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Distributors have been notified that Dot Dot Smile’s MLM opportunity “no longer makes sense for us to retain as a viable business.”

Dot Dot Smile’s MLM activities will end on June 30th, according to an announcement published last Friday.

The firm went on to say that, while acknowledging that “there have been a lot of worries and issues regarding the present situation of DotDotSmile,” “we have witnessed a transition from an emphasis on developing teams, and instead, the community is delving into wholesaling.”

Unless I’m missing something, Dot Dot Smile acknowledges that affiliate purchases account for the bulk of their sales revenue.

Instead of just stating this (and acknowledging it’s a pyramid scam), Dot Dot Smile refers to internal consumption as “wholesaling.”

This is significant given Dot Dot Smile’s ties to LuLaRoe – and LuLaRoe’s regulatory history.

LuLaRoe paid $4.7 million to resolve a pyramid scheme action brought by the Washington AG in February 2021.

LuLaRoe’s pay (was) predicated on the recruitment of other people as LuLaRoe MLM members, according to the Washington AG.

I highlighted parallels between it and LuLaRoe’s business strategy in BehindMLM’s mid-2019 Dot Dot Smile evaluation – notably the lottery distribution methodology, which completely incentivized affiliate inventory stacking (“wholesaling”).

Dot Dot Smile has not declared whether or not they are under regulatory investigation.

Returning to Dot Dot Smile’s MLM opportunity, the firm states that distributors will still be able to purchase items. Customers might be sold “on a separate platform with different criteria.”

More information on the aforementioned prospects will be forthcoming but be assured that if you like to continue selling DotDotSmile or directing clients to purchase, we would be delighted to have you do so.

Reading between the lines, it appears that Dot Dot Smile wants distributors to keep buying things, but without the MLM regulatory burden.

This means that distributors will no longer earn from product purchases made by their downline, something they are not happy about.

Dot Dot Smile, to their credit, does not filter distributor comments on their social media platforms.

Dot Dot Smile will stop operations as an MLM firm on June 30th, pending any future upgrades, which are doubtful.

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