Quitter? Not usually.
So why the land speed record of quittertude in direct sales?
Allow me to explain.
I was attracted to Norwex after buying two of their products on Ebay and was pleased with how they worked. I was looking for some extra income and liked their philosophy of fewer chemicals in the home. I contacted a local Norwex consultant and agreed to sign up.
I wish I had all the facts before I became a Norwex consultant.
Norwex gives new consultants 90 days to sell $2000 (retail) worth of product. Otherwise the consultant must fork over $200 for their "starter package" which consists of training material, order forms, catalogues, and a few Norwex products...everything you would need to start selling.
So when do the 90 days start?
From the day you sign up, not the day that you get your materials. And by the way, Norwex estimates that time at between 5-10 business days. I called Norwex to ask about this, and was told that "you have the website to start selling things from."
Great. So I should be facilitating Norwex parties with NO training, NO products, and NO way to order other than pointing customers to the website during my first two weeks?
Oh, and your 90 days are counting down.
I contacted Norwex about this and was told, "Yea, sorry. That is just the way it is."
Well I better be paid well if I can sell their products without having any to show or knowing anything about them. Right?
In their literature, Norwex claims that their reps get a minimum of 35% of sales, and more if they have people "under" them.
As soon as I was confirmed as a consultant, I was given access to the website, and wanting to purchase a few items as gifts for friends and family, I started to place a "personal and supply" order.
The 35% discount was taken off the retail price, which was all well and good.
Then I looked at the checkout screen.
I noticed that on an order of $58.80 (with the 35% discount), I was being charged $6.89 in tax. Interesting. My state has a sales tax rate of 7%.
Now I am no mathemagician, but according to my calculations, 7% of $58.80 is $4.12 if I round up. So how did Norwex arrive at $6.89 in tax?
Bear with me here...this is important.
They charge sales tax on the full retail price, not the money they are actually collecting, and pocketing the difference!
Is this legal?
So the full retail price of my order was $90.47. Let's say for the moment that charging sales tax on money not collected is okay. Is $6.89 seven percent of $90.47? NO!! That would be $6.33.
I made another phone inquiry to Norwex on the matter and was told that seven percent of $58.80 is $6.89.
Wait...I have heard of these. Magic sevens that look like sevens but are, in fact, twelves.
Where are they getting this $6.89 in tax from?
Let's take a look at the shipping charges. Norwex charges $7.95 in shipping and handling fees on an order that includes 3 washcloths and one infant towel.
Those must be some pretty heavy washcloths!
If you add $90.47 retail price PLUS $7.95 in shipping, and then calculate 7%, you come up with $6.89 in tax.
Why are all these dollars and cents so important?
Yea, more math.
If you place an order on behalf of your customer for $90.47 retail, you personally wind up paying $73.64 with exorbitant shipping and the unethical taxes.
Your income is the difference between these two numbers...
a whopping 19% sales commission!!
Wait...what happened to 35% commission? Well, you could pass the questionable charges on to your customer, at which point they will be paying nearly $15 in taxes and shipping on top of the $90 order they just placed.
If you were your customer, would you come back for more?
So after three very frustrating hours, I faxed in a resignation letter and asked Norwex to cancel my subscription and cancel my $200 starter package. I was told that in the last three hours, they had already sent a form to their shipping department and there is no way to stop the processing of that order. The only thing Norwex can do is wait till FedEx has it in their hands, then charge me $15 to have FedEx redirect it back to them.
If you are considering becoming a Norwex consultant, please be aware that Norwex will nickel and dime you at every turn. You pay for shipping, you pay for order forms, promotional items, flyers, oh yea and $10 a month for the privilege of using their website for your customers to place online orders. All of this and more comes out of the very iffy 35% commission you are supposed to be earning. It seems they care about their pocketbook alone, and wave the banner of "saving the environment" over the whole production in order to make more money.
 |
| Go for it, sad little bear. |
When I was considering becoming a Norwex consultant, I did research on the company and tried to find out about other people's experiences selling Norwex. Information like this was nowhere to be found. After my ordeal, I knew I had to help others avoid the mess I had found myself in, even if it meant starting a web page.
