Is Oriflame MLM a Pyramid Scheme Scam? – Review Reveals It!

Is Oriflame a Scam or Legit MLM?

Oriflame is not a scam. They would not have become a publicly traded company if they were. They offer genuine and beneficial products and pay their consultants as promised.

However, over the years, some people have had negative experiences with them, resulting in a slight tarnishing of their reputation among representatives.

As a result, not everyone supports multi-level marketing due to its association with pyramid schemes. Many people claim that all MLMs, including Oriflame, are scams because of their recruiting practices.

But, in my opinion, Oriflame is not a scam or a pyramid scheme, even though they rely on individuals for their marketing efforts. It is just one of the methods they use to promote their products.

Continue reading the rest of this Oriflame review to explore the advantages and disadvantages, and determine whether it is a viable way to generate additional income or even a full-time revenue stream.

What is Oriflame?

Founded in 1967 in Sweden by the brothers Jonas and Robert Jochnick, alongside Bengt Hellsten, Oriflame is a multi-level marketing company specializing in the sale of cosmetics.

The company has been in existence for over 50 years, which is quite an impressive feat in the realm of multi-level marketing. Typically, such companies only last for 1 to 3 years.

At present, Oriflame operates in approximately 60 countries, boasting 3 million Oriflame beauty experts worldwide. However, the products are not available in the USA as indicated on their website.

Similar to other multi-level marketing businesses, Oriflame promotes a money-making opportunity through its multi-level marketing scheme. Examples of companies that operate similarly include Primerica, Herbalife, Mary Kay, and many others.

If you want to learn more about the company and the opportunity, you can watch this video clip.

Is Oriflame a Pyramid Scheme?

There are two ways to earn an income with Oriflame company. The first is by developing a network of representatives below you, which is sometimes misconceived as a pyramid scheme.

However, it’s important to note that you can also earn income from selling their products independently.

This means Oriflame cannot be classified as a pyramid scheme.

What Is a Pyramid Scheme?

A pyramid scheme is a business model that recruits members by promising payments or services in exchange for enrolling new members into the scheme, instead of providing investments or product sales (source: Wikipedia).

To learn more about this topic, you can watch the short video below.

Many people question whether Oriflame is a pyramid scheme. This is because individuals can earn commissions by selling their beauty products and recruiting others into the multi-level marketing scheme.

Consequently, some believe that it is a pyramid scheme in disguise.

Is Oriflame a Pyramid Scheme in Disguise?

No, it’s not. Oriflame is not a pyramid scheme. They are a credible business operating within the standards set out by the Federal Trade Commission.

They promise settlements based on the sales made by others you register, but there are no direct repayments just for getting them to join. In other words, Oriflame sells real physical products for people to consume.

Their business model and the way products are sold can give the impression of a scam. This perception has persisted over time.

However, it is important to note that while Oriflame is not legally considered a pyramid scheme, whether you view it as one depends on your perspective of these schemes.

Related Review: Young Living

What Products Does Oriflame Sell?

With a wide range of over 1,000 beauty products, Oriflame offers options for skincare, haircare, and body care. You can find many of their products on their official website.

Here are the categories in which their products can be grouped:

• skincare products
• make-up
• fragrance
• bath & body products
• hair products
• accessories
• wellness products
• men’s products

At the Skin Study Institute, new products are developed and then sent to the firm’s worldwide R&D centre for testing with the help of over 100 researchers. All the products are naturally based and vegan.

Here are some of the top sellers:

• White Original Eau de Parfum: £30
• 5-in-1 Color Stylist Lipstick: £10
• 5-in-1 Wonder Lash Mascara: £9
• Eleo Hair Mask: £7.95
• Age Revive Anti-Aging Cream: £5.95 (sale)
• Blackhead Clearing Mask: £7

Are Oriflame Products Worth It?

Oriflame products are offered at very reasonable prices. Just look at their anti-ageing cream priced at £5.95. In comparison, some MLMs sell similar products for triple-digits. However, the effectiveness of Oriflame products is still a topic for discussion.

What’s great is that based on the positive reviews I’ve come across, it seems that people like Oriflame products. This could potentially simplify your selling process to interested individuals, making it worth your while.

In the following sections of my Oriflame MLM review, I’ll guide you on how to sell these products and earn money.

Related Review: DoTerra

How Does Oriflame MLM Work?

Oriflame, like many other MLMs, operates similarly. The company develops and manufactures its products and offers people, such as yourself, the opportunity to become representatives and earn commissions by reselling these products.

As a consultant, the success of your Oriflame business depends on your ability to advertise and sell the products. For each item you sell, Oriflame compensates you accordingly.

However, there is another aspect to how this MLM operates. As the name suggests, you can also build a team of salespeople and earn income from their sales.

Given these details, some may argue that Oriflame MLM resembles a pyramid scheme…

As mentioned in my review, joining Oriflame is completely legit. Unlike many other multi-level marketing companies, it is free to join.

