Is Norwex a Pyramid Scheme? Does It Work in 2020?
So you came across a company called Norwex that offers an income opportunity. Is Norwex a pyramid scheme? Does it really work? How much can you earn with Norwex? I found myself wondering the same questions, so I dug around, tried out some products, and asked some ex-members what the deal is with Norwex.
Norwex Review Facts:
$9.99 (First Pack Free)
Is It a MLM?
Main Marketing Method:
Norwex Review Rating:
While Norwex's cleaning supplies are not bad and do kill a decent amount of germs and bacteria, I don't recommend their income opportunity. The reason is they use the standard multi-level marketing model that has been proven not to work many times over.
Here's what I recommend:
What is Norwex?
You might have received a message from an old classmate asking you to join their Norwex business. They claim it's a legitimate way to make money and be your own boss. "A career that changes the world" they say.
Norwex is a company that sells all kinds of household cleaning supplies; such as window cloths, laundry detergent, mops, cleaning pastes, brushes, facial masks, cutting boards, and many others. Here are their four main categories:
- Personal Care
Norwex's mission is to reduce the amount of chemicals in homes around the world. They don't specify which chemicals. In a nutshell, their mission is to be as natural as possible. Their microfiber cloths are supposed to remove all kinds of bacteria and germs.
They have a massive selection of products in their store. Here's their product catalog for 2020. From the looks of it, the products aren't too bad, although much more expensive than their counterparts that you can find in any local hardware store. For example, one single fragrance disk costs $15.99.
Norwex's Twin MLM is probably Pampered Chef, except Pampered Chef is in the kitchenware industry.
But more on that later.
Is Norwex a Pyramid Scheme?
Although they avoid the term, Norwex is a multi-level marketing company (MLM) and it operates much like every other MLM to date. The only major difference is this company is in the household and cleaning supply industry. These companies are very similar to pyramid schemes.
We reviewed a lot of MLM income opportunities, and most of them are identical. Norwex reminded me of another MLM called Xooma that sells Water Packets.
The fact remains; members sign-up as consultants, buy a starter package, build a down-line, earn bonuses, earn small commissions, have to meet minimum sales requirements, and whatnot. Norwex is a typical MLM company.
Norwex's compensation plan is convoluted, with all kinds of ranks, titles, estimated earnings, bonuses, and more. As we know, people rarely make money from MLM companies because the odds are not in your favor. We'll talk more about the Norwex compensation plan in the next section.
To learn more about why multi-level marketing opportunities are mostly a terrible idea, read this article about the difference between Network Marketing/MLM's vs. Affiliate Marketing.
Having said that...
How Much Money Can You Make with Norwex?
In some cases, a MLM company will share a public income disclosure statement, but Norwex does not have an income disclosure statement. Getting an accurate income estimate from Norwex consultants is almost impossible.
The reason for that is the consultants don't want to spread negative information about the company, otherwise they won't get people to join under them. They basically have to be positive all the time and praise the company whenever possible.
The short answer; I don't know how much money Norwex consultants earn. But based on the commission rates, expensive products, and required purchases, as well as what we already know about MLMs, I doubt it's much. When you're done reading this Norwex review, you'll know why I feel that way.
What About the Products?
Norwex's most popular products are the microfiber cleaning cloths. These are supposed to be made from microfiber that's 1/200th the size of a human hair. They also contain a micro silver agent that's designed to kill bacteria. The company's best-selling product is called EnviroCloth, which uses a anti-bacterial agent called Baclock.
The question you're probably wondering is are Norwex products worth it. I haven't personally tried their products, so I can't say for sure. But I found one study that compared a wide range of microfiber cloths and the Norwex tests were about the same as the much-cheaper alternatives.
In my opinion, Norwex puts a bit too much hype on their products. The truth is they're not bad, and they do remove a good amount of bacteria, but they're not the world's best cleaning supplies, either.
Be careful with the pseudoscience and sales hype!
How Do You Make Money with Norwex?
If you're familiar with MLM companies, then you probably already know what this section is going to be about. If not, I'll give you a crash course. This is one of the reasons people ask me "Is Norwex a Pyramid Scheme?".
Here's how it works:
To make money with Norwex you need to sign-up as a consultant and buy a Starter kit. One good thing about Norwex is they offer to send you the first kit for free, as long as you can generate $2,000 of sales within your first 90 days. You only have to pay the $9.99 shipping within the U.S.
- Party Starter - $285
- Silver Package - $277
- Gold Package - $466
- Platinum - $748
The Starter kits include marketing material too, as well as order forms and envelopes, if your friends choose to order products from you. There brochures in the package too.
