Motor Club of America: Is overpriced protection worth it? [Review]

These guys have been around forever, and I’ll just say it now…

It’s definitely not a scam.

But is it a good deal? Well, do you consider paying double the price for your services a good deal?

Motor Club of America provides roadside assistance plans with the added bonus of an MLM opportunity on the side.

 

If it’s a good product, why wouldn’t you join? Keep reading to find out.

FAQ

1. What does Motor Club of America sell? MCA offers cheap roadside assistance plans with unlimited towing for members in the US and Canada.

2. What are Motor Club of America’s most popular products? They have two plans, both covering just about everything you need in roadside assistance. The MCA Security Plan is popular because, for $9.95 a month, you get 24-hour emergency road service and towing to the nearest facility for covered cars or pickup trucks, legal defense coverage, emergency travel expense reimbursement, medical expense benefits, and worldwide travel assistance. If you need a bit more control over where your vehicle is towed, towing for additional vehicles, or need AD&D coverage as well, you can get those added features with the Total Security Plan at just $19.95 per month.

3. How much does it cost to join Motor Club of America? You don’t have to pay anything to become a distributor. MCA doesn’t charge an admin fee or setup fee. Not only that, membership in the MCA Security Plan is optional.

4. Is Motor Club of America a scam? No, MCA is a legit business offering a real product. As with any insurance plan, the contract is written to avoid unnecessary payouts, so be prepared for that. And as an MLM, it may give you a little extra money, but you’re never going to get rich selling roadside assistance plans.

5. What is Motor Club of America’s BBB rating? A+

6. How long has Motor Club of America been in business? Since 1926

7. What is Motor Club of America’s revenue? We couldn’t find any revenue reports online, but it’s estimated to be $1 to $5 million.

8. How many Motor Club of America distributors are there? No numbers have been published online.

9. What lawsuits have been filed? In 1989, Joan Marie and Gregory Nikiper appealed a case against MCA after Joan Marie was injured in a car accident and MCA refused to pay. It was ruled that all recoveries from liability insurance must be credited against the underinsured motorist’s coverage limits. [1]

10. Comparable companies: LegalShield, Primerica

The company has definitely done a few things right to get to where they’re at, but in terms of a passive income opportunity, it’s not the best.

Click here for my #1 recommendation

Either way, here’s the full review on Motor Club of America, the company.

Overview

The Motor Club of America’s history dates wayyy back to 1926 (up there in age with Avon and Amway).

The club was started by a group of three brothers from Atlantic City, New Jersey, who were children of Russian immigrants. William, Samuel, and David Green started Motor Club of America at just the right time, when households all across America were starting to purchase cars. Their company took off and eventually branched out to the rest of the country, opening dozens of offices across the northeast, southeast, and Midwest.

The brothers worked together for over 50 years providing emergency roadside services, towing, repairs, and maps for drivers all over the country. In 1986, they sold the entire company to Trac, Inc., owners of the Thrifty-Rent-A-Car system. By 1992, they were conducting business in all 50 states and Canada.

TVC Marketing, founded by a veteran of the motor club industry (and, weirdly enough, former marketing arm of Pre-Paid Legal), now owns Motor Club of America and has since 1996. The founder Coffee Virgil, weirdly enough, used to be the marketing arm of Pre-Paid Legal. TVC stands for ‘Truckers Voice in Court’, and they also offer legal services to truckers.

Motor Club of America now has over 6,000 auto repair and service centers nationwide

How much does Motor Club of America cost?

It’s free to become a distributor, but it’s recommended that you buy a Total Security membership for $19.95/month. It’s easier to sell a product you actually use.

Products

Motor Club of America does NOT sell car insurance. They sell various other roadside services. MCA is basically AAA with a direct selling structure (and higher prices).

They offer two membership plans: Security ($9.95/month) and Total Security ($19.95/month).  In the end, you’re shelling out around $120 or $240 a year for these memberships.

Without a doubt, these are useful services in the membership. However, it’s not that different from AAA, which costs HALF the price (about $66/year for a basic membership, $100 for Plus, and $126 for Premiere).

All memberships include…

Unlimited Roadside Assistance

Most competitors cap service calls on their basic plan to 2-4 per year. MCA allows one call per day all year long. Roadside assistance services include lockout assistance, fuel delivery, tire changing, and battery boosting.

Travel Assistance Reimbursement

If your vehicle is not operating or in the repair shop for a few days, MCA will reimburse you up to $500 for a rental car, hotel, or meals if you are more than 50 miles from home.

Planning and Travel Reservations

This is a system that helps you map out and plan your travels, and it includes a reservation system for air travel, rental cars, and hotels.

Arrest Bonds

MCA membership includes a cash bail of up to $500 for traffic violation incidents. This is only available in some states.

Bail Bonds

MCA will release up to $25,000 on bond to release you from jail if you were charged with a moving traffic law violation as the driver.

Attorney Fees

As long as you are driving your covered auto, MCA will pay up to $2,000 in attorney fees should you receive traffic-based police charges.

Stolen Vehicle Reward

In the event that your vehicle is stolen, MCA will offer a reward of up to $5,000 to the person or law enforcement agency that recovers the car.

Credit Card Protection

Financial coverage of up to $1,000 in losses in the case that your identity is stolen.

Discounts

Members can use their card for 15%-65% discounts on prescriptions, dental procedures, eye wear and eye exams, rental cars, and major hotel chains.

Emergency Reimbursement Benefits

Up to $500 in cash for Emergency Room or Trauma Center treatment due to car-related injuries.

Daily Hospital Benefit

If you are hospitalized due to a vehicle-related accident that is covered, you can receive up to $150 per day to cover your hospital stay for up to 365 consecutive days or $54,750.

Accidental Death Benefit

They offer $10,000 accidental death coverage to members.

The Security Plus membership offers accident coverage, hospital benefits, and emergency benefits under all circumstances, not just vehicle-related. The Total Security membership includes all of the above plus higher coverage levels, up to 100 miles towing per service call, the customer can choose towing destination, and RVs, motorcycles, and trailers are included.

Compensation Plan

Distributors are given an advance on their commission for membership sales – the entire year’s worth is given to you up front. However, if one of your customers cancels their membership, you have to pay that back.

For each basic Security membership you sell, you get a $40 advance for the entire year. For Total Security, you get $80.

If, for example, you can sell 5 Security Plus memberships per week, you would make $21,320 for the year. That’s not an easy feat, though. Better have a lot of friends and family members you’re willing to alienate.

Distributors also earn overrides on their 1^st Level (direct) recruits. If someone you personally sponsored sells the basic Security membership, you get $4. If they sell Total Security, you get $6.

