If you are looking for a way to make some money by selling products, I think the Pampered Chef business opportunity might be worth looking into. In the world of Multi level marketing (network marketing), Pampered Chef is one of the top dogs.
May I first start by stating that I am not a Pampered Chef consultant and so I am not going to be asking you to whip out your credit card for your dream to success.
It’s good that you are doing your research. With all the business opportunities floating around this days, it’s good to do due diligence and learn what is expected of you before committing yourself to any business.
This review is based on my own research and the aim is to help you make an independent decision on whether to join, stay on if you are already a member or bail out. The decision is entirely up to you.
So just what is the Pampered Chef consultant business opportunity? Can you make some serious money?
Well, let’s find out, shall we?
Company Name: Pampered Chef
Owner: Berkshire Hathaway Inc. (Warren Buffett)
Are You Looking For a Way to Earn Passive Income Online?
If you are the kind of person who enjoys cooking and everything else that goes with it, Pampered Chef may be the sort of opportunity that might interest you. They not only sell products but also offer different recipes for your cooking pleasure.
The company was founded in 1980 by Doris Christopher in her home basement in Chicago.They offer several lines of cookware, bakeware, food products, cookbooks and kitchen accessories.
During the late 1980’s and 90’s, the company’s popularity grew and soon expanded its operations in Canada, the UK and Germany. They did however shut their operations in the UK in 2015.
Warren Buffett’s Berkshire Hathaway firm brought the company in 2002.
The company’s products are sold through the multi-level marketing business model . What that means is, the products are sold through independent sales consultants who sell the products through house parties, craft fairs or online.
Of course, with multi level marketing, you have to recruit people to your team. That is where the money is.
Pampered Chef does enjoy an A+ rating with the Better Business Bureau which goes to show you that it is a reputable company. I found no complaints during my research.
Becoming a consultant.
Getting started with Pampered Chef is pretty easy. All you need to do is to buy a starter kit. Prices range from $109 to $249 and that gets you an assortment of kitchen bakeware, cookware and accessories.
You can also go with the option of hosting a party where you will earn credits that will entitle you to buy the starter kit for less than the set price.
In case you are wondering what kind of party this would be, it’s a situation where you call up some of your friends for a party then pull out your products and try and sell them the idea of becoming distributors. It’s a common trend with most multi level marketing businesses.
If you have the gift of the gab, it’s easy to convince your friends and family to become Pampered Chef consultants. Some of those kitchen tools are pretty cool.
The great thing about Pampered Chef is that you can also sell your products through a website that is provided for you but will cost you $10 a month.
Like all good MLMs, there must be a compensation plan otherwise what would be the point? This is the bait that attracts distributors to join the business. It’s all about the commissions you make for sales and recruiting others to join you.
Here is the commission structure
- $1-$749 sales in a month earns you 21% commission
- $750-$1249 sales in a month earns you 22% commission
- $1250-$2499 sales in a month earns you 23% commission
- $2500-$3999 sales in a month earns you 24% commission
- $4000 and above sales will earn you 25% commission
There are also additional benefits. You earn a 3% commission on sales of each member within your team. You also get to enjoy discounts on all products and paid for vacations should meet certain targets.
Pros and cons
Great set of products. Although there are several companies that are involved in the cookware niche, Pampered Chef’s products stand out because of variety. They have a catalog of over 500 products. The company’s longevity in the business is testimony that the products are exceptional.
In addition they do offer a 30 day money guarantee on all products and a lifetime warranty.
Products are reasonably priced. Most of the high end products are quite pricey, but I suppose if you want quality, you must be willing to pay for it. They however do have a range of products that are similar or close in price to what you get in the market in terms of price.
Low income potential: To succeed as a consultant in this business you literally have to become a ‘party animal’ and I mean that in a good way. To be completely honest, how many parties can you host before you run out of people to invite?
