Beware of Tocara- Review

Tocara is an MLM jewelry company that was established in 2007.

The business has its headquarters in Canada but also has operations in the US, using a Vermont PO Box as its corporate address.

On Tocara’s official YouTube channel, there is a UK prelaunch video from July 16, 2022:

The UK prelaunch of Tocara started on August 7. Uncertain of the timing of the complete launch, Tocara already has operations in three nations.

Moving forward Randall Markus, creator of Tocara (right).

Although Markus is mentioned in the “about” part of the Tocara website, there is little further information about him available than the fact that he co-designed the jewelry line.

Tocara belongs to the Canadian DSA, and through them, we discover more about Markus’ history;

(Markus) has a lengthy history in the jewelry industry, working in the design, marketing, and manufacturing sectors.

In 1979, he established Bijou Chateau Jewelry, a production, and wholesale company that serves many of the best jewelry shops, department stores, television shopping networks, online retailers, and direct sales companies in North America.

After a protracted engagement with Avon Products Inc., where he first discovered his love for the direct sales sector, he created Tocara in 2008.

According to Markus’ LinkedIn page, I mentioned Tocara’s launch in 2007. Markus lists himself as the company’s president since 1978.

Strangely, Markus’ LinkedIn page doesn’t make any mention of Avon. We refer to a 2019 post on Direct Selling News for further information on that relationship;

By the middle to end of the 1980s, Markus had created and produced exclusive items that attracted the attention of a significant direct seller: Avon.

Markus claims, “I developed and produced jewelry for Avon Canada and created a substantial company with them.”

Tocara is Markus’ first MLM endeavor as an executive, as far as I’m aware.

For a thorough analysis of Tocara’s MLM potential, continue reading.

The Goods from Tocara

Tocara offers a constantly-evolving selection of jewelry made of gold, silver, and stainless steel.

All of our jewelry is made of rhodium-finished sterling silver (.925), hypoallergenic surgical-grade stainless steel, or 10K gold and is backed by our limited lifetime warranty.

On the Tocara website, jewelry is displayed under the following four headings: Classique, Avant Garde, Pour Hommes, and Z-Inspiration.

I received the following notice when I clicked on any of these categories: “No items found”

Additional product categories (that actual function) for Tocara’s website include bracelets, earrings, necklaces, rings, accessories, and men’s.

Direct product viewing on Tocara’s website is also possible, as are season catalogs. Full retail cost is available for both choices.

Tocara declares regarding production;

Each item is made in our Montreal, Canada, studio under the direction of our founder Randall Markus and head jeweler Nathalie B├ęgin.

Our top focus is to produce items that are of the greatest caliber, are ageless, fashionable, and practical.

Spring/Summer 2022 is the most recent Tocara catalog that is accessible.

Plan of Compensation for Tocara

On its website, Tocara offers a two-page overview of remuneration. Options for affiliate membership are covered in half of that.

There is enough there to establish compensation, but not enough to satisfy due diligence.

The following breakdown has been enhanced by extra data I’ve collected, primarily through Tocara affiliate marketing initiatives. The data given was released within the previous one to two years.

Ranks for Tocara Affiliates

The pay structure for Tocara has 10 recognized ranks.

They are listed below with their respective qualifying standards.

Consultant: register as a Tocara affiliate Senior Consultant: find two affiliates, produce and maintain $1200 in PV and $2400 in GV per month, and join up as a consultant.

Four affiliates must be attracted for the Silver Director to create and maintain $1200 in PV and $4000 in GV each month.

PV stands for “Personal Volume” Vice President – not given Three Star Vice President – not offered Senior Vice President – not provided Pearl Director – not provided Ruby Director – not provided Emerald Director – not provided Diamond Director – not provided PV stands for “sales volume,” which includes both affiliate purchases and retail buys.

Group Volume is the acronym for GV. PV is produced by an affiliate and their downline is known as GV.

Shopper Commissions

Affiliates of Tocara are paid a commission of 25% to 40% on retail sales. This can be done in person or online.

