Is Pampered Chef a pyramid scheme? My neighbor screamed over the fence.
Why are you asking?
Well, I got an invitation to a cooking party. Want to come with me? She asked.
No, I better not. I don’t know them, and they don’t know me.
It’s an open party. Anybody can come.
Is this a cooking class?
I don’t know, she replied.
All I know is a cooking party. Please come with me. Let’s hang out this Saturday.
I wanted to write a review on Pampered Chef. I decided to accompany her to the Saturday home cooking party.
When we arrived, I asked my neighbor, “are you thinking of joining the Pampered Chef MLM?”
She smiled and nodded her head. I told my neighbor that the MLM face-to-face in-home party recruiting is dying. Why do you want to invite strangers into your home?
Most people prefer virtual party. They use a new digital recruiting tool called MLM Affiliate Marketing to built their team.
Should I look into this new recruiting tool? She asked.
You better if you want to make money with MLM. I replied.
You know I am not a fan of MLM, right? If you like, I invite you to learn what I do to generate passive income online every day.
Tired Of Scams And Pyramid Schemes?
Pampered Chef A Pyramid Review
Name: Pampered Chef
Business Type: MLM
Is Pampered Chef a good business opportunity? So, I requested an invitation.
Why did you invite me?
I need your advice. Thank you for coming with me TQ!
Welcome to the Pampered Chef party, the chef raised her voice. She is a Pampered Chef consultant.
We are going to have a lot of fun… We are going to cook… with the Pampered Chef cooking equipment.
But, before we cook… let me ask, does anyone know
What Is Pampered Chef?
A few raised their hands.
The chef then said, OK… let me introduce you to Pampered Chef.
Pampered Chef is part of Warren Buffett’s Berkshire Hathaway corporations.
Pampered Chef is a direct-selling company offering a high-quality line of cookware, food products, and cookbooks to help you prepare delicious food quicker and easier at home.
This Is A Brief “History Of Pampered Chef.”
Our company has been in business since, 1980.
Doris Christopher founded Pampered Chef in the basement of her suburban Chicago home.
Doris started out selling cookware items to housewives using the party plan… similar to the party we are doing right now.
Do you love making money partying?
I whispered in my neighbor’s ear… “direct-selling company… she meant… Pampered Chef is an mlm.”
The party business model took off… in 1983, Pampered Chef sales passed $200,000… By 1993 the company had consultants partying in all 50 states.
The year 2000… Pampered Chef’s 20th anniversary, the company sale reached $600 million with 60,000 consultants worldwide!
The amazing thing happened in the fall of 2002…
Does anyone know Warren Buffet?
The richest man in the world… acquired Pampered Chef to become part of his Berkshire Hathaway corporation.
So, when you become a consultant, you are working with the best direct-selling company in the world.
OK… ladies, we are going to break into groups.
My neighbor hugged me tight… You’re my Pampered Chef party partner!
I’ll go around… while you all prepare the food and discuss with you the opportunity of becoming a Pampered Chef consultant.
Isn’t that what we’re here for?
Almost everyone yelled… YET!
I looked at my neighbor and shook my head… She smiled.
We made Pampered Chef famous deserts taco for the party… It was fun.
While we’re all busy preparing food and chit chat, the Pampered Chef consultant visited each group to discuss the Pampered Chef business opportunity…
She came to our team…
Hello, how are you both?
So, who wants to…
How To Become a Pampered Chef Consultant?
I quickly pointed at my neighbor.
But, the consultant asked me, “What about you?”
I have my own business, just here to enjoy the cooking.
What type of business? If you don’t mind… I’m asking.
No… not at all… I am a writer… I have my own online writing business.
Interesting… Maybes, you can write an article about our Pampered Chef party.
That’s not a bad idea, TQ. My neighbor finally spoke.
Do you have any questions about becoming a Pampered Chef consultant?
I didn’t respond… believing the question was for my neighbor.
