The Company: Tupperware
Founder: Earl Tupper
Startup Cost: $39 - $99
I want to be upfront with you here... I don't know much about tupperware itself nor do I have much of an interest in it. I do understand multi level marketing though so I can help you decide if the business opportunity is worth pursuing or not.
The company was founded in 1946 by Earl Tupper and specialises in innovative kitchenware solutions such as plastic storage containers and the like. This brand is incredibly well known throughout the world, their products are said to be in 9/10 homes. They distribute these products through 'parties' using an mlm business system and boast over $2.6 billion in yearly global revenue.
The story goes that Brownie Wise pioneered the very first home party in 1948 and it has been going strong now for almost 70 years.
The Tupperware Business Opportunity
The business opportunity is primarily aimed at people interested in socialising and having fun while creating a bit of extra income in the process. From what I can see there is not a huge amount of hype about getting rich quickly and there is a strong focus on the product sales which is a great sign.
The general idea is to buy some of the products yourself, then share these with others you know at 'home parties' where you can make sales. You can also earn commissions based on the efforts of your team, this is what multi level marketing is. For example, if you recruit Jane and she recruits Samantha, you will earn a small commission based on what they both sell or buy for themselves.
Compensation Plan Break Down
I recently came across the 2016 Tupperware compensation plan and have updated the details of this review accordingly.
Although it was rather difficult to find detailed information regarding their opportunity, the information they provide within the above PDF is very comprehensive. It will tell you everything you need to know in full detail and I highly recommend studying it before jumping into the business.
I will do my best to explain the details of what's in that PDF below and give you an overview so you know what to expect.
Becoming a Consultant
To get started you'll need to buy a $99 business starter kit which gives you some of the basics in getting started with your first Tupperware party.
You can start by making a down payment of $39 and if you make $1000 in personal sales within 60 days, the company will pay the remaining $60 for you.
Some Important Concepts To Understand
The company uses various terminology to explain how things work and it can become quite confusing so I thought this would help.
Firstly, a unit is just your downline organisation, capped at 3 levels deep. All of the team commissions I explain later for consultant and manager ranks below are based on your 3 level downline 'unit'.
Second, there are 12 ranks within the company and the more effort you put in, the higher the rank you will achieve. You start out as a consultant and work your way up, with the ultimate goal being to reach 'Presidential Director' rank. The higher your rank, the higher your commission percentages on team sales, the bigger your bonuses and ultimately, the more money you will make.
It is only once you get past the Manager ranks that you will earn beyond your 3 level downline unit.
Earning As a Consultant
The 'consultant' rank allows you to earn a 25% commission on any items you personally sell and you'll receive 25% discount on anything you purchase yourself since you are buying at wholesale. If your sales volume exceeds $1,500 you will earn an addittional 5% bonus from the company. If your personal sales reach $10,000 or more in a given month, your bonus will then be 10% of the total volume of sales.
For example: if you sell $5k in products yourself in June, you'll receive a bonus of $500 and $1250 on top of this given the standard 25% commission rate. So your total earnings for that month would be $1750. Not bad. That is a lot of selling though and it would take time to work your way to that level of sales, but anything is possible with enough effort.
As mentioned, it only costs $99 to get started as a consultant. In order to remain qualified and keep your business running though, you must be making $250 worth of personal product sales every 4 months. These can include your own personal purchases and your direct customers. Realistically, I think most people can work their way into $250 in sales every 4 months so I wouldn't be too concerned.
The Manager Ranks
The 'Manager' rank allows you to earn in the same way as a consultant, except now you get 2 addittional performance based bonuses as explained below.
#1 Profit Plus Bonus
You are now eligible to earn the 'Profit Plus' bonus which is 2% of the commissionable volume of whatever you sell and whatever your team (unit) sells. The 'commissionable volume' is 75% of the total product value. For example, if your team sells $2000 in products for the month, the commissionable volume would be $1500. The 'Profit Plus' bonus would then amount to $30.
You will continue to earn this bonus up until you reach 'Director' rank and it grows from 4% to 6% depending which kind of Manager you are. This is illustrated below:
#2 The Vanguard Bonus
Just like the bonus above, you will continue earning this bonus up until you reach 'Director' rank, and it is based on total commissionable sales volume of your team as shown below:
To earn the Manager rank you must be doing $500 worth of personal sales every 4 months AND you must have at least 3 active recruits on your first level who are doing $2,500 worth of sales in any given 4 month period.
Director In Qualifcation Program
This is the 'DIQ' program which is a 'qualifying' stage aimed at preparing you for the official Director status. I won't go nuts on every little detail but just know that this is a kind of 'rank' between Manager and Director and certain performance based requirements must be met to proceed past this.
The Director rank opens up new opportunities and is where you stop earning 'unit profit plus' on just 3 levels of your downline and start earning 'team profit plus' which goes down an unlimited depth.
This means you can now earn the profit plus bonus on everyone in your downline all the way down until you reach the next Director in your team. Once you reach another Director within your downline organisation, this particular bonus is capped.
Star Director and Beyond
In order to qualify for this you need to have a Director ranked referral directly under you on level 1. This allows you to continue earning the 'team profit plus' bonus I showed you above, however, now it doesn't just stop when you reach the next Director in your downline. Now you will earn a set percentage of any sales volume within your Directors team as well.
It gets pretty elaborate to try and explain things from this point forward and ultimately, I think it's unnecessary to re-write the comp plan. Just know the higher your rank the better this gets for you! This is also where the concept of 'generations' comes into play and where you earn can start earning a long way down the line based on the efforts of your entire downline organisation.
The link to the offical comp plan above really does illustrate this well and it's worth going through if you are considering joining the company and want to build a full-time income.
Performance Based Bonuses
There are many different bonuses on offer for advancing in rank and reaching certain milestones within the company, including holiday and car bonuses among others.
Maintaining Your Business
If you fall below certain sales quotas you are made 'inactive open' for up to 8 months during which time you cannot build your team or access the standard consultant pricing. If you don't reactivate by submitting at least $350 in cumulative sales by the 9th month, you essentially lose your business. I explained the basic requirements for Consultant and Manager above if you want to clarify these.
What I Liked
- Potentially a fun and lucrative opportunity for the right person
- The have a well established and trusted brand
- Not very many complaints online
- Very ethically run and strong focus on product sales
What I Didn't Like
- They don't share the full compensation plan on their website
- They primarily teach the 'warm market' technique for building your business
From what I can see, this is a great company with a very well known and trusted product range. There is no doubt that a motivated individual willing to put in the work could see some incredible results. I must admit, Tupperware isn't my thing but there is obviously a strong market for these products and people are making money.
If you're into the party based networking and sales model then this could work well. However, if you are like me and don't really like chasing family and friends to try to sell products then there are definitely other options worth considering. Either way, this is definitely not a scam. I hope this review has been helpful to you and all the best with your entrepreneurial ventures!
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