Pampered Chef Wins the “Nobel Peace Prize” of MLM

Imagine meeting Bill Gates when he was working out of his garage. At that time, most people would either dismiss him or if they did give him more than a passing thought, it probably would not have been a flattering one.

That is what happened to me in 1990 when I sat next to the founder and president of The Pampered Chef, at a chamber meeting in Addison, IL. At the time, he and his wife were attending a modest luncheon sponsored by the chamber of commerce. Like thousands of direct selling and MLM companies, Doris and Jay Christopher were excited about their company and the growth potential it had. Now in 1990, the Pampered Chef had already been in existence for 10 years, making it a long-term player in the world of MLM companies. To me, they were just another company.

Doris and Jay were your typical Midwesterners; polite, engaging, and pleasant. You could not help but to like their company instantly. Again, like so many other companies whose success is not based on the product but the leadership behind it, The Pampered Chef was to grow exponentially over the next 10 years and ultimately be purchased by Billionaire Warren Buffet of Berkshire Hathaway.

Not only does the sale of your company prove the viability of the foundation and culture, but to be purchased by Berkshire Hathaway is akin to winning the Nobel Peace prize for acquisitions. Being purchased by a conglomerate with such a stellar track record is more than just a lucrative day-it is a legacy that transcends our very lives.

As far as operations, sales and opportunity, you might consider that selling hard goods (instead of consumables) would be a drawback. After all, if you establish 100 or 1000 customers/distributors that are “hooked” on your supplements or energy drinks, you have a continuous flow of product and sales.  Isn’t that better than selling something you replace every 10+ years?

Not necessarily.

While consumables are attractive in their residual nature of the sale, hard goods come with a higher perceived value due to the size, weight, and quality of the materials. When it comes to marketing, there is a distinct advantage to having hard goods as your product. I can’t imagine a more powerful and steady reminder to the customer/distributor. Having your product constantly being used is more powerful than any marketing message, email or flyer you can imagine. Additionally, having a Pampered Chef appliance, tool or utensil in your kitchen constantly reminds the user of the opportunity. As a new distributor, which would you prefer; your upline constantly calling you asking you about scheduling a hostess party or a silent product, steadily making your pasta?

As with all direct sales organizations, there are pros and cons to all of them. There is no “perfect” company. Reviewing their leadership, legacy and product is important, to be sure. Pampered Chef has achieved an extra blue ribbon that most MLM companies will never achieve, being bought out by one of the most respected and admired companies on the planet.

Of course, you still have to work it to be successful! Acquiring leads isn’t necessarily the only thing to focus on, but it must be a CONSISTENT activity for the rest of your business life. After you have been through your hot list, you must develop a professional approach to lead generation. Hanging out in the mall is a sure way to be labeled as a pest. Be sure to use a system like the one that I use to generate an endless stream of leads.  Enter your email on the right and I will send you some FREE lead generation training to get you started in the right direction.

Pampered Chef sells more than 300 gourmet kitchen tools, cookware, cookbooks and foodstuffs. Founded in 1980, Pampered Chef was sold to Berkshire Hathaway, the conglomerate controlled by billionaire Warren Buffett, in 2002.

Wholesale Corporate Revenue: More than $100 million
Marketing Style: Party plan
Compensation Plan: Multi-level
Products: High-quality, multifunctional tools for cooking and entertaining
Markets: 5
Distributors: 60,000
Employees: 800
Headquarters: Addison, Ill.
Year founded: 1980
Stock Symbol: BRK-A—NYSE