Therefore, some people do consider Rainbow Vacuum MLM a scam. Watch the short video below to learn more: You probably have found some other reviews of Rainbow Vacuum MLM and all of them are saying good words. (It's his big chore, and always looks for ways to make it more fun) He buys herbal extracts from the grocery store (Whole Foods would have tons) like peppermint, vanilla, eucalyptus, etc. I said, "Ok but that does not excuse his behavior or what he said." He repeated it again without hesitation without the **. As such, you shouldnt expect to get too much of a discount off the list price. Rainbow Vacuums low retention rate can also be discouraging, as less than 41% of its distributors are active. Some have claimed that the company is a pyramid scheme, but there is no evidence to back this up. 3) finally, do not hesitate to engage directly with the salesman and let them know you have found cheaper elsewhere and attempt to drive down costs further using the competitors price leverage. Any commission we earn comes at NO additional cost to you. For example, there is a bonus of $500 for every 10 units sold above the quota in a month. You make money by recruiting others to join your business rather than selling products. Its called the Rainbow Vacuum Cleaner and its being promoted as a powerful, versatile cleaning machine. Rexair is the company that manufactures the Rainbow vacuum and theyve been around since the 40s or so. I recently purchased the Rainbow and the same day the Rainbow stopped working. However, salaries can range from $26,000 to $79,000 per year. A few days later somebody advised me that it was too good to be true, that this was surely a tactic used by them to lure customers. The company has a team of independent sales representatives who sell the vacuums door-to-door, online, or through catalogs. Honestly my home is so much more cleaner. For example, there is a bonus of $500 for every 10 units sold above the quota in a month. But theres more to the Rainbow Vacuum Cleaner than meets the eye. Thus, you can choose what you want to promote rather than having someone tell you what you must promote. Fill the water basin with clean water and add a few drops of dish soap. The power itself varies from 50 W to 1150 W, depending on the type of cleaning job. A major portion of the members who join is unable to make any profit. This is impossible due to the planets finite population. According to Payscale.com, the average salary for a vacuum salesman is $49,959 per year. Moreover, it is made in the USA, and this country tag is something that you will not find in the others. Next, the truth behind the Rainbow Vacuum Cleaner, the controversy surrounding it, and the potential risks of investing. Your email address will not be published. I had a lady try to sell me one of these when I lived in a studio apartment with indoor/outdoor carpet! Rainbow Vacuum MLM uplines often reframe their financial losses as investments in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. The reps earn commissions on every sale they make, and they can also earn bonuses for recruiting new reps into the team. As a result, many MLM members lose a significant amount of money before even recruiting one person into the company. The company manufactures and sells a wide variety of vacuum cleaners and related products. This allows gauge what a fair market value product is and avoid overpaying significantly; 2) always keep a lookout for special promotions, holiday sales, etc., as these typically present an excellent opportunity to snag discounted items. -direct sales companies typically charge more for their products because they do not have to pay retailers to sell them, -the company has been around for a long time and has built a good reputation, -customers have generally given positive reviews about the quality of rainbow vacuum products. Ultimately, it is up to you if the products meet your needs and expectations. Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site. There a guy replied that he was tricked by the vacuum manufacturer while in college. Each of these new members usually pay an entrance fee, which is used to pay the people above them. Are you looking for a Rainbow vacuum cleaner demonstration? Moreover, some people may relate this policy to a pyramid scheme, but it is slightly different because Rainbow MLM doesnt pressure their distributors sales like pyramid schemes. I had to contact the office and they did not answer at all. When it comes to negotiating the price of a Rainbow vacuum, its important to keep in mind that the company is known for its high-quality products. Let me tell you how to build an online business in a legit way to make passive income online in the next section. If you dont recruit, you are destined to lose money at the end of the day. I love it! Is Rexair a pyramid scheme? This doesn't work any better than our Rainbow Vacuum Reviews (Updated May 2023) | ConsumerAffairs The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions. The Rainbow Vacuum typically retails for around $2,000, although prices may vary depending on where you purchase it. following up on our previous blog post about purchasing a new rainbow vacuum cleaner we wanted to provide some insight on how best to approach negotiating pricing for your new machine. Developing this blog to update and publish my recent reviews and research. As per some sources, the Rainbow vacuum cleaners can long up to 20 years or more. He stated I had until Monday February 26, 2023 at 11am to return the Rainbow with a $400 fee. