Pampered Chef is a MLM (Multi Level Marketing) company that sells a range of kitchen products and housewares. Like with most MLM companies, such as Tupperware, Amway, Herbalife, Nu Skin, the products are often higher priced than you will find in shops, and the income is stated as exceptional, with most consultants making no money.
If you are wondering how to make money with Pampered Chef, we will look at the Pampered Chef’s compensation plan and also Pampered Chef business model.
What is Pampered Chef?
- Overview of Pampered Chef
- What is the Pampered Chef business model?
- Pampered Chef products
- How much does it cost to buy a Pampered Chef consultant kit?
- How to make money with Pampered Chef
- The Pampered Chef’s Compensation plan
- How much can I earn with Pampered Chef?
- Do I get training with Pampered Chef?
- What I like about Pampered Chef
- What I don’t like about Pampered Chef
- Is Pampered Chef a MLM pyramid scheme? is it legit?
- Is this a good way how to make money with Pampered Chef and final thoughts
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Overview of Pampered Chef
Pampered Chef was started in 1980 by Doris Christopher, a home economics teacher who became a stay at home mum. She started by selling cookware and doing kitchen parties in her home in Chicago, and the homes of her friends. It is based in Addison, Illinois and it was purchased by Berkshire Hathaway in 2002.
Pampered Chef distributors are called independent consultants. For more than 40 years, the range of house wares and kitchen products, have been sold by an international network of consultants. It is based on home party sales, but now also online.
What is the Pampered Chef Business Model?
The Pampered Chef business model is Multi Level Marketing (MLM). The Multi Level Marketing business model, is a model in which the company has a contract with independent distributors to sell and promote the company’s products. At the same time, the distributor has to recruit customers, and sign them up to also become distributors.
When you buy a Pampered Chef consultant kit and become a distributor, you are not an employee, but an independent consultant. So there is no base salary and you have to sell through a MLM system, which means constantly having to recruit team members.
If you are already wondering is Pampered Chef a MLM, yes, it is, and you can read more about the MLM business model in this related post on How to avoid Multi Level Marketing scams.
I don’t think you can make money with MLM, so let’s have a look how to make money with Pampered Chef, or is it just another MLM money trap.
Pampered Chef Products
Pampered Chef products are selected after extensive in-house testing (so not third party testing) and has a reputation for quality, although expensive. The product range is anything you need for the kitchen.
- Cookware and Bakeware: pots, pans, baking dishes, skillets and sets of these.
- Entertaining: bar ware, serving ware, outdoor, kids etc.
- Kitchen tools: utensils, baking and cooking accessories, cutlery, mixing and measuring, food preparation etc.
- Pantry: mixes, sauces and oils, seasonings etc.
- Small appliances: air fryer, grilling, blender, slow cooker, pressure cooker and ice cream maker.
Many products, like cutlery and cookware, carry a lifetime guarantee, otherwise a guarantee of 1, 3 or 5 years, depending on the product.
Lifetime guarantee is always misleading, because if Pampered Chef deems the lifetime of a product to be one year, then the guarantee will only be one year, even if you think it should be longer.
Products can be returned for an exchange or refund within a year.
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How Much Does it Cost to Buy a Pampered Chef Consultant Kit?
You pay to join Pampered Chef and have a choice of two starter kits. You choose it according to your investment budget and the type of parties you would like to have:
- Starter Kit: Pay $99 for a kit that is valued at more than $400
- Deluxe Kit: Pay $159 for a kit with a value of over $700.
Kits include products and business tools, everything you need to start your own business.
To get started, you sign up with an existing Pampered Chef consultant, or sign up online. Choose your starter kit and pay. You get your own personal website, which is free for the first 90 days. After that, it will cost you $120 per year. Having a personal website, means you business is open 24/7.
You also get access to marketing emails and images to promote your business and personalized online training to help you launch your business and continue growing it.
Hostess qualifies for free products rewards, of which $25 or $50 can be used towards your own starter kit when you join.
How to Make Money with Pampered Chef
There are three main ways in which you can make money with Pampered Chef:
- Hold parties: this can be done in person, or online. A Pampered Chef party is a cookery demonstration. So it is similar to the Tupperware model of inviting friends. The consultant does the demonstration and sells products, as well as try to recruit more people.
- Share your favorite products and recipes on social media, and people can place orders on your website.
- Start recruiting and build a team of your own.
Pampered Chef products are also available on Amazon, which makes it even harder to sell the products. And remember that as soon as you buy the Pampered Chef consultant kit, you are out-of-pocket.
The Pampered Chef’s Compensation Plan
There are several ranks within the Pampered Chef hierarchy:
- The first level after becoming a consultant is a Senior Consultant. The requirements are to have
- personal sales of $150 every month, and have
- 1 active personal recruit. To be active the personal recruit also needs to have $150 personal sales volume.
- The second level is Team Leader. The requirements are
- personal sales volume of $750 every month, plus
- 2 or more active consultants
- each recruited consultant needs $150 in personal sales every month to be active, plus
- the team of recruited consultants have at least $2,500 in team sales.
- The third level is Director and these are the requirements:
- need to sponsor 5 active Pampered Chef consultants.
- You need personal sales of $750, and together you need to place orders to have
- personal teams sales with a value of $5,000.
- You then earn 3% override commission on the personal team sales.
- Next level is Advanced Director: if one of your direct recruits make it to the rank of Director, then you promote to Advanced Director.
- The minimum personal sales are $750 and sales requirements are $5,000 for the personal team, plus
- $12,000 organizational sales.
- You now earn 4% override commission on sales from your “first generation” recruits, and
- 3% commission on the sales of your recruits, so “second generation”.
