Is Norwex A Scam? Chemical Free Riches Or Pyramid Scheme!?
Are you interested in Norwex and want to know if this company is a scam or pyramid scheme?
If so, this post is for you!
You'll find everything you need to know about Norwex in this review including company information, price to join, compensation plan and more.
You'll know if this company is right for you by the time you're done reading
Let's get into!
Price to join: $200 and additional fees
Do I recommend? No!
Summary: Norwex is a MLM company in the cleaning market. This is one of the larger and more established MLM's out there and while there's some things to like, I don't recommend you join it.
The odds for success is very low with this company and most people just end up losing money, not making money. The people that do make money make very little aslo.
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What is Norwex
Norwex is a company that sells chemical free cleaning products and was founded in 1994 by Bjorn Nicolaisen.
Norwex uses a MLM model which means they don't pay for advertising and instead allows people to sign up as distributors.
As a distributor you sell and market Norwex products and in return you get a commission on each sale.
Also, you get income from recruiting and building a downline
Now it might sound good on paper that you can sell products on your own time and build a team to sell for you but it's an extremely flawed system. You'll understand this as you read on.
The biggest plus for Norwex is its longevity and this company has been around for 25 years. Most MLM's fail in a couple years and this can leave you and high and dry if you put a lot of time into a MLM that goes belly up.
So if you're looking for stability you will get that with Norwex.
Is Norwex A Pyramid Scheme?
Norwex isn't a pyramid scheme but does have elements of a pyramid scheme.
Look at the picture below to understand what I mean:
This is what part of the commission structure looks like at Norwex (recruitment). A pyramid scheme is when all your income is based off recruitment and there isn't a real product to sell.
While Norwex does incentivize recruitment and it probably is the main way to make money with this company, they do offer commissions on retail sales.
In other words, you can make money without recruitment and instead just sell products directly to customers.
Ask anyone that's successful with a MLM, though, and they'll tell you the money is in recruitment.
Another thing to consider is Norwex requires you to sell $250 in sales to be eligible for commissions. Some people will end up buying Norwex products just to meet eligibility requirements.
When a MLM's revenue largely comes from distributors this is another red flag that you're in a pyramid. I don't think Norwex makes too much off their own distributors but it's something to think about.
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Success Is Rare With Norwex
Some MLM's come with an income disclosure statement which shows how many people are making money, how much and how many people are losing money.
I've never seen a MLM that had a good income disclosure statement and most just show the overwhelming amount of people losing money.
Norwex doesn't have an income disclosure so I can't tell you the exact numbers at this company but I can show you some stats about MLM's in general that should scare you away from them.
Look at the chart below to see what I mean:
As you can see these numbers aren't good and it's mainly because of how flawed the MLM system is.
You're going to have to recruit or sell to friends and family which is awkward, it's extremely difficult to get people into your downline and it's just hard to succeed.
Most people lose money and those that do make money just make a couple hundred a month.
How Much To Join Norwex
Norwex isn't overly expensive to join but you will have to pay a couple hundred to get started.
The Starter Kit costs $200 and you have to pay $9.99 for shipping and handling. You get the kit for free if you can sell $2000 or more in your first 90 days but this will be extremely difficult.
Also, the 90 days starts when you sign up, not when you receive your kit which can take up to 10 days to get.
I'd say there's a 99% chance (maybe more) that you end up paying the $200 for the Starter Kit.
Like I mentioned earlier, you need to sell $250 in products every 3 months to be eligible for commissions.
What happens when you're short of that? Most people just end up spending their money just to be eligible.
This is another cost that can add up.
Norwex Compensation Plan
MLM compensation plans are always complicated and unless you know the technical jargon it's almost impossible to decipher.
If you want to read the entire compensation plan, click here.
Here's a video that explains the whole plan as well:
I don't think it's necessarily important to know every single aspect of this plan and instead I'm just going to summarize the most important parts.
At Norwex there's 8 different affiliate ranks you can achieve and the higher the rank you are, the more you can make.