Yes, I do… can you explain the process, the initial investment cost, and how much I can make as a Pampered Chef consultant?
Sure, I can!
The process of becoming a Pampered Chef consultant is very simple.
You sign this Pampered Chef consultant agreement and Kit order form… handing us each a copy.
Then, select one of the three Pampered Chef consultant kits to launch your own business.
What are the investment costs for the starter kits? I asked.
Here… she handed us a flyer with three options:
You can choose the cheapest which is,
- $109 with cookware value of over $450, or the next one
- $159 with over $650 value of stuff, and the most expensive
- $249 worth over… $1,000… This is the best package which I recommend to all new consultants.
The party hostess passed by… “The $249 kit is the best to make money with Pampered Chef!” She said.
Not truth… I thought in my head… the package has nothing to do with business success! I just smiled.
So, which consultant kit do you like?
I remained silent… continued preparing the food.
My neighbor made the first move…
“I… have… to… huh…”
She needed help…
We need to know more, like…
What Do You As A Pampered Chef Consultant?
We party! This is what we do!
I believed… you meant using parties to sell Pampered Chef products and recruit new consultants.
Yes, and we have fun making money!
Can you explain to us…
What Is A Pampered Chef Party?
Simple… This is a Pampered Chef party! We gather to learn how to cook delicious foods.
But, how do you make money?
The consultant seemed to understand my intent, her response completely changed…
We use parties to demonstrate Pampered Chef products and offer guests a discount price.
So, basically, these are sales parties!
Yes, but you don’t want to use the word “sale” when inviting the guests… and you don’t have to do a house party like this to make money.
Really… acting like I didn’t know.
Yes, Pampered Chef teaches a few ways of hosting a party,
- You can throw your own party as a consultant,
- You can plan a party with a host, like this one, or
- You can do a virtual party.
When you’re planning a party with a host, you have to find a Pampered Chef customer willing to host the party, and
It’s not difficult to find one because the host receives rewards for sponsoring the party… this is the host reward, handed us a piece of paper.
Now, with the Virtual Parties, these are held online… mostly through your own social media account, where you invite and encourage guests to purchase Pampered Chef products online… with a special discount price, of course.
Virtual Parties, don’t sound like a good way to make money… I thought to myself… because to make this effective, you must have a big social media presence with thousands of followers.
As a new Pampered Chef consultant, you have zero chance of making money with virtual parties.
Those are Pampered Chef parties… Any other questions?
Yes, what about… the Pampered Chef consultant commissions…
The consultant interrupted me… you’re talking about…
Pampered Chef Compensation Plan Review
Yes, the money… the dollars and cents!
The Pampered Chef compensation is very generous,
Take this party…
Any product you sell at the party, you earn 20% to 25% commissions, depending on sales volume.
- 20% commissions from $150-$749 monthly sales volume,
- 22% commissions from $750-$1249,
- 23% commissions from $1250-$2499,
- 24% commissions from $2500-$3999, and
- 20% commissions from $4000 and above.
She handed us a copy of the Pampered Chef compensation plan and continue explaining…
When you achieve a $15,000 career sales volume, your commissions bump up 2%.
As you grow your business and add consultants to your team, you receive bonuses and override commissions on your team up to 3 generations… from 1% up to 4% of the entire team sales volume.
Can you see?
You can make a lot of money as a Pampered Chef consultant!
But… I pointed to a line on the compensation plan…
What does this mean?
“Active requirement”… $150 monthly personal sales.
That means… as a consultant… you must make at least $150 in sales each month to earn commissions.
You can easily meet this requirement with 1 party… like this!
So, according to this Pampered Chef compensation plan… If a consultant only sells $100 for the month, the consultant receives nothing… no commissions or discounts, right?
Yes, BUT… if the consultant makes a personal purchase of $50, it solves the problem.
I thought in my head… spending $50 in return for a $30 commission, ($150 x 20%), is not smart… I just smiled.
Should we start with the application to become a Pampered Chef consultant? The hostess jumped in.
