Should I Become a LipSense Distributor?
July 28, 2017
Welcome to BOTTLESOUP, a parenting blog that does the Googling for you. Please note that nothing in this blog should be considered legal or financial advice; this blog is the opinion of the author, based on Internet findings. Within the post, you will see hyperlinks; these links are the source material for the post. Questions? Don’t hesitate to contact us.
Update: we’ve written a new, more in-depth article here.
A few of our readers have requested a post on selling LipSense, asking for our opinion on the matter. As with any direct sales or MLM company, it’s important to do your research. Here’s what we found and how we found it
LipSense is a SeneGence company.
SeneGence lets people sign up as SeneGence Independent Distributors.
2. Lipsense is a multi-level marketing, direct sales company.
They tell you this right on their website. You can see that here:
3. How do you earn money with Lipsense?
It’s a traditional MLM / direct sales company with an upline, downline, commission, sales volume…I’m sorry, is your head spinning yet?
Unlike a traditional job – even a traditional commission based sales job – where you know how much you will make based on a specific criteria (ex: I work 1 hour, I make $10. I sell a house for $200,000, I make 5% commission of $10k) how you actually earn money and what you earn is a bit of a mystery.
While you’d think there would be a simple chart or excel sheet that could show you dollars earned per sale of each item. But, no. Instead, you can look at this presentation, which features charts like this:
4. How much does it cost to become a Lipsense Independent Distributor?
It depends on which package you choose. According to SeneGence, you have the choice to “Choose to be a Customer” or “Choose to be a Distributor”. You also have the choice to walk away. Remember, any business or financial decision is not something you should take lightly or feel pressured into. Your SeneGence New Distributor Kit (NDK) has an application fee of $55. Yes, you must apply and receive a NDK before you can purchase your starter kit.
Let’s say you pay $55 for the NDK. Can you start selling SeneGence products now? Not quite. It seems that in order to be come a Lipsense distributor, you must also purchase a Distributor Business Kit. The Distributor Business Kits come in two options: one for $95 and one for $295. You can also opt for Distributor training, which costs $550.
So what is the least possible amount i must invest?
Because our goal is always complete transparency, some places on the website indicate that you do not need to have stock of the product in order to sell the product. It’s called the Customer Direct Order Program.
However, what’s unclear about this is the language stating “All Distributors will have the option to participate in CDO and there is no fee to sign up.” It’s confusing because if you want to become a distributor, you need to pay $55 NDK and, it seems, purchase a Distributor Business Kit. If you don’t need to purchase the Distributor kit, perhaps the cost to participate in CDO is $55 for NDK. But you should confirm this before assuming you can begin distributing this way.
If you want to have the product on hand, it appears that the bare minimum start up cost is $55 for NDK and $95 for Distributor Business Kit for a total of $150 to become a Lipsense Independent Distributor.
5. How much money can I make as a Lipsense Independent Distributor?
Almost unknown. Rather than share an exact analysis of pay, SeneGence provides complicated commission information. Because information on pay is limited, it’s hard to estimate potential earnings. Something to consider before signing up for an MLM or direct sales company is the unknown.
How much risk are you willing to take? Is $55 or $150 a lot of money for you right now? Or are you comfortable risking the chance you may never make that money back?
There are many examples of how MLM and direct sales companies are not wise investments. Here at BOTTLESOUP, we’ve written several articles on these types of companies. But don’t just take our word for it. Do your own research. See what people are saying about SeneGence on Glassdoor. Seems like a good company? Or does this seem like a place you’d avoid?
Many direct sales and MLM companies prey on women. Almost always stay at home moms or struggling single moms. They sell you on the idea of a sisterhood. A community. A business opportunity. The chance to have financial freedom. But they don’t truly empower you with the tools to succeed. While they’re busy building their bottom line, many women find themselves deeper in the hole.
And it’s not fair. Maybe you’re struggling to make ends meet. We understand. We’ve been there. But carefully consider if MLM or direct sales is the best way to improve your financial situation. Maybe start by asking yourself a few questions.
Direct sales / mlm checklist
- First of all, how much money will I make doing this?
- While I start this program, do I have enough money to invest and still meet my monthly obligations?
- Since I’m just getting started (and possibly never sold anything before), how many sales can I reasonably expect to make?
- Due to my lack of experience in sales, what qualities make be a good salesperson / how will I learn to become good at sales?
- Because I’m still learning about this process, how will I ensure I know all the ins and outs of the business opportunity?
- While I hope to make a profit, what will I do if I do not earn any money / is there a backup plan?
- While I like this product, are there other competing products that people can purchase for less?
- Due to other products on the market, are there any unique selling points (USP) that make this product worth more money?
- Further, am I comfortable discussing this USP to my friends and family?
- Most of all, is this something I’m comfortable and confident in doing, or do I feel like I’m desperate or pushed against a wall?
Due to the nature of direct sales / MLMs, you’ll want to make sure you’re comfortable speaking about the product with your audience. Beyond financial risk, sometimes you risk your personal relationships as well. In conclusion, if you choose to go into direct sales or MLM, always aim to be honest with your potential customers. Because if something doesn’t feel right, it’s best to sound the alarm. Since as a society we value rescuing others from burning buildings – not dragging them into danger.