Is Pampered Chef an MLM?
Pampered Chef is definitely for cooking lovers. The MLM (Multi-Level Marketing) company provides kitchen and home products through direct sales networking. However, most people don’t have an idea of what this MLM company is.
In this article, we will do a quick review of what this company is all about.
Quick Brief of the Company
Pampered Chef MLM has been running direct sales marketing of their home and kitchen products for quite some time. The founder of the company was Doris Christopher. She founded the company in the year 1980 in her basement, in Chicago Illinois.
She incorporated her skills in economics to come up with this MLM Company, intending to offer quality home kitchen products through direct sales marketing. Pampered Chef started gaining popularity in 1990, and started global expansion in 1996. Over the years, they have opened up branches in the United Kingdom, Mexico, and Germany and Canada. It is now owned by Berkshire Hathaway,the parent company of Warren Buffett’s.
How Does Pampered Chef MLM Operate?
The company sells its product through direct sales from its consultants to their customers. The consultants promote their products mainly through networking, such as making referrals to close friends and family, home parties, and social media linking. They use these platforms as their exposure to promote their products by demonstrating the benefits of their products.
Also, they can use websites to promote their products. Here, they function as affiliates receiving a commission off the sales they make. As a marketer, your focus should also be recruiting new members to build your team.
If you recruit a new member, you earn a commission off all their prospects in the company. It acts as a pyramid scheme.
What Products Do They Offer?
Pampered Chef MLM Review provides a wide range of kitchen products, gardening tools, kitchen tools, and cooking recipes for the preparation of meals within the home environment. Also, they provide some products to enhance transportation, thus making deliveries easy. The company’s key selling point comes in the multi-purpose nature of most of its products, reducing the need for unnecessary accumulation of utensils.
One of their most popular products is the Stoneware Bakeware and is available in its stores. Other popular products include wooden- teak spoons, mini tart sharper, just to name a few. Most of the products come with a one-year warranty, guaranteeing clients the quality of their products. The marketers at the company can access products at a considerable discount, depending on rank (ranges from 20-50%).
What Is The Joining Fee As a Consultant?
As a newbie, you need to get started by becoming a consultant with the company. Here, you have to reach out to the company’s website and fill out the consultant agreement form. After being registered as a consultant, you need to sign up with a certain fee to get the products to market. You can consult with the person who made you the referral, or the company will give you a ‘coach’ who will guide you appropriately.
The next step involves selecting and paying a sum for your starting batch, which comes in the form of kits. You can either buy the deluxe kit, ultimate kit, or basic starter kit. Now, let’s look into detail the various particulars of each package.
The Basic Starter kit goes for $109. It gives you the basic cooking tools you need and comes with products costing over $400.
The Deluxe Kit is suitable for someone who already has basic cooking tools. It costs $159 and comes with products worth over $700.
The Ultimate Kit is the ultimate catch since it offers you the most favorable discounts though the most expensive. The kit will cost you about $249 but comes with over $1000 worth of products. If you start by hosting a party, you get $25 to $50 credit for your kit.
Pampered Chef App
The company has an online presence-the Pampered Chef App-which has compatibility with both iOS and Android devices. It is available on Google or Apple’s Play Store. This app makes it easier to monitor your marketing progress.
Their Compensation Plan?
In comparison to other MLM companies, their compensation plan is quite straightforward. If you want to get a higher compensation plan, you need to maximize your monthly sales.
Their plan entails five commissions’ earning categories, the least being a 20% commission for sales ranging between $1 and $749 and highest being a 25% commission for sales exceeding $4000.
Also, note that your compensation plan earning is proportional to the rank you have. This factor means that the lower the rank, the lower the commission you are likely to receive.
The lowest rank is that of a consultant, whereas the highest rank is that of a National Executive Director. For a consultant, one needs to make $150 of sales monthly to remain active.
All kits include email marketing to send to potential customers, plus newsletters and a website personalized for you the consultant.
No membership fee.
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The Pros and Cons of Pampered Chef MLM?
The company has been in the market since 1980. If the company maintained all its operations for such a long while, it means that it is under proper management.
Their products come with a 30-day refundable plan, which means that in case you, either the customer or consultant, find that the product sold to you was faulty, you can return it and reclaim your money.
Pampered Chef provides an educational platform for their marketers. The training program, known as PC University, teaches distributors on the right marketing skills, and tactics of recruiting new consultants.
Most of the company’s products come with a multi-purpose feature. These products are not available in the market, raising their demand. Which makes it easier for marketers to distribute their products.
The company boasts an A+ rating with Better Business Bureau. This factor makes most marketers have faith in their practice and adds on to the fact that the company’s ownership is run by Warren Buffet.
Some Consultants have issues with the market prices of some products. They claim that the product is too expensive. This factor makes marketing of the products quite hard as customers go for lower-priced products from competitors.
MLM marketing is not a walk in the park as most people try to present it. Most of the people who start do not become successful. To make it in this market, one requires a high level of skills, a perfect target audience, and a good marketing strategy.
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The methods the company uses to market its products are quite old-fashioned. Today, most people purchase their products online, and yet the company does not have a well-established online platform.
Also, this company has been around for a long time and the market is very saturated.
In conclusion, if you read through the article, by now, I suppose you have a better understanding of Pampered Chef MLM. Many people will wonder at this point, ‘Is the company a pyramid scheme?’ No, Pampered Chef is a marketing company selling home kitchen products. You are not required to recruit other people into this system, although your bottom line will be better if you do.
Thanks for reading and if you have any comments, please leave them below and I will get back to you soon. Thanks again,Deanna