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cosmeticswithkim · 6 years ago

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Avon Representative Compensation Plan Avon Representative Career & Compensation Plan Get to know Avon You came here to learn about the Avon Representative Compensation Plan, continue reading and you will learn about Avon and why their compensation plan is unbeatable! Avon, the company for women and a few good men has been around for more than 130 years and is a leading business within the beauty industry. With an array of products that include Fragrance, Fine Jewelry, Fashion, Cosmetics, Health & Wellness, Skin Care, Bath & Body, and Home decor, Avon attracts a broad customer base with quality AND budget-friendly products. As Avon representatives, we embrace Avon’s values of Trust, Respect, Belief, Humility, and Integrity. Not only are the values of this company important, so are the specifics of the career & compensation plan. Below you will find a breakdown of the Avon Representative Career & Compensation plan including all the details you need to make an informed decision about Avon. 4 reasons to love Avon Representative Compensation plan No minimum order required to earn the starting percentage of 20% The earning potential is UNLIMITED Avon Representatives can earn incredible bonuses on top of their personal sales When a representative advances in title, their personal sales and bonus earnings increase Avon Representative Level Commissions Selling products to customers is the most fundamental aspect of your business. Therefore, as an Avon representative, providing award winning products and exceptional service will ultimately result in happy paying customers that repeat and return. Avon President’s Recognition Program Level Commissions When you reach the Avon President’s Recognition Program Level by selling $10,000 in a year cycle your earnings will go up! In addition, you will then keep these increased earnings throughout the remainder of the current year in which you earned the title and for the entire following year. View the chart below to see the increased earning percentages. Avon Representative Demo Limits Each campaign through the What’s New Avon Demo Books you are able to purchase new products before they hit the brochures. In result, you are able to stock up on amazing products that will be on sale. The Avon What’s New brochures highlight products and sales 2 campaigns prior to the brochure in which they are featured. As you advance in levels your demo discount gets better and you are able to purchase more demos per campaign. Read more about the What’s New brochure here. Now To The Exciting Stuff……… The Avon Representative Compensation Plan Leadership Bonuses As you build a team with Avon you are not only making money from your personal sales, you are also making money from your teams personal sales. As a result, you will have 2 streams of income and a more secure business model. Continue reading below to learn more about the Avon Representative Career & Compensation Plan bonuses. Qualified New Recruit Bonus To receive the qualified new recruit bonus you will earn a $20 one time payout for each qualified new recruit you personally add to your team (first generation). To clarify, this new team member must submit a paid minimum order of $150 within their first two campaigns. Sponsoring Bonus When your new recruit places an order of any size and you place an order of at least $50 you will receive a 3% sponsoring bonus. In excitement, this bonus is continual and paid out each campaign while your new representative is active. Promotion Bonus The promotion and mentor bonuses are my absolute favorite! The promotion bonus is earned for first time personal title advancement! It is paid out in equal parts over 4 campaigns. Keep in mind that you need to maintain this achieved title to get the full payout. If you do not maintain title for the full 4 campaigns you will receive part bonus for the campaigns you do maintain title. Mentor Bonus The mentor bonus is similar to the promotion bonus but is earned for first time title advancement for a representative in your first generation. It too is paid out in equal parts over 4 campaigns and the representative needs to maintain this achieved title for them and you to get the full payout. Identical to the promotion bonus, if they do not maintain title for the full 4 campaigns they and you will receive part bonus for the campaigns in which they do maintain title. Generation Bonus The generation bonuses are calculated based on your teams sales. You have potential to receive a percentage of these sales for generations 1-5! You need to meet the minimum requirements for the specific title to earn this bonus. For Example: Bronze Leader, if they met their goal of $200 in personal sales, 10 first generation orders, and team sales of $8, 000 they would receive 6.5% for Generation 1, 3% for Generation 2, 2% for Generation 3, and 1% for Generation 4. Leader Bonus With this bonus, you are able to earn a bonus on your down-… https://ift.tt/2FGGhQP

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mlmcompanies · 6 years ago

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Wellness products that are good for the environment…

An MLM that doesn’t push recruiting…

A founder who tells distributors not to invest in more product than they can sell…

Seriously?

Is this MLM too good to be true? Or are they really trying to make a difference?

Melaleuca is a health and wellness MLM company founded in Idaho. They skyrocketed years ago, and now, when most other MLMs are losing revenue, they’re still trending up.

