Pampered Chef is one of the most unique MLM opportunities in the world today and probably that is the reason for its success. Though Pampered Chef has seen its problems, its unique concept is what has made it rise again, sometimes out of the ashes like a phoenix. The company bases itself on the idea that its distributors can host parties in other people’s homes and then get other people (from the party itself or elsewhere) to host more parties. When anyone hosts a party, they earn a portion of the total earnings. The sponsors who recruit them get a commission too. In this manner, the Pampered Chef concept becomes an MLM idea.
Though not exactly a work at home opportunity (you have to go to people’s homes to host the parties and carry the equipment along), these are considered to be great network marketing businesses. Most of the distributors here are women who have a penchant for hospitability. They get some amazing culinary delights made by Pampered Chef themselves and their equipment, which makes it an almost no-investment opportunity for them. All the distributors need to know is to carry these things to people’s houses and lay the tables so to speak. Of course, the gift of the gab is also vitally important here because it helps people to recruit new members into the network.
Pampered Chef was founded in 1980 by Doris Christopher in her own Chicago home. Doris was a home economics teacher and also had a great skill with cooking. She devised some time-saving methods that could be used during parties and these are what she promoted through her company, Pampered Chef Consultants.
Being quite an enterprising woman, Doris called people over often to check how her products worked and how they tasted, etc. before they could buy into the opportunity. Soon, a team of people joined Pampered Chef who became the earliest recruits. Today there are more than 60,000 such “consultants” (that’s what distributors are called at Pampered Chef) and they serve about 12 million customers in 4 major countries – US, UK, Canada and Germany. The sales of the company are close to $700 million each year. In 2002, Pampered Chef changed over the management to Berkshire Hathaway who did the all-important task of infusing new life into the company.
There are faults with the Pampered Chef idea, of course. To begin with, this is not something that you can do at home. You have to go to people’s homes. Also, it is difficult to host a party, even with the various helpful equipments that Pampered Chef provides. But it is more difficult than that to make others host a party.
The compensation plan is considered to be weak too, because a sponsor tends to earn less and less as the company grows. Hence, the main thing needed to keep the business running is to keep on getting more offers for hosting parties
Regards, Devendra Patel – Online Enterprenuer & coach
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