Crownless Princesses

LipSense

SeneGence does love to just give us percentages, instead of round numbers of distributors. And you know, it's really very easy to come up with numbers, given the total number of distributors, and the percentages they provide (2,000 is 1% of 200,000, after all).

So, here's our version of the 'American distributors map' (as of October 2017), with round numbers of distributors, instead of percentages.

maps_us_states_SG_dist_08_17 Percentages converted to numbers of distributors

SG_dist_Oct_17 This is SeneGence's percentages map.

maps_us_states_SG_dist_08_17_colour And as a 'heat map' ...

The general New England region seems to be a bit more immune to SeneGence than other areas, which is intriguing. 🤔

Other numbers, for the record: Australia has just tipped over to 6,000 distributors.

What we would really love to know, however, is what's the churn rate? How many distributors are leaving, as well as the number who are joining, and totals? I doubt we will ever know.

#SeneGence #scam #cult #distributors #USA #LipSense #MLM #Australia

I just wanted to offer up my story of fighting the evil empire and winning... sort of.

I had about $600 in SeneBucks credited to me during the out of stock (OOS) dramas. I was already seeing through the company and was never going to order again. My sponsor is a friend of mine since birth and I tried to be very quiet about my distain, so I just stopped ordering around the middle of summer.

About a month ago, I began selling off my stock though the Buy/Sell/ Trade groups on Facebook, to be done.

dollars Photo: Gerd Altmann, ISO Republic

Then Hurricane Harvey hit, and I’m a Texas Native. So I put a post out to distributors, saying that if you were affected, let me know and I would help (by selling to them at wholesale cost price) — and I did. These women, who had lost everything in the hurricane, including all their SeneGence stock, had been told 'too bad' by SeneGence.

Shortly after, I got nasty emails from the SeneGence Compliance department, as I was selling for a greater than 15% discount (which is all the company allows). I blasted them back, asking just exactly what it was that they had done to help the distributors who had lost everything, aside from having Crown Princesses tell them that September is the perfect time to “start fresh” with Jump Start with a 300pv order. Are you effing kidding me!?

So. I told them I wanted my $600 in SeneBucks returned in REAL MONEY.

I heard crickets.

I emailed again and again.

I heard crickets.

Then I got serious, and involved my state’s Attorney General, the Better Business Bureau, and the Federal Trade Commission.

Two days later my Quick Pay account was credited for $300.00.

Seems as if you know “what” to say, they listen.

Oh, as I’m sure you could probably tell, along with my refund, I was also booted from the company.

—Erin Williams

#senegence #senebucks #scam #hurricaneharvey #lipsense #debt

During the final days of the month of August 2017, I apparently made a mistake and screwed-up manufacturing of the LipSense colors Nutmeg and Plumeria. At least, it must be my fault, as I am the one left carrying all the baggage that comes with making the mistake of leaving the color-mixing balls OUT of the tubes of color that were made on a certain date or days.

On August 24, 2017, I placed an order for 4 tubes of Plumeria as I thought the color was pretty (a good color for the end of the summer/early fall and perhaps even upcoming holidays), I had already reached my 50% discount for the rest of the month, and, basically, I just felt like it. Seeing as I had never had any issues with colors received from them (except for the colors that I received that were horribly ugly or nothing like the photos or dye lots I had seen before), I saw nothing wrong with my actions. But, I made a mistake this time. I trusted SeneGence with fulfilling their business of providing me with a product I could sell without looking like a total jackass.

I received the package on the morning of September 1, 2017, but hadn't yet opened it when an email arrived that evening from SeneGence International. I found the following in my SG only inbox:

Balls_letter

I was ASTONISHED!! How could a corporation like SeneGence, a company that charges a small fortune for a tube of lip color have literally “dropped the ball” so badly. But, sadly, the worst was yet to come...