Affiliate marketing success stories!
~ real people, real work
4 - 5 figures/month online!
Your next task it to launch a party. Invite everyone that you know (their exact words) to your house to advertise the Norwex cleaning supplies. From there, you'll can either earn commissions on sales, or recruit more people to join your team to earn more bonuses.
Or you can attempt to build a team...
Norwex Success Builder (Compensation Plan):
Norwex Success Builder is the term they use to describe their compensation plan. It works much like any other MLM company, with multiple ranks, commissions, discounts, bonuses, and whatnot.
Here's a list of the most important ranks:
- Sales Consultant - No commissions.
- Team Coordinator - Commissions start here.
- Sales Leader
- Executive Sales LEader
- Vice President Sales Leader
- And it continues.
Look, the chances of you even reaching the fourth rank are very slim. The vast majority of members are within these few ranks, most of them being in the first and second.
Here's a list of the possible commissions and bonuses:
- Retail Discount (locked at 35%)
- Product Commissions (Between 3 - 5%)
- Commission on TC's Personal Recruits
- Commission on Level 1-4 Downline
- Commission on Group Sales
- Monthly Car Bonus
- Other promotions.
Each rank comes with various bonuses and commission rates. There are also rank requirements. At Team Coordinator, you can earn 3% commissions on sales from Personal Recruits.
At Sales Leader, you can not only earn commissions from personal recruits but also group sales, and team members in your first level. As you can see, it looks very similar to a pyramid scheme.
And it goes on like that...
To learn more, take a look at their official compensation plan.
Wide Selection of Household Cleaning Supplies
As I mentioned earlier, Norwex has hundreds of products for your household. Most of these are bundled together into packages that you can either buy or market as a consultant. Nevertheless, the wide selection of products is nice.
Norwex's Mission is to Reduce Toxic Products
Their mission is to reduce the amount of harmful chemicals in households around the world. The idea is to make homes "Healthy" again. It's a nice goal. The idea is to just use the cloths and water...
Most Norwex Products are Anti-Bacterial
They use microfiber to create towels and whatnot, which are anti-bacterial. The microfiber is an interesting technology and the quality seems to be good. Most people who use the towels say they clean quite well.
The Cons with Norwex:
Most of Norwex's products are very expensive. Remember the fragrance disk from earlier? Well, their core product, a microfiber cleaning cloth, costs $18.99 for one.
Granted, it is is microfiber, but who can justify spending that much on a cloth? You can find identical ones in any supermarket for a fraction of that. Actually, on Amazon you can find 24-packs of microfiber cloths for around $10.
Hosting Parties Aren't Sustainable
In the Consultant marketing material you'll see charts of how much money you can earn by hosting a certain number of parties a week. The problem here is at some point you'll run out of people to invite. Maybe you know enough people for a couple parties, but 8 a week? I don't think so. It's not sustainable.
What happens is you feel desperate, so you start being overly aggressive, marketing wherever you can, to whoever, and nobody appreciates that. I'm sure your friends will start avoiding you.
Instead, you can learn how to market Norwex products online by targeting warm leads on the internet. That's a much better idea and actually how my entire online business works...
The Products Can Smell Bad
There are lots of complaints online claiming the cloths start to stink after a few uses. People have tried all kinds of things to get the cloth smelling nice again to no avail. Be careful.
It's an MLM
MLM opportunities rarely work. As a matter of fact, close to 99% of people who join a MLM do not make a profit. Their basically sinkholes for money, and it's not something I recommend.
Looking for a Good Alternative? Try This:
Personally, I don't think the Norwex opportunity is worth it. I feel like you'll quickly run out of people to invite to your parties and then you'll be forced to aggressively market the products. It's not a good business idea.
You can use our targeted traffic techniques to promote the products and opportunity, but I think I would consider other products within the same niche to make sure your promoting only the best products for your long term success. Stinky rags are hard to sell and you may get a lot of refund requests.
If you're looking for a much better alternative, I recommend learning how to build niche websites. There are many success stories of niche websites that bring in thousands of dollars a month.
I happen to know of a really cool online training course that walks you through all the necessary steps to build such websites. It only costs about a dollar a day, and you can build an extremely profitable business.
So, instead of trying to figure out how MLM compensation plans work and keeping up with the required sales quota, relax, and learn how to really build an online business.
Thanks for taking the time to read this article. Hopefully now you know the answer to "Is Norwex a Pyramid Scheme?" and you're ready to start a real income opportunity. Leave a comment if you have any questions.