Is Norwex a Scam? A 3rd Party Review
Norwex seems to be a pretty amazing company with great products and a great business opportunity. But can you really trust what you hear? The truth is not really, because much of what you hear comes from people that are with the company and hype everything up more than what it should be.
I you are wondering is Norwex a scam then you are in the right place. I am in no way affiliated with this company and plan on keeping this review as non-biased as possible.
- Company: Norwex
- Website: norwex.com
- Recommended?: For some, more on this
Norwex is a cleaning and personal care company that started out in 1994. They sell a range of different products and their overall goal is to make cleaning more “green” and to be able to clean without the need for chemicals.
The company uses a direct sales business model. This is when individuals, like you and I, go out and sell their products, earning a commission. They also have what is called a mlm compensation structure. And this means that not only can independent distributors get paid for selling products, but they also can get paid by recruiting others into the business beneath them.
Melaleuca is a similar mlm that I have reviewed.
Norwex sells a range of products. But what they are most known for is their microfiber cleaning products. It all started out with a microfiber cloth in 1994 for cleaning windshields and this technology is still a big deal today.
They use this microfiber technology on a bunch of different products, some of which you can see below. And besides these types of cleaning products they also make personal care products such as toothbrushes. So pretty much everything is focused on cleaning, whether it be your house or your teeth.
Overall their products are very good and I can’t complain. I have used microfiber cleaning cloths many times and will continue to do so because they really do work.
The Business Opportunity
If you decide to join Norwex as an independent consultant you can make money in 2 ways… by selling products yourself and by recruiting other people into the business.
The main way that consultants seem to sell products is through hosting “parties”. These home parties are basically gatherings where you would be performing demos of the cleaning products and letting other people test them out.
You will make 35% commissions on your retail sales.
By recruiting people into the business you can earn money from what they do. You can earn up to 4 levels deep in this compensation plan. But when you start out you will only earn commissions off of your personal recruits. In order to unlock the other 4 levels of the comp plan you need to move up the ranks. And moving up the ranks is all about selling more and recruiting more people.
There are 8 different ranks that I listed below along with what it takes to get there and the benefits of that rank…
- Sales Consultant – You just earn 35% on personal sales
- Team Coordinator – Personally recruit 3 other consultants into the business
- You earn 3% on your recruits’ personal sales
- Must do $250 in sales each month to stay active
- Sales Leader – Personally recruit 5 consultants and have a minimum of 10 people in your downline
- You earn 5% on your group sales and 1% on the sales of your team coordinator’s personal recruits (your level 1)
- Must do $300 in sales each month to stay active
- Executive Sales Leader – Personally recruit 10 consultants and have 25 people in your downline
- You will earn 5% on group sales, 2% on level 1,
- Must do $400 in sales each month to stay active
- Senior Executive Sales Leader – Personally recruit 25 consultants and have 75 people in your downline
- You will earn 5% on group sales, 2% on level 1, and 1% on level 2
- Need to do $500/month in sales to stay active
- VP Sales Leader – Personally recruit 45 consultants and have 200 people in your downline
- You will earn 5% on group sales, 2% on level 1, and 1% on level 2, and another 1% on level 3
- Must do $750/month to stay active
- Executive VP Sales Leader – Personally recruit 65 consultants and have 400 people in your downline
- You will earn 5% on group sales, 2% on level 1, and 1% on levels 2 and level 3, plus another 0.5% on level 4
- Must do $1000 in sales a month to stay active
- Senior VP Sales Leader – Personally recruit 85 consultants and have 1000 people in your downline
- You will earn 5% on group sales, 2% on level 1, and 1% on level 2, 1% on level 3 and level 4, plus another 0.5% on level 5
- Must do $1000 in sales a month to stay active
So when you get to Senior VP Sales Leader, if you ever do, you will “unlock” the entire mlm structure, meaning that you will be earning as much commissions as possible from other people, up to 5 levels deep.
In the diagram above: PR = personal recruit; TC = team coordinator; and SC = sales consultant
Is This a Pyramid Scheme?
Wondering is Norwex a pyramid scheme? The short answer is no.
For them to be a pyramid scheme their revenue would have go be overly reliant on recruitment rather than product sales to the general public. And although their compensation plan obviously gives a lot of incentive to go out and recruit, it also places incentive on selling more products.
In order to move up the ranks you have to sell more products, not just recruit. So there is adequate focus put on product sales and for that reason I would not call this a pyramid scheme. There is a good article where I wrote more about this here.
The difference between mlm’s and pyramid schemes is hard to see sometimes but I definitely wouldn’t call this one.
The Reality Of This Business
The reality of mlm’s like this is that in order to make good money you NEED to recruit. You have to recruit, recruit, and recruit some more. If you want to make good money you are going to need to climb those ranks and take advantage of the mlm compensation plan in its entirety.
Everyone that makes good money in this business knows darn well that this is necessary.
With mlm’s like this only the top make good money while the low ranked consultants slave away for not much of anything. This is just how it works and usually I show an official income disclosure right here to prove this point. But unfortunately Norwex hasn’t released an official income disclosure so there isn’t much I can do. The fact that they haven’t released on also makes me wonder why.
Final Thoughts & What I Recommend
Norwex is a great company overall in my opinion. Their products are very good and they support a great cause. I definitely do not consider them a scam whatsoever.
The only thing about them that you could call somewhat “scammy” is that since they are a mlm business, you will find that some consultants will use somewhat deceptive means to recruit others into the business, all for the sake of making money off of them. This happens in every mlm and is just part of the territory.
If you are looking into the business opportunity that Norwex offers I would tell you not to underestimate it. Yes.. you can make good money. But as I went over, you are going to need to recruit.
Personally, I don’t have anything even close to a salesperson type personality and there is no way I would make it in this mlm business. I just wouldn’t be any good at recruiting. If you are like me then I would recommend you take a peek at how I make money online.
I make a living working for myself online, which I think is a pretty awesome job. You can learn more about it by clicking the link below that will take you to a post I wrote.
In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