First and foremost, I did NOT get $10 retail in $eneBucks credited to my account. Instead, I got only $8. The month had changed, my discount level had changed back from 50% to 20%, therefore for some unknown reason $10 of credit turned into only $8. I've never quite understood this and I do NOT intend to call or email customer service for an explanation because I already know what I am going to get: A RUNAROUND. This is exactly why I decided NOT to return my 4 “Ball-Less” Plumeria colors to SG: because I already know that I will NOT get $100 in $eneBucks. No matter what, I am losing money for something that is not my fault (well, at least it feels like it because I trusted them with delivering to me a quality, sale-worthy product). Instead, I decided to wait for the infamous balls. It's not like my business is booming and the kind of people I sell to trust me and wouldn't care about dropping a little ball into their color.

So, I waited, and I waited. While waiting, I checked all other Nutmeg and Plumeria tubes I already had on hand to make sure they weren't being overlooked. Luckily, the problem seemed to be isolated to just those 4 Plumeria tubes that I ordered on August 24th. Finally, September 11, 2017 arrived and I checked my post to find a shoddy, ripped, and basically demolished paper envelope from my “good friends” at SeneGence. The damage to the letter was so shocking that I took pictures:

Balls_1 Balls_2 Balls_3

First and foremost, the rips and tears of the envelope itself allowed one of the mixing balls to escape, so sadly I have only 3 balls, not the 4 that I require. Secondly, the little zip-top bags that the balls were put in were of such poor quality that every single one of them had holes in them so none of the balls are sterile, let alone clean. And thirdly, it seems that the price I paid for those stupid little balls were much higher than that of SeneGence since their postage for the mailing of these balls was only $.46. I paid $50, plus shipping, handling, and sales tax for those 4 Plumeria tubes and SeneGence shelled-out less than $.50 to fix their end of the mistake. Therefore, I hold myself responsible for the whole debacle. I should've never ordered from them in the first place. And they will be lucky to get an order out of me again if this is how they treat the sales representatives that make the Royalty of the company rich (and bitchy, but time enough for that later). I guess this time SeneGence got me by the balls, but next time, I intend the reverse to happen.

#senegence #lipsense #mixingballs #shoddy #debunked #scam #amateurs

The public discussion about SeneGence seems to be hotting up. Here is a list of useful blogs, articles and videos, to get the other side of the story ...

We recommend you do your research before you sign up. And if you're a struggling distributor, these resources might help you clarify your position. Be reassured. You're not alone!

reading_glasses_book

Things about SeneGence in particular

SeneGence on review sites

Other information about MLMs in general

Last updated 10 August 2021

#senegence #lipsense #debunked #scam #resources #MLM #cults #truth

You may get a bit of a shock if you look at how the actual math works in your LipSense business.

LS 1

300pv orders, for 40% discount

(PV = Points Value)

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

That about sums up my whole SeneGence experience. I should have run like the wind, when I joined and saw the amount of colors that were out of stock. I didn't, though. I didn't know any better. I was quickly told that colors come in, and to buy them as they do. I placed my first 300pv order like it was what I was supposed to do, no questions asked. As more colors went out of stock, less came in. I kept buying because I NEEDED to have multiples of all the colors. After all, SeneGence is just hitting their peak, and the LipSense sells itself, right?

Soon after I joined, it was announced that the colors were getting cut down to 36. I was disappointed, but would get onboard if it meant more of the remaining colors would be availble. That wasn't the case. The colors were cut, and still to the day I quit this month, there was never 100% in stock. Colors came in and often went right back out. To resolve this, we were encouraged to buy colors that were in stock, and trade them for colors we needed. That only worked if someone was willing to trade for what you had, and if you wanted to immediatley lose money off your profit margin, because now you not only had to pay for SeneGence to ship your colors to you, you now had to put money out to ship trades.

Somehow, despite the crazy out of stock issues, I pressed on. I found myself purchasing way more then I was selling, because I had foolishly convinced myself that this was going to get better. I told myself I would come out on top with a good stock, and would make all my money back and then some. I convinced my husband that these purchases were a sound business investment, and that he shouldn't worry. I even had three ladies who joined under me (two of which are now also considering quitting), and I would explain things like the out of stock as growing pains, and that it would all be worth it in the end.

