Let’s say you are actively looking for opportunities to make money. Someone might have introduced you to Tupperware as an opportunity, and now you are wondering if you should invest in it or not. In this review, we will disclose key details about Tupperware, to find out if the company is a scam or not. At the end, you will be in a better position to choose whether the company is worth you time and investment or not.
Keep reading to learn more about Tupperware, its products, how you can join, and how you can make money from them.
What is Tupperware
You might have heard of the company from your mom or nana, who has some Tupperware products in their homes. You might have also heard about the company from someone messaging you on social media, presenting an opportunity to make money.
As you might have guessed, Tupperware is a multi-level marketing company whose products include kitchen and home products. Earl Tupper founded the company in 1946, which is quite a long time for an MLM company. Tupperware also trades at the New York Stock Exchange.
Considering that only a third of MLMs still exist after ten years, lasting more than half a century is some good news to start with. Even though the company has been around for so long, is it worth your time to invest in, or should you look for a new opportunity?
The Tupperware Opportunity
As mentioned before, Tupperware is an MLM company, which is different from a pyramid scheme. It has actual products to sell. It relies on its members to get the word out on these products and promote sales.
Like any other MLM, you can earn money from Tupperware in one of two ways:
- You can either sell their products and get a commission on their profits
- You can recruit members and build a team
Tupperware aims its business opportunity at people who love socializing and having fun. The general idea behind the Tupperware opportunity is to buy some of their products, which you then display at your house parties, birthdays, picnics, etc.
By displaying the Tupperware products, you create interest and eventually make sales. The sales you make earn you a commission based on your efforts and your team’s. Since the company is a multi-level marketing model, you can earn from your team members’ sales.
For instance, say, you recruit two friends, Jane and Doe, whenever Jane or Doe makes a sale or purchases products from Tupperware, you can earn a small commission.
Tupperware has survived over 70 years without paying for advertising, all thanks to its direct selling methods.
Tupperware has dominated the food storage market. The products, which include products you can use around your kitchen for storing, serving, and preparing food, are a big name. You can find any plastic you need in your kitchen at Tupperware.
Tupperware has managed to dominate most kitchens without advertising its products. They get help from their affiliates, who throw ‘Tupperware parties’ to showcase the range of products from the organization.
Unbelievably, every 3 seconds, a ‘Tupperware party’ starts somewhere in the world. In addition, unlike other MLMs that offer health and wellness products, skincare solutions, etc., Tupperware has managed to stand out. The party hosts get to walk home with a range of products, which include:
- Kitchen tools
- Food storage containers
- Kids and toys
- Cookware and bakeware
- On the go products like carrier bags
The problem today is that the market is flooding with new products from different players. This is shaking the standing ground of Tupperware that was a common household name. However, do not worry, it is a famous brand.
How to join Tupperware
If you are interested in joining Tupperware, you can choose one of their three alternatives:
- Virtual Kit
The virtual kit goes for $15 and includes a pro-level subscription on my.tupperwareplan. You also get a personal selling website to promote the Tupperware product sales.
- Basic Demo Kit
On their page, Tupperware indicates that it costs $60 to join the company with a basic business kit. This kit contains Tupperware products valued at $260. Once you visit their ‘Join us’ page, you can see what the company has to offer.
The starter kit includes an exclusive Tupperware canvas tote, eco-friendly products with on-the-go demos, and ten catalogs. You also get 20 brochures, 50 order forms, an incredible collection of their top-selling products, and three months of paid Pro level subscriptions at my.tupperwareplan.
The kit includes products like:
- Chop ‘N Prep Chef
- FridgeSmart Small Dep
- Modular Mates
- Oval Container
- Eco-To-Go Cup
- Lunch-It containers
- Deluxe Demo Kit
The Deluxe Demo Kit sells for $109 and includes:
- Microwave Breakfast Maker Set
- A silicone spatula
- Measuring cups and spoons
- Vent ‘N Swerve medium shallow set
- Freezer mates, etc.
You also get a Pro my.tupperware subscription and a personal selling website.
To earn your commission, you also need to make minimum sales ($250 for the first four months). Therefore, in a year, you can spend up to $1200 without including the cost of training, marketing, postage, and packaging.
The Tupperware Compensation Plan
We have said before, you can earn money from Tupperware in one of two ways: Either sell their products or recruit people.
Tupperware does not hold back information on the compensation. They provide all the information you need before joining their business. To help you understand their plan, we have broken down the compensation plan into more straightforward terms:
At Tupperware, you can fall in one of the following three levels:
- An associate
- A manager
- A director
Earning as an Associate
Here, you work as a consultant. You start by purchasing a business kit. You also need to make $250 in the first four months since joining the team. You earn a 25% commission on items you sell or a 25% discount on goods you purchase.
If your personal sales volume exceeds $1,500, you also get a 5% or 10% bonus on your total sales when you reach $10,000 in a month.