Competitive industry: Pampered Chef is not the only company that sells cookware products through a multi-level structure. Amway also sells high quality cookware products through their Clinique range. Furthermore, you can get some of these products on ebay and Amazon for a cheaper price. Thee are sold by consultants who probably have a large inventory and want to dispose of it to recover some of their money.
The Multi-Level Marketing narrative
I was a former distributor with Amway and I can tell you, love them or hate them, MLMs are here to stay. The industry has its up and downs but its going nowhere. People do in fact make huge incomes with this sort of business.
The question is, can you do the same? The bad news is, the odds are heavily against you.
Many people fail in this form of business because it is by no means easy as they are led to believe. Less than 1% of all the people who join multi-level marketing businesses succeed.
Mary Kay once described the business as filling your bathtub with the sinkhole open. Most people will be gone once they realize just how difficult the business is. The fall out rate is massive.
You may be asking, so how come these companies seem to turn out such huge profits? Good question.
Most of them have very low overheads. They don’t need to advertise. That is why they pay you a cut from sales and recruiting. At the very bottom of it, you will be doing all the donkey work for them.
The whole model of the multi-level marketing business is also shrouded in a lot of misconceptions and controversy. I can understand why. You are not really giving people an opportunity to make money. It’s more like reaping the benefits out of their hard work.
The period I was in multi level marketing, one thing that our uplines insisted was to never tell your prospective recruits what they were getting into. Keep them in the dark until you are able to get them to a meeting or party. The whole idea was for them to see the big picture.
I don’t know about you, but I think that is a very sleazy way of doing business. If you are just joining the Pampered Chef business, just remember that you are in for the ride of your life. Good luck!
I would say Pampered Chef is an okay company. Definitely not unique. They do have a fair amount of competition in the industry.
It’s a great business for those who have the energy for recruiting.
It is not a pyramid scheme like some people would claim. With pyramid schemes, the last guy always emerges on the other side with nothing. Pampered Chef is just one among the hundreds of multi-level marketing businesses that exist out there.
Opinion is always divided as to whether this sort of businesses are scams or not. I suppose it all comes down to who is making money and who is not. Most people who don’t make it will be crying foul while those who succeed will be accusing the losers of lacking the patience to grow the business.
As I mentioned, I have been involved in network marketing before and I know how the game plays out. Network marketing by its very nature is a legit way of doing business and people succeed big time in it. In fact there are millionaires in this industry.
So why did I leave if there is such huge potential?
Because it is all about recruiting. Seldom do people even talk about the products. That’s because no one makes money by just selling products.
Part of the reason I left was because, I felt it was unfair to drag all my friends to the business in the hope of cashing in.
Are you ready to start dragging your friends, colleagues and relatives to those hyped up parties. If you are, well, good luck again.
Can you build a business without recruiting
Yes, you can.
Many people who become successful online marketers probably have been through some sort of multi level marketing.
One thing I take my hat out for with Multi-Level Marketing is, it gives you the mindset of business.
In the years I have been in the marketing industry I have come to appreciate the fact that the only way you can make money selling products is by having your own website.
I know Pampered Chef, gives you a website where you can run your business, but is the website really yours? Can you add content or alter the design? Probably not.
I am talking about a website that people come to, rather than you having to chase after them. If you feel that you have the energy to grow Pampered Chef business check out how you can go about it without having to recruit. In fact you don’t even need to own the products to earn commissions with a website.
Why run around chasing after people to join your opportunity and yet you can reach the billions of people who are connected on the internet today.
If you belong to the 99…% plus number of the people trying desperately to make money recruiting people to their business, how about you check out how I make money online. It could turn out to be what you have been searching for all along.
Succeeding in network marketing is no easy feat. As I mentioned, you are more likely bound to fail than to succeed. That is just the reality of it. People will tell you not to listen to naysayers like me, but you really need to ask yourself whether you stand a chance.
Many thanks for reading my review. If you have a question or a comment on the Pampered Chef business opportunity, please leave it below. I would love to hear from you.
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