It wasn't until a few months had passed that I realized this wasn't all it was cracked up to be. I started realizing my upline wasn't helpful at all. With SeneGence, you are supposed to be involved with your first five uplines, as they are the ones who benefit from your purchases. My 1st and 2nd upline were almost non-exisitent, and rarely reached out to see how things were going, or if they could help me in any way. My 3rd upline was out to make herself successful at your expesne, to say the least. She would always push the 300pv, front loading, buying to trade, and became very defensive and offended if anyone said something negative about SeneGence, no matter how true it was. She and my 4th upline did have a little better communication with us girls than 1 or 2, but they gave pointless trainings that were of no benefit to running a successful business, and often lacked the knowledge to answer simple questions anyhow. My 5th upline, who literally became a Crown Princess the week before I quit, and never reached out to us lower lines.

It wasn't til mid-July that I started to see all of these things in a bigger picture or maybe that's just when I woke up, and knew that I had made a bad decsion. I had been buying more and more stock up to this point, for no logical reason, and realized I needed to do something. At this point it was too late, and I was in too deep. I started trying to get my on-hand stock down to a manageable amount, but the product just wasn't moving. No one wanted to buy at full retail because there were so many distributors offering it at a discount, including myself. I took the time to go back through my invoices, and saw that 90% of my sales were from when I ran a discount. Very few were actually purchased at retail. Desperate to get rid of the product, but not break compliance, because I still somehow hoped things would somehow turn around, I offered a sale again. 5%, then 10%, then 15%, but very few sales were made. I started waiving my tax, offering free shipping, which moved a little more stock, but nowhere near manageable. I decided to have a secret sale of 25% off in my closed customer group. I trusted these girls, and most of them had become loyal to me, so I figured I owed it to them to give them first crack at my stock, at such a high discount. The sale was a success for moving product, and I had a small glimmer of hope.

I somehow thought I could still make things work, but as soon as the sale was over, no one was buying. Everyone had gotten so use to me discounting that they didn't want to buy at retail, or with free shipping. They wanted full blown blow-out sales, and I can't blame them. I'd be doing the same thing as a customer, as we all want the most for our money. That was when I finally realized I couldn't continue on with this business. Never would I be truly successful, because this product that sold itself, and was worth $25 retail, didn't and wasn't.

If you choose to join, please do your research. Don't let them convice you the you can start your business for just $55. The $55 is an annual fee, and you have to buy stock. There is absolutely no way to be successful if you just order as people buy colors. To get 50% off you need to order 750 pv, if you order less then that, your discount will be less. So many things that if I had been told back in February, I would have NEVER joined.

I have now sold through almost all of my stock, at 25 to 40% discount. I have lost money. I have lost family time. I have failed. Don't be like me.

— C.D.

#SeneGence #truthaboutlipsense #toolate #dontmakemymistake #successforuplinesatyourexpense #uplines #LipSense #MLM #frontloading

Originally, my post for this blog was going to be about the general lack of stock and difficulty obtaining sufficient stock to sell.

After this weekend, it's much more.

I've come to realize this company is a pyramid scheme that preys upon the most vulnerable. The single moms, hard working females barely making ends meet and military families that don't have an extra $750 laying around each month. $55 to join and you're in business sounds SO simple. And that's how they truly sell it.

No mention you really need to purchase 36 LipSense colors. And let's face it. It's never just $750 a month to get the magical 50% discount. Once they add taxes, shipping &handling, etc. it quickly becomes $840 plus.

I don't know about you, but that's my mortgage and car payment. Unless you're well-to-do, you need for that investment to turn over in 30 days to pay those bills.

Then add in the costs of doing business they didn't mention — mailers, thank you notes, business cards, etc.

And my Upline, like so many others, was clueless. She told me, after I'd joined, of course, that she hadn't really read or studied the Back Office info or videos. Her customers were really a few friends and family. 👺

That would have been nice to know. She also lives another state away. Not helpful when the color(s) I need are OOS and driving across town to trade isn't an option.

Let's talk about having to pay shipping to trade 2-3 times to get a color you need to hang onto a client who's threatening to order off eBay or another outlet?

I'm so tired of hearing, “What's your best discounted price?” Seriously? Would you go into a grocery store and ask that? How rude. Do other reps in other markets such as LuLaRoe and Avon suffer this? I'm guessing not!