Recently they’ve hit the coveted $2 billion mark in sales. The question is whether those sales will translate into a good stream of income for you. Let’s take a look.

FAQ

1. What does Melaleuca sell? Melaleuca calls themselves the “largest online wellness shopping club,” selling nutrition, personal care, home cleaning, and cosmetics products that are supposed to be safer and more cost-effective than grocery store brands.

2. What are Melaleuca’s most popular products? Renew is the last dry skin therapy Melaleuca believes you’ll ever need. Their Peak Performance vitamin pack contains a collection of supplements separated into convenient morning and evening pill packs. So staying healthy doesn’t have to take a lot of thought. They also have a slew of great cleaning products that are environmentally friendly.

3. How much does it cost to join Melaleuca? It costs $19 per year to become a Melaleuca distributor.

4. Is Melaleuca a scam? No, they’re a real company with real products that health-conscious people will love. As MLMs go, they’re generous. They keep their membership rate low, and they aim to keep their employees long-term and help them retire wealthy. As a money-making opportunity, they probably aren’t your best bet. But honestly, most people join to use the products, not to get rich.

5. What is Melaleuca’s BBB rating? A+

6. How long has Melaleuca been in business? Since 1985

7. What is Melaleuca’s revenue? They boast $2 billion in annual sales.

8. How many Melaleuca distributors are there? 150,000

9. What lawsuits have been filed? In 2017, Truth in Advertising called out Melaleuca for misleading income claims. [1] In 2012, Melaleuca had a restraining order placed on Brian and Angelique Bartholomew to prevent them from recruiting distributors for another MLM. [2] In 2011, Melaleuca sued Max International for recruiting their distributors. Max International settled for $1.2 million, and a judge temporarily barred Max International from recruiting employees at Melaleuca. [3] In 2010, Terry Dorfman sued Melaleuca for breach of contract and defamation. [4] In 2009, Melaleuca filed a lawsuit against Rick and Natalie Foeller for recruiting other Melaleuca distributors for a completing MLM. [5]

10. Comparable companies: Pure Haven Essentials, Max International, Purium

So should you join them?

Product-wise, they’re pretty good.

Income-wise, there are way better ways to make passive income.

Click here for my #1 recommendation

Overview

When Melaleuca got started some 30 years ago, they were just a humble little start-up company in a small town in Idaho.

Those days are long gone. They quickly became a multi-billion dollar company with operations in almost 20 countries worldwide. These guys bring in a million shoppers per month, rivaling sales volume of the likes of Amway and Avon.

And in 2015, their annual sales broke the $1 billion mark. That’s HUGE. They did $1.75 billion in 2016, making them one of the top MLMs in the world.

Their tagline is “The Wellness Company”, and they want all of their endeavors to cover four areas of wellness — a more holistic approach, we’ll say. The four aspects are your physical health, your financial well-being, your overall quality of life, and the greater well-being of the environment.

Frank L. Vandersloot started Melaleuca way back in 1985. He’s been a successful salesman his whole life, but as he started to age, he decided that he wanted to start letting someone else do the grunt work for him. So he built up a team of part-time salespeople and started an MLM. Well played, Mr. Vandersloot, well played.

Frank Vandersloot injects Melaleuca with a refreshing dose of humility and frugality when MLM is known for arrogance, over-the-top events, and fancy car bonuses. He’s known for preaching to his employees the value of living within their means, not going into debt, and not buying cars and houses they can’t afford.

He even discourages his distributors from pushing new recruits into a mountain of debt by purchasing tons of inventory and training programs. I can get behind that.

How much does Melaleuca cost? There’s an annual membership fee of $19. You also have to buy about $80 in product each month to keep an active membership and qualify for commission.

Products

Melaleuca health and home products have always been centered around offering environmentally friendly options to everyone. Of course, “environmentally friendly” usually comes with a higher price tag.

The list of Melaleuca products is longer than the line up outside of a Chick-Fil-A drive through at lunchtime. Seriously, the amount of products they sell is ridiculous. Then again, they have been around for over 30 years.

Their catalog can be broken up into the following categories: Nutrition, Medicine Cabinet, Beauty, Household, Bath & Body, and Essential Oils. Your one-stop shop for all the MLM favorites.

Some of their most popular products include Peak Performance Total Health, a nutritional supplement that supports your workouts and is actually clinically tested (congrats), their Renew intensive skin therapy lotion, and their eco-sense laundry products. The only way to see their prices is to log in to a member account.