Earning as a Manager
You can earn your commission like the associate when you get to the manager’s rank. However, you get two additional performance bonuses.
- The profit plus bonus
You become eligible for the profit plus bonus, which constitutes 2% of the commissionable volume of your sales. The volume also includes the sales from your team. This commissionable volume entails 75% of the product value.
Therefore, if your team sells $10,000 in the month, the commissionable volume is $7,500, and you get a $500 profit plus bonus.
The profit plus bonus remains constant at 2% until you rise to the director’s rank, where it increases to 4 or 6% depending on the type of manager you become.
- The Vanguard Bonus
The Vanguard bonus is also a product of your commissionable team sales. For instance, a team that achieves monthly unit sales of $2.500 earns a $50 bonus amount.
Those who earn $16,000 in sales get a $210 Vanguard bonus, and for every additional $2,000, you make an extra $25.
The rates of the Vanguard bonus remain the same as a manager until you become a director. To become a manager, you should be making $500 every four months in sales and have at least three active recruits on your first level team. These recruits should be doing $2,500 in sales in 4 months.
Earning as a Director
The director’s rank is the highest you can get. You also stop earning the unit profit plus bonus on only three levels. You can acquire compensation for everyone on your team. However, the commission caps off when you reach another director within your downline.
As a director, earn 25% of the retained profits from your personal sales and a volume bonus. Sales beyond $4,000 earn you a 10% bonus; while $1,500 gets you are 5% bonus.
Directors also earn a considerable team sales profit plus bonus, which can go as high as 8% of a commissionable volume of $20,000. The lowest bonus is 6% of sales between $10,000 and $14,999.
You have heard of percentages but do not understand what they cover. At Tupperware, there are three main commissions and bonuses.
- Retail Commission– You earn a 25% commission on the products you sell. When buying products from Tupperware, you get them at a discounted price. You then sell them a recommended retail price and earn the commission.
- Bonuses on sales- You earn the bonus on sales depending on your performance. If you exceed $1,200 in sales, you get a 5% bonus. This percentage increase as your sales volume increases. For instance, members who sell more than $3,200 earn a 10% commission.
- Commission on team performance– Directors and managers who have teams earn these commissions and bonuses. Managers get between 4% and 8%, while directors pocket 6% to 12% of the sales made by representatives.
Lawsuits against Tupperware
In February 2020, Tupperware disclosed that it would delay its 10-K report due to an ongoing investigation into its accounts payable and accrued liabilities. This action caused impairments to the tune of $20 million. The Tupperware stocks dropped by 45% in the NYSE market, leading to a lawsuit by Bertrim.
The good news in the circumstance was that it was not the product that failed, but rather the management.
Now, is Tupperware a scam?
We can safely deduce that Tupperware is neither a pyramid scheme nor a fraud. They have some internationally known products, and their distributors get their share of the money.
However, there have been recent complaints from people who invested in Tupperware, only to lose their money.
Some of the reasons why we believe that Tupperware is not a scam include:
- It is an established company
The organization has been a common household name for over 70 years now. That alone is impressive.
- They have affordable products
When spotting a genuine MLM, affordable products are always a good sign. Tupperware even has cheaper products than those you can find on Amazon and other retail outlets.
- High-quality products
Products last long and serve your storage, packaging, and preparation needs.
- Good product reviews
\you can find a lot of information about a product even before buying it on the internet. The Tupperware products receive a lot of rave, with users saying that the products can last for years. In addition, this is a lot more than what some brands offer.
Shortcomings of joining Tupperware
So far, you can notice that Tupperware is a genuine business opportunity, but there is more to it. For instance, the business operates on an MLM model, which instigates fear and uncertainty among new investors.
Secondly, there have been reports of the Tupperware products dropping in quality. This is never a good sign when you want to invest.
Third, they have hidden monthly charges that no one tells you about. At Tupperware, consultants need to make $600 in sales every 6 months. In an attempt to remain in the organization, they end up stockpiling. For this reason, Tupperware looks like a pyramid scheme.
Consultants make money by recruiting people. However, the Federal Trade Commission, FTC, strongly warns against businesses that rely on recruiting people to make money.
Finally, only 1 in 833 members of the Tupperware community makes $32K and above in a year. The majority of the consultants, about 49%, earn $650 annually, which is nothing compared to the investment, sales, marketing, packaging, and so much more.
MLM products are easier to sell when people seek them out actively. In addition, this is not the case for Tupperware. Tupperware does indeed have some affordable plans you can jump on but is it worth the investment.
The only way to maintain your active membership and earn commission is by hiring people. You can only hire so many before you find yourself on calls encouraging your downline to make sales. In no time, you become a full-time salesperson. If your goal was to find a way to earn money while chilling in your house, Tupperware is not the opportunity for you.
Remember, less than 1% of MLM members earn a substantial amount annually. It may not be worthy. Instead, you can check the top-rated business opportunities we have compiled for you.