Sitting next to health products formulated from magic seeds found in the Himalayas and trendy cosmetics that promise to make you look 10 times hotter and younger, it’s hard for products that used to be the backbone of MLM (home goods, Tupperware, kitchen products) to stand out and turn a profit.
Princess House, a kitchen goods MLM founded in 1963, has managed to stand the test of time. So does this mean I’m involved?
This video explains everything:
Make sense? Either way, here’s the full review on Princess House (the company).
Overview
Princess House was founded way back in 1963, when being a housewife was still the most common profession for women. They’re headquartered in Taunton, Massachusetts, and have managed to continue thriving for over 50 years now. [1]
Their annual revenue is somewhat of a mystery, as its been cited in different places as ranging from under $30 million to almost $200 million. According to Work at Home Career Trends, it’s $28.1 million. According to Direct Selling News, it’s $170 million. And, according to Hoovers, it’s just over $56 million. [2] [3]
Because they’re still a private company, there’s no way to know the actual number.
They were, however, named one of the Top 100 Women-Led Businesses in Massachusetts by The Boston Globe for two years running. This year, they hit #22, up 41 spots from their place in 2015. [4]
This is at least an indicator that they probably have decent sales numbers. The rankings are decided by both The Boston Globe and The Commonwealth Institute, a non-profit dedicating to advancing women in business and leadership, and they’re based on a company’s revenue and operating costs, as well as innovation, current projects, and employees.
Given that they’ve been around for so long, it’s no surprise that they have over 37,000 distributors and 200+ full-time employees. [5]
They were also ranked #32 for internet popularity based on search terms at MLM Rankings, and they were ranked #73 MLM by Direct Selling Global in 2013. [6]
Perhaps most exciting, they’ve named a new CEO – Connie Tang, their first female CEO in over 50 years of business. [7]
Tang is a highly notable businesswoman and industry leader who’s climbed her way up to the top with over two decades of experience leading cosmetics companies. She got her start with giants like Lancome and Clinique before moving into the MLM space 20 years ago.
Before taking over at Princess House, she served as the Vice President of BeautiControl and then the President of Jafra Cosmetics International. [8]
She’s been named one of the most influential women in direct selling.
They really couldn’t have picked a better person to take over the reins at Princess House. Hopefully she can help turn the company around and get rid of some of their outdated practices.
Products
Princess House started out selling handblown crystal and contemporary glass kitchenware, but they’ve since branched out to include all kinds of kitchen goods, from cookware and appliances to plates and flatware and food storage, and even some home goods such as shelving and decorations.
Their cookware sets are made of premium stainless steel. Their classic starter set runs for $319 (discounted from $424.85). [9]
Considering you can get stainless steel starter cookware sets on Amazon for well under $100, that’s a crazy steep price tag. [10]
Many of their other products are similarly overpriced, although some are affordable. A 5-piece place setting of stainless steel flatware is $29.95.
Perhaps the quality of the products is worth the heightened price tag?
Nope.
A lot of companies struggle with bad reviews, but Princess Home has straight up terrible ratings on Consumer Affairs – one star. Out of 11 reviews, pretty much all are negative, and include incidents not only frustrating but also dangerous, like plates cracking just for putting hot food on them, knife sets showing up already broken and no refund being issued, microwave safe bowls cracking in the microwave, and the company not honoring their 100% satisfaction guarantee. [11]
Opportunity
It costs $139 to start up as a consultant with Princess House. It’s definitely above average, but the starter kit includes $585 worth of supplies, so it’s likely worth it.
The company offers a 25% base commission, which is pretty much average when you’re starting out. However, it’s less than similar MLMs like Home & Garden Party and Celebrating Home, which start their commission rates at 30%. [12]
You have to sell over $1,250 per month to see your commission increase, otherwise you get the standard base rate of 25% on everything. Your expected payout after $1,000 in sales is only $111, and after $10,000 in sales, you’re banking only $2,361. That’s a subpar monthly income – and can you even imagine selling $10,000 worth of pots and pans in a month?
Even if you do sell a lot of and move up in rank, commission increases with Princess House are unimpressive.
What’s more, most of your money with this company will be made via in-home parties rather than online sales. That’s already a red flag.
Home parties are seriously, seriously out of fashion, and MLM needs to realize this already. How many of your friends would be jazzed to put their plans on hold and spend a Saturday listening to sales pitches about frying pans? Your grandma doesn’t count.
You do get some free product as a reward for hitting certain sales goals in the first 8 weeks, but are you really going to start a business just for some free plates?
Recap
Let’s be honest. There’s nothing new, interesting, or innovative about kitchenware. Maybe this worked back in the 60s when Princess House was started and people still went to Tupperware parties, but you just can’t make it sexy anymore.
The stuff at Princess House is no different. Not only are their products nothing special, they’re not even standard quality. According to multiple reviews of their products breaking and cracking instantly upon use, they fail to complete their sole duty – hold food.
On top of that, the compensation plan, while fairly straight forward, doesn’t offer ample opportunity to make money.
So, the company may have longevity on its side, but they may also be aging themselves out of the industry.
—
Is it possible to make money with Princess House? Maybe, if you have a good method to selling products. But if it’s just the income opportunity that you’re looking for, your time could be better spent.
If you like automated ways to build passive income, there are better ways.
(and you can trash those old MLM habits, too)
via http://mlmcompanies.org/princess-house/
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