Recap

Ultimately, AAA is half the price, so the only reasons for buying into this are:

• You’re clueless and haven’t shopped around or
• You’re trying to cash in on the affiliate program

If you’re trying to cash in on the affiliate program, you should think long and hard about laying down $240/year, because if the only people who would purchase a membership are clueless people who have done NO shopping around, you’re probably not going to find enough customers to keep your “business” afloat.

Look, not a hater of the company, but there are a lot better ways to build a passive income business out there.

I’ve been involved with network marketing for almost ten years so I know what to look for when you consider joining a new opportunity.

After reviewing 200+ MLMs and business systems out there, here is the one I would recommend:

Click here for my #1 recommendation

from MLM Companies

Monat: Innovation and value gone very wrong [Review]

Monat is like the “doterra” of hair products.

They “get it.” They understand that the only way a direct sales company has success is by the value created by their products.

In other words, would anybody buy these if there wasn’t an “opportunity” involved?

For 99% of MLMS, that answer is “no.”

Why would I know?

Well, I’ve studied the space for years and run two of the biggest network blogs in the world.

Monat is on my short list of companies that actually have a product that is innovative and provides market value…

If only they weren’t embroiled in a rash of heavy-hitting lawsuits. Keep reading to learn more.

FAQ

1. What does Monat sell? Monat focuses exclusively on hair care. Product lines include Hydration, Volume, Densify Duo, Stylized, Power Boost, Magnify, Monat Junior, Monat Black, Colour Enhance, Effortless Style, R3, Advanced Hydrating, and Restructuring.

2. What are Monat’s most popular products? The Smoothing Deep Conditioner works on all hair types to nourish, control frizz, and add brilliant shine. The Rejuveniqe Oil Intensive adds 13+ natural plant and essential oils, antioxidants, and nutrients to your scalp and hair for instantly healthier hair and shine.

3. How much does it cost to join Monat? You can join for $99 USD or $125 CAD, with an annual $19.95 renewal fee.

4. Is Monat a scam? No, they’re a legit business that’s been well-regarded in the industry. They’ve been awarded the 2018 Making a Difference Award and the 2017 Journey to Success Award by the DSA of Canada; the 2016 Gold Stevie Award, Silver Stevie Award, and Bronze Stevie Award from the American Business Awards; and the 2016 Silver Stevie Award and Bronze Stevie Award by the Stevie Awards for Women in Business. They’ve also been featured by NBC, ABC, and the Hallmark Channel.

5. What is Monat’s BBB rating? D

6. How long has Monat been in business? Since 2014

7. What is Monat’s revenue? $314 million

8. How many Monat distributors are there? 120,000

9. What lawsuits have been filed? In the first five months of 2018, Monat racked up nine lawsuits. The cases related to misleading marketing about the safety of their products, failure to warn consumers that the products may cause hair loss or damage, and several alleging they operate a pyramid scheme. (That one’s to be expected, right?) [1, 2, 3] Amid all this legal trouble, two women tried to shut down Monat from defending themselves with defamation lawsuits. In April 2018, a federal judge ruled in favor of Monat, giving them freedom to protect themselves from online attackers intent on defaming the company without evidence. [4]

10. Comparable companies: Arbonne, Pure Haven Essentials, Oriflame, Perfectly Posh

They’ve been an impressive company, but the sudden onslaught of lawsuits doesn’t look good.

The truth is, if they weather them, they’ll be stronger than ever, much like Amway and other MLM big names. So should join them?

Not necessarily. There are still better ways for ladies to make “side money” from home.

Business opportunity-wise, there are much better out there.

Click here for my #1 recommendation

(Doterra, Scentsy and Jeunesse are other product-first examples of MLMs that provide value…but the vast majority are overpriced and provide little value to the marketplace.)

Beauty is a crowded space in network marketing. Monat is more of the “up-and-coming” in this category, and definitely has the most “buzz.”

Overview

Monat does everything that most MLMs try to do but fail at miserably.

They are classy and forward-thinking. Their products are naturally based and backed by tons of research. Their home parties are actually sort of fun.

And they’re trendy AF:

Monat was launched just a couple years ago in 2014 by Luis and Rayner Urdaneta. They’re headquartered in Miami, Florida. Monat stands for Modern Nature.

Within just one year of launch, Monat was already pushing $25 million in annual revenue. They hit the ground running fast, and it’s really no wonder.

For starters, brother-son duo Luis and Rayner had already run one very successful direct sales company in the cosmetics niche: L’eudine. They’re a massive ($200+ million in annual revenue) MLM in Latin America that has recently started to expand into the United States.

What’s more, Monat is a subsidiary of parent company Alcora, also founded by Luis. So they already had some massive capital and experience to work with when they finally started up Monat.

By 2016, annual sales for Monat was already at $41 million. All this won them the 2016 Gold Stevie award for Startup of the Year.

How much does Monat cost? Monat has a $99 start-up fee that includes a kit filled with marketing materials and training information.

Products

Monat sells naturally-based (vegan and cruelty-free) hair care products at a premium price, and it’s working well for them. Their products are scientifically tested and very popular among their loyal following.

One of the reasons Monat has done so well is that they’ve formulated products that combat specific hair care issues that many people suffer from such as hair loss, aging, dandruff, and thinning/breakage.

Some have reported an itchy scalp at the beginning, but this is part of the repair process. Something must have gone wrong in early 2018, though, because the sores didn’t go away, and some people experienced hair loss or hair damage.

You’ve got products like Head & Shoulders for dandruff, but they’re full of parabens and harmful chemicals. Monat isn’t supposed to have those type of products, so the rash of lawsuits over their harmful ingredients is surprising. We’ll see how whether they can come out on top.

In spite of the bad press, the concept of their hair products remains good.

You’ve heard of anti-aging creams and foundations (see the top cosmetic and skincare MLMs), but have you heard of anti-aging hair care products?

Probably not, because Monat is the first company to develop products that fight hair aging.

Yes, hair ages. According to a study done by the University Hospital of Zurich’s Department of Dermatology and Hair Clinic, aging causes weathering of the hair shaft and aging of the hair follicle. Aside from graying, this also causes your body to decrease its hair production greatly over time, and it causes hair loss.

The primary formula that Monat uses to combat these effects is their Rejuvinique oil, which can be found in most Monat products. It’s composed of a patented blend of 11 different oils that are designed to keep your hair follicles healthy and promote hair growth by restoring your hair’s essential oils and nutrients.

Monat products are made from high-quality botanicals and essential oils, and they don’t contain sulfates, silicone, parabens, harsh fragrances, and other fillers. Unlike most hair products, Monat’s aren’t a short-term fix that will damage your hair with harmful chemicals in the long run.

Their most popular product is their intense care shampoo:

As well as their intense care conditioner:

They aren’t cheap, at all. Don’t expect drugstore prices. However, if you compare them to high-end salon products, the pricing is about the same. Most products range from $30-$60. Their Magnify Treatment System, meant to increase volume, comes with a shampoo, conditioner, and mousse for $99.

