The beauty industry is not only profitable but continues to grow, especially considering that teenagers spend $44 billion a year on beauty products.
If you’re looking for a niche you love that generates serious revenue, you may be looking for opportunities in the beauty industry. This is why so many people stumble on multi-level marketing companies, such as the makeup and skincare MLM Oriflame.
Oriflame is a Swedish beauty company that sells a variety of makeup and skincare products. If you’ve heard of Oriflame, you're probably wondering if selling skincare and makeup products are worth it. Here’s our review of this makeup and skincare MLM.
What Is Oriflame?
Oriflame is a beauty company founded in 1967 by two brothers, Robert and Jonas af Jachnick.
Previously, you were only able to buy their products in Europe. But the beauty company expanded internationally over the last few years, and now you’re able to buy their products worldwide. For example, they made it to North and South America in 2016.
Oriflame is popular because its products are high-quality and are made with natural ingredients (and they never extract ingredients from endangered sources). However, you can only buy Oriflame products from beauty consultants.
What’s the Oriflame MLM Opportunity?
Oriflame is different than many similar MLMs. Instead of purchasing products, consultants only need to purchase catalogs — a very similar structure to the beauty company Avon.
New consultants receive catalogs for free. In addition, you have the option to purchase a $20 startup kit that contains product samples.
Because of this, most consultants easily sell products to family, friends, and more.
All consultants receive a 20% commission on sales. If you onboard more consultants, you also receive a percentage of their commissions.
Can You Make Money With Oriflame?
Fortunately, consultants don’t need to invest a significant amount of money into their Oriflame business. But can you still make money?
Let’s take a look at the statistics. The prices for products vary depending on the country you’re in and the products you sell. Since Oriflame’s headquarters are in Sweden, we’ll use their market as a reference in this example.
On their website, we found a lipstick for 119 SEK (the equivalent of about $14 USD). You’ll earn $2.80 off on that sale. If the average person in Sweden makes 45,100 SEK a month (about $5,308 USD), you’ll have to sell about 375-380 lipsticks a month to earn the average Swedish wage.
While this isn’t an impossible figure, consultants will have to constantly hustle more than the average worker in Sweden. Unfortunately, most people aren't cut out for this type of work. That’s why the average Oriflame consultant only makes €411.90 Euros ($491 USD) for the entire year.
Oriflame Review: Pros and Cons of This MLM
While Oriflame may seem like a great opportunity, this company has many pros and cons. Here is a breakdown of each.
First and foremost, there are no signup fees. Many MLMs make their money off of their consultant’s investments, whereas Oriflame truly makes most of its money on product sales. New consultants receive free catalogs and the starter kit is only an option to jumpstart your business.
In addition, you don’t need to buy inventory. After you give away your catalogs, you’ll have to purchase more. Fortunately, they’re not extremely expensive. If your customers buy products, they’re either sent directly to the customer or to you for distribution.
Do you want to try Oriflame products? All sellers receive product discounts and even free product samples.
Oriflame also offers other roles in case you want to work in beauty but don’t want to become a consultant. For example, you can work in customer service where your income isn’t based on commission. Many Oriflame workers also receive product discounts and other benefits.
While Oriflame is natural, they’re not organic. Oriflame isn’t cruelty-free; they test on animals and their products include ingredients derived from animals. You can lose potential sales because of these factors. Americans also can’t become consultants, though they can still order their products.
Is Oriflame a Scam?
While you can’t make a significant amount of money on Oriflame, many see this opportunity as a great side hustle. It’s easy to be an Oriflame consultant and the gig doesn't require a large investment. But because Oriflame is an MLM company, are they still considered a scam?
Oriflame isn’t a scam in the average sense. They’re a legitimate company with decades of experience. However, you really have to hustle in order to make a living. Since there’s no base pay, you only make money based on what you sell.
Overall, this isn’t an opportunity for everyone. Even though the investment isn’t significant, you shouldn’t be spending money at your job unless it’s for a company that you own.
How Do MLMs Attract Sellers?
After reading this, you may be wondering why MLMs attract sellers and still stay in business.
First, MLMs aren’t different from normal companies. They have CEO(s), other executives under them, and a board of members. However, they also have multiple levels of staff under them who market and sell the products, which is where the multi-level marketing name comes from.
But what makes MLMs stand out is their investors. Unlike traditional sales gigs, MLMs require the sellers to invest in their products. The investments can be small, like in Oriflame’s case, or substantial.
So, how do they still draw in sellers? Most MLMs use certain terms such as “you can be your own boss,” attracting those who want to be business owners but aren't sure where to start.
They also target other specific individuals, such as single and/or stay-at-home parents who have no time for an average 9-to-5 job, young people who want to start a career in the MLM’s niche, vulnerable individuals (unemployed, etc.), and anyone gullible enough to believe their message.
Should You Buy Into This Skincare MLM? Try Affiliate Marketing Instead
Sure, the Oriflame makeup and skincare MLM may seem like a profitable and easy opportunity. However, it’s still an MLM where you have to invest in the company and hustle to make a living.
There are easier ways to profit and still be your own boss. Many individuals in the beauty industry are successful with affiliate marketing.
In order for you to develop your skills, you should consider taking a free or paid marketing course. There are a variety of digital marketing courses you can take from businesses that can help you enhance your skills. As of writing this, over 80,000 new marketers have taken the Online Business Builder Challenge (only $7), and that might be a good starting place for you as well.