What is Princess House? A scam MLM or a real way you can make decent money? This company sells all sorts of stuff for the home, but can you as a distributor make real money with Princess House?
Let’s take a look and find out….
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Company Name: Princess House
CEO: Connie Tang
Price To Join: $139
My Rating: 4.5/10
~ Princess House Reviews ~
What Is Princess House?
Princess House was founded way back in 1963 and operates with the multi level marketing/network marketing distribution method. Much of their sales are based on the old party plan method, and they host a whole range of household items, with a focus on things for the kitchen.
The company started out with glass, crystal and kitchenware products, but have since expanded their range over the years. At last count there were some 37,000+ distributors working for Princess House.
Princess House Products
I won’t go deep into the products as there are 100s, and this review is more focused on the Princess House business opportunity anyway. Let’s at least list the categories they sell:
-
Bakeware
- Cookware
- Cookware Sets
- Cutlery
- Dinnerware
- Flatware
- Food Storage
- For the Home
- Glassware & Barware
- Home Organisation
- Kitchen Tools & Cleaners
- Serveware
- Specialty foods
- Tabletop
They used to sell healthy meal packages and cosmetics, but seem to have discontinued those product lines now.
Under each category there are loads of products, but as is the case with MLM companies, the prices are quite expensive. This is mostly due to the way companies operating in MLM have to pay their distributors.
Let’s look at an example. A set of 4 crystal beer mugs sells for $59.95, and a glass flavour infusion pitcher retails at $89.95.
By all reports the Princess House products are good quality, so that helps to offset the high prices somewhat.
The Princess House Compensation Plan
Commissions on retail sales are set at 25% for those starting out with Princess House. The more you can sell in a given month, the higher your commission percentage is. The idea really is to recruit others into the business, get them in your downline and earn residual commissions and bonuses from their efforts as well. The more active people you can recruit the better when it comes to MLM compensation plans.
Princess House have a heavy focus on setting up parties with people you know and in your general area in order to make sales and recruit. This method might work out okay for the first party or two, but how many times can you invite the same circle of people to these events? Also, the party plan concept severely limits your reach when it comes to recruiting, and that’s where the real potential lies with the MLM business model.
One good thing Princess House do, though, is provide each of their distributors with a replica company website. This vastly extends your reach both for retail sales as well as recruiting.
The higher the rank you can achieve within Princess House, the more money you have a chance of earning as well as achieving the bonuses on offer.
I was unable to locate an official compensation plan for Princess House to link to, but the image below gives you a bit of an idea of how it works.
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The MLM Business Opportunity
The problem with trying to make money as a MLM distributor lies in the very fabric of the compensation structure itself. You work on a commissions and bonus only basis. There are no wages or retainers paid. You actually have to pay the company for the right to be a distributor for them.
As MLM relies so heavily on recruitment to have a chance of earning decent money, this forces distributors to have to grow the company. Which is great for Princess House. They always claim you are starting your own business and you’re in control, but you’re not. Princess House owns the business. You are merely signing on as a sales rep for them and paying for that privilege.
MLM companies amass an army of free workers who do all the buying and selling, promotion and recruiting. All for no immediate pay. No wonder so many companies are frothing at the mouth to use the MLM distribution model. There are so many advantages to them, while stripping all the benefits away from the majority of the workers.
Less than 1% of people involved in MLM enjoy the lavish lifestyles that these companies always promote. The vast majority of distributors end up spending more money than they actually make.
Princess House propose you make most of your money by hosting parties. That might have worked well 50 years ago, but it’s not a particularly profitable or viable marketing plan in this day and age.
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Is Princess House An Illegal Pyramid Scheme?
Although most MLM companies operate on a pyramid compensation structure, that doesn’t mean they are operating illegally. Here’s why.
The definition of an illegal pyramid scheme is an operation that doesn’t sell any products or services and relies totally on new recruits and their money to keep the scheme going.
MLM companies do rely heavily on recruiting, but they also have real products. Therefore, Princess House cannot be classified as an illegal pyramid scheme.
What I Like
- The company has been around for a long time, more than 50 years
- Their product range is huge
- Some of their products are pretty good
- You get a replica website to sell and recruit online
What I Don’t Like
- The party plan idea is really old hat
- The products are mega expensive, as always with MLM
- Recruiting is the toughest part of MLM, yet essential to your success in this kind of business setup
- How many sales do you think you can make of pots and pans and glasses per month doing home parties?
- Some 95% of people fail to make any profit with any MLM venture
- You’re going to annoy the living hell out of everyone you know, trying to get them along to parties, or selling to them and trying to recruit them
- The average person involved in MLM makes less than $500 annually, and that’s before expenses
How Much Does Princess House Cost To Join?
In order to become a distributor for Princess House, you first have to purchase a starter business kit, which currently costs $130. Then there are products you might need to purchase, and those are very expensive for what they are.
Is Princess House a Scam?
It’s not a scam at all. I don’t like the MLM business structure and I don’t think it’s a very fair business compensation model, but that doesn’t make Princess House a scam. They’ve been operating since 1963, so they must be doing something right.
As far as a money making opportunity goes, the real questions are these: Do you believe you can make money by being a distributor for Princess House? Do you think you can actively recruit new members and grow downlines? Do you believe you can successfully sell these products at the prices they charge?
If you don’t answer yes to at least one of these questions, then give it a miss. MLM is one of the toughest grinds there is to try and make a decent income.
Forget MLM – Try Affiliate Marketing Instead
I’ve done MLM in the past, but these days I don’t bother with it because I’ve hit upon something that’s much better and far less stressful. I get the pleasure of working from home and running my business online from anywhere I choose to be.
I do affiliate marketing for a living, where all I do is promote the products and services of other companies and earn commissions when someone buys something through my recommendation. I don’t have to recruit anyone, I don’t have to organise boring parties and put the hard sell on everyone I know. In fact, I don’t even have to buy any products. I’m merely acting as an online sales rep for a whole bunch of companies, and they pay me for that right, not the other way around.
If you would like to learn more about what I do and how you can get involved, I’ve written a guide on how to get started. You can access it by clicking on the banner below.
Darren Burton
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