Oriflame is a Sweden based Direct Selling company that deals in beauty and personal care products.
What is Oriflame?
Jonas Af Jochnick (left) and Robert Af Jochnick (right) founded Oriflame in 1967 in Sweden.
Magnus Brannstrom (left) is the CEO of Oriflame since 2005 and Alexander Af Jochnick (right) is the chairman of the company.
Oriflame Investment Holding plc is the parent company of Oriflame.
Oriflame carries out different social activities such as Deepalaya, Goonj, Hand in Hand, The World Child Foundation and SOS Children’s Village.
When this post is written, the company tends to have around 6000 employees with a turnover of more than 1.3 billion euros.
Oriflame works in more than 60 countries along with having over 3 million brand partners.
|Founders||Jonas Af Jochnick & Robert Af Jochnick|
|Head Office||Schaffhausen, Switzerland|
|Products||Beauty & Personal Care|
The Oriflame products are manufactured in Sweden.
The Oriflame products are divided into the categories like skincare, makeup, fragrance, bath and body, hair, wellness, men, and kids & baby.
Oriflame keeps launching its product catalogue regularly to keep the sellers updated on new products.
Every Oriflame product comes with its associated BV value.
BV stands for Business Volume which is used to get PV, GV and calculates different incomes.
PV stands for Personal Volume i.e. total BV of purchases made by affiliate whereas GV stands for the Group Volume i.e. total BV of the purchases made by the affiliate and his downline.
The Oriflame affiliate needs to register and purchase the starter kit.
Later the affiliate needs to maintain a purchase of at least 200 BV every month to receive commissions.
The affiliates are required to follow a three-step process:
They are required to show the product catalogue to people, invite them to join Oriflame in their downline and attend the meetings.
Oriflame Compensation Plan
The compensation plan of Oriflame is named as “leaders edition” that explains the earnings of affiliates.
The Oriflame affiliates can earn in three ways:
- Retail commission
- Performance discount
- 4% Oriflame Bonus
- Gold Bonus
- Sapphire Bonus
- Diamond Bonus
- Double Diamond Bonus
- Executive Bonus
Retail Commission is earned by selling the company’s products to friends, relatives or potential customers.
The Oriflame affiliates can earn up to 30% commission on the products that they sell to others.
The Performance Discount is calculated on the individual and downline Business Volume.
Every Oriflame product comes with its BV values that are tallied when any purchase is made by affiliate or downline.
The Performance Discount is calculated as follow:
|BV requirement||Performance Discount Rate|
|200 to 449 BV||3%|
|450 to 899 BV||6%|
|900 to 1799 BV||9%|
|1800 to 2999 BV||12%|
|3000 to 4999 BV||15%|
|5000 to 7499 BV||18%|
|7500 or more BV||21%|
There are mainly six types of bonuses paid to the Oriflame affiliates.
4% Oriflame Bonus
After the personally recruited affiliate reaches a 21% Performance Discount rate, a 4% bonus is paid to the leading affiliate on their generated BV.
To receive a 4% Oriflame Bonus, it is necessary for the affiliate to maintain 7500 GV.
Oriflame follows a uni-level compensation structure where Gold Bonus is paid as a 1% bonus on the second level downline that qualifies for 21% Performance Discount.
To receive Gold Bonus, the affiliate must maintain at least two 21% Performance Discount qualified affiliates along with having at least 3000 GV per month.
Sapphire Bonus is similar to Gold Bonus but it starts from the third level and is paid as 0.5% of generated volume. Starting from the third level it is paid for the leg that qualifies for a 21% Performance Discount.
To receive Sapphire Bonus, the affiliate must maintain at least four 21% Performance Discount qualified affiliates along with having at least 3000 GV per month.
Diamond Bonus is again similar to Gold Bonus but it starts from the fourth level and is paid as 0.25% of generated volume. Starting from the fourth level it is paid for the leg that qualifies for a 21% Performance Discount.
To receive Sapphire Bonus, the affiliate must maintain at least six 21% Performance Discount qualified affiliates along with maintaining at least 200 PV per month.
Double Diamond Bonus
Diamond Bonus is also similar to Gold Bonus but it starts from the fifth level and is paid as 0.125% of generated volume. Starting from the fifth level it is paid for the leg that qualifies for a 21% Performance Discount.
To receive Sapphire Bonus, the affiliate must maintain at least ten 21% Performance Discount qualified affiliates along with maintaining at least 200 PV per month.
Last but not the least, Executive Bonus is the same as Gold Bonus but starts from the sixth level of the unilevel leg and is paid as 0.0625% of generated volume.
To receive Sapphire Bonus, the affiliate must maintain at least twelve 21% Performance Discount qualified affiliates along with maintaining at least 200 PV per month.
Is Oriflame a Pyramid Scheme?
This was all about Oriflame company, its products and compensation plan. Now the question arrives, is Oriflame a Pyramid scheme?
The answer is No!
Oriflame gives commission on product sales, it can be a personal sale or purchase in the downline. Hence Oriflame is not a money circulation.
Oriflame is a genuine product-based network marketing company. As MLM is a legal business model, Oriflame can operate globally.
Oriflame Products are Good or Not?
This question is asked by lots of people, who hear about Oriflame for the first time.
Oriflame products are claimed to be premium. These products are expensive compared to the retail market, especially for tier 2 and 3 countries.
To share commission to distributor network, MLM companies increase product cost for the end consumer.
If you want to become an Oriflame representative or a regular customer, compare Oriflame products to the local market and then make a decision.
You can take a chance on the products if their price and quality seem justified.