They offer a membership money-back guarantee that allows you to terminate your membership up to three months after purchasing it and get your money back, and you don’t even have to give them a good reason. So signing up for their shopping membership is worth a try, even if you end up not really digging it.

Compensation Plan

The Melaleuca compensation plan, also known as their “Business Builders Plan”, isn’t half bad. However, it is way WAY more confusing than it needs to be. Smells like MLM.

Don’t worry, I’ll try to parse out the details and break it down easily for you.

The most important stream of income is the purchases your customers and recruits are making. You get a residual income on all of their purchases, so if they shop on the platform regularly, that can add up. You get 7% of their monthly spend.

If you are the Enroller, you can earn 20% on your new customers first 150 product points purchased, and if you’re that person’s Enroller and immediate Marketing Exec, you can earn 27%.

Your 7% in residual commission isn’t huge, but it stays flat straight through your downline. It doesn’t decrease, which is a pretty good deal. You get 7% off of your 1st generation, 2nd generation, 3rd generation, etc. This goes 7 generations deep.

You can also earn bonuses for enrolling Quality Customers. Quality customers are people who enroll, become Preferred Customers, and make the necessary minimum purchases within their first month.

Weekly Melaleuca bonuses are given out to anyone who has kept their Preferred Customers enrolled through the past 5 months. If you’ve managed to retain 75% or more of your Preferred Customers, you can qualify.

Finally, Melaleuca gives out some pretty good Leadership Development Bonuses for those who are building up a solid team of distributors who sell a lot and move up in rank. Each time one of the distributors in your downline gets a rank bonus or sales bonus, you get a bonus that’s equal to 50% of their bonus.

Like I said, the compensation plan is way too convoluted, lol. Usually, when MLMs do that, it makes me wonder what they’re hiding.

The average annual income of their Directors (and many new reps don’t even make it to Director level), is $2,047. These are distributors who have worked at building their business for quite some time and already have 8 customers or more. Many people won’t even make it that far.

Recap

Melaleuca has a pretty impressive backstory, especially if you remember back to the early 2000s when they really started to take off. But they haven’t slowed down – hitting $1 billion a couple years ago was their greatest milestone yet.

The company might be doing great, but most of their distributors are not. Sorry folks, but the numbers don’t lie.

Of course, if you’re into their products, it could be a fun gig to do on the side. Just don’t expect it to pay the bills.

If it’s financial freedom you seek and you like automated ways to build passive income, there are better ways.

Click here for my #1 recommendation

#MLM companies #network marketing companies

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hisbride478 · 6 years ago

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IAspire September 18th **************** JOIN MY PAPARAZZI TEAM **************** I aspire to be a a great business woman as described in Proverb 31. The wealth I acquire will be used for His glory! My upline is anointed and I'd love to share a proven business plan that works with you. In order to get something you never had, you must be willing to do something you've never done before. I've done Avon, I've done Mary Kay and both are household names...neither were as lucrative, easy and FUN as Paparazzi💍!!! I get paid to party and look good while doing it! The best part is I decide when, where and how long! They say if you do something that you love, it won't feel like work. You know what? They were right! Jeremiah 29:11 says: For I know what plans I have in mind for you,' says ADONAI,'plans for well-being, not for bad things; so that you can have hope and a future. I believe Yah do you?! If you have thought about it or have questions contact me I am happy to answer any questions you may have. Or if you are ready to join a winning team contact me directly or visit my website and click JOIN NOW then follow the prompts. Join me in this great wealth transfer. What other company do you know that is 100% debt free and grew 310% in 2017????? We are looking for 500 new Business Partners this month Men & Women. If you are looking for a way to earn some residual income quickly, join the team and we will train and provide you the resources to be successful! All you need is $99 to start, a phone, willingness to buy and flip jewelry, by going Live, booking parties and/or vending to show your jewelry, and a grind! YOU WILL NOT BE DISAPPOINTED! Shout out to my amazing upline Lindsey Grace Compton and our mentor Racquel Stroud for their leadership, encouragement and support! Come learn, earn and grow with a great group of Men and Women! Benefits: 💗Free website managed by Paparazzi Accessories 💗A starter kit full of resources and 35 accessories for you to sell and earn your investment back 💗Commission from online sales 💗Ability to build a team 💗Bonuses from team building 💗Commission from Active team members 💗Vacation Perks 💗Promotions 💗Gifts Http://Shirelles https://www.instagram.com/p/Bn4DUMnBfOE/?utm_source=ig_tumblr_share&igshid=ihzq3ls1vfvb

