Pure Romance
| Company type | Private |
|---|---|
| Founded | 1993 |
| Founders | Patty Brisben |
| Headquarters | Cincinnati, Ohio, United States |
Area served | North America,Australia and New Zealand |
Key people | Chris Cicchinelli (President and CEO) |
| Products | Adult products and sex toys |
Number of employees | 170 (2018)[1] |
| Website | pureromance |
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]
History
[edit]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
[edit]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
[edit]References
[edit]- ^ "EXCLUSIVE: P&G manager joins Pure Romance to launch digital marketing". Cincinnati Business Courier. Apr 17, 2018. Retrieved 2020-02-07.
- ^ 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.
- ^ a b "State of Hawaii - State Authorized Multi-Level Marketing Agreements". State of Hawaii – Department of Taxation. July 25, 2019. Retrieved 2020-02-07.
- ^ "Sexual Wellness Brand Pure Romance Pivots to Omnichannel Business". WWD. 2023-04-28. Retrieved 2023-04-28.
- ^ "Pure Romance ditches MLM, now retail sales only". BEHINDMLM. 2023-05-03. Retrieved 2023-05-03.
- ^ a b Ryzik, Melena (2012-08-03). "Company Finds 'Grey' and Pink Yield Pure Green". The New York Times. ISSN 0362-4331. Retrieved 2020-02-07.
- ^ a b c d e May, Lucy (Dec 8, 2003). "'Pure Romance' takes to Web with new focus". Cincinnati Business Courier. Retrieved 2020-02-07.
- ^ "About Us | Pure Romance". www.pureromance.com. Retrieved 2020-02-07.
- ^ "Pure Romance gains national attention". Cincinnati Business Courier. Oct 15, 2004. Retrieved 2020-02-07.
- ^ May, Lucy (Aug 18, 2011). "Pure Romance set to embark on international expansion". Cincinnati Business Courier. Retrieved 2020-02-07.
- ^ "Private equity firm invests in Pure Romance". Cincinnati Business Courier. Jun 14, 2012. Retrieved 2020-02-07.
- ^ Benson, Lisa (Jul 24, 2014). "Cool Places: Go inside Pure Romance's stylish new downtown headquarters". Cincinnati Business Courier. Retrieved 2020-02-07.
- ^ Wetterich, Chris (Jan 17, 2014). "Pure Romance adds to bedroom empire, buys competitor". Cincinnati Business Courier. Retrieved 2020-02-07.
- ^ Caproni, Erin (Jan 11, 2016). "EXCLUSIVE: Pure Romance acquires major competitor". Cincinnati Business Courier. Retrieved 2020-02-07.
- ^ Caproni, Erin (Feb 1, 2019). "Pure Romance debuts popup shop: PHOTOS". Cincinnati Business Courier. Retrieved 2020-02-07.
- ^ Neff, Jack (2019-09-24). "How this sex-toy business is helping transgender youth". AdAge. Retrieved 2020-02-07.
- ^ Erpenbeck, Meg (2020-05-11). "Quarantine sparks huge sales for Pure Romance". www.bizjournals.com. Retrieved 2022-08-19.
- ^ a b Taylor, Jon M. "Reports from Federal Trade Commission website" (PDF). FTC.
- ^ Mondalek, Alexandra (2018-05-29). "Why MLMs Are So Appealing to Military Spouses". Racked. Retrieved 2020-02-07.