There are no qualifications for variable retail commission rates.

Instant Bonus

Tocara pays new affiliates who reach their sales goals within a predetermined time frame:

Get a $100 jewelry voucher after selling $800 worth of Tocara products in your first 30 days.

You can get a “Tocara watch” if you sell $1200 worth of Tocara products in your first 70 days.

Get a $200 jewelry voucher when you sell $1600 worth of Tocara products in your first 70 days.

Get a $300 jewelry discount when you sell $2400 worth of Tocara merchandise in your first 70 days.

Get a $400 jewelry voucher after selling $4,000 worth of Tocara products in your first 70 days.

Uncertainty exists around whether affiliate purchases make up part of the sale criteria.

Based on recruiting, additional Fast Start Bonuses may also be obtained:

Get a $100 jewelry voucher after 70 days by bringing in one affiliate.

Get a $200 jewelry voucher after recruiting two affiliates in your first 70 days.

Within your first 70 days, refer three affiliates, and you’ll get a $300 jewelry discount.

Get a $400 jewelry voucher after recruiting four affiliates in your first 70 days.

Recurring Commissions

Tocara uses a unilevel compensation system to pay residual commissions.

An affiliate is put at the head of a unilevel team in a unilevel pay system, and each affiliate they recruited is positioned immediately under them (level 1):

New affiliates brought on by any level 1 affiliates are added to the original affiliate’s unilevel team at level 2.

If any level 2 affiliates bring on new affiliates, they are promoted to level 3, and so on down a theoretically endless number of levels.

Tocara sets a limit of six paying unilevel team levels.

Following are the percentages of sales volume achieved at each of these six tiers that constitute residual commissions:

5% at level 1 (personally recruited affiliates), 6% at level 2, 4% at level 3, 2% at level 5, and 1% at level 6.

I believe rank determines how many levels a Tocara affiliate may earn. But nothing about this is said.

Recruiting incentives

Down two levels of recruiting, Tocara affiliates get recruitment bonuses.

When affiliates who have been recruited qualify for Director and Leadership positions, recruitment bonuses are given.

Director level 1 recruited affiliates are eligible for bonuses of $500, and Leadership rank 1 recruited affiliates are eligible for bonuses of $500.

Director-eligible level 2 recruited affiliate receives a $250 bonus

Any Leadership Rank (level 2) recruited affiliate qualifies for a $250 incentive.

Silver Director is the starting position for directors, however, it’s not clear if this is the rank at which recruitment bonuses begin to apply.

Although it isn’t stated, I’m thinking Vice President is where leadership positions begin.

The pool of Leadership Bonuses

There is a Leadership Bonus Pool in Tocara’s pay scheme.

There are no specifics given.

Bonuses for achieving Ranks

Tocara offers the following one-time Rank Achievement Bonuses to affiliates that meet the requirements for Silver Director and higher:

If you meet the requirements at Silver Director, you’ll get $500, a “$1000 retail value sample pack,” and an “exclusive sterling silver charm bracelet.” If you meet the requirements at Pearl Director, you’ll get $1000, a “$1000 retail value sample pack,” and a “genuine pearl charm.” At Ruby Director, you’ll get $1500, a “$1000 retail value sample pack,” and a “genuine ruby charm.”

If you meet the requirements for Emerald Director, you will receive $2500, a “$1000 retail value sample pack,” and a “genuine emerald charm.” If you meet the requirements for Diamond Director, you will receive $5000, a “$1000 retail value sample pack,” and a “genuine diamond charm.” If you meet the requirements for Vice President, you will receive $10,000 and a “genuine diamond and black diamond charm.”

Residual Rank Success Up to the Vice President level, bonuses begin to accrue:

Vice Presidents are given “$500 worth of free goods every flyer and $1500 worth of free goods per catalog.”

“$1000 in free items per flyer and $2500 in free products per catalog” are given to Three Star Vice Presidents.

All new items are given away to senior vice presidents.

