Were you victimized by Norwex? Tell us about your experience.
There is a lot of talk about MLM companies and pyramid schemes. But where does Norwex fall? If you’re wondering whether or not the company is legitimate or whether they are a pyramid scheme, you are not alone.
Norwex is an MLM out of Norway that offers personal care products and organic cleaning products both of which are environmentally friendly. It was founded in 1994 after the founder came across a microfiber cloth that he used to clean his windshield with nothing but water. Today they have extended their chemical-free cleaning product line to include the personal care line.
The company has been operating for quite some time, working in the United States for 8 years and they have an A+ rating from the Better Business Bureau. They only have 17 total complaints from the last three years which primarily have to do with billing issues, product issues, and advertising. These primarily have to do with being charged for products that were advertised as a free promotional item, or charges that distributors didn’t realize were forthcoming, such as the total cost for the starter kit providing that the consultant failed to meet the 90-day requirement discussed below.
The company is not considered a pyramid scheme because they make it very clear in their Compensation Plan what benefits you get based on your level of success and what the average earnings are for each of those levels. You get certain free products for each level you achieve and opportunities for more rewards and gifts but each of these levels come with minimum requirements for personal sales. They are very clear about the fees and the minimum requirements but also flexible in that those minimum span over 3 months and you can go three months consecutively without meeting this and not be penalized.
This company hires independent contractors to sell the products and those contractors make money by not just selling the product line and getting revenue from that but recruiting other people who then sell the same products, earning even more commission.
However, the Compensation Plan requires you to pay just $10 for the starter kit which includes the shipping and handling fee. It’s designed to be an expensive contingent upon your level of success with the company. If, during the first 90 days you’re able to generate $2,000 from sales, you get to keep that starter kit but if you don’t, you end up having to pay an additional $200 for the starter kit. They do give you a pretty substantial percentage on your personal sales, earning 35% commission for every product you sell.
They do ask that you maintain a minimum of $250 in personal sales every three months in order to be considered an active consultant. If you failed to achieve the active status for six consecutive months, they consider your account dormant and if you ever want to reactivate it, you have to pay a fee. While this might not be a business practice everyone agrees with, the company is very clear about it in their terms which makes them a legitimate MLM company. They also focus very heavily on selling the products and not as heavily on recruiting, another indication of a legitimate MLM company.
Still, you might have an issue with the company, maybe something that is still unresolved or an unprocessed refund, and the company hasn’t been very helpful. Rest assured, you still have options including consumer arbitration. We can help.
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