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The Oriflame business opportunity offers you three things: look good, make money, and have fun. This is the exact words that an Oriflame consultant would say to recruit you.
I agree Oriflame cosmetics make you look good.
Women love doing makeup, so it’s fun.
But make money with Oriflame, I am not sure.
Oriflame is an mlm. When someone recruits me to join an mlm, the words “scam” and “pyramid scheme” are ringing in my mind.
Is Oriflame a pyramid scheme, a scam or a legit opportunity?
Hello and welcome to our mlm review Coffee Talk.
It smarts for you to stop by and read this Oriflame Review before signing on as an Oriflame consultant.
In this review, you are going to find out the truth about the Oriflame home-based mlm business opportunity.
I understand that you are looking for the opportunity to create a life dream of financial freedom. But not sure if Oriflame is a pyramid scheme or a legit opportunity.
Before joining, you should find out a few things about Oriflame, like:
- How to join Oriflame business?
- The cost to join Oriflame.
- What are Oriflame compensations?
- Can you make money as a consultant? And
- Is Oriflame a pyramid scheme or legit mlm?
After reading this Oriflame review, you should be able to determine if Oriflame a pyramid scheme or a legit profitable business opportunity for you to achieve your financial goals and dreams.
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Oriflame Review Summary
Business Type: MLM
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What Is Oriflame Business?
Oriflame is a multilevel marketing company that manufactures, distributes and sells products in six categories: Skincare, colour cosmetics, wellness, fragrances, personal and hair care, and accessories.
Oriflame was founded by the brothers Jonas af Jochnick, Robert af Jochnick, and their friend Bengt Hellsten in 1967 with headquarter in Schaffhausen, Switzerland.
Oriflame sells 96% of its products online through an mlm network of over 3.1 active consultants operating in 60 different countries.
Oriflame reported sales revenue of $1.56 billion in 2018.
The company Annual Report stated consultants earned an average annual income of $145.75.
Your chance of building a successful business with Oriflame is low.
I strongly urge you to carefully consider and compare Oriflame with other home-based business opportunities before investing.
You can use My #1 Business Opportunity to make a comparison.
How To Join Oriflame Business?
You need a sponsor to become an Oriflame Consultant.
If you know an Oriflame consultant, you can ask this consultant to sponsor you.
If you don’t a consultant, you can visit the Oriflame website request for a consultant near you.
Your sponsor can submit your application with appropriate fees to launch your Oriflame business.
Paying the registration fee is not enough. If you want to build a business and earn all commissions with Oriflame, you must be an active and qualified consultant.
Active and qualified require a purchasing one Starter Kit and meeting the monthly sales quota, which I’ll discuss in the next section of this Oriflame review.
How Much Does It Cost To Join Oriflame?
The cost to join Oriflame is either $28.90 or $123.64 depending on the Starter Kit
that you selected.
Both starter kits include presentation materials, products, and catalogs for you to promote your business.
Purchasing the most expensive starter kit will entitle you to receive more products and a 30% commission instead of a 20% commission.
Besides the initial investment, there are expenses to stay in business and receive the commissions.
Oriflame requires all Consultants to maintain a monthly order of 200 BP, approximately $156, to remain active and qualified.
As you can see, the cost to join Oriflame is not $28.90. You must also include the cost to become active and qualified.
You should pay attention to the monthly Active and Qualified Expenses.
Oriflame is a Pay and Play business opportunity. If you want to earn, you have to pay.
Any consultant that fails to order the minimum amount required to remain active and qualified is not allowed to receive the bonuses and commissions from Oriflame.
Remember, the expenses above do not include your time, the marketing costs, travel expenses, and gas.
The active and qualified expenses can destroy your business profit if you cannot resell the products. They become business losses.
Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no need to be active and qualified.
Do you know why Oriflame requires consultants to be active and qualified?
Two reasons, to sell products and to avoid being classified as a pyramid scheme under the FTC guideline. (Check our discussion on the FTC MLM Guideline to learn more.)
Oriflame Compensation Plan
The Oriflame compensation provides you an outline of all the options to make money with Oriflame.
I’ll provide a quick analysis of the Oriflame compensation plan. To see it in detail, just download a copy.
As an mlm opportunity, Oriflame offers you two ways to earn: Sell Products and/or recruiting others.
Make Money Selling Oriflame Products
Oriflame consultants sell products by distributing catalogs to people that they know and collecting from them to earn a retail commission.
Oriflame consultants earn from 20% to 35% of retail commissions based on the sales volume.
Below is the retail commission schedule.
- 0 – 99 BP ($0 – $77) = 20%
- 100 – 499BP BP ($78 – $389) = 30%
- 500 BP ($390 up) = 35%
This sounds simple to make money, right?
Well, I did a quick search online and found a bottle of Omega 3 selling as low as $5.
A bottle of Oriflame Omega 3 selling for $14.00.
Can you sell Oriflame products on the market?
It will be a challenge.
Overprice is the reason why consultants have a hard time to make money selling Oriflame products.
Make Money Recruiting Oriflame Consultants
When you cannot sell products, the only option to make money is recruiting others to join as a consultant.
The Oriflame business plan encourages people to recruit people to join, not to sell products.
As long as you are active and qualified, here are your options to make money with Oriflame.
Performance Discount (PD)
You can earn between 3% to 21% of performance discount on all purchases and sales made by your recruits and the consultants they bring in.
However, to receive the team override commissions, you must meet the minimum sales volume as listed on the schedule above.