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wp-yahoo-style-1042-yahoopa-blog · 7 years ago

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New LuLaRoe lawsuit, led by lawyer who sued Trump University, calls leggings maker a 'pyramid scheme'

yahoo

After a year of accusations of fraud, misleading business practices, and poor-quality clothing, the direct sales apparel company LuLaRoe is now, for the first time, being called a “pyramid scheme,” in a new class action lawsuit.

The suit, filed on Oct. 13, names four plaintiffs across the country, and seeks to represent a class of “thousands of consultants,” yet undetermined, who demand to take LuLaRoe to trial on six counts of misconduct under California law — including unlawful, fraudulent, and unfair business practices, advertising, and breach of contract.

The LulaRoe apparel company: Godsend or cultish pyramid scheme? Depends on who you ask. (Photo: LuLaRoe/Instagram)

The lawsuit’s primary accusation is that LuLaRoe rescinded its buyback policy after it led consultants— including the named plaintiffs: Stella Lemberg, Jeni Laurence, Amandra Bluder, and Carissa Stuckart— to believe they could continue to buy clothing risk-free, given the 100 percent buyback guarantee.

For the uninitiated, here’s how the company works: LuLaRoe, known for its maxi skirts and zany print leggings that cost $25 to $75, doesn’t have any employee-run stores. Instead, individuals sign up to sell LuLaRoe clothes as “independent retailers,” after they’ve been referred to the company by someone who’s already involved. Once approved, the independent retailer must buy a minimum of $5,000 worth of inventory to start selling LuLaRoe clothes to whomever they like for a price determined by LuLaRoe corporate.

In a statement to Yahoo Lifestyle about the new class action filing, LuLaRoe says:

“We have not been served with the complaint. We believe these allegations are wholly without merit and intend to vigorously defend against them. LuLaRoe will in good faith continue to abide by the terms of the Policies and Procedures — accepted and binding upon every Independent Fashion Retailer executing the LuLaRoe Independent Consultant Application and Agreement — which includes mediation and legal arbitration as the appropriate forums for addressing any disputes about the Retailer cancellation, return and refund process.”

LuLaRoe is no stranger to legal trouble and bad press, though the most recent filing appears to make the most damning claims. A change to the company’s “100 percent buyback” guarantee, which promised consultants they would be fully refunded for unwanted inventory should they choose to exit the company, was abruptly made in September, turning it into a “bait-and-switch” refund policy that cheats consultants out of thousands of dollars each, according to the lawsuit complaint.

“We’re focusing on the misrepresentation and breach of contract to the consultants,” Amber Eck, the lawyer who filed the class action suit with co-counsel Kelly Purcaro, explains to Yahoo Lifestyle. Most recently, Eck was co-lead counsel in the class action case against Donald Trump and Trump University, which settled for $25 million. “This case is reminiscent of that. [The Trump class action] wasn’t multi-level marketing, but it was an upsell scheme,” said Eck. “This case is reminiscent of that.”

LuLaRoe is now facing several class action lawsuits, all filed in the past year. The first alleged that inventory was defective; others suits claim that the company’s sales app charged retailers an erroneous tax. In just over a year, plaintiffs filed 17 civil suits against LuLaRoe. In addition, LuLaRoe has an “F” rating from the Better Business Bureau, and the Federal Trade Commission has recorded more than 300 complaints against the company since May, according to documents Yahoo Lifestyle obtained. The class action suit filed last week is only the latest in a long list of the company’s alleged infractions.

LuLaRoe had a quaint beginning. In 2012, founder DeAnne Stidham’s daughter — pregnant at the time — posted a photo on Instagram of a skirt that her mother sewed for her. The “likes” poured in — along with requests for skirts, which Stidham fulfilled. Soon Stidham was fielding so many requests that she outsourced the production to local seamstresses and recruited others to help her sell. When production reached a certain level, her husband Mark joined the company as its chief executive. Today, LuLaRoe has 325,000 Instagram followers, and the company name has been used as a hashtag more than 2.6 million times. It boasts 80,000 sales reps — independent retailers — who sell LuLaRoe apparel on their own.