Compensation Plan

Of course, if you enroll as a distributor, you get pretty generous discounts on these products.

There are 5 ways to earn with Monat:

1. Sales Commissions
2. Sponsor & Develop
3. Builder Bonus
4. Advancement Bonuses
5. VIP Customers Sales

Sales commissions range all the way up to 40%, which is very generous.

It’s pretty much as high as it gets in MLM, with the exception of a select few that offer up to 50% commission. You do have to work pretty hard to reach that 40% commission rate though, as it requires you to sell a lot of product on a monthly basis.

Sponsor & Develop is the bread and butter of this plan. This is where you get rewarded for building up a large, successful downline, and it’s where you’ll make most of your money if you do well with Monat. Aside from a $100 fast start bonus and a $150 fast builder bonus, you can also earn up to 12% in unilevel bonuses, 4% in generational bonuses (up to 5 levels deep), and a 5% network bonus.

Builder Bonus is for folks who move up quickly to Silver or Platinum status and help their team members do the same. You can earn a $500 or a $1,000 bonus.

Advancement Bonuses are matching bonuses that you can earn on the achievements of your direct recruits. They range from $150 to $500.

VIP Customers Sales are customers that have signed up for the VIP program, which puts them on a recurring monthly autoship for their favorite products. You’ll earn a 15% commission on their monthly purchases without even lifting a finger.

Recap

Honestly, I think these guys have some great things coming in their future…

If they can weather the lawsuits they’ve been hit with, that is.

They’ve got an innovative product, a pretty decent compensation plan, and solid leadership.

Product-wise: excellent.

Opportunity-wise: great, considering they’re a multi-level marketing company.

I’ve been involved with network marketing for almost ten years so I know what to look for when you consider a new opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:

Click here for my #1 recommendation

 

from MLM Companies

Paparazzi Accessories: Cheap and trendy wins the day [Review]

Paparazzi Accessories is a popular network marketing company that sells cheap, trendy jewelry via the direct sales model.

There are entire stores in the mall dedicated to cheap necklaces and earrings that break or tarnish after five wears (hint: Forever 21) because, honestly, cheap fashion is what the people want.

They want runway looks that cost them pennies on the dollar, and they don’t care if they only get to wear them once or twice. When a necklace costs you $5, you just go buy a new one.

That’s basically the concept behind Paparazzi Accessories: trendy, subpar quality jewelry at low, low prices. $5, actually, for everything on the site.

So should you get involved with Paparazzi? We’ll let you decide.

FAQ

1. What does Paparazzi Accessories sell? Paparazzi sells trendy accessories—necklaces, bracelets, earrings, rings, and hair accessories—that are cheap, lead-free and nickel-free (a rarity with low-cost jewelry), and always changing.

2. What are Paparazzi’s most popular products? Each month, Paparazzi creates a Fashion Fix with coordinating pieces of jewelry that fit the current styles and season. You can also build your own personal showroom filled with $5 accessories to choose from. It makes jewelry selection super easy.

3. How much does it cost to join Paparazzi? You can join Paparazzi Accessories by buying one of three starter kits: the $99 Preview Pack, the $299 Small Home Party Kit, or the $499 Large Home Party Kit.

4. Is Paparazzi a scam? No, Paparazzi Accessories is a real business, selling real products. But will you get rich selling inexpensive jewelry? Probably not.

5. What is Paparazzi’s BBB rating? F

6. How long has Paparazzi been in business? Since 2010

7. What is Paparazzi’s revenue? $500,000 to $1 million

8. How many Paparazzi distributors are there? No numbers have been shared online.

9. What lawsuits have been filed? We didn’t see any lawsuits listed online.

10. Comparable companies: Stella & Dot, Origami Owl

For stylin’ women who don’t want to wear the same thing twice, Paparazzi is a dream come true. But when it comes to the income opportunity, there are more sustainable options out there.

Click here for my #1 recommendation

Either way, here’s the full review on Paparazzi Accessories.

Overview

The company was founded in 2010 in Hurricane, Utah.

The mission on their website states:

“We believe that trendy accessories can be available, and affordable, to women everywhere.”

Even starving children in Haiti! Everyone deserves to look fabulous! Touching, really.

The company was launched by sisters Misty and Chani as a fun side hobby, but it blossomed quickly due to their low prices. Within 6 months, they’d already grown 900%. [1]

How much does Paparazzi Accessories cost?

Getting started with Paparazzi Accessories requires you to buy one of three starter kits:

Preview Pack – $99

• 35 Pieces of jewelry
• $175 retail value

Small Home Party Kit – $299

• 120 Pieces of jewelry
• $600 retail value

Large Home Kit – $499

• 200 Pieces of jewelry
• $1,000 retail value

There’s no monthly minimum for consultants, but to be considered active and qualify for bonuses and team commission, you need to purchase at least 50 PV per month.

Products

All Paparazzi products are individually designed and sourced by Misty and Chani, and they work directly with the manufacturers, according to their website. I’m going to guess that by “directly” they mean “via emails across the globe,” because at $5 a pop, these babies have to be manufactured by children in China.

Turns out that, yep, all accessories are made in China. They’re all also lead-free and nickel-free.

The actual designs are cute and trendy, similar to what you’d find in an H&M or Forever 21. They probably don’t last long, but at $5, who cares?

Compensation Plan

There are 3 ways to make money with Paparazzi Accessories.

Direct Sales

Through your personal sales, you make retail profits on each sale. This is the difference between retail price and your wholesale price – the price difference with Paparazzi Accessories is 45% commission, which is pretty generous. Then again, everything is $5, so you’re actually only making $2.25/sale.

Build Your Team

Paparazzi has a hybrid plan that offers unilevel team commissions up to 3 levels deep and generational bonuses up to 3 generations deep, according to the chart below. Your organization is split into two legs that must remain balanced in order for you to achieve higher ranks. PV is your personal volume in sales per month, and OV is the sales volume for your entire organization.

Star Consultant (min. 50 PV): 5% commission on Level 1

Director (min. 50 PV, 3 personally sponsored consultants): 10% commission on level 1 & 5% on Level 2

Premier Director and above (min. 50 PV, 3,000 OV, and 3 personally sponsored consultants): 10% commission on Level 1, 5% on Levels 2 & 3

Generational bonuses look like this…

Executive Director (min. 100 PV, 6,000 OV, and 3 personally sponsored consultants): 1% on Generation 1

Producer (100 PV, 12,000 OV, and 3 personally sponsored consultants): 3% on Generation 1

Premier Producer (100 PV, 25,000 OV, and 3 personally sponsored consultants): 3% on Generation 1 and 1% on Generation 2

Executive Producer (100 PV, 40,000 OV, and 3 personally sponsored consultants): 3% on Generation 1 and 3% on Generation 2

Fashionista and above (100 PV, 75,000 OV, and 3 personally sponsored consultants): 3% on Generations 1, 2, and 3

You can see from the way the plan is structured that the company doesn’t care at all about your personal sales or your ability to personally sponsor and train recruits. Once you hit the 100 PV requirement, you never have to increase your sales rate again to move up in rank, and you also never have to recruit more than 3 people directly in order to move up in rank. It’s all about getting in early and getting your personal recruits to recruit heavily and so on. Don’t expect to receive great training or sales techniques from this company.

