Tupperware IS a multi-level marketing company!

Tupperware may have gotten it's start as a direct seller, but things have changed.

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Starting out, the money earned is mostly through the sale of Tupperware products. Overtime, after you have developed a team of Tupperware Consultants, you will earn much more, based on the performance of your downline. You also have the opportunity to win trips, diamonds, cars, and cash bonuses. As mentioned earlier, one of the additional rewards is a car. Tupperware has a program called, Dream Drivers Program, that offers to those who qualify, the use of a company car with no payments and no insurance premiums.

Recruiting:
There is definitely a push for Tupperware recruiting. Tupperware constantly provides spotlight on its “Royalty” sales force members. Managers, DIQs, and Directors are referred to as “Royalty”. You do not earn commissions, you earn “royalties”. Tupperware has started recruiting the Hispanic population and has even added a whole “Hispanic Recruiting” section on its training site.

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What Are the Benefits Of Being A Tupperware Consultant? | MLM Online Training Resource

Here are two more articles:

Tupperware: Same MLM, different name

Tupperware sucks too

Almost all direct selling companies also allow you to recruit and utilize the MLM business model. That being said, I don't think using this model immediately qualifies a company as a scam. I haven't personally purchased or used any of Tupperware's products so I can't tell you whether or not they're worth the money - but if the product is worth the price that they're selling it at then I don't think that makes the company a scam.

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Almost all direct selling companies also allow you to recruit and utilize the MLM business model.

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Agreed.
1. I posted this thread to dispel the myth that persists: It is direct selling, it is not an MLM.
2. Why have so many companies like Tupperware added this "business model" to what was once only a direct selling company?

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That being said, I don't think using this model immediately qualifies a company as a scam.

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Well, IMO, I've yet to see an MLM company that doesn't start pressuring people to climb up the pyramid. When that happens, folks at the bottom are often misled, deceived, sometimes lied to, and get hurt financially and emotionally.

I personally believe the following are two reasons why former direct selling companies, and other regular, retail sellers (Dove Chocolates) jump on the MLM bandwagon: The profits are lucrative for those at the top; and market demand is tossed out the window.

I recognize that many people only sell the product, stay away from the pyramid, and are happy to do so, either for fun or pin money. That is their choice, and I respect their right to do so.

But I have read all of the linked sites on this forum about the industry: This treatise speaks loudest to me.

Respectfully submitted,
Emet

As for your question, I think companies like Tupperware started utilizing the MLM business model because new reps would sign up and there was a rep that may have put a lot of effort into getting these reps to sign up. However, the rep that introduced them to Tupperware and helped them out received no incentive or rewards for doing so. Hence why they implemented a system where you were rewarded for your recruiting efforts. I don't think that's unfair and I don't think that means they're a scam either. You should get credit for doing work like that. That being said, if you're part of a "direct selling" company where the primary focus is to recruit and the product(s) aren't worth their money then that begins to propose a bit of a problem. You make you're money recruiting, not actually selling the products and I don't really like that or agree with that. I think there has to be a legitimate way to earn money selling the actual product(s) in order to make one of these companies not a scam.

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As for your question, I think companies like Tupperware started utilizing the MLM business model because new reps would sign up and there was a rep that may have put a lot of effort into getting these reps to sign up.

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That's called recruiting. Sales reps at traditional companies sell their wares. The company watches markets and territories, and when demand warrants it, do their own recruiting.

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However, the rep that introduced them to Tupperware and helped them out received no incentive or rewards for doing so.Hence why they implemented a system where you were rewarded for your recruiting efforts.

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I suspect it was the reverse. Again, traditional sales companies do not work that way.

Well, I worked in sales with Qwest communications (phone and internet provider in some western states). You got a bonus on your paycheck if you helped recruit new employees. I worked for a few companies like that in Utah, you earned bonus money if you got someone to apply and they were hired on.

Like I said, as long as the company can stand on it's own 2 feet with JUST their products then I don't have a problem if they have an MLM business model implemented as well.

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Well, I worked in sales with Qwest communications (phone and internet provider in some western states). You got a bonus on your paycheck if you helped recruit new employees. I worked for a few companies like that in Utah, you earned bonus money if you got someone to apply and they were hired on.

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Thanks for that, Lisa.

I just looked at Qwest's web site and there are currently 101 job openings (couldn't post direct link). I'm guessing employees of the company get a bonus if you bring someone into the company for a posted job.

Is that correct?

When I was a kid I remember everyone having Tupperware. Sadly, even though they had some nice stuff it is a virtual dinosaur with Rubbermaid and the newer cheap brands filling sotre shelves. That was the only plasticware we ever had in the house. Times have changed!

Soapboxmom

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Originally Posted by Emet

Thanks for that, Lisa.

I just looked at Qwest's web site and there are currently 101 job openings (couldn't post direct link). I'm guessing employees of the company get a bonus if you bring someone into the company for a posted job.

Is that correct?

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Ya, I don't know if the job was always posted but it was a call center and they were almost always hiring. With how the economy has turned I'm not sure if this has changed. My brother works there now so I could ask him, but I do know that they now have a waiting list of people wanting to get hired.

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Originally Posted by Soapboxmom

When I was a kid I remember everyone having Tupperware. Sadly, even though they had some nice stuff it is a virtual dinosaur with Rubbermaid and the newer cheap brands filling sotre shelves. That was the only plasticware we ever had in the house. Times have changed!

Soapboxmom

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My "tupperware" came from the WalMart brand, I think it was $10 for a set of 10 pieces plus lids. There are some things that I'm willing to pay extra for, plastic containers simply isn't one of them. lol

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Originally Posted by Lisa

Ya, I don't know if the job was always posted but it was a call center and they were almost always hiring. With how the economy has turned I'm not sure if this has changed. My brother works there now so I could ask him, but I do know that they now have a waiting list of people wanting to get hired.

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Actually, Lisa, that's enough of an answer. I'm not surprised that a company like Qwest offers bonuses in the manner you described. I'm sure many companies do. But it further illustrates the point. Qwest has/had a need for employees to work for the company. It's not the same as an MLM in that they will "hire" anyone anytime, anywhere, regardless of the market. And you have to "pay" to get in.

That's true, it's not the exact same. But it is a somewhat similar concept.

Didn't Avon and some other MLM's used to have "districts" and restrict how many reps could be an area to prevent there from being too much competition?