Is SeneGence MLM A Scam? Beauty And Cosmetics MLM Review
Some who read my blog have asked me Is SeneGence MLM A Scam or Legit
SeneGence International specialty is long-lasting skincare and cosmetic products. The SeneGence line is primarily sold through the company s distributors. Let’s look a little into the SeneGence opportunity.
Is SeneGence MLM A Scam Or Legit – The Company Is Legit
The SeneGence company is absolutely legit. However, some who have had dealings with the company or former distributors may feel differently. According to my research, I don’t see this company as a pyramid scheme or a scam. Also, there is no doubt that there are some distributors making good money with the opportunity.
However, what typically happens with MLM companies is three basic challenges:
- You end up buying lots of products you really don’t need
- In order to make sales, you have to host numerous “home parties”
- You must always be actively recruiting people
I guarantee that 99% of ALL MLM companies in existence work and existence those three core activities. Therefore, multi-level marketing is not for everyone. I know it wasn’t for me. This is why I’m happy I built an affiliate marketing business from home with Wealthy Affiliate.
Company Overview
The founder of SeneGence is Joni Rogers-Kante. The company was started back in 1999. Her mission was twofold:
- to bring cosmetic products “that really work” to women across the globe
- empower women to create a secure career working from home.
The headquarters of the company is in the United States. SeneGence also has offices in Canada and Australia as well. Therefore, with its branches outside of the United States, the company can say it has a global reach. So this is a company with global reach.
The home party model has been used for decades. Most home parties are where the recruiting of new members takes place. Most of your money is made in two ways:
- selling products
- recruiting people
This is the exact same business model most MLM companies follow to generate revenue. Businesses like Shacklee, Avon, Mary Kay, and Tupperware.
What Makes SeneGence Products So Attractive?
The main product SeneGence is known for is its long-lasting lipstick, LipSense. According to their website, the lipstick does not smear off, budge off, kiss off, rub off, and supposedly is waterproof. Another accomplishment that the company is known for is creating the proprietary formulation they call SenePlex.
What SenePlex supposedly does is speed up cellular growth. Keep in mind that none of this has been substantiated by the FDA (Food and Drug Administration) SenePlex is claimed to reverse the appearance of aging skin. Other reasons why SeneGeience International stands out above the competition is because of the following:
- No animal testing is allowed for their products
- Animal by-products are NOT used in the formulas
- All-natural ingredients are used in the cosmetics
- Made in cGMP manufacturing facilities.
CGMP refers to the Current Good Manufacturing Practice regulations enforced by the FDA. - Made in facilities in the United States
- Products are gluten and GMO-free
- LipSense products have no wax and no lead in them
- All cosmetics are formulated with ingredients approved by the FDA
How Much Do The Products Cost?
If you pay full retail, SeneGence products are a bit pricey. However, if you host “home parties” you can earn a discount on what you buy personally. The amount of your discount is based on how much you personally sell. The following discount table breaks this down for you:
Let’s look at an example. If you sell over $500 worth of products at a home party and make 3 or more new bookings, what would be your discount? You would qualify for a 45 – 50% discount on your own personal order.
Becoming a Distributor
The New Distributor Kit for SeneGence costs $55. It comes with an opportunity DVD, order forms and a distributor handbook. While it’s not mandatory, it’s highly recommended you purchase one of the following “distributor packs”:
- Lips Pack: $75
- Glamour Demo Pack: $295
- Qualified Distributor Pack: $345
- Significant SeneSeller Pack: $795
- Fast Start Pack: $1,195
SeneGence Compensation Plan
Senegence GSV is only paid on volume over 100 Personal Volume per month. What I don’t like about this is it will lead to distributors buying Senegence products just to qualify for commission. What can also happen is that a distributor’s “upline” will encourage over-consumption.
In other words, distributors will find themselves buying more expensive cosmetics than they need every month just to qualify for commissions. The downline commission is paid up to 5 levels deep as the diagram below shows.
According to the SeneGence compensation plan, distributors must buy products on a
- constantly buy expensive products on a
monthly basis to get paid - constantly sell products every single month
Unfortunately, that’s not an unusual situation many people find themselves in when dealing with
1. Retail Commissions
When you sell products to a retail customer you earn a
2. Downline Commissions
Downline commissions
- Retail Sales Commissions
- Downline commissions
- Group Sales Volume bonuses
But with their model, SeneGence caps the payables at uni-level levels at the 5th level and these commissions are based on the first 100PV purchased by their recruited distributors in the team. The number of levels a SeneGence distributor can earn is also based on much they spend on products each month. The more products they purchase, the more levels they can earn through.
Based on their compensation plan, you have to purchase at least 100PV to earn commission on the first 3 levels. You need to purchase 200PV or higher to earn through your 5 levels. It was a bit of a disappointment for me when I saw that they cap the payables at a certain level. That would’ve been a great incentive for the distributors to build a better and more solid team.
Is SeneGence MLM A Scam – Why Is The Compensation Plan So Complicated ?
That’s one question I cannot answer. Personally, I’ve been involved in numerous MLMs in my life, and have seen a number of compensation plans. SeneGence is one of the more complicated ones I’ve come across.