The company also offers a Business Building Bonus of 15% commission on your new recruits’ startup kit, a Legacy Bonus for people ranked A-Lister or higher, an Infinity Bonus for Luxe Jetsetters and Impressionistas (the two highest rankings in the company), and a Cash Bonus of $25,000 and $50,000 for hitting and maintaining the Luxe Jetsetter or Impressionista rank.

Online Bonus

This is just your 45% commission on personal sales, but through a personal website you’re given by the company when you become a consultant. In other words, it’s your profit off online sales on your own website. It’s the same thing as the first one, except you’re selling online instead of at cheesy in-home parties.

Recap

Paparazzi isn’t a scam, but it is just typical mediocre costume jewelry like you’d find at Origami Owl, and we’ve seen how they’re doing.

However, they might be onto something with this “$5 for everything” idea. In an industry where products are almost always overpriced, they offer some of the cheapest goods on the market. Everyone can afford a $5 necklace. And the stuff is trendy, too.

Are you going to get rich off of it? No. Will you make a few extra bucks? Maybe, if you’re lucky.

I’ve been involved with network marketing for almost ten years so I know what to look for when you consider a new opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:

Click here for my #1 recommendation

from MLM Companies

Oriflame: Cosmetics that dazzle but won’t make you rich [Review]

Oriflame wants to be Prom Queen at the MLM Ball, and they just might win the crown…if they can knock out a few serious contenders on their way to the top.

Their vision is to become the #1 beauty direct sales company in the world, and they’re only a few slots off. However, some of the beauty queens ahead of them (Avon, with over $6 billion in annual revenue, and Mary Kay, with almost $4 billion) don’t take kindly to competition.

Should you get involved in Oriflame?

Keep reading to find out.

FAQ

1. What does Oriflame sell? Oriflame sells skin care products, cosmetics, fragrances, personal and hair care, accessories, and wellness products.

2. What are Oriflame’s most popular products? Some of Oriflame’s popular products are their Royal Velvet Night Cream for skin over 40; the ONE IlluSkin Face Primer, a tone-enhancing face primer that evens the skin tone and extends the wear of your foundation; the diamond Cellular Micellar Solution Cleanser, an all-in-one cleanser, toner, and makeup remover made with Micellar technology; and NovAge, scientifically advanced skin care designed to correct and slow the signs of aging.

3. How much does it cost to join Oriflame? You can join for free, but it’s recommended that you buy a start-up case for 20 Euros. (While they have a U.K./U.S. catalog, they don’t recruit distributors in the U.S. Good luck if you’d like to build a business state-side.)

4. Is Oriflame a scam? No, Oriflame is a publicly traded company that’s well-respected for their quality products.

5. What is Oriflame’s BBB rating? A+

6. How long has Oriflame been in business? Since 1967

7. What is Oriflame’s revenue? $1.5 billion

8. How many Oriflame distributors are there? 3 million

9. What lawsuits have been filed? In 2018, Oriflame was slapped for illegally using Fifa World Cup imagery. [1] Also in 2018, Vietnam penalized Oriflame for MLM violations. [2] In 2014, Russia searched Oriflame’s Moscow offices and seized documents related to unpaid taxes amounting to $84 million from 2006 to 2010. Oriflame protested that their tax practices were in accordance with local and international legislation. [3]

10. Comparable companies: Mary Kay, NuSkin

While they offer some great products, the income opportunity offered by Oriflame isn’t nearly as impressive.

Click here for my #1 recommendation

Either way, here’s the full review on Oriflame.

Overview

Oriflame is a Swedish cosmetics MLM founded in 1967 by brothers Jonas Jochnick and Robert Jochnick. They have been a publicly traded company on the NASDAQ since 2004.

Since launching 50 years ago, they’ve expanded to operate in over 60 countries around the globe, and they now have a Salesforce of 3 million independent consultants.

They’re currently doing over $1.5 billion in annual sales, making them one of the few members of the coveted MLM Billion Club (those that have hit $1 billion in annual sales). There were only 20 MLMs to do this in 2016. [4]

Their corporate offices are now located in Luxemburg and Switzerland, and they have global production centers in Sweden, Poland, China, Russia, and Ireland.

Oriflame has expanded to sell its products in almost every corner of the globe…except the United States, interestingly.

They sell all over Europe, in Asia, Latin America, Africa…but nowhere north of Mexico. You can still order Oriflame products from their UK website and have them shipped to the U.S. (with international shipping costs), but they don’t have any consultants reppin’ the red, white, & blue (the bald eagle-lovin’, burger eatin’ red white and blue, not the baguette and stinky cheese one).

How much does Oriflame cost?

It is free to become an Oriflame consultant. Yep, 100% free. You do need to purchase a catalog so you can show off your products to potential customers, but the catalogs cost something like $.35 cents.

If you don’t make any sales for 12 months, you will lose your Consultant title and have to sign up again if you want to continue selling. If you don’t sell anything for a year, you should probably just throw in the towel anyway.

Products

The Oriflame catalog consists of over 1,000 Swedish beauty products that are naturally-inspired and vegan.

They have a Skin Research Institute where new, innovative products are created. They’re then sent to the company’s global research and development center where they employ over 100 scientists to test and perfect new products.

Products are all naturally-based and vegan. They include makeup, fragrance, skincare, bath and body, hair, accessories, and men’s products.

Here are some top sellers:

• White Original Eau de Parfum: £30
• 5-in-1 Color Stylist Lipstick: £10
• 5-in-1 Wonder Lash Mascara: £9
• Eleo Hair Mask: £7.95
• Age Revive Anti-Aging Cream: £5.95 (sale)
• Blackhead Clearing Mask: £7

As you can see, very reasonably priced. Anti-aging cream for £5.95? There are some MLMs that sell that stuff for triple-digits. Whether or not it actually works is another question – you get what you pay for.

Benefits

Benefits associated with their skincare products have not been proven, but claims include:

• Anti-aging
• Minimize wrinkles
• Moisturize
• Fight blackheads
• Prevent acne
• Clear blemishes

Side Effects

There are no known side effects associated with Oriflame products.

Compensation Plan

Commission on personal sales is made via retail commission, which is the price difference between your discounted price as a consultant and the product’s actual retail value.

