This post is going to be an unbiased review of Faberlic, a personal care products network marketing company. How was the company’s journey from being a Russian Line Company to Faberlic MLM?
Working with the tagline “Be Your Best”, Faberlic deals in personal care products. The company claims to provide the best products to its users.
The official site (faberlic.com) is mainly available in two languages: Russian and English.
Let us have a deeper look over the Faberlic products, joining process followed by its MLM compensation plan. At last, we will share our personal reviews regarding the company and its products.
|Head Office||Moscow, Russia|
|Products||Personal Care and Wellness|
|Joining Cost||Free Entry|
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Alexey Nechaev is the founder and president of Faberlic.
The company started in 1997 as a cosmetics company named Russian Line. In 2001, it was renamed Faberlic and started working as an MLM company.
The legal address of Faberlic is registered in Moscow, Russia.
Faberlic claims to be the only Russian company to be a part of the top 100 world’s largest perfumery and cosmetics companies for over 12 years.
It also claims to bring Oxygen Cosmetic, which is a special complex of perfluorocarbons that capture oxygen from the air and deliver it to the deep layers of skin.
As of now, Faberlic delivers in 40 countries with their official representatives present in 25 countries.
Distributors of Faberlic are known as Consultants. There is a lot to understand about it, let us move ahead.
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Joining Faberlic is really easy, any person can join the company without any investment.
With registration, one automatically gets eligible for a 20% discount on the catalogue’s prices.
There are fixed points associated with every product that is summed on each purchase. The average value of 1 point is around $1.60.
When one makes 50 points, the product discount rises to 26%.
The Faberlic products range in different categories such as hair care, skincare, makeup, fashion, perfumery, home and health.
The skincare category includes day creams, night creams, toning, cleanser, scrubs, masks and more.
Haircare includes shampoo, hair masks, hair colours and more. The makeup category includes products for eyes, lips, nails along accessories.
Fashion wear includes clothes for men as well as women, boys and girls. The perfumery category is further divided into two parts men and women.
The home category includes products of home cosmetics and clothing care & laundry. The health category includes food and nutritional products.
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Faberlic Compensation Plan
There are mainly 5 different earning opportunities as a part of the Faberlic Compensation Plan: Personal Discount (Retail Commission), Performance Commission, Director Bonus – Qualification Bonus, Development Bonus, and 3 types of other Incentives.
In further explanation, PGV stands for Personal Group Volume, which is fixed points given on each product purchase.
The commissions are calculated on Period which is the validity of every catalogue.
The first earning through Faberlic is Personal Discount i.e. Retail Sales. At first, there is a Personal Discount of 20% on the catalogue products for the Consultants. Once Consultants earn 50 points, the Personal Discount increases to 26%.
The difference between the original retail price and the discounted consultant price is the commission earned by the consultant.
The Consultant becomes eligible to receive the Performance Commission (PC), if their PGV is more than 100 points. Depending on the qualification of Consultant, the PC percentage is different as follows:
|Qualification||% PC||Minimum PGV required (points)|
|Senior Vice Director||19%||2000|
Every Consultant’s Performance Commission is calculated on the PGV of each downline. Level percentage (from the above table) difference between self and downline is the percentage of Performance Commission.
For Example, one downline is at the Consultant rank (3%) and you are at Leader rank (9%), the percentage difference is 6%. So 6% of the total PGV of that Consultant downline will be the Performance Commission.
Director Bonus – Qualification Bonus
When any of the downline members reach the Director qualification i.e. 23%, his or her team is considered as a new Director Branch. As soon as a new branch is formed, you start earning Director Bonus.
If no such branch is formed but your PGV is equal to 5000 points or more, you get qualified for the Qualification Bonus as follows:
When the Consultant’s rank is Diamond Director or higher, he becomes eligible to receive an additional yearly reward called Development Bonus.
Development Bonus is equal to 30% of all the Qualification Bonuses.
If any new Diamond Director appears in your group, he will receive Development Bonus for the group too along with you.
There are 3 types of other incentives: Quick Start Bonus, Fast Growth Bonus and VIP Program.
Quick Start Bonus
Quick Start Bonus is paid to achieve more in the business after registration. Mainly it is paid during the first 3 periods: $50 bonus on reaching 12% status, $75 bonus on reaching 15% and $100 bonus on reaching 19%. After this, Consultants become qualified for the Director Bonus.
$100 is also received by the Consultants as a part of the Sponsor’s Quick Start Bonus for every new Consultant in the downline.
Fast Growth Bonus
Fast Growth Bonus doubles the Qualification Bonus by reaching any rank in the range of Director to Elite Director within 9 periods after registration.
One part of this bonus is paid when Fast Growth Bonus requirements as met and the second part is paid when the status is closed.
This includes mainly four types of VIP benefits to the Consultants:
- VIP-1: Reach 100 personal volume points in 1 period and get 70% discount for 1 product and 50% discount on any samples.
- VIP-3: Reach 100 Personal Volume points for 3 consecutive periods and get all benefits of VIP-1 along with free delivery for orders over $100 and a 10% bonus as a cashback.
- VIP-9: Reach 100 Personal Volume points for 9 consecutive periods and get all the benefits of VIP 1 and 3 along with early order access to upcoming products, permission to participate in exclusive sales 4 times a year and a VIP e-badge.
- VIP-18: Reach 100 Personal Volume points for 18 consecutive periods to get benefits for all VIPs 1, 2 and 9. Above this 70% discount is received for 1 additional product and a one-time distinctive VIP-Consultant badge.
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To Be Concluded
This was all about the compensation plan of Faberlic. The plan seems lucrative due to different types of earning opportunities but the same people become sceptical about the legality of the company and its earning plan leading to a question of whether they should join a company or not.
Is It a Pyramid Scheme?
Faberlic is registered as a legal entity in Russia. The annual revenue of the company is $409 Million.
The Consultants are supposed to purchase and promote the company products to increase sales along with building a downline structure.
Should I Join Faberlic?
Only you can answer this question. The Faberlic Consultants are required to make regular product purchases and expand their sales and downline structure to earn more commissions.
Depending on your capability, the time for building a stable downline and getting customers to make regular purchases differ.
Like most MLM companies, the products of Faberlic are also expensive compared to the retail market.
Joining Faberlic is totally free of cost but we would recommend not to become a part of it under anyone’s influence or by seeing someone else’s good journey. Instead, it is crucial to understand your capability and MLM skills along with a deep understanding of the company’s plan and products before actually being a part of it.
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