Who hasn’t heard of Pampered Chef? I, for one, have known about this company almost since the beginning. Pampered Chef operates under the MLM model of business; for this reason, I will do a Pampered Chef MLM Review today.
Those who know me will often hear me say that I am the gadget girl. I love any kitchen gadget that will make my meal preparation easier. Not to mention, I have a huge drawer full of devices. Pampered Chef helped me fill that drawer.
But as recently as 2021, I attended a Pampered Chef party. You know the ones you go to because you can’t say no to a friend. Today there are so many more things available for sale in Pampered Chef than just gadgets.
Without further delay, lets get started with our review.
Who Is Pampered Chef
Doris Christopher started Pampered Chef in 1980 in her kitchen with a $3000 insurance loan. She adopted the same type of party plan used by Tupperware, the MLM model, to operate her business.
Warren Buffett’s Berkshire Hathaway corporation purchased Pampered Chef in 2002. Today Doris is still involved in her company, but Andrew Treanor became the new CEO under the Berkshire Hathaway company in 2020.
What Is MLM (Multilevel Marketing)?
An MLM, or Multilevel Marketing company, is a type of business that relies on its sales force to recruit additional salespeople below them, thus creating a “downline.” These salespeople then receive commissions on their own sales, as well as the sales of people they’ve recruited into the MLM.
While some people view MLMs as pyramid schemes or get-rich-quick opportunities that make up for their low pay with quick money from one’s own downline, other people use MLMs to actually make an active income.
While others work hard at their MLM business and never break even so to be on the safe side, it’s important to do your research before deciding whether or not an MLM is right for you.
What Products Does Pampered Chef Offer?
Pampered Chef continues to sell gadgets to enhance the kitchen and mealtime experience, but in addition, they now offer recipes, small appliances, and so much more.
- Cookware and bakeware
- Small appliances
- Enternaining items
- Items for the pantry
- The list goes on and on
Pampered Chef MLM Review
Pampered Chef has been in business for almost 42 years, and I am sure it has had a lot of changes.
Let’s start with customer reviews with the Better Business Bureau. Pampered Chef has a 1.16 out of 5 rating with the BBB. The customer reviews talk about poor service and broken products. In contrast, the MLM reviews speak of the inability to close their consultant accounts and stop money withdrawal from their bank accounts.
Granted, a Pampered Chef representative answers all of the complaints. Be that as it may, the responses are blanket statements like; I am sorry for your troubles; we cannot honor your request, or you have waited too long to use your discount or return the product.
Pampered Chef has filed suits against others and has had its share of lawsuits over the years, but all MLM companies who have been in business for 42 years can share in the drama. I looked at each suit on the internet and found most of them relatively obsolete and a part of history.
In 2020 Pampered Chef expanded their business to France, but back in 2015, they closed their UK business.
It appears from 2015 to 2018, the company had some financial difficulties. Direct Selling News reported a $40 million loss in revenue, and as a result, the new CEO Andrew Treanor took over in 2020.
So, to sum it up, Pampered Chef is under the Berkshire Hathaway companies, who, by the way, is infamous for the highest share prices in history. Which means it is one of the wealthiest conglomerates of companies in the world. If Pampered Chef is in financial difficulties, they are absolutely in the right place to get help.
Today there are over 65,000 consultants internationally, and when I researched how much-pampered chef consultants make, the results said, an average of $45,359 a year in the U.S.
A point often overlooked, results of this average are from all of the consultant’s income placed into the equation. The ones at the top make millions, and the ones at the bottom 69% never make anything, resulting in the average yearly income. So, the average income is misleading.
How Can You Become A Pampered Chef Consultant
It’s easy to begin your business as a Pampered Chef consultant. Head over to their website and fill out a form under join. Once you do the person who recruited you will get in touch with you.
Price To Join
Initially, it is $99 to join and with this money, you do get a kit that Pampered Chef says is worth $400 that you can resale.
If you want to upgrade you can also add additional kits that also have products you can sell.
- Delux Kit – $159
- Ultimate Kit – $259
Pampered Chef MLM Compensation Plan
MLM compensation plans are complicated so I included a simplified chart here for you to look at and a video just below it.
In the left column is the amount you make. In the center, the column is the percentage you will make from the amount you make, and the right column is an incentive to make more money with an increase in the rate you will make.
You can make money two ways, one by selling the products and two by recruiting a downline. As for how much you can make, well, that’s a different story. They also offer incentives, bonuses, products, and trips.
To see the full compensation plan please watch the video.
Video Of The Pampered Chef Compensation Plan
Pros And Cons Of Pampered Chef MLM
So now that you have the most relevant information, let’s examine the Pros and Cons and determine what the potential truly is.
- A part of Birkshire Hathaway Company
- Longevity – 42 years in business
- Appear to pay a higher percentage compared to other MLM companies.
- It is an MLM model of business
- The top 2% or so make all the money
- They do not provide an income disclosure
- Pricey to join if you choose to upgrade your kit
- Poor BBB ratings and reviews
Pampered Chef Income Disclosure
To my knowledge, Pampered Chef does not have an income disclosure, so I don’t know the percentage breakdown for how much each person makes.
Since I don’t have any objective evidence to go on, I will assume the Pampered Chef MLM business is the same as all other models like this. The top 2% or less make the big money while the additional 98% don’t break even.
Is Pampered Chef MLM A Scam?
A scam is a fraudulent business. A company is dishonest in what they offer; with this in mind, I don’t think the products produced by Pampered Chef are a scam, although they are expensive and reviews state they don’t work well or for very long. While some may benefit from the products, on the whole, I do not believe the MLM portion is a scam, but they do border a scam.
Is Pampered Chef MLM A Pyramid Scheme?
To answer this, I have to go off of the definition of a pyramid scheme, and with this in mind, I have to say Pampered Chef is not a pyramid scheme, be as it may, it does closely resemble one, as do all MLM companies.
Video Overview Of Pampered Chef MLM Review
The Problem With MLM Companies In General
According to an FTC Government file, an MLM operation does not have a clearly defined definition. It calls MLM’s “product-based pyramid schemes,” not to mention it compares it to an illegal chain letter. You know the letters you receive in the mail, it says to put a dollar in an envelope with a copy of the letter and send one to 10 people. Then if you do this, you will make a ridiculous amount of money.
The FTC Government document also states that MLM “is inherently flawed, unfair, and deceptive.”
Only 25% of MLM participants turn a profit. Please note this says “turn a profit,” rather than, make money. After you take out expenses, very few make money.
My Recommendations Regarding Pampered Chef MLM
While I love the products Pampered Chef provides, I do not like the MLM business model. I do not recommend Pampered Chef to make a substantial income from home.
Many consultants will put in an extensive amount of time building their business but never make a dime. An MLM scenario like this equals a waste of precious time.
It is difficult to say what percentage of consultants don’t make any money without an income disclosure. But the statement that the average yearly income for a consultant is $45,359 a year in the U.S. is very misleading and dishonest.