If you purchase less than £130 worth of product at a time, you get a 20% discount. If you purchase over £130 worth of product at a time, you get a 30% discount.

So that’s an added 10% in commission, which is pretty significant. Therefore, you really want to be making orders of £130 or more at a time. Parties are the best way to do this (eyeroll at in-home parties), because if you’re selling to one friend at a time you probably won’t hit that mark. You might end up ordering extra product to get 30% commission and hoping to sell it only to be left with a basement full of unused skin cream.

There’s also a delivery charge of £4.50 per order.

The rest of the comp plan is pretty typical MLM…levels, bonuses, and rank advancements galore.

If you can build a team of at least 5 members with 4 direct recruits and total monthly sales that hit 1000 BP (about £1,300), you become a group manager and start making money off your team. You get 9% commission on all of your direct consultants, an extra 5% commission on all of your personal sales, and 6% commission off any of your direct promoted Group Managers.

After that, you become a Senior Group Manager and start earning on indirect consultants in your downline too (5%). As a District Manager, 4.5% bonus is tacked onto all your commission rates on both personal sales and the sales of members in your downline.

This continues on and on to Executive Director rank, where you can really get rich off this scheme. Of course, that ranking includes only a handful of the company’s millions of consultants.

Recap

There’s almost no barrier to entry. It’s free to join.

So, if you really like their products, it’s a great way to get a good discount. Who knows, maybe you’ll even make a few bucks selling eye cream and mascara to your gal pals or coworkers.

What you’re not going to get, though, is rich. That’s just the way MLM is set up – a select few make it to the top of the pyramid and leech off everyone below them.

This company has been around long enough to already have plenty of top consultants, meaning there’s not much room for you to make your way up there.

I’ve been involved with network marketing for almost ten years so I know what to look for when you consider a new opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:

Click here for my #1 recommendation

from MLM Companies

Omnilife: Shady business or real opportunity? [Review]

We always love a good rags-to-riches story…

But sometimes, the ride to the top is full of shady deals and broken rules.

Is that the case for Omnilife? We’ll let you decide.

Omnilife is a popular Latin network marketing company headquartered in Guadalajara, Mexico.

Their founder went from selling street tacos in Guadalajara to smuggling thousands of $$$s worth of Herbalife supplements across the U.S.-Mexican border, to billionaire, CEO, and movie producer.

Omnilife is pretty much the “Latin American Herbalife” as the two companies’ products are strikingly similar and the founder was a former distributor of Herbalife back in the day.

FAQ

1. What does Omnilife sell? Omnilife provides nutritional supplements with a unique blend of ingredients vital to a healthy life. Committed to improving the lives of people around the world, the company sells nutritional, personal care and cosmetic products.

2. What are Omnilife’s most popular products? Their top sellers are the Cafezzino de Olla Supreme, a dietary coffee with green coffee bean extract for weight loss; Aloe Beta Bottle, a drink designed to cleanse, detox, and heal the body; Magnus, a vitamin, mineral, and amino acid supplement; and OML Plus Gel Premium, a gel moisturizer loaded with antioxidants, vitamins, and moisturizing agents to soften and smooth the skin.

3. How much does it cost to join Omnilife? To join, you need to buy a distributor kit, which costs $39. It includes a bottle of supplements, 2 promotional DVDs, a catalog, a training manual, and a backpack for additional marketing and training materials.

4. Is Omnilife a scam? Probably not. There may be some shady business practices going on, and you’re not likely to get rich with Omnilife, but they appear to be a legit business.

5. What is Omnilife’s BBB rating? Omnilife isn’t listed by the BBB.

6. How long has Omnilife been in business? Since 1992

7. What is Omnilife’s revenue? $375.93 million

8. How many Omnilife distributors are there? 961,024

9. What lawsuits have been filed? In 2015, Angelica Fuentes Tellez filed a lawsuit against Jorge Vergara, founder of Omnilife, for violating the Racketeer Influenced and Corrupt Organizations Act. She alleged Vergara tried to force her to give up her shares in Grupo Omnilife by ousting her from Grupo Omnilife, then taking complete control of Grupo Omnilife and Omnilife USA, including a pattern of racketeering behavior such as mail fraud, wire fraud, and extortion. [1] In 2017, Vergara made a motion to compel arbitration and a motion to stay discovery, both of which were denied. [2]

10. Comparable companies: Herbalife, Amway

It sounds like a stable company. But as far as an income opportunity goes, there’s better options out there.

Click here for my #1 recommendation

Either way, here’s the full review on Omnilife.

Overview

Omnilife is a Mexico-based MLM founded in 1991 by Jorge Vergara. They’re headquartered in Guadalajara, Mexico.

Vergara is still the company’s CEO, and he’s a pretty important dude. He’s a famous Mexican businessman and film producer, and he’s got a net worth of $1.5 billion. He produced noted films such as The Assassination of Richard Nixon and Y Tu Mamá También, an Academy Award-nominated film that is still one of Mexico’s most acclaimed.

But mostly, Vergara is known for his rise to the top, going from selling street tacos to having a 10-figure net worth. He got into real estate in Mexico in the 80s and met John Peterson, a salesman for Herbalife. [3]

Peterson recruited Vergara to sell Herbalife products in Mexico even before Herbalife received approval from the Mexican government. The two worked together to smuggle Herbalife products into Mexico. I just picture him getting stopped at customs on suspicion of smuggling cocaine or something, only for the officer to open up his bags and find out he’s been smuggling overpriced herbal supplements, LOL.

Anyway, that didn’t happen, because Vergara used his street smarts and business schmooze to get the Mexican government to eventually approve the products. Vergara took the approval and ran with it. Instead of continuing with Herbalife, he started his own nutrition MLM in Mexico called Omnilife.

Now, Omnilife is one of the top 200 companies in Mexico. They have nearly a million distributors and an annual sales of around $406 million. They were ranked 45 on the DSN Global 100 List for 2016.

Their motto is “People that take care of people.” According to Vergara, this means bringing people better health and energy and empowering a dedicated salesforce.

In 2014, a popular television program in Argentina, one of many countries in which Omnilife is operational, used a hidden camera to show that Omnilife distributors make wild, unprovable claims about the benefits of their products. The distributors encourage customers to recount traumatic or significant life events, and then market the supplements as therapeutic. However, studies show that the products are just typical dietary supplements with absolutely no therapeutic properties.

How much does Omnilife cost?

You need to purchase a distributor kit in order to join, which costs $39. It includes a bottle of supplements, 2 promotional DVDs, a catalog, a training manual, and a backpack for additional marketing and training materials.

To remain active, you must purchase a minimum of 300 Personal Points (PP) worth of product each month.

Products

Omnilife sells nutritional products in four categories: hydrating, custom, light nutrition, and energy and sports.

