Tupperware has been in business for over 50 years. They sell storage products of all shapes and sizes for all types of items in the kitchen. They are so popular that even competing products are called “Tupperware” by consumers. Most customers don’t know that they even sell toys for kids, cutlery, and even cookware items.
Well enough of a history lesson. My goal is to review Tupperware as a business model so that you can make an educated business decision determining if this opportunity is a right fit for your home based business.
What Are The Expenses?
To become a Tupperware consultant there are two business kits you can choose from. The first kit is called the Business Kit and it costs $79.99. You get $330 worth of products with the Business Kit. The more expensive kit called the Executive Business Kit is $119.99. You’ll receive $470 worth of product to sell with this kit.
Tupperware also offers their consultants an optional pre-built web site that will cost $15.95 per month.
The Tupperware Compensation Plan
A Tupperware distributor has to have at least $250 in sales within 4 rolling months to maintain his or her active status with the company. If you become inactive you can reactivate your status as a distributor for $10. But by becoming inactive, you lose your entire downline. So if you decide to commit to this opportunity you definitely want to strive to continue to be active so you don’t jeopardize losing your downline.
As a Tupperware consultant you make 25% commission on all the products you sell. If you are paid by credit card, Tupperware will pay you the second Monday after the order is submitted.
As a distributor you can qualify for the following bonuses based on certain sales conditions:
1. Exceed $1,200 in sales then receive a 5% bonus.
2. Exceed $3,200 in sales then receive a 10% bonus.
To become a Tupperware Manager the following conditions must take place:
1. You personally recruit 3 Tupperware consultants.
2. $2,000 in team sales is earned in a month.
3. You personally make $500 in sales in a month.
As a Tupperware manager you are now qualified to make a commission off your team. The commissions range from 4% to 8%. The commission payout percentage is based on the number of consultants on your team and their sales performance.
Similar to many other MLM companies, the amount of income you earn depends on your performance, your team’s performance, and the number of people you recruit. For example, in order to get to the Director level your team must reach $10,000 in team volume. Your team consists of you and the people you personally recruited.
It is also important to note that Tupperware implements a stair-step breakaway plan. This means if anyone in your downline outsells you in certain time period, they can leave your team to start their own team. This means you will no longer receive commissions from this high performing person.
How Are Customer Leads Generated?
Although there are many effective ways to apply effective marketing concepts to generate endless leads over the internet, many Tupperware consultants are getting the majority of their customers through something called home parties or home shows where a potential customer elects to host a party. The customer will invite friends over. The Tupperware consultant will then drive to this person’s house to sell products, recruit potential team members, and see if any other people at the home show would like to schedule a home show at their own house.
Your team manager, the person that recruited you is responsible for giving you one on one training. There is incentive to ensure you are trained properly because your financial success means they will receive a commission off of your performance.
Tupperware does not offer webinars. After researching many companies, I found that webinars were a standard feature offered to their distributors. This was a good feature as it gave distributors the extra option to receive additional training from other established leaders in the company.
Also, there are many people who’d like to attend informational webinars so they can get to know the Tupperware business before committing. Well, because Tupperware webinars aren’t offered these people will not be able to attend these informational webinars. Through experience I’ve found it really helpful when companies offered that extra level of service with a purely informational webinar for those prospects considering an opportunity but have yet to commit. I found this to be a great way for people that haven’t committed yet to get their questions answered. It is known that you can call representatives to answer your questions, but I always found it great to be in a meeting with like minded people because there was always a chance that someone might think of a useful question you didn’t even think to ask.
When a customer orders any Tupperware products, there is no money back guarantee policy. Once an order is submitted, the order is set and final. Other companies I’ve analyzed have had money back policies based on certain number of days, but Tupperware does not have that option.
Tupperware is definitely a legitimate company with high quality products that many people use. However, this company uses old marketing concepts such as home parties and doesn’t emphasize the use of new marketing techniques to draw in customer leads online. If you are getting a pre-built Tupperware web site where people are able to buy your products, then the new marketing techniques need to be taught to you so that you can drive customers to your web site. Learning these concepts will help to maximize your profits in this business.
It’s known that the Tupperware consultants heavily depend on home parties to make sales, recruit potential distributors, and set up further home parties. So make sure you are comfortable with this type of business model before committing to it.
If you really want to make money in with the Tupperware business and in any business opportunity you must learn how to personally brand yourself so that people will think of you as a leader. And if they see you as a leader, they will chase you down rather than you having to chase them down for a sale or for recruitment. This is done by solving people’s business problems by providing training tools that show them how to develop themselves. There are more concepts to learn than just personal branding to ensure success. The main thing you need to do is find the right coach to show you how to leverage the power of the internet and show you smart marketing techniques to increase your income potential rather than just using the old business model of home shows.
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