You earn this bonus when your team member promoted to the director position.
The new director is breaking away and no longer a member of your team.
However, you will still earn between 0.0625% to 4% up to levels deep.
Here’s an overview of the bonuses:
There are other leadership bonuses and incentives which require more purchasing of Oriflame overpriced products to qualify. You can refer to the compensation plan
for more information.
As you can see, there are multiple ways to earn with Oriflame. But to get paid, you must remain active and qualified.
This is how mlm works. Ways to earn is not the same as qualifying to receive the money.
You can potentially earn nothing under the Oriflame compensation plan because the costs to remain active and qualified might exceed the commissions received.
Can You Make Money With Oriflame?
The compensation plan is not a financial document to use in evaluating the Oriflame consultants’ income.
Here’s what I mean,
The Oriflame compensation plan offers POTENTIAL EARNINGS, not real income.
To find Oriflame Consultants’ actual income, you need a copy of the Oriflame income disclosure statement (IDS). This financial document provides ACTUAL INCOMES that consultants received from Oriflame.
But, where can you get a copy of the IDS?
You can request one at the time of enrollment. The law requires Oriflame to provide you a copy together with the compensation plan.
As a business review writer, I look to the actual incomes to advise clients on an investment.
If Oriflame refuses to provide you a copy of the income disclosure statement, don’t join. This is a sign of a scam.
Here’s a copy of the Oriflame annual report, which contains the consultants’ income
for you to use with this Oriflame review.
Oriflame Consultant Income
According to the Oriflame annual report, consultants earned an average annual income of $145.73, approximately $12.14 a month.
Before you get excited and concluded, “Yes, I can make money with Oriflame!” I like to point out that this is the gross commissions, before taxes and expenses.
What happens if you deduct the $156 monthly active and qualified expenses from this commission?
Oriflame consultants made no money.
After reviewing the income disclosure statement, I can tell your chance of making money selling Oriflame is near zero.
Why I am so confident?
Because the consultants’ average annual income was less than $156. They didn’t earn enough to cover the cost of remaining active.
How can you possibly achieve profits in the first few years?
The Oriflame business opportunity is not profitable.
Is Oriflame A Scam?
Yes, you might not make money selling Oriflame products. But Oriflame is not a scam.
Oriflame is a business opportunity. Every business has risks.
You are responsible to carefully research, study, and investigate Oriflame before becoming a consultant.
If you join Oriflame without doing the proper researches, then you cannot call Oriflame a scam.
Reading this Oriflame Review is a good way to learn the risks and rewards associated with this mlm business opportunity.
Many entrepreneurs hire professional financial analysts to evaluate business profitability and loss before investing.
As the owner of an Online Business Review, I have evaluated hundreds of mlm businesses to help investors identified and managed the risks.
Oriflame is not a scam. It’s an unprofitable business opportunity.
Is Oriflame A Pyramid Scheme?
Mlm companies are legit if they follow the FTC guideline.
Oriflame might be legit under the law, but I don’t invest based on the laws.
I look at the compensation plan to determine if an mlm is a pyramid scheme.
I say Oriflame is a pyramid scheme.
If you look at the Oriflame compensation plan, Consultants are forced to purchase overpriced products to earn the commission.
The only way to make money is by recruiting others to become consultants.
Oriflame business plan encourages you to recruit, not to sell products. The more people that you recruit, the more money you earn.
Consultants become the customers purchasing Oriflame products.
Doesn’t this compensation structure make Oriflame a pyramid scheme?
Well, you don’t have to agree with me.
But, based on this Oriflame Review, you must agree that Oriflame is not good home-based business, and the compensation plan was not designed for you to make money.
You will not get rich selling Oriflame.
Is Oriflame Worth It?
If you join Oriflame to get a discount or cashback on personal purchases, then joining Oriflame might be worth it.
But if you want to make money, then Oriflame is not worth it.
However, the decision to become an Oriflame Consultant is yours to make.
Let me ask you this,
Do you know why you want to start a home-based business?
To earn extra money from home, to be your own boss, or to achieve financial freedom?
And to make money, we invest in a PROFITABLE business!
As an affiliate marketer, there’s NO traveling around town to attend late-night meetings and NO face-to-face sales or recruits.
The best part, you are working on the computer in your own home or anywhere you like.
Affiliate marketing is one of the most powerful work from home business opportunity to earn passive income. I recommend you read, MLM vs. Affiliate Marketing to learn.
One business risk that your upline will never tell you is “Business Control”.
As an Oriflame consultant, you have no control over your business.
You must obey Oriflame rules and policies to remain in business.
What happens if Oriflame goes out of business?
You are out of business! You lose everything and nothing you can do about it. You have zero control over the mlm business.
You build a business to create long-term incomes. You want to create a system that generates money far into the future. Isn’t this the #1 reason you want to build a successful business?
If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…
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What if Oriflame is not a pyramid scheme or a scam?
Would you start a business knowing the chance of making money is so small, less than 1%?
It is almost impossible to achieve your financial dream with Oriflame business opportunity. This is a fact!
There are much better home-based business opportunities compared to Oriflame.
I choose This #1 Home Investment Opportunity to generate passive income, years after years.
I am working from the comfort of my home and on a laptop. No driving around town and no boss. I work whenever I want and where I like.
Before wasting your time with Oriflame, I invite you to read “What I Do Every Day To Make Money At Home Online”.
Thank you for participating in our Oriflame review discussion.
Until next time.
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