Many of their nutritional formulas include synephrine HCL, caffeine, green tea, and coffee powder. The nutritional and weight loss plans are not cheap – a month’s supply can cost upwards of $200.

Of course, there are no clinical studies to support their many health claims, which range from physical to therapeutic to mental, and the products are not FDA approved (see: Purium and Nefful).

Benefits

They have a variety of products for targeting the following benefits:

• Increased energy
• Weight loss
• Improved mood
• Overall health
• Better hydration

Side Effects

Synephrine, an ingredient used in many of their products, can cause rapid heart rate increases and increases in blood pressures. A number of customer complaints support this. [4]

Synephrine combined with caffeine is even riskier, according to the Finnish Food Safety Authority, to such an extent that Denmark and Sweden have declared these supplements unsafe to health and they aren’t allowed to be marketed there. [5]

Compensation Plan

Personal commission depends on how much you sell in a month, and ranges from 20%-50%.

• 0-999 PP: 20%
• 1000-1999: 25%
• 2000-2999: 30%
• 3000-3499: 35%
• 3500-3999: 40%
• 4000+: 50%

A Quick Start bonus of 10% is offered on the purchases of your personal recruits within their first 90 days at Omnilife. This is in addition to your level overrides.

Level overrides are offered in the following structure:

• Bronze Premiere distributors: 5% on Level 1
• Bronze Elite distributors: 7% on Level 1
• Bronze Supreme distributors: 9% on Level 1 & 5% on Level 2
• Silver Premiere: 10% on Level 1 & 6% on Level 2
• Silver Elite: 10% on Level 1, 7% on Level 2, & 2% on Level 3
• Silver Supreme and up: 10% on Level 1, 8% on Level 2, & 4% on Level 3

Team Builder Bonuses award distributors with a Silver Supreme rank or higher 2% commission on the sales of their downline from Level 4 and down, as long as their downline contains at least one Silver Premiere member or higher.

Generation overrides are offered in addition to level overrides for Gold members.

• Gold Premiere: 3% on Generation 1
• Gold Elite: 3% on Generations 1 & 2
• Gold Supreme: 3% on Generation 1, 4% on Generation 2, & 3% on Generation 3

Diamond and Double Diamond members earn 2-5% down to their 6^th Generation.

Recap

Omnilife was started by a true hustler, and he’s put in work. But is it a good deal for the rest of us?

The products are nothing special. Just a typical nutritional MLM. And the warnings and side effects are a little alarming.

The compensation plan is way more confusing than it needs to be. Do they expect your average person (i.e. someone who doesn’t write about compensation plans on the daily) to understand exactly how to make money with Omnilife?

No, they don’t. In fact, they’re counting on it. If new reps really understood how compensation works, they probably wouldn’t join. Because only a very, very small percentage (less than 1%) of these reps will ever see any real money. Most won’t even make back the money they spend.

Look, I’m not a hater of Omnilife, but I’ve been involved with network marketing for almost ten years so I know what to look for when considering an income opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:

Click here for my #1 recommendation

from MLM Companies

Pampered Chef: A delicious way to make some extra dough [Review]

If you love cooking, you’ll love Pampered Chef.

Guaranteed.

Pampered Chef is a popular network marketing company that offers home and kitchen products via the direct sales model.

Living room parties, three-way calls, and Facebook friend prospecting are routine tactics with these guys.

Despite all that, something is working for Pampered Chef, or they wouldn’t be owned by one of the top 5 largest companies in the world.

The question is, can you make any dough with this MLM? Keep reading to find out.

FAQ

1. What does Pampered Chef sell? Pampered Chef offers a line of kitchen tools, food products, and cookbooks for preparing food in the home. They also offer some products to help transport some of their products and gardening tools.

2. What are Pampered Chef’s most popular products? Pampered Chef’s stoneware bakeware has been a favorite for years. Not only is it available in the original raw unglazed state, it now comes with a beautiful glaze that makes it as useful for serving as for baking. Their kitchen gadgets are always popular, from teak wooden spoons to measure-all cups to mini serving spatulas. Then, for the die-hard bakers, there are the unique tools you can’t find anywhere else, such as the mini tart shaper, pizza and crust cutter, and cut-n-seal tart maker.

3. How much does it cost to join Pampered Chef? To join, you’ll need to fill out a consultant agreement and buy a starter kit. For that, you have three options: the basic starter kit ($109), the deluxe kit ($159), or the ultimate kit ($249). A little pricey (but Pampered Chef kinda is). So they offer a unique discount. Host your own first party and you’ll get a $25 or $50 kit credit toward your kit.

4. Is Pampered Chef a scam? No, Pampered Chef is a well-known and well-liked source for baking supplies. In fact, in 2002, it was purchased by Berkshire Hathaway, a very well-respected company. Will you get rich doing it? Probably not. At the very least, you’ll enjoy a side gig that gives you free products.

5. What is Pampered Chef’s BBB rating? A+

6. How long has Pampered Chef been in business? Since 1980

7. What is Pampered Chef’s revenue? It was $500 million in 2012. When the current CEO took control, she immediately started making cuts because sales had been down. Now, according to Berkshire Hathaway’s financial report, earnings are starting to rise, based on revenue increases and expense management. In other words, they’re still having to cut spending to stay profitable.

8. How many Pampered Chef distributors are there? 65,000

9. What lawsuits have been filed? In 2017, Truth in Advertising found unsubstantiated income claims that promote the company’s business opportunity. [1] In 1998, Pampered Chef sued Magic Kitchen for copying the layout, price format, product number format, and general appearance of their catalogs and sales materials, which violated Pampered Chef’s copyrights on those materials. They lost because they couldn’t prove the catalog was confusingly similar to their own. [2] There have been the usual suits from customers who were injured while using their products, like a woman who cut her finger when a ceramic baking pan broke. She was awarded $2.6 million. [3, 4, 5] There have also been the lawsuits filed by Pampered Chef over sharing trade secrets after a distributor leaves. [6, 7]

10. Comparable companies: Vector Marketing, Scentsy

They’re an established company, but as far as an income opportunity goes, you’re a couple decades late to the party and the chances of you making sustainable income with Pampered Chef is slim.

Click here for my #1 recommendation

Either way, here’s the full review on Pampered Chef.

Overview

Pampered Chef was founded in 1980 by Doris Christopher. Their founding story starts like that of countless other MLMs…in Doris Christopher’s basement.

By the 1990s they had more than outgrown her basement and were now expanding to Canada, the UK, and Germany. In 2002, they were acquired by Berkshire Hathaway, who still owns the company.

Berkshire Hathaway is a multi-national conglomerate owned by Warren Buffett, based in Omaha, Nebraska.

