Review of FM Group

Review from Business Opportunity Watch Reviews
October 2007 Issue 8

This is one of a few examples of Business Opportunity Watch Reviews which are available for the public to view on the public section of the website. The reason for making a small sample of the reviews freely available is to help potential customers decide if they want to subscribe, and also to communicate some matters of general interest arising in the case of some of the reviews. All the other reviews are available only to subscribers.

FM GROUP UK
FM Cosmetics UK Ltd
7 Norbreck Parade
Hanger Lane
London
NW10 7HR
Tel: 020 8998 3898
www.fmcosmetics.co.uk

Review: 

FM Group is a multi-level marketing company of Polish origin which arrived in the UK earlier this year, headed by the dynamic Anita Sieniuc. 

FM Group sells its own range of perfumes for men and for women at very reasonable prices - RRP £8.99 for Perfume 30 ml and RRP £12.99 for Exclusive Perfume 50 ml.

The company also sells shower gels, body lotions, deodorants and hand creams.

There's a choice of over 100 fragrances, all based on recipes created by the well-known German company DROM Fragrances International KG.  The perfumes are grouped into families of fragrances, and some customers think that certain FM Group fragrances are similar to their favourite brand name perfumes.

Together with their low cost and high quality, this is what makes FM Group products ideal for selling by party plan - they're an interactive product, with customers trying out the samples and discussing which ones they like and which ones they don't like - all of which makes for a lively party.

The high quality and low cost is possible because, unlike the brand name perfume companies, FM Group does not spend huge sums of money on advertising or celebrity endorsement.  Instead, it relies on word-of-mouth recommendations from satisfied customers.  Also, FM packaging is classic and simple, unlike the expensive bespoke bottles and boxes which are the norm with brand name perfumes.

FM Group also avoids having to pay margins to wholesalers and retailers by using multi-level marketing.

All of these cost factors mean that good commission rates can be paid to distributors, whilst still keeping the sales prices low.

Distributors of FM Group purchase the products at wholesale prices, which gives them a generous retail commission of 30% to 33% on the recommended retail prices, which works out at £3 per bottle, or £4 per bottle for the Luxury range.

If you develop your business to recruit a team of distributors you enter the Magnolia Club, where you can earn an additional percentage of the retail sales of your group, starting at 3% if your group sells approximately 11 bottles a month, and rising to 21% if your group expands to selling approx 1071 bottles a month.

At the top of the tree is the Orchid Club, members of which can earn a share of the global turnover of the FM group.

Readers who have been around the business opportunity market since the early 90's will no doubt detect similarities between FM Group and a company called L'Arome.  L'Arome was very successful and had an army of happy distributors.  Unfortunately, L'Arome was sued by Chanel under the Trade Marks Act.  Chanel won the case and L'Arome went bust.

Chanel claimed that L'Arome's 180,000 distributors asked potential customers what their favourite perfume was and then sold them the L'Arome version.

FM Group avoids this danger because they don't make any direct link to a specific fragrance - they only refer to "families of fragrances".

The cost to join FM Group is a very reasonable £22.50 for a starter kit which includes 100 samples of perfumes, a product catalogue, marketing plan, product price list and a registration form.  This is all you need to get started with your first party. Or, for £31.00 you can have a starter pack which includes all of the above plus 2 full-sized bottles of perfume.

Like all multi-level opportunities, to make a success of FM Group you need to be a sociable person who likes communicating with people and you need to be reasonably energetic and well-organised.  Given that, plus some dedication and commitment, I can't see that anyone who joins FM could fail to build a nice business, whether part-time or full-time.

Here's what FM Group Distributor Jan Pendragon has to say about how she markets her business:

"People love our products, and we get lots of re-orders from satisfied customers, and many recommendations. We market the products in many different ways, the most popular being Party Plan, which produces some huge orders - at my first FM Party, I sold 59 bottles of fragrance, and earned, what would be for many people, a week's wages, in under 2 hours!

We are also working with many different charities, both locally and nationally, fundraising for them through our FM business. We donate 10% on all orders, on an ongoing basis, and many of our team are doing the same.

We've also had a great response from Retirement Homes and Sheltered accommodation, as we bring the products direct to them, and are being invited back on a regular basis.

We also leave fragrance sample kits with people who work in offices, banks, hospitals and so on, and go back to collect the orders, just like the Book People, and this is very successful.

In fact, there are so many ways to market the fragrances, that we are discovering new methods all the time.

We're also working with local school PTA's and fundraising for them through the staff ordering our products, and also have a table at their Summer and Christmas Fairs.

We are having a lot of fun, and making money at the same time, and everyone has said how easy this is, compared to other companies they have worked for!"

Anyone who wants to contact Jan can do so at www.fragrancesforlife.com/jan and, if you subsequently decide to join FM Group, Jan will put you in touch with the person in her group who lives nearest to you.

FM Group is not just for women - many of the top distributors in L'Arome were men.

Rating:

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