In an interview with Yahoo Lifestyle in May, Mark and DeAnnne Stidham said that they take LuLaRoe criticism “very personally.” In addition to the daily tasks of running the company, the couple exhaustively tours the country promoting LuLaRoe to its consultant network. They also take a very active role in the lives of LuLaRoe retailers, participating in “incentive cruises” with them and even taking a trip to Hawaii, where they met a team of LuLaRoe retailers.

And while the legal woes mount, the comments on DeAnne’s Instagram page show no hint of that — her posts are peppered with retailers thanking DeAnne and expressing a desire to meet her in person. Retailers, many of whom have been with LuLaRoe since its earliest days, often refer to DeAnne and Mark as pseudo-parental figures.

Depending on your level of cynicism, you may find that endearing. Or you may think it’s cult-like. However you see it doesn’t change the fact that LuLaRoe is staving off new legal issues regularly, even as new consultants sign on with the company.

$1.8 billion in sales and growing

When the retail apocalypse began in 2016, apparel companies that spent years cultivating loyal customers began to sink. Some, like J. Crew, found themselves lost in a sea of sameness, their core customers having abandoned ship. Others found themselves not being able to keep up with the rise of online, instant everything.

But LuLaRoe thrived, in large part because of the community it created with consumers and its consultants. Customers flock to events at LuLaRoe pop-up shops, hosted by local women who invite their friends and neighbors to shop.

DeAnne is always looking her best! This Leadership she has taught us so much including how to be confident in anything LuLaRoe!! Her inspiring words and dreams keep us motivated to always Be The Light! #LuLaRoe #lularoebethelight

A post shared by LuLaRoe (@lularoe) on Jan 14, 2017 at 12:10pm PST

The rise of LuLaRoe happened to coincide with momentum in the direct-sales industry itself. According to its trade group, the Direct Selling Association (DSA), more than 20 million people were involved in the business in the U.S. in 2015, with estimated retail sales reaching $36.12 billion — a 4.8 percent increase over 2014. Some direct sales businesses are household names: Herbalife, Mary Kay, and Avon, each of which belongs to the DSA.

LuLaRoe is not one of DSA’s 170 members, and has no plans to join. Stidham says that’s because it’s “not aligned with [direct sales organizations] generally.”

How it works: the original social network

LuLaRoe retailers, many of whom are women, are recruited to sell LuLaRoe merchandise by existing retailers. More than 80,000 people now sell LuLaRoe in the U.S. By comparison, there were more than 4.5 million retail salespeople as of May 2016, according to the Bureau of Labor Statistics.

Independent retailers for LuLaRoe have four possible levels they can rise up to: consultant, sponsor, trainer, coach, and mentor. It’s that structure that leads the class action lawsuit to allege the company is a pyramid scheme. “If a consultant brings in additional consultants, she is elevated to ‘sponsor status,’ but must maintain additional inventory requirements monthly,” explains the new class action complaint. “If a consultant brings in 10 or more additional consultants, she is elevated to ‘trainer’ status” and so on.

But the company pays its bonuses based on sales volume, not the size of a sales team itself, which LuLaRoe says proves it operates legitimately and legally. Higher bonuses go to those in higher-ranking levels (meaning coaches and mentors).

The Federal Trade Commission declined to comment for this story, but its website reads: “If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s probably not. It could be a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.”

A hard-charging ethos from LuLaRoe leadership

Mark Stidham outraged many LuLaRoe retailers when, during a now-infamous webinar, he told retailers that were concerned about how defective clothes would affect their sales, “No, you’re stale. Your customers are stale. Get out and find new customers. If you bring a new customer in, then your inventory isn’t stale. The problem is, you try to sell to the same group of people day after day after day.”

When asked about these comments, Mark defends himself, saying people who were upset over his remarks just “don’t understand” them.

“It may sound harsh when I challenge people, but it doesn’t come from a harsh place,” he says. “It comes from my belief in their ability that they will break through their excuses, if they’re creative, to sell the product.”

For some consultants, like Meagan Parker, Mark’s tough love has been effective: Parker, who joined LuLaRoe three years ago — she was the 93rd retailer to join — has doubled down on her LuLaRoe business and recently purchased her own van-turned-LuLaRoe pop-up shop.

Parker says she was the first person east of Utah to sign on to sell LuLaRoe, effectively making her a settler in uncharted territory. At the time, her husband worked as a regional manager for Petco, but he recently quit his job to join his wife’s LuLaRoe venture full-time.

