Simply put, empowerment means giving someone the ability to control their lives and claim their rights. If there is one type of empowerment we all need is financial empowerment. There are a lot of misconceptions about striving to attain financial independence or even trying to create more economic freedom. One of the steps towards achieving financial freedom is starting your business.
But, what happens if you don’t have the required finances, expertise and resources to run your business? Is it a viable idea to sell other people’s products and earn a commission? Yes, it may be a sound idea to earn through commissions on various commission models such as multi-level marketing and affiliate marketing.
But before we dwell deeper between the two, let us review Pampered Chefs (https://www.pamperedchef.com/ ), their history, how to join, compensation plans, any legal issues and ultimately evaluate if it is a scam or not. We shall also be looking forward to seeing if multi-level marketing is the best way to earn commissions out of sales or not.
History of Pampered Chef
Pampered Chef is a popular established marketing company offering home and kitchen products through direct sales model. This company started in 1980 through the efforts of Doris Christopher in her determination to make cooking experience more personalized. Pampered Chef offers multipurpose kitchen tools, demonstrate easy food preparation techniques and share recipes with customers.
The company is headquartered in One Pampered Chef Lane, Addison, IL 60101-5630 U.S.A. Doris says she was inspired by the dedication to preserving the traditions of family mealtimes combined with her spirit for entrepreneurship. This made her start Pampered Chef at the basement in her suburban Chicago home in 1980.
In 1986, Pampered Chef became a member of the Direct Selling Association (DSA) with Christopher named to be the Board of Directors. Some of the notable accolades Doris has achieved include the 2012 Torchbearer of the Year Award, due to her leadership and dedication to ethical business practices. This award came from Better Business Bureau of Chicago and Northern Illinois. In 2002, Pampered Chef was picked by Berkshire Hathaway which is owned by Warren Buffet, and in 2014, Tracey Britt Cool was appointed to run the company in CEO capacity.
Useful Company Information
Pampered Chef boasts of gadgets, cookbooks, cookware, and foodstuffs. The company boasts more than 60,000 independent sales representatives who mostly hawk their wares through in-home kitchen parties.
Although the company is headquartered in Addison, Illinois, it has additional offices in Canada, German, United Kingdom and Mexico. Pampered Chef Ltd. serves as a subsidiary of the notable Berkshire Hathaway Inc.
As the largest of its kind in the US, the company has worked hard to expand its operations abroad while also trying to grow its revenue streams. Pampered Chef exclusively makes up to 90% of the company’s kitchen products. The company puts a significant focus on demonstration parties to generate revenue.
The Product Line
Pampered Chef Products are based on kitchenware. The company has got almost anything you would need for your kitchen. Their products range from $5 to over $100 and include the following;
- Cooking Tools – There is a collection of cooking tools including; Can & Jar Openers, Colanders & Strainers, Grater, Peelers & Grinders, Herb & Garlic, Mandolins, Slicers & Choppers, Mixing and Measurement, Prep Tools, Serving Utensils and many others.
- Cutlery – Cutlery products include; Block-Sets, Cutting Boards, Knives, Sets, and Shears.
- Bakeware – Bakeware products include; Bake to Gift Collection, Cookie Press & Cutters, Decorating Tools, Metal, Mixing & Measuring, Pastry & Baking Tools, Silicone, Spatulas, Scrapers & Spreaders, and Stoneware.
- Cookware – There are a couple of cookware products including; cookware accessories, cookware utensils, microwave cookware, stoneware and Rockcrok Collection.
- Stoneware- Stoneware products are plenty and include the following; baking stones, pizza stones, covered bakers, stoneware entertaining set, rectangular baker set, deep covered bakers among others.
- Food- Food products include; Baking mixes, infused oils, infused vinegar, rubs, savory sauces and seasoning mixes. Others include entertaining products, frozen treats, replacement parts, storage and cleaning, kids, sets and outlet products.
How to Become a Pampered Chef Consultant
To become a consultant, you must first purchase a kit. There are three kits to choose from, all depending on the level of comfort and enthusiasm you have with the products. If you just want to try it and see if it works, the starter kit is the most ideal for you. If you love things related to kitchen and you want to go pass the starter kit, then the ultimate kit is the most appropriate for you.
Here are the kits;
Starter Kit ($109) – This kit gives you products and business tools worth $450
Deluxe Kit ($159) – This kit gives you products and business tools worth $650
Ultimate Kit ($249) – This kit gives you products and business tools worth $1000
If you decide to go out and host a party, the company will offer you the subsequent host credits. These credits are anywhere from $25 to $50 off your kit. Whatever is included in the package is designed to help you convince your friends on the importance of cooking, including how easy it is.
Mode of Selling
The work of consultants is to bring people together around the cooking experience by showing them company products, tips, and various recipes to make cooking faster and efficient. This is achieved through a couple of ways including;
Parties – Consultants are responsible for leading in-person parties at people’s homes as they showcase to friends and party guests how to use company products. People are also exposed to different recipes and ways that make cooking quicker and enjoyable.
Online – At Pampered Chef, consultants are online champions. They are tasked with running their online businesses. They are tasked with selling company products on their websites, where customers can place orders online.
