If you enjoy cooking, baking or being in the kitchen, then you probably have heard of Pampered Chef.Pampered Chef was founded in 1980 by Doris Christopher in her basement.
The company began with the concept of selling housewares to women using a sales party platform.
Have you ever gone to a sales party? Sell. Sell. Sell.
Professionals suggest that in order to have a successful sales party there are three important rules:
- Advertise With Friends and Family
- Offer Up Some Refreshments
- Let The Products Be the Star
All of this makes me tired just thinking about it.
Pamper Chef consultants would invite people over to their home (or someone else’s home) and talk about the Pampered Chef products inviting people to purchase them.
This business model was not original to Pampered Chef; Tupperware popularized the concept in the 50’s which began the revolution of direct marketing or Multi-Level Marketing.As with Tupperware, the concept worked, and Pampered Chef grew into a worldwide direct sales force of about 35,000 strong.
Can you make money with Pampered Chef or is there a better way to create a residual passive income?
HOW DOES PAMPERED CHEF WORK?
Like all multi-level marketing businesses, there is a significant focus on recruitment.If you are going to make an income, you will have to find people that are interested in begin consultants and sign them up.
According to their website, their commission structure looks something like this:
“Receive 20% to 27% commission on sales, and shop at a discount—up to 50% off the products you love! Plus, you’ll get exclusive access to new items and extra perks each new season.”
If you are interested in making a full-time income with Pampered Chef, it’s going to get a little more difficult.As you grow a team (According to Pampered Chef), for an average of 25+ hours a week and with $4,000 a month in sales at a 25% commission, you could potentially make between $6,000 to $45,000 a year.
Now, these numbers are estimates, and it depends on you how much money you’ll make with any MLM business.
Two Ways Which You Can Make Money
Basically, there are two ways to earn money with Pampered Chef. First, you could sell products to friends, family, cooking shows, fairs or trade shows. This way seems a little crowded and because of the high prices, it can be challenging to make sales.2 Cooking Shows/week = more than $1,100*/month3 Cooking Shows/week = more than $1,725*/month4 Cooking Shows/week = more than $2,300*/monthThese numbers are based on making just shy of $600 at each show. For example, you would have to sell a total of $9,600 that month to make the $2,300 in commissions. Again, these are all just estimates.After a while, you start making enemies as you begin to harp to friends and family about buying products, and getting out there to sell Pampered Chef can take a lot of your time.The second way of selling Pampered Chef is through recruitment.
Pampered Chef encourages you to start with those you know – friends and family. Building a team can be difficult, especially when it’s a market that’s saturated, but it’s the only way to make a real income with any MLM.
IS PAMPERED CHEF A PYRAMID SCHEME?
Not really. Pyramid schemes are more focused on the recruiting of consultants than the products themselves. Many pyramid schemes don’t even have products to sell or services to offer.Though multi-level marketing companies are often classified as a pyramid scheme, most are not legally defined as one.Pampered Chef sells a product (an expensive one at that), and many would claim is excellent and worth the high price tag.
Where do people get the pyramid idea? It’s because only the top tiers can make large profits.
The people that make money with MLM are the ones that are first to market.
I know three people right now that are doing well with an MLM business, and they where the first to market in a particular region. As more and more sign up (they are not told this), but the harder and harder it is to make a decent income.
IS PAMPERED CHEF A SCAM?
Nope. Pampered Chef is not a scam. The only way you’re going to lose money is if you purchase the starters kit and don’t sell anything.
At the minimum, you get to keep the products. Many sell Pampered Chef to get discounts on their products, and that’s great.
If you join Pampered Chef, you’re not going to risk losing everything or lose a considerable sum of money with nothing in return.
PAMPERED CHEF COMPLAINTS AND REVIEWS
Most people that deal with Pampered Chef are pleased with the culture and products. The only complaint that stands out to me from consultants is that they have to do a lot of work to make money.
Notice the screenshot below. It’s from a consultant that claims that she had a “positive experience” but her complaint was that she needed a large number of shows to be “profitable.”
There are many that share this same story.
CAN YOU MAKE ANY MONEY WITH PAMPERED CHEF?
Yes. You can make money with Pampered Chef. There are those who have, and no doubt will continue to make money using the products and structure of this company. This type of business plan is not my #1 recommendation, and here are three simple reasons why.
1. You Need to depend on a downline
With every MLM company, you have to depend on others to make YOU money. If they sell a lot, then you will make a lot (or at least you make money). This means that you are placing your future in some else’s hands.
The time and effort to create a sales team is extensive and many times it doesn’t happen.
When people realize how much work is actually involved, they quit and do something else.
2. Only A Small Percentage of People Are Successful
What most MLM companies won’t tell you is that only a small percentage (half of 1% make more than $9k a year) actually make money. Most of the time factors like: first to market, your contacts, your network and ability to sell products come into play. I am not a big fan of selling face to face, and with any MLM businesses that is a big part of it.
3. You’re Always Recruiting
It’s your business. That’s right, the Complete package. If you’re not signing people up under you, then you’re not going to make a long-term income. At least, you’re not going to make a long-term passive income.
WHAT I DECIDED TO DO INSTEAD OF AN MLM COMPANY TO MAKE MONEY
When I decided I wanted to make money online and build a real business, I had to make a decision in which direction I was going to go.
I didn’t want to depend on others for my success. I didn’t feel comfortable selling to friends and family, and I wasn’t a fan of hosting sales parties. For me the choice was clear. I knew that affiliate marketing was the right choice. Affiliate marketing is a business model that allows me to work from anywhere in the world and build something that creates a passive income. If you have any questions, please leave them in the comments below.
As always, click on the link below and learn how I created a passive income from home.