This aspect could be a strong motivation for more people to sign up with the business, which is advantageous for you as a consultant.

How To Make Money With Oriflame MLM?

Similar to other MLMs, there are two ways to earn money from Oriflame:

1. Selling products: As an Oriflame Consultant, you will receive a 20-35% discount on products you order for yourself.
2. Recruiting members: If you manage to recruit consultants, you can earn up to 13.5% on their sales.

As you and your team sell and recruit more, you can progress to higher positions like Group Manager, District Manager, or Regional Manager. Advancement is based on monthly sales figures and the performance of your team.

Related Review: Arbonne

How Much Can You Earn Oriflame MLM?

Commission on personal sales is earned through retail compensation, which is calculated as the cost difference between your discounted professional price and the item’s actual retail value.

When purchasing less than ₤130 worth of items, you receive a 20% discount. For purchases over ₤130, you enjoy a 30% discount. Additionally, there is a delivery fee of ₤4.50 per order.

The remaining part of the compensation plan follows a standard MLM structure, including levels and bonuses.

Check out the Oriflame MLM review below to learn more about their compensation plan…

How Much to Join Oriflame MLM?

Joining Oriflame is free, requiring only registration. However, it is recommended to purchase a Starter Kit for approximately $20.

This kit includes products, bags, sales materials, testers, and more.

Furthermore, Oriflame provides its catalogues at no additional cost. When you go out, you will need to pay for new ones. Based on my research, the catalogues only cost about 30 cents. In most cases, the postage expenses exceed the cost of the brochures.

Your agreement with Oriflame automatically renews on the anniversary of your start date each year. Additionally, Oriflame has the right to terminate your contract if you violate their Terms and Conditions.

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Oriflame MLM Review – Pros

Well-Established Business

Remaining successful in the MLM industry for over half a century is no easy feat. I believe Oriflame has excelled by outperforming its competitors and maintaining its position at the forefront.

Openly Traded Company

Strengthening the notion that Oriflame is not a scam, and letting the public purchase its stocks signifies the company’s development and credibility.

Free To Sign Up With

Because Oriflame offers free enrollment, you can try it out without feeling pressured to make immediate sales. This approach also encourages more people to sign up and learn about the scheme.

Good Quality Products

With a selection of over 1,000 products including skincare, haircare, and body care, Oriflame has gained positive reviews from users. This makes it easier for you to sell their products to other interested individuals.

No Inventory Stacking

With Oriflame, you don’t need to keep an inventory. All product orders are either delivered directly to the customer or returned to the Specialist for distribution, as is common with MLMs.

Related Review: Rodan And Fields

Oriflame MLM Review – Cons

Recruiting Is The Name Of The Game

In any type of multi-level marketing, such as Oriflame, it is typical to have a hierarchical structure where recruits do most of the work while you earn compensation from their sales.

It may seem like a scam, but it is a legitimate business model.

However, recruiting a large number of people is not an easy task, especially with the availability of simpler businesses today.

Oriflame Has Huge Competition

While Oriflame has been in existence for many years, it still lacks the recognition enjoyed by brands such as Colourpop and Kylie Cosmetics.

With the rise of social media, competition is increasing rapidly. Many cosmetic brands collaborate with famous franchise businesses like Disney, as well as popular celebrities and influencers.

This is what drives the high demand for today’s appealing brand names. However, Oriflame fails to stand out in comparison to all of this.

Extremely Low Income Potential

It’s not surprising that Oriflame lacks a proper earnings disclosure document.

However, I did manage to gather some information. In 2018, active consultants only made a measly sum of EUR 406.2 in sales, which averages out to just EUR 33.85 per month.

Isn’t that outrageous? I’ve mentioned before that Oriflame doesn’t compensate consultants for the additional efforts they put into making sales, and seeing how little they’re making now genuinely saddens me.

All Natural but Not Organic Products

It’s important to note that cosmetics and skincare products can be made from all-natural ingredients, but they may not always be organic.

Certain ingredients are sourced from animals, but without causing harm to them. These include dairy products, lanolin, honey, and beeswax.

Oriflame MLM Review – Final Words

Oriflame is a typical MLM where you don’t make any money unless you can sell the products. While the commissions might be good, you have to make a lot of sales to earn a decent income.

In addition, there are hidden costs associated with MLMs. You don’t get paid for your expenses, and shipping charges alone can significantly reduce your commissions.

Furthermore, there is fierce competition in the market. With 3.5 million distributors in Oriflame alone, other MLM companies marketing the same niche pose intense competition.

To achieve a life-changing income, recruiting and training a large team of salespeople is necessary. However, trust me, it’s not an easy task.

Despite being a legitimate MLM business, I don’t recommend MLMs in general due to their extremely low success rate. You can find mind-blowing statistics here.

On the other hand, there are better opportunities available. Read more below!

Thank you for reading my Oriflame MLM review. What is your opinion? Have you been a part of or are you still a member of this business?

Feel free to leave your reviews at the end of this page!

Related Review: Total Life Changes

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