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in. Rainbow vacuum, one of the worlds largest vacuum companies, is still in operation. This is FRAUD. according to our reviews, Best Stick Vacuum For Hardwood Floors. 1. I feel so sorry for most of those reviewers. Furthermore, many customers have commented on how well the vacuums work, which could be another reason for the higher prices. Many times, retailers will offer discounts on rainbow vacuums during holidays or other special occasions. It is a high-quality filtration system that can even clean the air of your house. People at the top of the pyramid usually make money, while those at the bottom usually lose money. Our content is intended to be used for general information purposes only. Carl was his name. However its important to under the ins and outs of how the company works, how they get appointments and most importantly how you will be getting paid and what your tasks or what your job will be if you decide to work with the company. Moreover, it has a water filter that helps to make the vacuum procedure more efficient and effective. Well. Rexair is the company that manufactures the Rainbow vacuum and theyve been around since the 40s or so. Theyre a Direct Sales company, which means youll be selling the Rainbow directly to customers, not retail outlets. Because of this, Rainbows are hella expensive. WebThe Rainbow MLM has some similarities with a pyramid scheme, but this MLM is not a scam as the companys loss will not affect the people under their MLM. That means the members from the higher position always get profit without making any sales. About 30 years of this company, and it is one of the most well-known vacuum brands in the world. It features a unique cyclonic action that separates dirt and dust from the air, leaving your home clean MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends. If you dont have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. The Rainbow Vacuum is a high-end vacuum cleaner that can be used for both residential and commercial cleaning applications. We are still using it today. You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Rainbow Vacuum commission. I came to the website just to see what people are saying about it, and was very surprised from all the negative comments. Its not fun. The company is currently owned by John W. Cook, who is the son of the founder. He says it only takes two to three drops from an eyedropper to really work well. A pyramid schemes outlook may be similar to an MLM, but these two policies differ significantly. Most of the time it's even hard to understand why they call it a scam. I am sooo glad I found out about it and bought it so many years ago. We recently removed carpets from our main room in the house that had been there since 2007 there was virtually no dirt under the carpet at all. As of today, the credit card transaction was reversed. The base commission rate is 20%, but it increases to 25% after $10,000 in sales, 30% after $25,000 in sales, and 35% after $50,000 in sales. Nothing was wrong with the first one, I just exchange it for a newer model. Both my boys have allergies and my oldest has asthma. MLM or multi-level marketing is also known as pyramid selling, which is also controversial as the pyramid scheme. There is an interesting example in Wikipedia about the unsustainability of the pyramid scheme. My #1 recommended platform is called Wealthy Affiliate. A rainbow MLM tries to profit distributors along with the company; on the other hand, in a pyramid scheme, the higher-ups always profit by taking unfair entry fees from the members. No research is allowed. Any kind of fee is not needed for joining as their members(unlike a pyramid scheme). They then recruit other people to do the same, and so on. However, its important to note that not all MLM business models are pyramid schemes. I could not return it because it is past the three days and the finance company wont accept the return. There are many other brands that offer similar products but at lower prices. I dont recommend MLMs to people for this reason. 4. None of them are worth the asking price. If anyone is looking for a high-quality vacuum that has received positive reviews from customers, then the products may be worth considering. Also, how can you see if it works, unless you use it. Pyramid schemes are very similar to exponential growth mathematics. Yes, thats right, the Rainbow Vacuum Cleaner is being sold through a pyramid scheme. The vac is great, it's just not worth 2500 bucks. Next, the Rainbow and the potential risks of investing around $ 2,000 although! Not needed for joining as their members ( unlike a pyramid scheme above! 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