Faberlic Review: Opportunity or Cosmetic-based MLM Scam?

Faberlic Review

In this post, we are going to cover an unbiased review of MLM company Faberlic and uncover some bitter truths about Faberlic whether you can really make money in such MLM or not.

Let us have a look.

About Faberlic

Faberlic is a health and wellness-based MLM company that sells personal care and wellness products via its direct sellers.

The founder and president of Faberlic is Alexey Nechaev.

Alexey-Nechaev-Faberlic

Earlier in 1997, this company was started as a cosmetic company named Russian Line but in 2001 it was renamed Faberlic and started as an MLM model.

Just like other direct selling companies, Faberlic is no different as it follows the same MLM business model where one can purchase a product as a retail customer and have an option to join as a Faberlic consultant.

Faberlic claims to be the only Rusian company that comes in the list of the world’s top 100 largest perfumery and cosmetics companies for over 12 years.

Company NameFaberlic
Founder & PresidentAlexey Nechaev
Founded2001
HeadquartersMoscow, Russia
TypeWellness products based MLM
Websitefaberlic.com
Website Domain Registered28th May 2001
Highest traffic to the website (faberlic.com) is fromRussia (75.42%)
Kazakhstan (5.51%)
Ukraine (5.32%)
Belarus (4.39%)
Poland (4.29%)
Estimated Revenue409 million (2021)
The company ranks in the world 32nd Rank (in direct selling companies)
Compensation Plan2022 Latest Pdf
Scam Possibility Level
(High/ Medium/ Low)
Low

Read: Beachbody Review

Price to Join Faberlic

Faberlic calls its distributors a consultant. One can join Faberlic without any investment.

Faberlic consultant receives a 20% discount on the purchase of catalog products.

The fixed points that are associated with every product of Faberlic are added on each purchase. The average value of 1 point is around $1.60.

When one makes 50 points, the product discount rises to 26%.

Read: Life Activated Brands Review

Faberlic Products

Faberlic markets different categories of products such as perfumery, fashion, makeup, hair care, skincare, home, and health.

  • Skincare: Day creams, night creams, toning, cleanser, scrubs, and masks.
  • Haircare: Shampoo, hair masks, hair colors, and hair accessories.
  • Makeup: Lipstick, foundation, highlighter, cacao powder, lip balm, eyeshadow, scrub, nail design stickers, lip liner, and makeup accessories.
  • Fashion: Clothes for men, women, boys, girls, and babies.
  • Perfumery: It is further categorized into two parts men and women.
  • Home: Household accessories, appliances, laundry, storage, aromatherapy, pet supplies, traveling, and books.
  • Health: Food, nutritional supplements, weight management, sports accessories, and protein bars.
Faberlic products

The products are available to consultants at discounted prices and can be sold further at retail prices to earn commissions. 

Customer Reviews: According to trustpilot.com, Faberlic didn’t receive any negative reviews from its customers.

Product costs: Like most MLM companies, Faberlic products are also on the expensive side. Its 50 ml of the perfume bottle is priced at $24.50 while a popular brand offers similar products for $6.44 on amazon.

Read: What is MLM? How does it differ from Pyramid Scheme?

Is Faberlic a Pyramid Scheme?

No, it can’t be called a pyramid scheme because Faberlic is registered as a legal entity in Russia.

Faberlic paid commission to their consultants based on the sales and purchase of the products. It’s not a pyramid scheme, which offers a recruitment-based bonus.

Faberlic operates on a direct selling concept which is a legal business model. Faberlic is different from fraud money-circulating Ponzi and pyramid schemes.

Can I earn money from Faberlic?

Faberlic helps you to earn money definitely but it’s going to be tough for a new consultant because it takes 2 to 3 years to make a decent profit. There are very few people who take advantage of MLM companies and make money.

Usually, in MLM companies less than 1% of consultants can make a decent profit, whereas 90% of consultants lose their money in buying overpriced products.

Should I Join Faberlic?

The decision is completely up to you. First of all, we will recommend you to use and examine Faberlic products personally. Compare these products with the retail market and answer, are you able to sell these products?

Secondly, you have to recruit lots of other new consultants to work with you, so first check your marketing, presentation, and convincing skills.

The success rate of MLM is just 0.4% and it takes around 2 to 3 years to build an active customer and downline network.

Joining Faberlic is totally free of cost but we would recommend you to not become a part of it under anyone’s influence or by seeing someone else’s good journey.

