Tupperware, still towering over the rest

Tupperware is a giant network marketing company with one of the most widely-recognized household names in all of direct sales.

While their revenue doesn’t quite match that of Amway and Avon (minus a couple billion), they’re arguably just as iconic.

So have I been involved?

This video explains:

 

All good? Let’s continue…

Overview

Tupperware was founded in 1946 in South Grafton, Massachusetts by Earl Tupper. 12 years later, he sold the company to Rexall for $16 million. They’re now headquartered in Orlando, Florida, and they’ve since expanded to over 100 countries worldwide.

There’s really no arguing the prevalence and rule of this company. They were ranked #2 on Fortune’s list of Most Admired Home Equipment and Furnishings. They’ve got a massive annual revenue of about $2.3 billion. [1]

They were also ranked #10 on the DSN Global 100 this year. However, that’s a couple notches down from the #9 position they held in 2016 and the #8 slot in 2015. They’re slipping. [2]

Their revenue has been trending downward for several years now. In 2014, they were at $2.606 billion, in 2015, $2.283 billion, and in 2016, $2.213 billion. [3]

Of course, that doesn’t mean they’re going bankrupt anytime soon…they’re still in the billions. But it does mean they might be losing a little steam.

I’d be willing to bet these incremental drops in revenue have a lot to do with the fact that Tupperware still relies heavily on the home party model. This model is outdated enough when it comes to stuff that’s actually moderately fun to have a home party with, like makeup or fondue sets, but there’s absolutely nothing entertaining about going over to your friend Betty’s house to stare at a bunch of plastic containers.

How much does Tupperware cost?

$99.

Their Business Kit can also be paid on a payment plan in 3 installments using a credit card. It actually comes with quite a bit of product considering the cost, as well as your own apron, a date book, a party planner, recruitment brochures, business cards, catalogs, order forms, and other business essentials.

Products

Tupperware expanded their product line when they changed their name from The Tupperware Company to Tupperware Brands Corporation. Of course, they’re most well-known for their traditional Tupperware, which is still one of the most durable and trusted brands in food storage.

Additionally, they now sell everything from ovenware and cookware to organizational accessories, gift sets, and kitchenware for kids.

Some of their current bestsellers include…

  • Tupper Minis ($15 for a 6-pack)
  • Salad on the Go Set ($20)
  • Thatsa Bowl ($25)
  • Measuring Spoons ($12)
  • Quick Shake Container ($16)
  • Modular Mates Canister Set ($40 for a set of 6)

The prices aren’t bad. A little higher than you could find at discount stores, but the quality great. The major problem they have is all the off-brand companies that now sell Tupperware containers at local supermarkets for mere dollars. Of course, those are usually not as durable.

Compensation Plan

Commission on personal sales is 25%, which is a little below standard. You can make more at a lot of the other top MLMs (Mary Kay’s is twice that at 50%).

You have to hit $250 in sales in 4 months to qualify for commission. After that, you get a 5% bonus if you make over $1,200 in monthly sales, and a 10% bonus for hitting $3,200 in monthly sales.

Once you’ve recruited at least 3 people to your downline and the four of you have at least $2,000 in monthly sales, you can start making commission on your downline. These start at 4%-8% for Managers. Once you get bumped up to Director level, that commission reaches 6%-12%.

Of course, there are all kinds of bonuses you can get in addition to these, including rank bonuses, leadership bonuses, lifestyle bonuses, and Director Development bonuses.

Recap

These guys tower over the MLM scene, and they’re not falling down anytime soon. They’ve built a household name for themselves with a product that’s trusted and loved. In an industry where even the top MLMs have controversy surrounding their products, Tupperware’s products are pretty universally accepted.

But maybe they could use a little controversy. They’ve been doing the same thing for over 60 years. They’re not falling down, but they’re also not going up. Their methods have gotten tired and, frankly, boring, and they haven’t developed a new and innovative product since the 50s.

It might be a way to fill your spare time, but I wouldn’t count on it to quit your day job and work from home.

Look, I’m not a Tupperware hater at all. But if you like passive income streams, there are better opportunities out there.

In other words, you might like our training because it teaches the “good life” without peddling overpriced containers to your family and friends.

See our top 22 small business ideas of 2017

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Jeremy Page

Jeremy Page created Multiple Streams for ballers, big thinkers and online business owners. You can follow him on Instagram here.

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