Pampered Chef MLM Review: Is it a Pyramid Scheme?

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I came across the Pampered Chef MLM opportunity a while ago and never got around to reviewing the company. Warren Buffet’s involvement with the company, definitely caught my attention.

So years later, here I am with my review of Pampered Chef. This is completely unbiased as I’ve never joined the opportunity.

I review dozens of MLM opportunities and business opportunities each month. So if you’re interested in this opportunity, hopefully you’ll find this review to be informative.

Let’s get into it.

What is Pampered Chef MLM?

Pampered Chef is an MLM (multi-level-marketing) company that sells products for home makers. It was founded by Doris Christopher who was an economics teacher by profession, in Chicago, Illinois in 1980.

The idea behind the formation of this company was to provide quality and functional kitchen products through direct sales.

The company has been selling a diverse range of kitchen products using a family and friends distribution channel for many years. They have been selling their products through the party plan system and sometimes through cooking shows.

In 1990, Pampered Chef gained immense popularity. And the company started expanding globally in 1996. They branched out operations to the United Kingdom in 1999. Then Germany in 2000. And Mexico in 2009.

Today Pampered Chef is considered to be a global company.

How Does Pampered Chef Work?

Pampered Chef sells its products directly to consumers through its consultants.

Consultants promote the products and business opportunity by hosting parties at their home and inviting family members and friends.

Is Pampered Chef a Pyramid Scheme

During these parties they demonstrate how useful the products are and promote the products and business.

Another way that consultants promote the Pampered Chef opportunity is by creating a website to lists products and earn commissions from sales.

The last method for growing the business as a consultant is by focusing on building a team by recruiting new consultants. When you bring on new consultants who in turn bring on new consultants, you earn commissions on all of the efforts of your organization.

Pampered Chef Products

Pampered Chef MLM sells a wide variety of products such as kitchen tools, food products, and cookbooks for the home.

The company puts an emphasis on providing multi-propose tools that people will use instead of accumulating utensils that will be stuffed in the drawers.

In general, all of their products have at least a 1-year warranty. This shows that the company stands behind their products and these products are of the highest quality.

Pampered Chef has over 300 different types of kitchen tools.

Among all the products available, the stoneware bakeware is one of their more popular products. The teak wooden spoons are also popular.

There are some unique tools that you can’t find in local stores such as the cut-n-seal maker tart, pizza and crust cutter, and mini tart shaper.

As a consultant with the company, you can buy products at a deep discount of anywhere from 20%-50% depending on your title.

How to Join Pampered Chef

To get started, simply visit the Pampered Chef website to become a consultant.

Pampered Chef MLM

From there the company can put you in contact with a sponsor who will be your coach. Or you can get back to the person who told you about the opportunity.

In addition to that, all you’ll need to do is fill out the consultant agreement form and buy a consultant kit.

You can choose from 3 different kits depending on which level you want to come in at.

The Starter Kit

This kit is for beginning cooks with and gives you the basic tools. This will cost $99 and comes with products worth over $400.

The Deluxe Kit

This option is great for home cooks with reliable tools. This kit will cost $159 and comes with $700 worth of products.

The Ultimate Kit

This kit is a home chef’s dream as it has great tools for cooking and experimenting. It will cost $259 and has products worth $1000.

Pampered Chef App

The Pampered Chef mobile app is available for Android and iOS devices. You can download the Android version from Google’s Play Store and the iOS version from Apple’s App Store.

With the app you have access to your business on your mobile device.

Pampered Chef Compensation Plan

The Pampered Chef compensation plan is pretty straight forward compared to other MLM companies. The plan has 5 commission rates based on a consultant’s monthly sales.

Here is a list of earnings at the different levels.

  • 20% commission rate for $1 to $749 monthly sales.
  • 22% commission rate for $750 to $1249 monthly sales.
  • 23% commission rate for $1250 to $2449 monthly sales.
  • 24% commission rate for $2500 to $3999 monthly sales.
  • 25% commission rate for over $4000 monthly sales.

In order to max out the compensation plan you need to sell more to get higher commissions from monthly sales volume.

You will also increase your earnings when you climb the ranks/titles. Here are the titles with Pampered Chef:

  • Consultant
  • Senior Consultant
  • Team Leader
  • Director Promotion
  • Director Maintenance
  • Director Re-promotion
  • Advanced Director
  • Senior Director
  • Executive Director
  • Senior Executive Director
  • National Executive Director

The company also added some extra bonuses to help increase earnings potential for their consultants.

When your total sales reach $15,000 your commission rate will increase by 2%. You can also earn an extra 3% commissions from team sales as well as bonuses such as free products and points towards vacations.

Like most MLM companies, if you want to increase your earnings, you will want to focus on building your downline.

As far as method of payment, the company will deposit your earnings directly into your bank account twice per month.

NOTE: To stay active as a consultant, you will need to sell at least $150 regularly (the company’s words), which I assume means monthly.

Pros and Cons of Pampered Chef

Pros

  1. The company has been around for a long time, since 1980.
  2. Pampered Chef has an A+ rating with the BBB.
  3. Products are backed by a hassle-free 30-day money back guarantee.
  4. The company is owned by Warren Buffet’s company, Bershire Hathaway.
  5. A solid online training program called PC University to help new distributors grow their business.
  6. The company offers some unique products that can’t be found in stores.

Cons

  1. Some customers have complained about the price point of some the products.
  2. The company uses old school methods of growing a business such as house parties and doesn’t have an automated online marketing platform.
  3. Cheaper products are available elsewhere, which could make it a challenge to sell the products.
  4. MLM is hard. The failure rate is sky-high and success requires an advanced skill set, an excellent marketing platform, and support.

Is Pampered Chef a Pyramid Scheme?

No, Pampered Chef is not a pyramid scheme. The company is a well-known company that has been selling real physical products for a very long time, with over over 35,000 distributors.

Pyramid Schemes don’t have a real product or if they do have a product it is negligible. The only real focus of a pyramid scheme is bringing in more people and getting them to part with their money.

Pampered Chef was acquired by Warren Buffet’s Berkshire Hathaway Corporation in 2014. This speaks to the legitmacy and credibility of the company compared to other MLM companies.

Better Business Bureau

Pampered Chef MLM has a rating of A+ with the Better Business Bureau and is considered a great company.

Revenues

The company’s revenues have been stagnant over the last few years and it didn’t make my list for top ranked MLM companies. Below is a rundown of their revenues over the past few years according to Business for Home.

  • 2018: $280 million
  • 2017: $295 million
  • 2016: $310 million
  • 2015: $320 million

Conclusion

This opportunity is definitely not a pyramid scheme. And Warren Buffet knows a thing or two about investing in companies.

To the anti-MLM crowd, I think this shows that not every MLM is a pyramid scheme. And to anyone interested in joining this opportunity, as I’ve said many times before, MLM takes an advanced skill set.

But if you have what it takes and maybe you’re a seasoned pro who enjoys these types of products, Pampered Chef might be worth you while.

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