They own…well…just about everything. They wholly own GEICO, Dairy Queen, Fruit of the Loom, Helzberg Diamonds, FlightSafety International, BNSF Railway, and a number of other companies. They also own almost half of Kraft Heinz, a portion of Mars, Incorporated, American Express, Coca-Cola, Wells Fargo, and IBM. [8]

They are the fourth largest public company in the world according to Forbes.  [9]

In other words, Pampered Chef is in good hands. But you can forget about coming close to that dough they’re raking in — it’s for investors, not consultants. It’s not even for full-time employees.

Tracy Britt Cool was brought in by Warren Buffett to run Pampered Chef as their CEO in early 2015. Pampered Chef had seen declining revenue in 2014, so it was pretty clear she was brought in to try and get things back in shape. Her first order of business? Fire people. Pampered Chef saw the biggest decline in employment of any of Berkshire Hathaway’s companies in 2015. [10]

Of course, you’re not going to get fired as a consultant. You don’t cost the company money, because you probably don’t make any…

How much does Pampered Chef cost?

In order to join Pampered Chef, you need to buy a Consultant Kit.

• The Ultimate Kit costs $249 and includes $1,000 worth of product.
• The Deluxe Kit costs $159 and includes $650 worth of product.
• The Starter Kit costs $109 and includes $450 worth of product.

If you start by hosting a party, you get a $25 or $50 kit credit that you can use toward becoming a consultant, meaning you can join for as little as $59.

Products

The Pampered Chef sells kitchenware products, and they’ve got pretty much anything you could want to stock your kitchen with. The products are high quality and some are pretty affordable.

Bakeware, cutlery, cookbooks, appliances, grilling accessories, dishes, holiday sets, kitchen storage…you name it, they’ve got it. They even sell food products (see: Optavia).

Here are some of the favorites…

• Emoji cookie cutter set: $10
• Kids pizza making set: $45
• Herb infuser: $10
• Soups, stews, & chilis cookbook: $8.50
• Manual food processor: $52.50
• Small bamboo knife block set (4 pieces): $165
• Beer bread mix: $11
• Dutch oven & cookbook set: $139

The idea when the company was founded was to create powerful products and combine them with useful tips to help others achieve a faster, no-fuss cooking experience.

Nowadays their products mostly look like the same kitchenware you’d find at any other store, for about the same price, if not a little more expensive. But there’s nothing overly unique or interesting about them.

Compensation Plan

Commission rates vary depending on your monthly sales.

• $1-$749 in monthly sales gets you a 20% commission rate
• $750-$1,249 in monthly sales gets you a 22% commission rate
• $1,250-$2,499 in monthly sales gets you a 23% commission rate
• $2,500-$3,999 in monthly sales gets you a 24% commission rate
• $4,000+ in monthly sales gets you a 25% commission rate

As you might guess, most consultants make that 20% commission rate, which is below average.

However, once you hit $15,000 in career sales, your commission rate goes up by 2%. And once you start to build a decently-sized team, your commission rate bounces up to 31%, which isn’t bad.

Of course, if you’re going to make any decent money, it’s going to be from building up a big team.

The company also offers some pretty sweet product discounts to their consultants, including 50% off new items for a limited time. If you can’t turn a profit with them, at least you can get some discounted kitchenware.

Recap

I like the products and the idea behind the company.

But it’s a party-based MLM (like these home jewelry MLMs), and those are inherently flawed.

While going to an in-home party with food is better than going to one with empty Tupperware, it’s still the case that listening to your friend give the same sales pitch for the third time over isn’t the best way to spend a Sunday afternoon.

And holding these parties isn’t a productive way to make money, either. Even if you manage to get people to come, you have to sell A LOT of product to even turn a profit.

You’re basically paying money to sell your company’s products when you throw MLM parties – you probably want to offer food (especially at a kitchen utensil party), drinks, product demonstrations, and all of that costs money. Most people spend $200 minimum on their parties, so you’d have to sell $1,000 worth of $10 spatulas just to make your money back.

However, it could be a fun side gig if you’re really into their products or like the idea of doing cooking demonstrations as a hobby. The company itself is honest about earning potential, stating on their website that 75% of their consultants hold other jobs.

This isn’t full-time income by any means, but hey, who am I to stop you from getting a 50% discount on a new blender?

Look, I’ve been involved with network marketing for almost ten years so I know what to look for when you consider a new opportunity.

Pampered Chef had a good run, but I wouldn’t recommend them as a sustainable income opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:

Click here for my #1 recommendation

from MLM Companies

Norwex: Can you clean up with this eco-friendly MLM? [Review]

Clean up the world is a priority for more and more people…

Which puts Norwex in the right place at the right time.

Norwex is a Norwegian eco-friendly MLM founded in 1994 that specializes in green and organic products.

The timing was impeccable for this company — they entered the market for chemical-free cleaning products in the mid-90s, during the revival of bohemian, bell-bottom-wearing hippies and the birth of the movement for all-natural, organic products.

Competing against industry giants like Nuriche, Essante, and ID Life, they’re in a tough market of organic MLMs, but they’ve only grown in popularity.

Should you get involved? Keep reading to find out.

FAQ

1. What does Norwex sell? Organic, environmentally-friendly cleaning and personal care.

2. What are Norwex’s most popular products? Norwex’s laundry detergent is a highly concentrated powder that contains biodegradable surfactants and no phosphates or fillers.  Their EnviroCloth removes 99% of bacteria from a surface with no need for harmful chemicals. For dry dusting, it creates static electricity that lifts even the smallest particles of dust and dirt; for heavily soiled areas, it can pick up everything with just water. Their cleaning paste removes rust stains, hard water stains, scuff marks, permanent marker, dirt, grime, and more. They call it “elbow grease in a jar” because you can use it indoors and out to get everything clean with just a few dabs on an EnviroCloth. Many of Norwex Microfiber products contain an antibacterial agent for self-cleaning purposes. Micro silver in the wet cloth goes to work using its self-purification properties against mold, fungi, and bacterial odor.

3. How much does it cost to join Norwex? The website says you can join for free. Here’s what they mean by that: You’ll pay $9.99 for your Starter Kit’s shipping and handling fee. If you generate $2,000 retail or more in sales during your first 90 days, it’s yours free. If not, you’ll be charged $200 plus tax for the kit. To remain active, you have to place at least $250 in sales within a three-month calendar cycle. You’ll also pay $9.99 per month for your Consultant Office Plus. Be aware, that 90-day window for selling $2,000 of products starts when you sign up, not when you get the products. It can take 5 to 10 days to get your starter kit.

4. Is Norwex a scam? No, Norwex is a real business with real products that perform as promised. The products are popular and well-received, and with a few exceptions, distributors seem to enjoy their experience. That said, it’s unlikely you’ll make a great living off Norwex alone.

