Fact Check: Tropic, the cosmetics brand, is a scam mlm scheme

Fact Check: "Tropic, the cosmetics brand, is a scam MLM scheme"

What We Know

Tropic Skincare is a British company that operates using a multi-level marketing (MLM) business model. Founded by Susie Ma, the company sells skincare and cosmetic products and is based in Croydon, South London. Initially launched in 2007, Tropic became officially incorporated in 2011. After Susie Ma's participation in the seventh series of The Apprentice, Alan Sugar invested in the company, becoming a 50/50 partner. In 2023, Ma bought back Sugar's shares, regaining full ownership of the business.

Tropic's business model involves direct sales and MLM, where salespeople, known as "Ambassadors," earn commissions on products they sell and on sales made by people they recruit. Ambassadors earn a 25% commission on sales and can advance through various levels within the company. The company emphasizes ethical practices, being certified by the Vegan Society, PETA, and Cruelty Free International.

Analysis

The claim that Tropic is a "scam MLM scheme" requires careful examination of both the MLM business model and the company's practices. MLMs are often criticized for their structure, which can resemble pyramid schemes if the primary focus is on recruitment rather than product sales. However, Tropic appears to differentiate itself by emphasizing product sales over recruitment. According to Susie Ma, the company aims to empower women and provide them with income opportunities, addressing some common criticisms of MLMs.

Tropic has been recognized for its growth, featuring in The Sunday Times Fast Track 100 as one of the UK's fastest-growing skincare brands. This suggests a level of legitimacy and success not typical of scam operations. Furthermore, Tropic has an A+ rating with the Better Business Bureau, indicating a positive reputation in terms of business practices and customer satisfaction.

However, challenges remain inherent in the MLM model. As noted by some critics, the potential for earning a significant income without recruiting others is limited, which is a common issue in MLMs. This can lead to perceptions of the model being exploitative, especially if individuals are pressured to recruit rather than focus on sales.

Conclusion

The claim that "Tropic, the cosmetics brand, is a scam MLM scheme" is Partially True. Tropic Skincare operates as a legitimate MLM, with a focus on ethical business practices and product sales. It is not a scam in the traditional sense, as it provides real products and has a positive reputation. However, like many MLMs, it faces criticism for the challenges associated with earning substantial income without recruitment. The company's structure and practices do not fit the definition of a pyramid scheme, but the inherent issues of the MLM model contribute to the perception of it being a "scam" for some individuals.