Read: What is Direct Selling? Why it is NOT Profitable Anymore

Faberlic Compensation Plan

Before moving to incomes, first we will understand some important terms used in the Faberlic compensation plan:

  • PV (Personal Volume): PV is fixed points that are given on every product purchase.
  • PGV (Personal Group Volume): PGV is the sum of PV from personally recruited consultants.

The incomes in the Faberlic compensation plan are as follows:

  1. Personal Discount
  2. Welcome Program
  3. Quick Start Bonus
  4. Fast Growth Bonus
  5. VIP Program
  6. Performance Commission
  7. Director Bonus
  8. Qualification Bonus
  9. Development Bonus
  10. Incredible Trips

1. Personal Discount

It is also known as retail sales. when a consultant makes 50 points then receive up to 26% discount on a purchase of over $25 (catalog prices).

Personal discount is the difference between the retail price and consultant discounted price.

2. Welcome Program

When consultants place their kit orders in their first five consecutive catalog periods, they receive some percentage of the discount.

3. Quick Start Bonus

Faberlic pays a quick start bonus during the first 3 periods:

  • Reach 12% status – receive $50 bonus
  • Reach 15% status – receive $75 bonus
  • Reach 19% status – receive $100 bonus

Moreover, a consultant also receives a $100 bonus for each new consultant in their direct downline who also achieves all three levels of quick start bonus.

4. Fast Growth Bonus

The fast start bonus doubles the qualification bonus by reaching any rank between Director to Elite Director within 9 periods from the moment of registration.

When the requirement is met, a consultant receives a $1,000 bonus and when a consultant’s Director status is confirmed then he/she will receive another $1,000 bonus.

Moreover, a consultant also earns an additional $1,000 bonus when their recruited new director meets the required qualification of the Fast growth bonus.

5. VIP Program

Faberlic consultants receive mainly 4 VIP types of benefits by fulfilling specific requirements.

VIP TypesRequirements VIP Discounts
VIP-1Reach 100 personal volume points in 1 period 70% discount for 1 product and 50% discount on any samples
VIP-3Reach 100 Personal Volume points for 3 consecutive periodsget free delivery of orders over $100 and a 10% cashback bonus
VIP-9Reach 100 Personal Volume points for 9 consecutive periodsget all the benefits of VIP 1 and 3 along with early order access of upcoming products, permission to participate in exclusive sales 4 times a year, and a VIP e-badge
VIP-18Reach 100 Personal Volume points for 18 consecutive periodsget 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

6. Performance Commission

Performance commission is based on consultants’ PGV. Faberlic consultants receive a fixed percentage when their PGV is more than 100 points.

The percentage of performance commission(PC) is calculated as the difference between self and downline consultants PGV. And the PGV depends on the qualification of the consultant.

Rank% PCMinimum PGV required (points)
Consultant3%100
Senior Consultant6%200
Leader9%600
Senior Leader12%1000
Vice Director15%1500
Senior Vice Director19%2000
Director23%3000

For Instance, if one downline is at the Senior Consultant rank (6%) and you are at Vice Director rank (15%), the percentage difference is 9%. So 9% will be the Performance Commission.

7. Director Bonus

This bonus is for a senior director or above rank consultants. A consultant can earn this bonus for up to 7 generations.

When consultants any of the downline member reach the Director qualification i.e. 23%, then it formed a new branch and a consultant start earning a Director bonus.

Faberlic Director Bonus

8. Qualification Bonus

When no branch is formed by the downline member but a consultants PGV is equal to 5000 points or more then a consultant receives the Qualification Bonus.

Faberlic Qualification bonus

9. Development Bonus

This bonus is for diamond directors or higher rank consultants. Development bonus paid an additional yearly reward to the Faberlic consultants.

This income is equal to 30% of all the qualification bonuses which a diamond director earned.

The development bonus for a new diamond director starts calculated when the qualification bonus is paid.

For Instance, if the total of all qualification bonuses in your team is $15,000 then ($15,000 x 30% = $4,500). Hence $4,500 is your qualification bonus.

10. Incredible Trips

When the consultants reach the Ruby director rank then Faberlic offers them a travel trip.

Read: What is Direct Selling? Why it is NOT Profitable Anymore

Conclusion

Hope you get all the required details about Faberlic in this post. Now the decision is completely up to you whether to join or not. We recommend you to research and examine twice before investing your hard earn money in such opportunities.

Read: What is MLM? How does it differ from Pyramid Scheme?

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