My first "Uh-oh what did I signup for" happened when I got the bill for $66. Wait, I was told it was $55? I wasn't told the real number, of $66 (which was the $55 plus S&H and sales tax for my "kit"). This is the first of many many times I wasn't given the actual real numbers.
The Kit turned out to be a box of completely useless information. Nothing in it was relevant to the current business model, since they discontinued their "Fast Start". Even the catalog was outdated, since they discontinued over half of their colors. When I emailed customer service asking for a new updated catalog, they basically told me to go f*ck off and go buy a 10 pack. I argued. Why should I buy more before I even get started when I didn't get the right materials to help me start? They didn't care. She told me to use the old catalog and just cross out the colors that were no longer available. Yeah, that's looks SUPER professional.
Does this look like the best way to tell your new distributor how to get their business started?
Okay. Shake it off I told myself, get to selling. There's thousands to be made! And selling wasn't a problem....ladies were buying this left and right! I was driving somewhere every day, spending hours coordinating with schedules to meet and deliver colors, I went and bought packaging to deliver and ship the product. Started my Facebook group and even recruited 2 ladies immediately! I did my 300pv orders because that is what I was told was the BEST thing to do for my business. I worked hard and sold everything in May, woo hoo! So I sat down, and I did a little math. Then I double checked my math. Because guess what? I had worked almost every day, marketing, social networking, supporting my new team, delivering, shipping, and packaging product. And I was still in debt. I did the same in April and June. They tell you that you need to invest money to make money, and that all businesses are built slowly. This was my next big red flag. Because you see, I had been a successful business owner for the last 12 years. My own, from the ground up business, that brings in a full time middle-income salary for my family. So, I understand how a business works. And they are leaving out a little tidbit of information when they preach that businesses don't earn a profit for a few years.
Yes, it's correct that it takes a few years for a business to turn a profit. However, what that actually means is, the BUSINESS. As in, it's a separate entity from the business owner. The business owner, takes a salary from the business. Yes, even from the beginning! A business plan accounts for the costs of running the business plus your salary. It may be a small salary in the beginning, but it's still money to pay for your bills and life outside of the business.
When it was all said and done, my numbers showed me I made nothing. Not even a small salary. All the hours, gas, postage, packaging costs, the outrageous S&H charges...I could have made more working a day at McDonalds than I made the entire month busting my ass to sell LipSense.
In July, I stopped ordering. I was one of the lucky ones who got smart fast. I wasn't in debt thousands of dollars. I wasn't "garage qualified" like so many others who have boxes and boxes of product just sitting around taking up space, and credit cards charging them 30% interest on their "business investment".
So many women are in panic mode, trading and selling in secret and in B/S/T Facebook groups for less than the 15% retail. This makes it impossible to break even let alone make any profit. If you're interested and love facts you can go here to see the real math breakdown that I did for the Crownless Princesses blog (which is a wonderful blog full of true stories — a MUST read if you are considering joining SG or wondering why you're working so hard and still in debt). If I can help just one woman make a good, informed decision here, I'll feel good. Make sure you are informed before signing up with any company. All I got with this one, was a loss of time, after a lot of hard work. It all really came down to the math. You wouldn't go to a job interview and take the job if they told you "Oh, you'll get paid after you work 40 hours a week for 6 months for us for free. So why would you sign up with SeneGence?
I will leave you with a good note: not all MLM's operate this way. Not all MLM's make it nearly impossible to make a profit by selling the product without massive recruiting. I have heard great things about R&F, Posh, Stella & Dot....go do your research and find one you love that has a good plan. One that pays at least 20% with no strings attached, without needing to recruit. There are a lot of legitimate DM companies out there, and one of the key ways to know if it's more like a pyramid scheme is when you see there are going out of business sales groups all over the internet and Facebook, where everyone is undercutting everyone else's prices, and everyone has too much stock and none of it is selling. There are secret sales groups all over Facebook as well as public ones (type in "nocents" groups search them. Women are trying to recoup anything they can because now they are in financial trouble. And it's not because they didn't work hard enough trying to sell. It's because the distributors ARE THE CUSTOMERS. The company doesn't care once it has it's money, that there are boxes upon boxes of their product sitting on shelves collecting dust.