This, in my opinion, applies to the goods that Tocara sends out with each new campaign, including seasonal catalogs.

Senior Vice Presidents seem to get every new item of jewelry that Tocara releases for free.

Tocara affiliate membership is free to join.

Petite Kits cost $17 and include a bracelet and a $45 jewelry coupon.

An Elite Kit costs $99 and includes a bracelet and a coupon for $450 in jewelry.

Tocara Summary

On the whole, Tocara’s website does an excellent job of giving information.

Randall Markus’s executive information is missing a few errors, but failing to give comprehensive remuneration information is a significant compliance problem.

Tocara prevents customers from conducting thorough due diligence on their MLM offer by neglecting to give comprehensive compensation documents.

This may be against US law under the FTC Act.

Tocara, as far as I can tell, is essentially an MLM business based on Markus’ jewelry enterprise.

Bijoux Chateau Inc., often known as Chateau D’argent, is where it all begins. A “branch” of Chateau Jewelry is called Bijoux Chateau.

Randall Markus is the owner and CEO of all of these businesses.

As a certified importer of Chinese jewelry and fake jewelry, Chateau Jewelry.

Even though Tocara’s jewelry may be made in Canada, the raw materials seem to come from China.

This isn’t necessarily a drawback; I’m only bringing it up because Tocara’s website doesn’t make any mention of it.

There don’t seem to be any quality control problems with Tocara or Markus’ other jewelry companies. This is significant since Markus has extensive experience importing jewels outside of Tocara.

The party plan is Tocara’s principal marketing strategy.

We take pleasure in offering the most generous host program available every day.

The best part of our host program is the regular promotions that might get you free jewelry and huge discounts! And if that weren’t enough, on occasion we even throw in a Host Bonus!

Why then would you not want to be a Host?

Our hosts receive complimentary jewelry of their choosing worth $245 on average!

Jewelry is given to hosts as compensation for the purchases made by guests at a hosted party. If the additional requirements below are satisfied, a portion of this represents a 75% discount:

-Organize a party

-Send your guest list.

-Have at least ten paying guests at your party.

-At least one buddy should plan their party.

-Ask three or more friends to plan their party.

Although the following two phrases appear superfluous, Tocara’s website lists them.

Unfortunately, I am unable to offer you an exhaustive analysis of Tocara’s compensation structure because it withholds this information from customers.

According to what I’ve observed, the membership fees are fair, there doesn’t seem to be a monthly commitment, and the rank requirements aren’t particularly concerning.

Depending on how high the monthly rank volume requirements rise, there are no retail volume limits, which can allow for inventory piling.

The need for a senior consultant to have $1200 in PV and $2400 in GV every month is already a rather high hurdle.

Even though Tocara’s website does not specifically state it, I also found references to affiliates receiving “advance purchase of retired liquidation jewelry”.

It appears that they are the first to purchase discontinued lines. I’m not sure how it works into the pay structure, but perhaps there are some volume restrictions inside.

Only three items (a watch, a “Laurette bracelet,” and a “Denise necklace”) in the Tocara catalog that I bought based on pricing totaled more than $100. This changed when I deliberately chose necklaces and discovered some items costing $150 or more.

This and the “no items found” error suggest that Tocara’s online catalog needs some improvement.

Other necklaces ranged in price from $87 and below. Other types of jewelry often cost between $70 and $150. In the upper-low range or lower midrange, the price looks fair.

It should be pricey enough for you to hold onto it but not so pricey that you’ll lose your mind if you lose a piece.

Currently, 95% of visitors to the Tocara website are from Canada. Tocara’s failure to take off in the US may be a result of difficulties launching the brand in the UK.

$17 for a $45 jewelry coupon and $99 for a $450 jewelry voucher sound like very good value to get you started, assuming there are no hidden fees.

Take a look at Tocara’s catalog, try not to spend more on inventory than you are making, and see how you perform.

After three months, I’d reevaluate (do a thorough accounting, taking into account time spent on the business), and then move forward.

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