Are you looking for a Rainbow Vacuum MLM review? Is Rainbow Vacuum a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.
There is a good chance that you heard about Rainbow Vacuum MLM through someone – a friend or family member.
Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Rainbow Vacuum MLM.
I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Rainbow Vacuum MLM.
To help you make a more informed decision, I have thoroughly researched the Rainbow Vacuum MLM so I can tell you more about it.
As a disclaimer, I’m not affiliated with Rainbow Vacuum MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.
At the end of this review, I’ll also tell you the best alternative to Rainbow Vacuum MLM that has enabled me to make a full-time passive income online.
What is Rainbow Vacuum MLM?
In recent news, people have been debating whether the Rainbow Vacuum Company is a legitimate business opportunity or a pyramid scheme.
Rainbow vacuum, one of the world’s largest vacuum companies, is still in operation. Jeff and Amanda Bennett founded the business in 2004. It is headquartered in Overland Park, Kansas.
Rainbow vacuum stores now number over 100 in the United States and Canada. The majority of the vacuums sold and repaired by the company are high-end Kirby and Sebo models.
What is MLM?
Before we get into Rainbow Vacuum MLM, I’d like to explain what MLM is and how it differs from traditional business models.
Multilevel marketing companies are also known as direct sales companies or network marketing companies.
An MLM company does not pay you a salary.
You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.
There are several levels to this (hence multi-level).
Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).
You can earn $1100 by recruiting 10 people.
Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.
People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.
The ultimate goal of someone who works for a company like Rainbow Vacuum MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.
Is Rainbow Vacuum Worth the High Price?
Rainbow has been manufacturing vacuum cleaners since the 1920s. The company is still in business and produces vacuum cleaners, but they are now manufactured in China.
Rainbow vacuum cleaners were once popular in the United Kingdom, and the catchphrase “When it needs fixing, call the Rainbow man!” is still in use today.
Rainbow vacuum has evolved over time and now offers a diverse range of powerful and innovative vacuum cleaners. It is now one of the industry’s most well-known brands.
Why Are Rainbow Vacuums So Expensive?
Rainbow Vacuum is a direct sales company, which may account for the high prices. Independent distributors sell the products rather than in stores. Prices have risen as the company has been in operation for more than 30 years and costs have risen.
Furthermore, many customers have commented on how well the vacuums work, which could be another reason for the higher prices.
Is Rainbow Vacuum A Pyramid Scheme?
A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.
A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.
Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.
The directors of the organization receive a portion of these payments (those at the top of the pyramid).
The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.
Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.
Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.
The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.
Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.
People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.
Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.
Is Rainbow Vacuum, then, a pyramid scheme?
No. Rainbow Vacuum does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.
They don’t have to make money solely through recruitment.
Watch the short video below to learn more:
10 Reasons Why I Don’t Recommend Rainbow Vacuum MLM
1. The Good Reviews are Written by Rainbow Vacuum MLM’s Affiliates
You probably have found some other reviews of Rainbow Vacuum MLM and all of them are saying good words.
But all of them are actually paid to write, meaning they will receive a commission if you join Rainbow Vacuum MLM via their links. Therefore, their words are often biased and not trustworthy.
Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.
By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!
Therefore, I recommend reading the reviews of those written by the non-affiliates of Rainbow Vacuum MLM.
2. Very Few People Can Make Money With Rainbow Vacuum
Success is difficult to achieve with an MLM company like Rainbow Vacuum.
You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.
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.
They will not be paid if they do not meet the quota.
As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.
3. Losses From Rainbow Vacuum MLM Are Reframed As Investments
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.
But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.
4. Rainbow Vacuum MLM is a Cult
Why do people continue to work for Rainbow Vacuum if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.
Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.
MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.
Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.
Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.
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.
5. You May Need to Purchase Rainbow Vacuum Products Yourself
If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.
I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Rainbow Vacuum. That’s why in the long term, you are going to lose a lot of money, not to mention making money.
6. Rainbow Vacuum Products are Overpriced
As with other MLMs, Rainbow Vacuum offers overpriced products. There are many other brands that offer similar products but at lower prices.
Therefore, you may find it difficult to sell Rainbow Vacuum products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.
7. Rainbow Vacuum’s MLM Business Model Has a Bad Reputation
Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.
MLM like Rainbow Vacuum is fundamentally flawed. The distribution of commissions is skewed toward the top.
The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.
As a result, many people do not consider Rainbow Vacuum to be a legitimate business opportunity.
8. Exaggerated Claims Of Income
Rainbow Vacuum, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Rainbow Vacuum.
Rainbow Vacuum’s low retention rate can also be discouraging, as less than 41% of its distributors are active.
According to Rainbow Vacuum’s payouts to distributors, over 99 percent of Rainbow Vacuum distributors never make a profit.
9. Rainbow Vacuum Is Like A Pyramid Scheme In Disguise
If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.
Every system that requires you to recruit people in order to make money eventually looks like this.
Rainbow Vacuum is not a pyramid scheme in the traditional sense because you can earn money by selling their products.
However, in order to make a living, you will need to hire others in reality.
10. Recruiting is Required to Succeed
I don’t recommend MLMs to people for this reason. MLMs like Rainbow Vacuum put a lot of effort into recruiting. Eight out of ten ways to earn money with Rainbow Vacuum require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.
My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Rainbow Vacuum review.
Rainbow Vacuum MLM Positive and Negative Feedbacks By Real Users
- The company has been in business for over 30 years and is well-known.
- There is a wealth of information available online about the products and how to use them.
- Customers have expressed satisfaction with the vacuums, which are of high quality.
- Some have claimed that the company is a pyramid scheme, but there is no evidence to back this up.
- The prices can be a little high when compared to other brands.
- It can be difficult to locate Rainbow Vacuum stores in person or online.
Is Rainbow Vacuum MLM a Scam?
I cannot say Rainbow Vacuum MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary.
Can you make money selling Rainbow Vacuum products? We already know that a majority of Rainbow Vacuum reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Rainbow Vacuum is by recruiting aggressively.
Also, Rainbow Vacuum blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Rainbow Vacuum MLM a scam.
My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.
I will tell more about my #1 recommended platform at the end of this review.
Final Verdict: Rainbow Vacuum MLM Review
Here comes the conclusion of my Rainbow Vacuum MLM review. Overall, I don’t recommend joining Rainbow Vacuum MLM to make money.
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.
The worst part is that you practically have to ask your family and friends to join your Rainbow Vacuum business opportunity. It’s not fun.
Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.
The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.
People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave.
Why not consider starting your own online business if you want to earn money and have a flexible schedule?
Thus, you can choose what you want to promote rather than having someone tell you what you must promote.
Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.
The Best Alternative of Rainbow Vacuum MLM To Make Passive Income Online
If you’re beginning your online business journey, you deserve a programme much better than Rainbow Vacuum MLM.
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But How Much Can You Earn with Wealthy Affiliate?
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