But my worst gripe with this company has been the outright backstabbing and lack of support for fellow SeneSisters. I've literally seen 75% negative vs 25% positive posts since my start. I've been in almost 90 days. How disheartening. Even customers are seeing it and making comments on the Facebook sales pages.

I don't want to be associated with this type of company. Period. Sorry for the ramble, but you get the gist. ❤️ Thanks for your support.

— Distributor 4

#senegence #senesisters #debunked #pyramid #lipsense

I was introduced to LipSense about a year ago, by a young friend. At last! Truly long-lasting lipstick, that really stayed put. Heaps of great colours. I was in love! And after a few months of thinking about it, I signed up.

cult_no

I tried to do due diligence. I scoured the web for critical reports about SeneGence. At that time, there weren't any (now there are, and this blog is part of that drive to educate). I read the Policies and Procedures guide carefully (but without a whole lot of understanding about MLMs). I've never liked MLMs, so I was very leery about signing up. But it looked like a bit of fun, if nothing else.

My upline was awesome, but also new to the business, so we were both stumbling about learning how to do it all. She never hassled me to place orders, and was very supportive.

It was easy to get caught up in the excitement of buying all the testers, whee! And orders arriving several times a week was fun. I cautiously got involved in the various Facebook groups. I found the other distributors were mostly younger women, seemingly kind-hearted.

I really loved LipSense, and it wasn't hard to be enthusiastic about it with my friends and family. I gradually grew a customer base, and greatly enjoyed getting together with them to do demos, mostly in small groups. I ran a few parties. I wore my stripes. I spoke to random women at the shops. I went to distributor trainings. I even got a couple of downlines, and spent heaps of time helping them, happily.

I spent a lot of money on printing all the various things — business cards, flyers with colour charts, 'how to apply' cards — and the various bits and pieces — packaging supplies, envelopes, mirrors, disposable tester sticks, gifts for customers and hostesses, and so on. Paid far too much for the crappiest website on earth. SeneGence supplied nothing, really, except for a shitty, badly written book by Joni (which I threw into recycling, after reading a few chapters), and a bunch of DVDs. You really have a large outlay to get everything you need for the business set-up. In no way is the 'only $55 to start your own business' an accurate estimation of costs!

I was always wary of the corporate culture and cult-ish nature of the company's communications and more senior upline discussions on Facebook. I avoided the annual 'conference' Seminar. All those tiaras and sashes, for starters ... all the 'rah rah rah go team' stuff freaks me out 😖

Inevitably, I ran into compliance issues after a few months. This made me realise that no, it's not really your own business. You can do 'whatever you like', as long as they let you. You can't discount more than 15%. You can't decant small samples of the skin care into sample pots for your customers. You can't remove the awful packaging labels. And heaven help you if you want to ask slightly probing or critical questions in one of the Crown Princess (CP) groups. Attack by the mob.

I have run my own business for many many years, and do know how to work hard and how to make a small business work.

I have had plenty of sales, and very happy customers, but am still several thousands in debt. If I can sell my remaining stock, I'll be lucky to break even. And I was working hard at it, putting in several hours a day on the business (in addition to my other work). I still love LipSense, and some of the other cosmetics. Not sold on the skin care. I won't be renewing my distributorship when it rolls around.

Here's a list of my main grievances with this company, and the reasons I'm quitting:

  • The 'royalty' scheme for advancement is frankly offensive to most modern women. I guess there's a subset of women who want to be the 'prom queen', but it's setting actual female empowerment back by 50 years. And this really doesn't translate well to other countries (I'm not based in the USA). If you want to reward us, give us actual tangible rewards, like improved earnings — not shitty plastic 'gems' from China, or tiaras and sashes. It's just insulting.

  • 'Pay to play' is not cool, guys. To be paid your downline's commission, you have to place an order that month as well. Sailing very close to the P word (pyramid) definition, there.

  • Inventory rubbish. This is just bollocks. Cut half the colours, with no warning. Panic buying en masse, when we can actually get anything. Then suddenly they 'find' some in our local warehouse. What, were they hidden under the bed? They know damn well how much stock they have of everything (or else they don't, and that's just as bad). My guess is they're keeping stock of discontinued colours in reserve, and then releasing it a little at a time, to generate panic buying. Don't forget, we distributors are the customers keeping SeneGence running, not our customers.