- The next level is Senior Director:
- you need 3 x “first generation” directors, so your personal recruits that you sponsor, plus
- 1 x second generation director, so someone sponsored by your down line, to reach this level.
- Everybody must spend to qualify, so personal sales of $750, plus
- $5,000 personal team and
- $24,000 organizational sales.
- As an addition to override commission that you already get as an Advanced Director, you also earn 1% commission from second generation. Thus, if people 3 levels below you spend money on Pampered Chef products, you earn money.
- Following level is Executive Director:
- you need 6 x first generation directors, plus
- 2 x second generation directors, to reach this level.
- Everybody must spend to qualify, so personal sales of $750, plus
- $5,000 personal team and
- $48,000 organizational sales.
- As an addition to override commission that you already get as Senior Director, you also earn 0.5% commission from your third generation.
- The next level is Senior Executive Director:
- you need 9 x first generation directors, plus
- 5 x second generation directors, plus
- 1 x 3rd generation director, to reach this level.
- Once again minimum sales values are required, so $750 personal sales, plus
- $5,000 personal team sales, plus
- $100,000 organizational sales
- As an addition to override commission that you already get as an Executive Director, you earn even more commission from those below you.
- The top rank is National Executive Director and to reach this level you need:
- 12 x first generation directors, plus
- 9 x second generation directors, plus
- 3 x 3rd generation directors in your down line,
- As before, minimum sales values are required so $750 personal sales volume, plus
- $5,000 personal team sales, plus
- $200,000 organizational sales
- In addition to override commission that you already get as a Senior Executive Director, you earn even more commission from those below you.
So as you can see from the Pampered Chef’s compensation plan, you have to continue recruiting, and encourage your recruits to recruit, and so on, to reach the ranks and be paid override commissions.
How much can I earn with Pampered Chef?
You earn 20% commission on each product that you sell. This can move up to 27% after you establish your business, plus bonuses like free products, points towards a vacation and sales training.
Looking at the base level of 20% commission, you must sell $500 worth of products, to earn $100 in commission.
That is without any expenses, as remember, when you work for a MLM company, all your expenses have to be covered by yourself. So any expenses for a Pampered Chef party, traveling, petrol, telephone bills, monthly website fee, samples, FaceBook live sales etc. have to be covered by yourself.
Add to that standard business expenses like taxes, accountancy fees, internet etc. So the expenses add up and you are soon out-of-pocket. The only way to earn more, is to recruit.
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Why is it difficult to make money with Pampered Chef business model? Less than 1% of people that join a MLM company, will make a profit. With Pampered Chef you are not a business owner, you are a customer, and are encouraged to recruit more people who become customers.
So as a Pampered Chef consultant you are sharing the opportunity to sell their products. With Affiliate marketing you are not limited to selling cookware and kitchen products from just Pampered Chef, but you can promote several brands.
It is difficult to get an income statement for Pampered Chef, as MLMs are not required to produce income statements in the USA.
Do I get Training with Pampered Chef?
As soon as you buy the Pampered Chef consultant kit, you will be part of an active and supportive community. Your mentor and team are there to support you.
There is an online platform, which is available 24/7, where you have access to tons of training and resources. That helps you to grow your skills, your team and your business.
The tips, tools and training are designed that you can learn at your own pace and it is always available when you need it.
What I like about Pampered Chef
- You can work part-time to work around another job or your family commitments, or work full-time.
- Work anywhere with online tools and website.
- Get free products and discounts. You immediately get between 20% and 50% off products when you join. Every month you have the chance to earn products or gear with Pampered Chef logo.
- Earn cash rewards and holidays when you promote.
- Based on the sales value of a party, hosts can earn rewards, like discounts and free products. If guests or online customers place a minimum value order, they can get free products.
What I don’t like about Pampered Chef Business Model
- You continually have to recruit new team members.
- To remain a consultant, you have to submit a minimum of $150 in personal sales every month.
- At the higher levels you need monthly personal sales of $750.
- You only get override commissions if everybody in the down line performs.
- Consultants do not get any employee benefits like pension, holiday pay, sick leave etc.
- You are limited to only selling Pampered Chef products.
I worked for Usborne Books at Home, a MLM company, so I understand the frustration that distributors have when they no longer have family members or friends to sell to, and struggle to recruit another team member.
Is Pampered Chef a MLM pyramid scheme? is it legit?
Pampered Chef MLM borders on being an illegal pyramid scheme, but the technicality boils down to the requirement for consultants to have personal sales. So most consultants have cupboards full of products, because they are required to place monthly minimum orders.
Pampered Chef is a legitimate company, but the fact that you can only move up to higher level is by recruiting, and your recruits have to recruit, makes them a pyramid scheme in disguise. More requirements must be met to reach higher levels, including much higher group sales. The only way you can achieve higher levels, is by recruiting. That mean you can get team override commissions and thereby have higher earnings. But, if you don’t recruit, you stay at the lower ranks.
Is This a Good Way How to Make Money with Pampered Chef and final thoughts
To be paid as a consultant, you have to put through orders with a personal volume of at least $150 every single month. Uplines will encourage consultants to make personal purchases to meet volume requirements. Can you afford to spend $150 every month on kitchen products? I certainly can’t!
And as you move up the ranks, the minimum monthly order is $750! I certainly do not think it is a good way to make money.
How often do you actually buy new pots and pans, or even more expensive items like a pressure cooker and air fryer? This is a sure way for consultants to get into debt. Remember that before you join a MLM company and try to sell to family and friends.
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If you have any questions surrounding is Pampered Chef a MLM or any experience with the Pampered Chef’s compensation plan, then please leave them below, and I will get back to you.