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- Read All Reviews
Review
of FM Group
Review
from Business Opportunity Watch Reviews
October 2007 Issue 8
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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
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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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