5. What is Norwex’s BBB rating? A+

6. How long has Norwex been in business? Since 1994

7. What is Norwex’s revenue? $50 to $100 million

8. How many Norwex distributors are there? 90,000

9. What lawsuits have been filed? In 2011, Norwex USA and Norwex Enviro Products were sent a cease and desist letter by Sweports, owner of the ‘455 Patent for an antimicrobial ultra-microfiber cloth. They claimed Norwex’s microfiber products infringe on that patent. Norwex demanded a trial by jury of all triable issues, including their assertion that they don’t infringe any claim of the ‘455 Patent, and that the patent is invalid and unenforceable. [1] In 2012, three creditors filed an involuntary bankruptcy petition against Sweports. Since the patent infringement case couldn’t move forward, Norwex submitted a motion to dismiss the case. After reviewing the details of Sweports claims, it was found that they didn’t have all substantial rights to the product; therefore, their claim wasn’t valid. In 2013, the case was dismissed without prejudice, and Sweports may re-file its complaint after the bankruptcy proceedings are concluded. [2]

10. Comparable companies: Nefful, Amway

So should you promote them?

Product-wise, these guys are solid. If you’re all about the products, not a bad company to side with.

But business opportunity-wise, there’s better ways to make side income.

Click here for my #1 recommendation

Either way, here’s the full review on Norwex.

Overview

Norwex was founded in 1994 with the goal of providing homes with chemical-free cleaning products. Their mission is “Improving quality of life by radically reducing chemicals in our homes.”

Bjorn Nicolaisen founded the company after discovering a special microfiber cloth that was extremely effective at cleaning his windshield using nothing but water. He developed an entire list of household products that could effectively clean without using any chemicals, and Norwex was born.

Nicolaisen is a former attorney who has worked with the Norwegian Ministry of Environment and the General of Norway, so he knows his stuff. He’s currently still the Chairman of Norwex.

Norwex now has over 90,000 distributors, operates in Norway, Canada, the U.S., Latvia, Lithuania, Estonia, and Australia.

How much does Norwex cost? It costs $200 to join Norwex, and that includes a starter kit with product. The kit can be initially purchased for just shipping and handling. Then, if you can sell $2,000 of product in your first 90 days, you won’t owe any more on it. Of course, if you don’t this the $2k mark, you’ll fork over $200 for it.

Registering for a consultant website, which is pretty much a requirement nowadays, is another $9.99/month.

In order to stay active, you need to sell $250 in product every 3 months. If you become inactive, you’ll be charged a fee to reactivate your account. After 12 months without sales, you’re no longer considered a consultant.

Products

Norwex is known as the chemical-free cleaning product company, although they’ve since expanded to offer personal care products as well.

Their flagship product is the microsilver cloth (also known as EnviroCloth), the special microfiber cleaning cloth that inspired Nicolaisen to start Norwex in the first place. These cloths are made of anti-bacterial fibers that attract dirt, grease, and dust, breaking down grime that would usually require chemicals to break down. The cloth also self-cleanses after 24 hours.

Cleaning and personal care products contain natural, botanical ingredients, replacing harmful chemicals with enzymes.

Production is mostly done at a production facility in China that the company opened in 2009.

For Your Home

These products include kitchen cleaning products, floor cleaning products, “home essentials,” and microfiber cloths.

To give you an idea of pricing, here are some home products:

• EnviroCloth – $17.99 (best seller)
• Ultra Power Plus Laundry Detergent – $24.99 (1kg)
• Cleaning Paste – $29.99
• Dishwashing Liquid – $9.99
• Kitchen Towel & Cloth Set – $27.99
• Produce Wash – $24.99

For Yourself

These products include bath and body care, personal care, and kids products.

To give you an idea of pricing, here are some examples of personal care products:

• Cooling Mint Toothpaste – $15.99
• Natural Deodorant Stick – $15.99
• Organic Olive Oil Salt Scrub – $39.99
• Hand Cream – $14.99
• Bath Mat – $39.99
• 4-in-1 Kids Wash – $19.99

Compensation Plan

This company still relies heavily on the home party model, which is ineffective at best, and a gag-worthy money pit that will cause you to lose all your friends at worst.

You MIGHT be able to recruit a few friends and family members to come to your home party in exchange for food (a la Tastefully Simple) or a free makeover (a la a million and one cosmetics MLMs), but even those are questionable. Reps eventually dry up their “warm market” of friends and family members who are tired of desperate sales pitches.

But getting your friends and family to come to a sales pitch/home party where they get to…watch you clean? Yeah, right. Dream on.

It’s just not a sustainable way to make money.

Even if you do manage to get some decent sales at your home parties, it won’t amount to a lot in profit. But you do get some free/discounted product.

• Sell up to $249.99 in product and you get 8% of your sales in free product.
• Sell $250-$749.99 in product and you get 10% of your sales in free product.
• Sell $750 or more and you get 12% of your sales in free product.

You also get a free window cloth for each party you book.

Consultants earn 35% commission on their personal sales.

Let’s look at an example. Say you manage to get a huge group of people together, and they’re all super stoked about cleaning products and ready to open up those checkbooks. Your pitch is on point, and you make a whopping $1,000 in sales.

Keep in mind how difficult this is to do. Their products range from around $10-$40, so you’d have to sell a LOT of microfiber cloths and dishwashing liquid to hit those numbers. Like 50 products. Even with 10 people, that’s 5 products per person… and it’s not easy to get people to give up their Saturday afternoon to come over and listen to you give a sales pitch, so 10 people is being generous. Not to mention, selling 5 products per person is an unrealistic goal, considering you’re lucky if everyone in attendance buys one product.

But let’s just say you really hit it big this time. $1,000 in sales would net you $350 in commission, $120 in free product, and a free window cloth.

This isn’t bad, but it’s nothing outstanding. If you can replicate this once a week, you’d be earning just above minimum wage. But replicating those kinds of numbers at your home parties on a regular basis isn’t sustainable — ultimately, you run out of friends and family to invite, and people don’t need to buy new dish rags every week.

Like all MLMs, the real money is in your referral commissions. With Norwex, you earn commission on the sales of everyone you recruit, and the people they recruit, and the people they recruit, and so on. The higher you move up in rank, the more levels you unlock in your downline, the more you earn in referral commissions. But recruiting a massive downline and moving up in rank is not easy.

Recap

Their products are generally well-reviewed, and their mission is great. The company has been around for a while and doesn’t seem to be going anywhere.

However, you’re not going to be making much money (if any) from selling them.

You need to be very skilled in marketing and sales and especially in networking to make real money, as you’re going to need to have a huge group of friends and acquaintances who trust you and would be interested in joining.

Networks dry up fast in this industry. Real fast.

I’ve been involved with network marketing for almost ten years so I know what to look for when you consider a new opportunity.

Norwex is a good company, but I wouldn’t recommend them as a sustainable income opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:

Click here for my #1 recommendation

from MLM Companies