I looked at my neighbor…
“I… don’t understand… about this…” My neighbor struggled to find the correct response.
I said… the easiest way to understand this is knowing the,
Pampered Chef Consultant Income
The Pampered Chef compensation plan is impressive… But it means nothing if a consultant cannot make a sale.
Do you have a copy of the Pampered Chef income disclosure?
No… the consultant replied.
“I have an old copy.” The hostess pulled out a piece of paper and handed to us.
This is not an income disclosure statement.
Then, I don’t have one. Replied the hostess.
We can use this… I said.
So, to make money with Pampered Chef, a consultant must run at least 4 parties each week… assuming each party takes 2 to 3 hours.
How… can you say this is a part-time business?
4 parties a week, that’s 4 evenings, not including the planning and inviting guests.
My question is… I said… how can you find people to fill up 4 parties a week? Everyone has to work on weekdays… It looks difficult to make money with Pampered Chef.
Well, you can do virtual parties… it lesser works! The consultant responded.
Yet! About that… you need to have a big social media account to run a successful virtual party campaign.
Let me ask you this… I said to the consultant…
What is your income from this Pampered Chef business?
My income… everyone’s income is different… you cannot use mine…
The hostess jumped in, “Someone has a question for you.”
Let’s discuss this when I come back…
The consultant left… never came back.
I told my neighbor… I think she doesn’t make money!
Do you think so?
I know so… People brag about their income… that their evidence of success.
So, you don’t think Pampered Chef consultants make money?
Pampered Chef A Pyramid Scheme…
You know… a scam?
We’ll talk about this in the car. I said.
On the way home, we continued our Pampered Chef pyramid scheme discussion.
Pampered Chef is not a pyramid scheme… But, it’s not easy to make money.
Why is it not a pyramid scheme?
According to the FTC, the Pampered Chef is not a pyramid scheme because consultants don’t just make money from recruiting others.
Consultants make money from selling products as well.
You can see from the Pampered Chef compensation plan.
I have no clue what you’re discussing in there. My neighbor said.
Pampered Chef cannot be a pyramid scheme… It’s a legit mlm company.
However, it’s not easy to make money with this opportunity.
Should I become a Pampered Chef consultant?
Is Pampered Chef Worth It?
Personally, I would not become a Pampered Chef consultant.
What do you mean? My neighbor asked.
From the financial data,
First, a consultant has to sell $150 per month to earn commissions… This is how Pampered Chef sells its products.
Most consultants purchase their own products to meet the minimum sales volume requirement… This is the problem with mlm business opportunities.
Look, you should be able to earn commissions on every sale… For example,
As an affiliate marketer, you make money on every sale… no minimum sales volume requirement.
I don’t know why people still joining an mlm business…
If you want to earn commissions selling products, become an affiliate marketer.
As an affiliate marketer, there’s
- No starter kit purchase,
- No sales volume requirement,
- No planning party,
- No inviting guests,
- No recruiting, and
- The best part, you can work from home.
Between affiliate marketing vs mlm, Pampered Chef is not worth it.
TQ, can I ask you a question?
Why, so serious?
I want to ask about your business… I thought you retired… “a housewife.”
You’re not the only one… I replied!
I didn’t know you were a writer… Now, I understand why you’re home all the time.
Yes, you can write anywhere as long as you have a laptop.
But, how do you make money as an online writer?
There are many options for a writer to make money online. I just told you one… “Affiliate Marketing.”
Will you teach me how to become a writer?
Sure, I’ll teach anyone… But…
Do I have to pay?
No, not about that…
A lot of people want to become a writer, but they are not willing to learn… You have to learn the process of writing money-making content.
Is it hard?
No… can you write?
Hell… Yet! She screamed.
Then, you can write money-making content.
You have to teach me… OK!
Yes, I will… or you can also read about this on my site.
We’re home… Thank you for coming with me.
No problem… I had a lot of fun.
Talk to you later… Bye neighbor!