Wednesday, September 13, 2017

LipSense - the MATH of it makes NO SENSE.

Have you ever done the actual math of your LipSense business? Well, if you haven't, lucky for you, I have! You're free to check my calculations of course. But if you're wondering why you're selling like crazy but still not making money and possibly even going further into debt.....read on!
LS 1
300pv orders, for 40% discount
MONTH 1 Your first month in business!
SeneGence Sign up — $66.25 305 pv order costs us (in PA with 6% sales tax + $15.50 S&H) — $415.43 Selling 14 color and 13 gloss at full retail = $646.60 – $66.25 Profit = $164.92
BUT YOU HAVE TO DO ANOTHER 300 PV order next month.
MONTH 2 So, adding in your profit from last month, this will cost you $250.51.
You are $250.51 in the hole now, even after selling all of that for them in the first month, because you had to front load and buy more stock.
Sell it all, and your profit is $396.09 ... but wait, you need to buy more stock ...
MONTH 3 Use your profit again to place 305 pv, that costs you $415.43, you are finally up a whopping $19.34 cents!
Sell it ALL, and you are profiting $665.94 for three months of hard work. That is $55.49 a week.
And that is ONLY if you are managing to sell 14 colors and 13 glosses every single month (or the equivalent). But you don’t have that profit do you? Because you have to buy more stock ...
MONTH 4 Use your profit again to place 305 pv, that costs you $415.43, so that $665.94 profit? Well it’s not profit, because you need to buy more stock. After you do that you are left with $250.51, and if you sell it all again, you’re now at $897.11 ... but Month 5, you need another $415.43,
MONTH 5 $897.11 – $415.43 = $481.68 Sell it all for $646.60, and you are up to $1,128.28
MONTH 6 $1,128.28 – $415.43 =$712.85 Sell it all and you are now at $1,359.45.
IF YOU QUIT NOW, AFTER 6 MONTHS OF HARD WORK YOU’LL HAVE MADE THE EQUIVALENT OF $226.58 A MONTH, OR $52.29 A WEEK.
750pv orders, for 50% discount
SO, you say, that is silly, the smartest way is to do the 750pv order (rather than only aiming for 300 pv), and get your 50% off? OK, let’s do it that way.
MONTH 1 Senegence Sign up — $66.25 750 pv order (33 colors, 33 glosses for sake of simplicity, and purchasing SG best sellers) with tax and shipping — $1,003.95
(S&H is 22.50 and 6% sales tax is $90.45)
You are $1,070.20 in debt, right off the bat. Now you have to sell a color and a gloss, at FULL RETAIL PRICE, every day this month plus tax. If you do that, you will have $1,574.10.
$1,574.10 in sales minus the $1070.20 investment = $503.90 for that month for your profit.
If you bought packaging, mailers, business cards, color holder displays, you need to subtract that amount from the $503.90.
How many hours did you spend selling a color and gloss every day? Probably at least 30 hours that month, if not more.
But that’s not even your money, because you have to do it again Month 2! So hopefully, you’ve sold ALL of that and paid your credit card off, otherwise, remember to deduct the $30 a month interest from your CC balance as well.
MONTH 2: Put the $503.90 towards your 2nd 750 pv order. That means $500.05 in debt now ($1,003.95 – $503.90).
NOW all your customers from last month, do they need another color and gloss? Maybe, but probably not. At least they don’t need a second gloss right now. Better find 33 new customers! Where are you getting them from? You’ve probably exhausted your warm market (friends and family), so now you have to work even harder.
Where you maybe put in an hour or two a day last month on this business (on Facebook, mailing colors, delivering, meeting ladies etc ), NOW you have to work 4 hours a day and the stress is building because you’re not selling the stock fast enough and a new month is approaching! IF you don’t do another order, how will your upline get paid? She’ll get mad at you. So even though you didn’t sell much, you place another 750pv order in Month 3, because it makes no sense to place a smaller order and not get that 50% discount, right?
SO another $1,003.95 goes on your credit card. If you weren’t able to pay off your last month’s bill and only sold half your stock, add your credit card interest fees.
You’re still in debt a GRAND for this new order, and now have almost double to sell. Are you seeing the pattern here? Who is making money from all your hard work, because it SURE ISN’T YOU! The company is, that’s who. Your Crown Princess, that’s who.
Are you hearing “Businesses take hard work and investment, and no one makes money in the beginning”? That is false. I was in SeneGence for 4 months and got out when I really sat down and did all the math. These numbers I just gave you? I was being conservative and giving you a best case scenario. You will never be a Crown Princess. Momentum is over. Ground floor is over. There are more going out of business sites for LipSense online now than there are for LuLaRoe! It’s over.
This is math, and math is not subjective. It’s not an opinion. It’s cold, hard truth. You can keep doing the formula, to see exactly how long it will take you to make a tiny bit of profit selling this product, and when you realize you can make MORE at one day shift at McDonalds than you can in two months of selling and busting your butt for SeneGence, that should be a big wake up call for you. If it’s not, then I can’t help you.
If you ARE awake, I want you to understand that not all Direct Sales operate this way. Some treat their independent distributors very well. SeneGence is just not one of them.
I am not here to deflate your self-esteem. You may be very good at sales. But as you can see, even selling 33 colors and 33 glosses your first month will not earn you a single penny. The company is not structured to help you make money. It is built to make the CEO and her high-ups money, on the backs of each of you. Stepping on each other instead of building each other up. That is not a “sisterhood.” That is the exact opposite . So if you like Direct Sales, and really wanted this to work, get smart about it! Go research a company, ask questions, DO YOUR MATH. I guarantee there is a better one out there for you.
#senegence #crownprincess #LipSense #debunked #MLM #truecost #earnings #debt

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