  • Not stopping recruitment during the worst of the Out of Stock dramas. It's simply unethical to continue signing up distributors when there's nothing for them to sell. Firstly, this tells you that SeneGence is making a lot of money from sign-up fees alone. And secondly, do I need to mention the 'P' word again? Taking sign-ups with nothing for them to sell is text book pyramid scheme. A CP told me they wouldn't halt recruitment because they 'didn't want to hurt our businesses' — bollocks. Hurt their business, more like it.

  • All their packaging and publications are just embarrassing. The post below on branding nails it. I'm too embarrassed by how it all looks to be able to sell it, especially the skin care range. I removed all the labels from my testers (ha!) — they look lovely now.

  • I suspect lies. Many many lies. Where's the proof of the 'warehouse break-in'? 'Red pigment shortage'? Really? I found no mention of it anywhere, in industry sources. (Although I did find mention of red pigments recently becoming more expensive worldwide 🤔.) Skin care is their top seller? In nearly a year, I've sold one skin care product (and not for want of trying). All my customers want is LipSense, and some of the other cosmetics. I suspect that if they really do sell a lot of it, it's to distributors only, who get it to hit their monthly PV (points value) amount, because it's so frigging expensive.

  • Plain old stupidity. Crap 'science facts' being promoted, showing a true failure in education (the gals over at Nerdy for my SeneSisters are doing a great job of fighting back against the tide of stupid.)

  • Being pushed to front load (buy lots of inventory) because you can't 'sell from an empty wagon'. The official Policies and Procedures document says that they don't encourage front loading, because that's what they need to say legally to avoid being called a pyramid scheme. On every order, we have to tick a box certifying that we've 'sold 70% of our previous order'. Which very few of us have done. Again, they're covering their arses. It also means that they can limit how much unsold stock they refund you for, if you quit and want to send stuff back. Cos you've 'legally verified' that you've sold 70% of everything, haven't you! Even if you've got thousands in stock piled up.

  • Communication by Chinese Whispers via the CP groups. 'He said, she said' sort of garbled messages, with various interpretations and confusion. Amateurish (like so much of this company).

  • The bullying culture in the Facebook groups for distributors. Mean girls abound. Distributors ratting on each other, as 'compliance police'. It's fine if you just Like and Love everything, and don't push back on anything. But want to discuss anything? Have some criticisms? Nope. It's like the worst aspects of high school, all over again. Who needs that?

  • The language used by the Princesses and Queens and such. I find the use of unearned endearments like hun, bae and babe are demeaning. When I come to an upline with a problem, the last thing I need is a dismissive 'positive whitewash' answer, hun. Lack of empathy — what's so hard about saying 'Yeah, that sucks, I'm sorry that's happened.' No, everything has to have a positive spin. It's an effective way to stifle discussion.

  • The cultish manipulation of language and social interactions. Lots has been written about this, and SeneGence does it. This article is just one. Just one relevant quote from this article:

Another thought-stopper is the exhortation to “think positive” and to not think about the negatives. According to the motivational speakers and other scamsters who push this nonsense, thinking positively makes us happy and fulfilled, and magically improves our lives.

This is a quote from the ManaGence manual (for more senior distributors):

Building a Positive Attitude Maintaining a positive attitude through the up and downs in your business and in your private life takes work. Build a positive attitude by starting each day with an inspirational thought, book or tape. Stay connected to positive people and never share a negative thought with your Downline team.

  • The Christian aspect is a huge turn off for me. At least this isn't so noticeable outside of the USA.

  • The fact that Joni's husband Bennie/SeneGence's Chief Strategist was the biggest donor to Trump's inauguration fund in Oklahoma was the absolute final nail in my SeneGence coffin. He donated $250,000. $250,000 😱

These are just my main problems with this company. I've got more. My experiences have only reinforced my original view of MLMs. Never again.

By the way — thanks for ruining royal blue for me, too 🙄.

