The Company: Norwex
Current CEO: Eivind Schackt
Startup Cost: $200
The company started in 1994 offering a chemical free cleaning solution. The products are designed to ‘radically reduce the chemicals used in the home’ and to promote better health for people and the environment. The company has offices all over the world with over 60,000 consultants.
The Norwex Opportunity
The opportunity is marketed as a way for you to reduce the chemicals you use in your home on a daily basis to be able to live a cleaner and healthier life, while helping the environment at the same time. You also get the opportunity to sell these products and recruit others into the same business you are in using the mlm business model.
The Norwex Compensation Plan
In this section I’ll go over some basics about the compensation plan and alert you to some of the costs involved in becoming a rep.
How You Can Earn
There are three main ways to be rewarded within the compensation plan:
The 4 Star Hosting Program: This basically gives reps some free bonuses depending on how many people buy at a product party, the more people buy the more bonuses you get. This is stuff like free cleaning products and discounts.
Retail Sales: You can earn 35% commissions on retail sales which is pretty reasonable.
Referral Commissions: Like all mlm’s you will earn a commission based on the activity of the people you recruit into your downline. The higher you go in the ranks the more commissions you will earn from your organisation and the more levels you will earn from. There are 8 levels of rank within Norwex and each opens up more earnings potential as you would expect.
To get started with this business opportunity you must purchase a $200 starter kit, plus taxes and shipping. This contains some basic Norwex cleaning products and information to get you started. The kit enables you to sell product at your hosting events, AKA home parties.
You will get about 20 customer order forms to get you started, more of these will cost you about $10 for 100.
In my opinion you will not achieve any kind of success without signing up for the replicated website. This website allows people to make purchases directly from the company under your name so you get the commissions.
It is also branded with your picture and contact details and from what I can see it costs about $9-10 per month which is pretty reasonable.
They give you the opportunity to get this starter kit for free if you are able to produce at least $2000 in sales within your first 90 days. While this is pretty cool, I doubt most people would achieve this short of buying a lot of the product for themselves.
This starter kit allows you to open up shop as a ‘Sales Consultant’ which is the first level of rank within the company. To reach the next level and start earning commissions on your downline’s purchase activity, you need to directly recruit three people.
To maintain your status as a sales consultant you must be selling at least $250 in product every 3 months. If you fall below that in any 6 month period your account will be considered dormant and you will be charged an unknown reactivation fee. If you make no sales within 12 months, you’ll be booted from the company.
You don’t need to actually buy any product yourself or auto-ship anything which is cool, your customers can simply order from you and have the product shipped straight to their address.
Worst Case First Year Cost Estimate
Starter Kit: This is $200 plus shipping and taxes (if you don’t make at least 2k in sales within your first 90 days)
Maintenance: If you aren’t selling at least $250 worth of product every 3 months, be prepared to pay for product yourself if you want to maintain your business. With your 35% discount, this would mean $162.50 per 3 months.
Website: Website costs of about $10 per month, free for the first 60 days apparently.
Demo Kit: You are encouraged to purchase a ‘demo kit’ which essentially is a way for you to demonstrate the product in your home at one of the parties. This is said to set the average rep back about $260, taking into account your discount.
Miscellaneous: Other miscellaneous costs including order forms, typical indirect business costs, seminars and conventions and any additional training to learn how to close sales.
Total Fist Year Estimate: $1200 +
Of course this number could potentially be a lot smaller if you could make the required sales in the time frames I mentioned above. This is more of a worst case if you make no sales but I think it is always good to be prepared for the worst, like in any business.
What I Liked
- Seems to be a good product that is good for the environment and a persons health
- Company offers a money back guarantee for customers which shows confidence in quality
- Not many complaints online
- No hype with income claims and a very straight forward and easy to understand compensation plan
- You don’t need to buy product yourself, your customers can order directly from Norwex and you get the commission
- You get $300 worth of product for every recruit you bring into the business
What I Didn’t Like
I am yet to see any credible proof of the claims of anti-bacterial or cleaning properties of the products, in particular the ‘Enviro Cloth’. It seems the micro silver system self cleanses the cloth itself, not the surface you are wiping. This is stated on their website over and over, so I am at odds as to how this cloth actually replaces cleaners? After reading the product info on their website carefully, they are very vague about the cloth actually killing any germs or contaminants on surface areas. We are told it simply ‘cleans well’ and then self cleanses after 24 hours
Update: After receiving a comment below about the EnviroCloth I did some more digging and found an awesome article I link to in the comments that is by far the most unbiased and well researched look at this product. It shows that as far as ‘self cleansing’ is concerned it isn’t particularly special. However, it clearly shows (objectively and based on documented research) that the product does in fact clean very well. The key is that it removes all sorts of nasties from the surface instead of ‘killing’ them with chemicals. So from what I gathered it is important to strictly follow proper cleansing protocol from the company itself and even boiling them at least once per week. In other words, the cloth itself will not clean itself and will transfer bacteria back onto the surface if you do not clean it properly. There’s a lot of reps running around thinking/ telling people all they need to do is rinse it in water and hang it to dry- not the case. Either way though, this is a legitimate product and is somewhat better than comparable products from what I have seen.
What You Should Know Before Signing Up
It is no secret that many people struggle within the mlm world and one of the primary reasons for this is lead generation.
Distributors are being shown how to lean on family and friends to make sales and recruit people into your business rather than targeting interested prospects. This is by far the biggest issue with mlm and Norwex is no different. In order to really build a lasting income out of this you need fresh leads every single day, otherwise this will end up being an expensive hobby for you. Your family and friends (warm market) will inevitably run dry and grow tired of your ‘opportunity’.
I don’t know about you, but I’d much build a business targeting interested buyers rather than hustling my opportunity with anyone and everyone that looks sideways at me. I guess it depends on your business goals and your style really.
This company is pretty good overall and the products do appear to be worthwhile. The compensation plan is easy to understand and the company operates in a very ethical manner. You probably won’t build a longterm business by hustling your opportunity to friends and family though. Unfortunately, the whole ‘get a few who get a few’ concept doesn’t work too well in reality. You will need a fresh supply of leads if you want to build your business into a full-time income.
Whatever you decide, I think this is something that would be great for those interested in the products and sharing it with those they know. I recommend buying a few products yourself first and if you love them, go for it!
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