If you are looking to get involved in the business opportunity that Norwex offers you might be a little hesitant to do so due to the way they conduct business. You have probably heard people call this place a pyramid scheme or maybe have came to that conclusion yourself. But could this be true? Is Norwex a pyramid scheme? Or is this just a rumor that has no truth to it?
Well the first thing I will say is that this is not just some baseless rumor floating around. Much of the way that Norwex conducts business resembles a pyramid scheme very much. In this short post I’ll be going over how it could be considered a pyramid scheme, the pyramid structure it has, and more.
Norwex Business Opportunity Overview
Norwex is a direct sales business that sells “green” cleaning products. These products are not sold in stores and all of the marketing is done by independent sales consultants. Anyone can sign up and join the company as a sales consultant and start making money doing this.
This place also has a mlm, multi-level marketing, structure… which is the pyramid scheme side of it all. This means that sales consultants can recruit new people into the business as sales consultants and make money from the money that they make.
How This Could Be A Pyramid Scheme
So basically a pyramid scheme is just a big recruitment scheme where members make money by recruiting new members in. A “pure” pyramid scheme would have no products and members would only make money by recruiting.
But as you know, Norwex has products. So they could only possibly be considered a product-based pyramid scheme. And in order to be classified as one of these they would have to be overly dependent on recruitment of new members for revenue rather than on sales of products to the general public.
One good way to see if they are or not is to look at their compensation plan and see if they give more incentive to recruit or to sell products.
A Look At The Comp Plan
As a Sales Consultant you will make around 35% commissions on the products that you sell directly and you can make commissions on what the people beneath you do up to 4 levels deep. The mlm structure is what you call “uni-level”, meaning that there can be and infinite number of people at each level.
Another important aspect of this is that there are ranks within Norwex and as a sales consultant your goal is to move up them… because the higher you move up the more of the compensation plan you “unlock”, thus earning more money.
So how do you move up the ranks?
Well you are going to have to recruit as well as make direct sales. Norwex is very straightforward here and they literally list the # of recruits you need to advance up each rank rather than force you to recruit indirectly.
There are 8 ranks total and advancing up each rank requires that you recruit a higher number of people into the business as sales consultants. This may make it seem very “pyramid scheme-like” but the fact that they also put emphasis on sales, and require you to increase sales to a good degree in order to move up the ranks is a good sign.
So Is This Place a Pyramid Scheme?
I d0 not consider Norwex to be a pyramid scheme. Although they obviously put focus on recruitment and require you to recruit to move up the ranks they also put emphasis on product sales to the general public.
So although the recruitment side of this all may seem a bit sleezy, this can’t be considered an illegal pyramid scheme as far as I see it…. although it does resemble one closely.
Final Thoughts On Norwex
Although I don’t consider Norwex to be a pyramid scheme this doesn’t mean they are a good business opportunity. The harsh reality here is that with a mlm structure like this very few people will make good money. Those at the top make the majority of the money while recruits near the bottom make little.
I wasn’t able to find an official income report to prove this but I have reviewed enough mlm’s similar to this to know that with a compensation plan like this not many are going to make good money. In fact I just reviewed two other possible pyramid scheme mlm’s, Nerium & Pruvit, the other day.
You have to be careful with businesses like this because people often paint the wrong picture in your head because they just want to recruit you to make money off of you and to advance up the ranks.
Anyway… that is it for this post. If you have any questions, comments, or concerns please leave them below in the comment section 🙂