Welcome to my review. Is Oriflame a pyramid scheme scam? Or is it a legit MLM (multi-level marketing) company? Should you join this company? Keep reading to learn more.
Oriflame Cosmetics is a well-established company that specializes in selling beauty products. It has received a mix of reviews, with the majority being positive and product-focused.
This indicates that both the company and its products are legitimate.
The company offers a multi-level marketing (MLM) opportunity, where individuals can join the program to earn income by selling Oriflame products.
In this review, I will discuss whether Oriflame is a reliable way to make money or if it is a pyramid scheme, providing you with an in-depth analysis of the company.
Read on to learn more about Oriflame, how it operates, and to gain insight into whether it is a reputable MLM opportunity or a scam pyramid scheme.
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.
Alternative: If you’re a newbie who is looking to earn passive income online, there are other, more beginner-friendly, and cost-effective alternatives. My top-rated affiliate marketing course has helped me to go from earning $0 to $100’s per day!
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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 in a similar manner 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 due to the fact that 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 own perspective of these schemes.
Related Review: Young Living
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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, there are MLMs that 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 actually 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 in a similar fashion. 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:
- Selling products: As an Oriflame Consultant, you will receive a 20-35% discount on products you order for yourself.
- 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 material, testers, and more.
Furthermore, Oriflame provides their 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, 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, they still lack 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 the 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.
Alternative: On the other hand, if you’re looking for the best business model to earn passive income online as a beginner, there are other, more suitable, and cost-effective alternatives.
My top-rated course has helped me to go from earning $0 to $100’s per day!
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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 own personal 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 personally 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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And don’t forget to share this review with your friends and family!
Thanks for reading my review of Oriflame MLM!
All the best, Ivan. contributor @freeaffiliatemarketingbusiness.com
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Thanks for sharing your review on Oriflame. This is actually the first time I have actually heard of it. I have actually always been careful when it comes to MLMs because I never know if it’s a scam or not. After reading your review I have come to conclusion that it might be a scam but depends on the person. In my opinion I don’t like how I have to spend my own money to make money. That is why I like affiliate marketing. Yes I have to spend some money but not a lot. Thanks again .
I agree with you on affiliate marketing being a better way to make money. MLMs like Oriflame are hard cookies to crumble!
It’s great to see an MLM that is affordable to start, and that sells a real product that provides true value to its users. MLMs are not inherently scams, but unfortunately, I feel like all of them misrepresent the difficulty of actually becoming successful. Then again, it seems that that is an issue among many business models. While Oriflame’s business model is intriguing, I’m quite sure I am not the person to make a go of it.
Thanks for your comment!
Wow, I am surprised Oriflame has been around for 50 years and I have not heard of it yet. This piqued my interest so I was very curious to read your review.
I can see why many would call Oriflame a pyramid scheme, just as they do Avon or MaryKay when neither of those programs actually are true pyramid schemes either.
I see you have the product prices listed in pounds…do you know if this program is also available in the States?
Also, curious about what the difference is between all-natural and organic. I wonder if they provide product training before you start selling their products. This may clarify questions like these. Ultimately, it sounds like Oriflame’s products are high quality, and people seem to like them.
In my opinion, the problem with companies like Oriflame is that as a product seller you have to buy up a bunch of samples to be able to effectively sell the products. This is an upfront cost most people do not expect and people trying to make money online tend to get frustrated when putting out capital before seeing any sort of results.
Anyway, I am glad to hear Oriflame is a legit company and that it is an option for someone interested in selling these types of products and getting a great discount, or someone who wants to build up an MLM team.
Thanks!
Oriflame operates in both North and South America. I hope this helps and thanks for sharing your review!
Hi Ivan, great about Oriflame. Just like me a lot of people are careful about MLM because of their business model but your review has helped give me more information about Oriflame.
You’re welcome!
Thank you I van for digging it out on Oriflame. They have been in the market for some while and they have wide coverage. We see a lot of their distributors even here in Africa – Nigeria. But it is not different from other MLM that I have tried. Affiliate marketing as you advised is the best route.
You’re welcome and thanks for your comment!
Hi Ivan,
Thank you for another great review. Oriflame looks a lot like Mary Kay, is there much of a different between the two?
I’ve always been weary of having to pay money up front in order to make money. You shouldn’t have to pay for a job, right? Did you have to pay money up front to start making money with affiliate marketing?
The difference is in the names of the companies. They basically sell the same niche of products and are big MLMs.
No, you don’t have to pay to start with affiliate marketing. Affiliate programs are 100% free.
Oriflame is not a scam but a reputable MLM company. A company that has been in business for over 50 years speaks volumes for its credibility, You make money buy selling the products and also building at team to be able to duplicate your efforts but in all honesty the real value comes in building a team so that you can make huge amounts of residual income. This is why it is good to join this company when it is entering a new market. If they ever decide to start in the USA ,there would be incredible opportunity and it would be a tremendous way to get in on a ground floor launch; but as you say, Ivan, there are other ways to gain a great online income.
Thanks for sharing your own review of Oriflame and its MLM program.
Oriflame has certainly been going for a long time – since 1967! That is a huge feat, especially for a company in the MLM field. They have quite an impressive lineup of products, and the pricing seems quite good for this type of company. Most of these types of companies are really overpriced with their products, as they have many commissions to pay out.
I would definitely try their products and join just for the purpose of getting a discount on them, but it is a lot of hard work to make a business like this work full time for yourself, which is why I would prefer to be a customer, and not an agent here.
Thanks for sharing your review of Oriflame!
Oriflame is a legitimate Swedish company that makes some of the best beauty and skin care products. I have used some of their products, and I can confirm that they are great quality. But I do not like the multilevel marketing (MLM) business model that they use.
They have moved toward online selling a lot, but the only way one can really make money with them, is by recruiting others to join the Oriflame team. I do think there are better business models than MLM when it comes to earning a passive income, and would rather recommend affiliate marketing.
Appreciate your comment on my review, LineCowley!