheme. 

These are illegal in most countries as they are totally unsustainable as you can see from the diagram below...

Not every MLM company is a pyramid scheme as most of them sell legit products or services. However some MLM companies "hide behind" their products and operate like a pyramid scheme... but in disguise.

Dot Dot Smile doesn't really do this, as you will find out later in this Dot Dot Smile MLM review.

But you can learn what to look out for in the 5-minute video below...

Success is rare with Dot Dot Smile

So here's the other hidden truth for most MLM companies...

Research has proven that between 73% and 99% of all MLM representatives lose money.

However, every MLM company is different.

And Dot Dot Smile hasn't released any "income disclosures" to the public like many MLM companies do. So it does make it hard to say for sure if they fit into these stats.

But we will put the company under a microscope a bit later on in this Dot Dot Smile review to work out the truth. 

How does Dot Dot Smile Work?

Dot Dot Smile makes children's clothing. 

They allow "merchandisers" to promote and sell these clothes and offer them a commission of anything they sell. These merchandisers also can get bonuses from the sales of their "downline" (the people they recruit).

It's kind of like a win-win.

Dot Dot Smiles saves money on advertising and marketing. 

And everyday people have the opportunity to make money from home. 

Dot Dot Smile products

If you are ever seriously considering joining any MLM company, it's crucial that you understand their products or services. 

Dot Dot Smile offers a wide range of children's clothing from 6 month olds to 14 year olds as you can see below or in their shop.

It is similar to some other fashion MLMs such as:

• LuLaRoe (women's fashion)
• Thirty One Gifts (bags and purses)
• Pink Zebra (perfumes)

But their flagship product is certainly different to other MLMs... 

The Dot Dot Smile dress collection. 

The dresses have a "twirl" effect which the girls seem to love!...

Prices range around $20-$30 for most items of clothing but some dresses do go up to $75.

Another great selling point for parents... No hand-washing required!

You can wash the clothes on a cold gentle cycle and "hang-dry" so no ironing is even needed! It's not as good as washing on a regular cycle but apparently this is pretty standard for "boutique quality clothing".

They seem to receive pretty good reviews online and are pretty good quality (note I don't personally have much experience in children's clothing though!)

How to make money with Dot Dot Smile

So just like most MLM companies there are 2 ways to earn money from Dot Dot Smile:

1. Get a commission for any sales you make of their clothes
2. Recruit more people into the MLM business and get bonuses

There is always a confusing compensation plan that makes it seem like there are loads of ways to earn but these are the 2 things you would need to do. 

Before we dig into that you're probably wondering...

How much does it cost to join Dot Dot Smile?

So it used to cost $50 annually.

However, this cost seems to not exist any more from my research.

It appears to just cost a one time enrollment fee with a range of children's clothing included:

So there really is only the $199.99 or $399 to get started.

But other merchandisers recommend you to get marketing materials such as business cards, ribbons, stickers, label makers and of course place to store all your children's clothes!

This will set you back at least another $150.

Dot Dot Smile Monthly Costs

A great thing about Dot Dot Smile is that there isn't a "monthly sales quota" for you to hit. 

This means when you start out as a "merchandiser" you can promote the clothes at your own pace and you don't HAVE to sell (or more likely buy) clothes every month. 

As you move up the "ranks" there is a monthly personal volume for you to hit. 

This means you will eventually need to allow $50 to $100 per month on purchasing more clothing in case you don't make the sales and have your commission suspended.

So here are the figures...

Total 1st year costs to join:

• $199.99 to $399
• $150+ for marketing materials
• $625 for 25 dresses x 2

Total year cost: $1599.99+

Dot Dot Smile compensation plan

Dot Dot Smiles compensation plan is actually quite simple to understand, unlike a lot of MLM companies. 

They claim there are 7 ways to get paid:

1. Direct sales- purchase clothes at wholesale and sell at retail (you keep the difference... up to 40%)
2. Fast start program- earn 40 PV+ to get $200 product credit & enroll other members to get $50 bonus in your first 40-100 days at the company.
3. Achiever maker bonus- When your downline becomes "achiever rank" you get $50 bonus
4. Team bonus - up to 5% bonus on your "downline" commission (up to 5 levels deep)
5. Replicated website commission- 40% on sales on your website
6. Replicated website team bonus- same as team bonus but for their websites
7. Leadership check bonus- (see table below)

So even though there are 7 ways to get paid, all you need to know to start is you have to do 2 things:

1. Sell clothes
2. Recruit people into the MLM business

You can check out the full 12 page compensation plan here. Or check out the 8 minute video below, which explains the slightly out of date comp plan...

Is Dot Dot Smile a scam?

No, Dot Dot Smile is not a scam. 

They sell legit children's clothing and they pay their merchandiser's commission for selling the products like they say they will. 

But just because a make money from home opportunity is legit, it doesn't always mean it's right for you. 

The rest of this Dot Dot Smile review, will help you to make an informed decision. 

Just to be fully transparent with you, I am not a distributor myself and I do not endorse Dot Dot Smile in any way.

