Having your own business usually means selling products. And that doesn’t mean it’s a bad thing. But if sales aren’t your thing, you won’t be making a lot of extra money. It may also depend on the products, right? In this Faberlic MLM review, we’ll look at the offer as well as the products to see if this is a decent money maker.
What is Faberlic MLM
Faberlic is a Russian multi-level marketing (MLM) company originally founded by Alexey Nechaev in 1997 that sells cosmetics. It was rebranded in 2001 and became the first direct sales company to operate in Russia. The products are sold under the brand name Oxygen Cosmetics. The product line has expanded to include perfumes, home health, men’s products, kids’ products, clothing, beauty, and skincare products. The formula in skincare products is meant to capture oxygen in the air and absorb it into deep layers of the skin.
They have over 1,000 products with 700,000 representatives operating in over 24 countries. In 2020, Faberlic reported $409 million in revenue. It’s the largest Russian company in the direct sales market. So let’s check out the products.
Are Faberlic Products Worth Their Price?
Faberlic has a wide range of products in its catalog. The company has its own production facility in Moscow and all products adhere to European quality standards. Below is the Faberlic mascara which can also be found on Amazon for $15.99.
The product claims that it will give your lashes volume. It’s clump-free and smudge-free, and the fiber brush helps to extend your lashes. It’s also waterproof and safe for the skin.
But are the products worth their price? Even though Faberlic is an MLM, they have very high standards and happy customers for the most part. That’s not to say that you can’t buy similar products elsewhere for less. It really comes down to a question of taste.
Product Reviews
The reviews for this particular product are mixed. Many women were happy with the product while others complain that it’s not actually waterproof. One customer said it gave her conjunctivitis. Another customer said that the mascara made her eyes red and itchy.
Overall, customers seem to be happy with the products.
The Faberlic Opportunity
To join Faberlic as a representative, you’ll be sponsored by another representative and become part of their downline. Your identity will need to be verified. You will need to provide some form of ID such as a passport or driver’s license. All new representatives are required to attend training sessions.
Representatives can buy products at a 20% discount. Then sell the products at retail and keep the difference.
How Much Does It Cost To Join Faberlic?
The signup fee to join Faberlic is $28 and includes your website space. You’ll also have access to business tools. According to my research, there doesn’t seem to be a starter kit required for purchase. You can buy individual samples and catalogs. All samples are priced under $1.
You should also be aware of the hidden expenses you’ll probably incur. These would include travel expenses such as gas and vehicle maintenance, Internet access, and phone charges.
You may also be liable to pay for shipping, taxes, and handling fees for products ordered by your customers. None of these charges are reimbursable.
Can You Make Money With Faberlic
Each product is worth certain points. The amount of products you purchase during a catalog period (the validity period of one catalog) is your Personal Volume (PV). The average value of a point is $1.60.
Customers who become VIPs can avail themselves of 25% discounts on products. Or you can sell the products at full retail price and pocket the difference. The image below outlines the Quick Start program for new representatives.
Another way to make money is to recruit others to join your team and sell products. You will earn residual income from the sales of your team.
You will earn a Performance Commission (PC) if your personal group volume (PGV) is over 100 points during the catalog period. The Performance Bonus is divided between the consultants according to their PC levels.
Commission Chart
Here’s where it’s going to sting. If your team has group sales of 3,000 points or more, 23% goes to the Director. So let’s do a little math. 3,000 points x 1.60 (point value) = $4,800 (as seen in the above image). As a Consultant, you would only earn $160 (3%) which is the value of only 100 points. Does it feel like a lot of work for little reward? Kinda stings, right?
What about making money through selling products for retail? Let’s take a look at the mascara again. It retails for $15.99. Twenty percent of that is $3.20. That’s the representative’s discounted price. You make the difference between retail and discounted prices. So your commission here would be $3.20.
So can you make money with Faberlic? Probably not. And MLMs are designed that way.
Pros
No Inventory: You are not required to buy/keep any inventory on hand.
No Experience Necessary: You don’t need any special sales skills to join. The only requirement is that you are at least 16 years old.
Easy to Quit: If you decide you are no longer interested in being a representative, just send in a request to have your ID removed from the database.
Cons
Disappointing Compensation: Three percent is a pretty abysmal commission rate.
Hidden Fees: any fees incurred during the course of doing business are not reimbursable.
Recruitment Needed: In order to make any money, you need to recruit other people to join your team. That way you get residual income from their sales.
Is Faberlic a Scam?
Because it’s a Russian company, it’s not on the BBB’s (Better Business Bureau) radar. But, Faberlic products are sold in the U.S. and elsewhere. It’s not uncommon to think that all MLMs are a scam. You just need to know how they work.
The reason why these MLM companies make so much money is that representatives do all the work and most of the money goes to people higher up in the food chain and to the company.
Final Thoughts
Having a home business with a flexible schedule is a goal of many. But if it’s going to work, you have to have a decent way to make money. Selling products from MLM companies will probably cost you more than you will make. That’s just how the business model works.
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