— Distributor 3

#lipsense #cult #debunked #senegence #warning

Front loading or inventory loading is the practice of buying a lot of stock so that customers can buy from you right away. Basically, sure, it's a good idea to have stuff in stock, and customers do love being able to get what they want immediately.

However. Front loading sails very close to the “Pyramid Scheme” wind in Direct Marketing (DM) and Multi-Level Marketing (MLM) businesses, especially as distributor orders are usually linked to bonuses, rewards, progression to higher levels, and earning commissions. Distributors often place orders for stock just to qualify for something, not because there's a demand for their products, or that they've sold a lot.

This is what we're told to do, in the private Crown Princess and other royal groups for distributors ...

frontload3

frontload2

And this is what the official SeneGence Distributor Policies and Procedures Guide (2017) states (covering their legal butts by stating that progression within SeneGence doesn't depend on stockpiling, even though it does):

frontload4

Front loading is, of course, of great benefit to the company, and uplines. It means THEY earn big commissions and get big sales. Not so great for the downlines, though. So it's a win-win-lose sort of deal, where the distributors lose out, purchasing too much stock, getting into debt, and often ending up selling stock at a heavy discount just to get it out of their house.

The Federal Trade Commission (USA) rules that front loading is inappropriate activity:

Front-loading or inventorying of product in which excessive product purchases are viewed as prohibited consideration for the requirement that individuals make an initial investment of product purchased to engage in the opportunity.

Kevin Thomson, an MLM attorney, writes:

The courts add another layer to this definition that muck it up a little: inventory loading can occur when distributors are purchasing a minimum amount of product in an effort to qualify for bonuses. FTC vs. Omnitrition

Here are just a few articles you can read about front loading in MLM:

• MLM Basics: What is Inventory Loading?

I particularly love this quote from the above article (my emphasis added):

Modern MLM sales people don't really stock products in their garage or storage, but instead, just take orders and the items are drop-shipped straight from the company's fulfillment center.

SeneGence, still stuck in the dark ages ...

• MLM Basics: Inventory Loading and Front Loading

• Where Have All the Products Gone?

• What is Front Loading or Inventory loading?

SeneGence founder, Joni Rogers, used to work for Mary Kay, and seems to have copied a great deal of the Mary Kay business model (their annual conventions are also called Seminar, just for starters!)

• The Mary Kay New Year, New Recruit Frontloading Wipeout

• Front loading: How Mary Kay Predators Rope their Prey into Large Inventories and Bigger Debt

#frontloading #inventory #SeneGence #LipSense #MLM #debunked

I signed up in January 2017. My upline (she lives in Texas, I'm in NY and we've never met) showed me an album with tons of beautiful colors that I was super excited to order. I started a Facebook group, she told me to use her albums to show my customers the lovely colors I could offer. I went to order my stock, and there were about 5 colors available. I had 2 that I had purchased from her, but I didn't want to demo them because my friends couldn't buy them. I placed an order with what I could and once they came in I did live videos enthusiastically trying on what I had, even the colors I didn't love. People purchased a little, but I ended up breaking even bc in NY our tax is super high, plus I had to ship everything & pay for packaging. So I scrounged up some money & placed another order. But most people don't need 20 colors, just one or two. Sales dried up. People watched my videos & we had fun, but nothing moved. Then for months there was literally 1 color available everyday. I have a full time job & cant spend 24-7 staring at the website, so 99% of the time I missed out on anything that came back in stock. I never heard from my upline, but one of my customers did when my upline asked her to join her team 😞. Then my team got a new CP, and while I couldn't get a gloss to move, she's making 10s of thousands off of us.

Several straws broke this camel's back. I truly think the encouragement of front loading isn't because uplines think stock sells, it's because stock makes them huge commission checks.

This was a heart breaking experience for me. I work 2 jobs & saw what these other girls were doing, and thought I could quit one of my jobs & do something I loved. It seems that if you didn't get in early so that you're one of those girls at the top of the “non-pyramid”, it's very difficult to not only get ahead but get anywhere. Since June, I've sold everything I had at a discounted rate, including my personal stash, and still haven't broken even. But no SeneGence product will ever touch my face again. It's just not a product or company I can stand behind.

— TAF

#SeneGence #LipSense #MLM #distributor #debunked #truestory