With Teams– Consultants are tasked with working in teams and building their teams. They form these teams and work together to benefit from each other’s success story both personally and financially. By creating a group, they are making a lifelong friendship and a sense of purpose for helping others.
As far as Pampered Chef is concerned, there seems to be no traceable income disclosure statement. Pampered Chef operates just like any other multi-level marketing business, so you would not expect compensation structure to be any different. There are different ways to make money, starting with the most obvious one- selling products. Commissions are paid as listed below;
$1-$749 – sales in a month you earn 21% commission
$750-$1249 – sales in a month you make 22% commission
$1250-$2499 – sales in a month you receive 23% commission
$2500-$3999 – sales in a month you earn 24% commission
$4000 and above in sales in a month you make 25% commission
Besides these commissions, there are other extras. When you recruit a team, you earn an extra 3% on the sales of each member. There are also discounts on all products. There are also bonuses including free products and points towards vacations.
Apart from these compensations, there is another specialist plan that is intended for deals that happen at the 1 million cooking demos held in the United States. There is a commission of 20% – 27% on items deals and a 20% or more rebates on buys. Additionally, there are travel openings with back-office bolster including coaching, inspiration, telephone and email bolster among others.
Pampered Chef Complaints and Legal Issues
Well, you might have read a lot of reviews on this company and wonder if it is the right business for you. We are going to look at some complaints and legal issues as well as cons that make this company attract a second thought. I have to make it clear that these complains do not necessarily make the company a scam. However, you will have a better picture of what you will be joining as a consultant.
There are a couple of complaints about Pampered Chef posted by various customers online. Although I’m not in an authoritative position to verify all these claims, some sound genuine. You can read them here at the complaints board site https://www.complaintsboard.com/bycompany/pampered-chef-a41437.html
Majority of these complains relate to lousy customer service while others point out to customers who paid cash but never got their products leaving them extremely disappointed. Apart from these complains, there seems no significant recorded legal issued surrounding this company, and that’s a pretty good score.
Is Pampered Chef a Scam?
I guess no one can point out Pampered Chef as a scam. Based on the realm of multi-level marketing, the company is good enough to stick to its structure. For those who have worked with this company, they can point out some pros, including its selling modes. Pampered Chef offers an option where consultants can get their website at an extra $10 a month and sell stuff online. All these efforts are geared towards driving more sales. The company has a lot of affordable products offered at reasonable prices. Their compensation plan seems to be straightforward and there are equally significant discounts.
Is Pampered Chef Worth Joining?
Like all other MLM, working with Pampered Chefs comes with its fair share of cons. Based on testimonials from those who have worked with this company, it would be fair to say that it’s difficult to make a full-time living. Once you join the company as a consultant, you would probably get a few friends and family to purchase some of the offered products. However, with time, you may find you have run out of more people to sell to.
To sell enough of Pampered Chef products and live a decent life, you will need to look past your initial circle of friends and family members. You will need to host many events, expand your customer base and form new teams. For many people, this might seem to be a lot of hassle.
Hosting Parties seem Exhausting
Some people are reserved as far as selling is concerned. The model of selling Pampered Chef products over parties may not be exciting to everyone. Yes, the first party could be fun, as you and your friends get together as you sell products to them. However, your friends will not want to sit through the same presentation over and over at another time. You will need to create new groups and acquire new people to invite to parties. This may sound easy on paper but not in practice.
Alternative Ways to Earn Online
There are lots of people out there who don’t like the idea of earning through multi-level marketing. There sounds to be a lot of promises and disappointments surrounding MLM model of business. Network marketing is a legitimate business, but some companies are surrounded by a lot of false hope masked by the pretense that everyone can make big money and finally get out of the rat race.
The critical problem with MLM model is that it promises too much that it can handle. When you get started with multi-level marketing, it can be easy to sell in the first few weeks, as you sell products to friends and family. However, as weeks roll out, it can be challenging to make a sale. Another big handle with network marketing is the capital required to acquire the first kit or products. The first kit might be relatively priced locking out many potential marketers. There is also uncertainty surrounding buying products to sell to friends, family, and others, yet you are not sure if these products will sell or not.
Is Affiliate Marketing the Best Way to Go?
The best alternative to multi-level marketing is, without doubt, affiliate marketing. Essentially, affiliate marketing involves a merchant paying a commission to other online entities (you as an affiliate) for referring new businesses to the merchant’s website. As an affiliate, your sole work is to introduce visitors to the merchant’s brand through various ways that I can guide you.
One of the key reasons affiliate marketing always provides a higher ROI than other channels is because of its performance-based model. You with the right knowledge and minimal training, you can help in all matters related to affiliate marketing and earning as an affiliate. When you get the tricks and ways used to find great products and services, you only need to send potential customers to sites offering such products and get paid a commission for any purchase made.
Good news is that hundreds of people all over the web are searching for these products and services. You only need to use appropriate and proven SEO techniques to get this traffic and direct them to where these products they are searching for are offered. To get started in affiliate marketing, I’m giving you the opportunity to exclusively join my WEALTHY AFFILIATE and learn how to get started and make money with affiliate marketing. Click HERE and let’s get started.