I have researched the website, testimonials and information on the Internet to get to the bottom of what this program genuinely does. This is because I have been burnt from programs just like this in the past and I want to prevent others from making the same mistakes. If you’d like to learn how to “Spot an Online Marketing Scam” then click the highlighted text.

Common positive reviews

Here are some of the best common positive reviews about its job opportunity that we have found...

• "Dot Dot Smile have a retail element to their business opportunity and a compensation plan that is sales focused so it appears that they are not a Pyramid scheme and fully compliant with anti-pyramid scheme regulations and laws."
  

Common negative reviews

And here are the common negative reviews people are saying about its job opportunity...

• "You are often left out in the cold and on your own as far as learning how to run your business goes."

What I like about Dot Dot Smile

There are some things that Dot Dot Smile does which is really good. 

It is certainly better than a lot of MLM opportunities out there.

Key Terms:

• Pyramid Scheme – recruits members via a promise for payment from referring others to the service rather than providing a product
• Affiliate Marketing- Connecting a customer to a product they are looking for and receiving a commission for doing so
• Red Flag - A warning sign

#1 Low cost to start

You can start making money from day one by spending $199.99.

You will get 15 items of clothing and if you sell about 8 items you will have made your money back. 

So if you're a Mom who knows other parents that may be interested in the clothes, you could get yourself up and running pretty easily and affordably.

#2 Money-back guarantee

A great sign from MLM companies is if they offer returns on products. 

Dot Dot Smile accepts returns to damaged clothing and even covers shipping costs for approved return requests. 

Some companies sell mediocre products and try to hide away from anyone returning any goods.

Not DDS!

#3 Sales focused MLM company

This is the part I was most impressed with about DDS.

There really is a focus on selling the clothes rather than recruiting.

Even in the fast start bonus, there are ways to get rewarded for selling clothes rather than just recruiting more people into the business.

#4 Affordable products

This is the first thing I check about any MLM company. 

If they have really overpriced products compared to the competition then it's a big sign it's a pyramid scheme in disguise. Especially when there is a sales quota for distributors to hit every month.

Typically that means the company is making most of its money by recruiting more distributors as they will have to purchase their products every month.

When comparing Dot Dot Smile even to Amazon prices they are very similar.

And you would expect DDS to have better quality items. 

This is a huge tick for DDS!

What I don't like about Dot Dot Smile

Even though Dot Dot Smile certainly is a legit company there are some hidden truths that I think everyone should know before joining.

#1 Previous policy changes and monthly fees

In 2017 when the company became an MLM business, there was clearly some teething issues. 

There are many complaints over changes in policies. 

Especially the sales quota! This is another sign of a pyramid scheme in disguise. 

From my research it's hard to say for certain what the current policy is.  

So it appears there isn't a monthly sales quota that you have to hit to remain active, which is good.

But it does seem like you need to buy a certain number of items within a set time (remember the video above that suggests you need to buy at least 25 dresses every 180 days). 

#2 No income disclosurre

There are some things that most MLM companies offer. 

Income disclosures of their merchandisers is pretty standard. 

However, DDS doesn't publicly share this. 

It's not the only thing they seem to be hiding and when a company is not up front and honest, it can be a bad sign. Especially when you're considering making this your full time business.

I would say that because the MLM company is still relatively new, hopefully they will release one in the near future. 

#3 Low income potential

You can earn up to 40% commission on any sales which is good. 

But be honest here... how many can you realistically expect to sell?

Let's say you sell 100 a month. 

The average item of clothing is $24.99. 

40% gives you a profit of $10.

So selling 100 each month gives you a profit of $1,000 a month. 

Is that enough money for you to work from home and live off that income?

Maybe it is, but let me tell you... selling 100 a month consistently from home is not going to be easy!

#4 "Blind boxes"

You will receive "blind boxes" when you order clothes at wholesale price. 

You get to choose the size and what items of clothing you receive. 

But the style and design will be totally random. 

Some people even had this to say...

Even though there is a return policy it seems that merchandisers have been encouraged to sell damaged products and "make lemonade".

I'd like to think this doesn't happen anymore but it's certainly not a great sign from a company that you are thinking about getting into business with.

My opinion - Dot Dot Smile

I think if you can learn how to get traffic to your replicated website (or ideally have a Mommy blog) and you are a Mom with a lot of Mommy friends this could be a nice little side hustle. 

I really like the focus on selling rather than recruiting.

The benefit of this is that if you can make money (just by selling) then you'll find friends and other people asking you more about it and wanting to join too. 

However, if you do not have any online marketing experience or any idea how to start a Mommy blog, then this is probably a waste of time. 

Just think about it...

How many items of clothing can you sell in person each month or through "Dot Dot Smile parties"? 

There is a limit to how much time you can put into this and it's not scalable at all.

To be successful you will need to learn how to use online marketing to your advantage...

How I make passive income online

I'm not a massive fan of MLM as the focus is usually on recruiting more people into the business to make any significant money.

But once I learnt more about affiliate marketing I much preferred the business model because:

• It is free to start and low cost to maintain
• You don't need to sell to friends and family
• There is not limit to how much you can scale it and you are in complete control of the business

The best thing is that by learning the skills to make money from affiliate marketing would really help any MLM business (such as Dot Dot Smile) that you are interested in.