Frankly, SeneGence’s compensation plan is a confusing mess! That’s just my opinion…I’ve read a number of online reviews on how SeneGence distributors get paid. I’ve also read about all of the different levels you can attain on your way to the top…Frankly, it made my head hurt. My purpose here on this blog post was to give you a general
I’ve provided links to two videos below that could possibly help you understand SeneGence’s confusing compensation plan.
The first video link is: SeneGence Compensation Plan & Commissions – How To Make Money with LipSense
The second video link is: Senegence – Compensation Plan Explained. SeneGence is similar to other MLMs I’ve reviewed on this blog such as:
The Truth Behind Multi-Level-Marketing
If you are interested in getting involved with Senegence or another MLM organization, think about this: Do you really want to contact ALL of your friends and family? Will they
Do you have the time to attend “opportunity meetings”? Will you have the time to spend with new recruits? Are you going to have the time to properly train these people? Do you realize that MLM is commission ONLY? Do you understand that you won’t be paid for many of the long hours you’ll put in?
There are other questions I could ask, but you get the point. However, before you decide to join any multi-level-marketing organization, please consider these facts:
Facts About Multi-Level-Marketing That You Were Unaware Of
- 99%: According to the Federal Trade Commission this is the number of all MLM participants who lose money
- You are 38%: more likely of making money with your own small, home-based business than by joining an MLM
- There is a 10% – 20% higher rate of making a profit with an online business than it joining an MLM
- You would have a 300 times higher chance of winning a game of roulette in Las Vegas from 1 single spin of the wheel than you would
make a profit with an MLM - 47%: The number of participants who flat-out lose money according to the AARP Foundation
- 27%: the percentage of people who make no money whatsoever in an MLM – AARP Foundation
- 26%: The meager amount of people who actually earn a profit participating in MLMs’
- 53%: This is the percentage of MLM participants who earn less than $5000 a year
- 39%: the number of people who QUIT MLM’s because trying to sell services and products to family and friends damaged their relationships
- 50%: Percentage of MLM reps who quit within 1 year after joining
- 95%: The respective number of reps who quit within 10 years
- 75%: The number of people who have participated and left an MLM and state that they would never join another MLM in their life
- 1,049: The number of MLM reps who make less than 70 cents an hour according to a 2018 poll of MLM reps representing various companies
- 20%: of people involved with MLMs never made a sale
- 60%: percentage of people involved with MLMs earned less than $500 within the last 5 years of joining
- 32% of people involved with MLMs financed their MLM “business” by getting into credit card debt
References
References for the above facts are from the following sources:
- The Case (for and) against Multi-level Marketing By Jon M. Taylor, MBA, Ph.D., Consumer Awareness Institute
- 3 Mind-Blowing Statistics About MLMs: Due.com
- Multi-level marketing: Wikipedia
- Multilevel Marketing: “The Research, Risks
and Rewards”: AARP
What Is The Difference Between A Pyramid Scheme and a Legit MLM?
Here’s the difference: A pyramid scheme’s primary purpose is to recruit other people into the scheme. In a pyramid scheme, you do not have the opportunity to sell retail products to the public. With a “legit” MLM your income potential is mostly based on selling the company’s actual products or services.
You’re able to sell retail products to customers outside of the business opportunity. The following quote is directly from the Federal Trade Commission’s website:
Not all MLMs are legitimate. If the money you make through an MLM is based on your sales to the public, it may be a legitimate one. If the money you make is based on the number of people you recruit and your sales to them, it’s not legit. It’s a pyramid scheme. Pyramid schemes are illegal, and the vast majority of their participants lose money. – Federal Trade Commission
Since SeneGence offers you the option to earn money by selling its products to retail customers, technically, SeneGence it’s not a pyramid scheme. Does it have certain characteristics of a pyramid scheme? Yes. However, it’s not a pyramid scheme, and it’s not a SCAM.
Can I personally recommend that people get involved with SeneGence? No, I cannot. My personal reason for not recommending SeneGence is because it’s
Why Not Build Your Own Business?
Ask yourself this question…Why not build your own online business? Building your own online business would put YOU in control. From my personal observation, the problem with Multi-Level-Marketing is that YOU aren’t really in control of your business.
Oh, your “upline” (the person who bought you in) will tell you “It’s your business”. It really isn’t your business. In the case of SeneGence, think about this:
Just as they did in the case of M.O.B.E and Digital Altitude? I’ll tell you what will happen in two words: You’re screwed! Is the prospect of having your business snatched from beneath your feet something you want to live with? I know I didn’t!
I got to the point where I didn’t want to deal with the pitfalls and challenges associated with multi-level marketing. When you create your own online business, that’s an asset that you and your family can have for years to come. It’s amazing to me why so many people fall for the fast-talking MLM “uplines” who feed people a fantasy. I know…I’ve been there!
The Best Business Decision I’ve Ever Made
The best business decision I’ve ever made was building an affiliate marketing business through Wealthy Affiliate. Having an online business is like having a piece of internet real estate. It’s an asset you can benefit from for decades if you build it correctly.
Notice I said, “If you build it correctly.” Wealthy Affiliate teaches how to build a profitable affiliate marketing business the right way. What is also remarkable is you can set up a FREE account and try out some of its best features. You can do this at no cost to you and as long as you like.
Later, if you decide to become a Premium Member, the monthly cost is $49. (Or you can pay the membership annually) I hope this review helps you to make the right decision. I know I did by building my business through Wealthy Affiliate.
Talk Soon,
Howard