You have to reach certain goals to move up rank and here's the 8 ranks at Norwex:
- Sales Consultant: Sales consultant is the first step you can achieve and is when you first sign up. In order to be eligible for this rank you must sell $250 in sales every 3 months. As a sales consultant you get 35% commissions on each sale.
- Team Cordinator: In order to be a team coordinator you have to recruit 3 engaged affiliates and sell at least $250 in a single month worth of Norwex products. Once you reach the level of team coordinator you get 35% on retail commissions and 3% commissions on personally recruited affiliate's sales.
- Sales Leaders: To be a sales leader you have to recruit 5 engaged affiliates and have 10 total consultants in your downline (your recruits are included). As a reward for reaching this rank you get 35% commissions, 5% commissions on group sales.
- Executive Sales Leaders: To reach this rank you have to recruit 10 engaged recruits and have 25 recruits in your downline. For reaching this rank you get 5% commissions on group sales as well as additional commissions further down your downline:
- Executive Sales Leaders: Executive sales leaders have to recruit 25 recruits and have 75 engaged recruits in their downline. You also have to have a sales month that's $400 or more.
- Vice President Sales Leaders: To become a vice president sales leader you must recruit 45 engaged recruits and have 200 recruits in your downline. You also have to sell at least $550 in sales in a month.
- Executive Vice Presidents Sales Leaders: To reach this level you have to recruit 65 people and have 400 recruits in your downline. You also have to sell $675 in sales in a month.
- Senior Vice President Sales Leaders: To reach this level you have to recruit 85 people and 600 total recruits in your downline. Additionally you have to sell $750 in a month in sales.
Most people don't get past the first two ranks, however, and it's incredibly hard to find the recruits necessary to progress in the program.
What Products Does Norwex Offer?
It's important to know what products Norwex offers if you plan on selling for them and this company is most known for their cleaning products.
Over the last few years they've grown and expanded into personal care products as well as a few more different categories.
Here's the various products they offer:
Their laundary detergent is their most popular product and on their site they claim this detergent is "highly concentrated, superior stain-fighting powder contains biodegradable surfactants and is free from phosphates and fillers."
This is another product that's very popular and it gets excellent reviews on Amazon. This cloth is an anti-bacterial product and can be used to dry and wet.
Besides the cloth I just mentioned there's plenty of other microfiber products. These products range for cloths for your kitchen, bathroom and children.
Norwex offers a bunch of household products as well and these products range from bathroom, laundry and kitchen.
There's other less popular products in personal care and more. Overall I'd say Norwex has quality products and people seem to really like them.
I don't recommend you join to sell their products but I wouldn't argue against buying their products for personal use.
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What I Like About Norwex
Although I don't recommend that you join Norwex, I do think there's some things to like including:
- Pretty affordable to join: $200 to join a MLM is pretty reasonable and others can cost you thousands.
- Good products: The only way you can be in business for 25 years as a MLM is to have pretty good products which Norwex definitely has. Their products are both popular and well reviewed.
What I Don't Like About Norwex
At the end of the day there's more I don't like here than do like and the main things that I dislike is:
- Hard to succeed: MLM's in general are almost impossible to succeed with and Norwex doesn't do anything special that'll change your odds to make a lot of money.
- Demanding compensation plan: Norwex demands a lot from you if you join. You have to recruit a lot of people and have your recruits recruit a lot of people. If you can't find recruits there's no way you can move up the ranks (which is why most people fail).
- Have to bother friends and family: Another terrible aspect of MLM's is you have to bother friends and family to make sales/recruit. MLM's have literally ruined close relationships.
Is Norwex A Scam?
At the end of the day you came here to figure out if Norwex is a scam.
I don't think this company is a scam because they have legitimate products and there are people making money with them.
However, I don't think this company is a good business opportunity for you and think you should avoid Norwex.
It's just too hard to make money with them and you'll have to bother friends and family to have any kind of success.
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Hopefully by now you've decided Norwex isn't right for you.
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