Parker declines to disclose her income, but says “profit and income is based on you. When you work your business, that’s the cool thing about LuLaRoe … the harder you work, just like with anything, the more success you’ll have.”

Consultants Yahoo Lifestyle spoke with say that Parker’s success isn’t necessarily proof of the effectiveness of Mark’s hard-charging mantra as much as it is because she was early to the game. Now that many parts of the U.S. are saturated with sellers, some LuLaRoe consultants complain on forums that it’s too hard to succeed.

Parker now has more than 16,000 retailers operating under her, meaning she earns annual bonuses based on how many sales the people who she has brought on (and subsequently, the people they recruited) execute. But she says her “success isn’t dictated on team growth,” and that LuLaRoe isn’t a multilevel marketing company because its growth is facilitated through product sales, not recruitment.

Pep rallies and cruises

Here’s a sense of just how deeply attached LuLaRoe sellers are to the LuLaRoe community: Parker hosts regular Monday morning webinars; she writes a weekly LuLaRoe blog post, she hosts a LuLaRoe book club and she hosts “Sunday suppers,” where she and her husband cook for LuLaRoe peers.

There are LuLaRoe cruises, open to retailers and their spouses. There are “LuLaBros,” men who are brand devotees because of their LuLaRoe business or their partner’s.

More fun times at our #lularoebethelight kick off party! Lovin’ these neon ladies!

A post shared by LuLaRoe (@lularoe) on Jan 12, 2017 at 9:15pm PST

LuLaRoe retailers wear matching triangle-shaped necklaces (or pyramid-shaped, depending on whom you ask), a shape repeated in LuLaRoe’s logo, and, some speculate, a reference to Mark and DeAnne’s Mormon faith. (They deny it’s a religious reference, noting in a statement: “No. LuLaRoe’s logo design is based on principles of color, geometry and style, and the design of the necklaces aligns with the shapes in the logo.”)

Indeed, the promise of a built-in community and a commitment to women’s empowerment attracts many consultants to the company. “LuLaRoe holds itself out to be champions of women with children, seeking financial freedom by working from home,” the Oct. 13 class action lawsuit says.

But to the more than half a dozen LuLaRoe consultants Yahoo Lifestyle spoke with, joining LuLaRoe means ingratiating yourself with a community where mean girl-style groupthink and potentially overwhelming financial risk may rule.

The risks of rushing into LuLaRoe

Amanda Goldfarb is a former LuLaRoe consultant who left the company in July after only a few months selling the apparel. A new mother, Goldfarb describes how she was lured in by the company’s promise of empowerment and financial freedom.

After an initial $6,700 investment, Goldfarb and her husband were selling $20,000 worth of inventory a month, and she recruited 16 women to work under her. Despite the apparent success, Goldfarb says the “horrible bullying” she experienced left her feeling “gaslighted.”

“The woman in my upline who made my life miserable — she’s a number two seller in the company,” Goldfarb says. “Anytime someone had a question on the team page or had a genuine concern, she was so rude and aggressive. It got to a point where everything she said was really negative and nasty. It would hurt people’s feelings.”

Goldfarb then describes trying desperately to find a new team to join, waiting hours on hold and talking through her tears with LuLaRoe’s home office only to be told repeatedly that there was nothing the company could do to help.

“They preach these high standards about morals and empowering each other, but they let one of their top sellers — which isn’t a coincidence — they let her tear multiple people down. And she knows she won’t be touched because she makes them so much money.”

Elena P., another former consultant, confirmed LuLaRoe’s “culture of bullying,” but says that she decided to exit the company after an abrupt change to the terms of the company’s electronic sales system — which she says transferred an unfair amount of liability and responsibility to consultants —confirmed in her mind that the company’s operations were “shady.”

Elena says she felt more comfortable resigning from LuLaRoe, despite having thousands of dollars in unsold inventory, because of the 100 percent buyback policy, a claim that the Oct. 13 class action filing also says is true of other consultants.

LuLaRoe processed Elena’s resignation in July, before the company reinstated what it says was its original, 90 percent buyback policy. (LuLaRoe says the 100 percent buyback policy was a temporary waiver, only instituted from April to September 2017, but a document cited in the Oct. 13 filing says, “this policy does not have an expiration date, nor does it have a required time frame in which the product should have been purchased in.”)

She says she’d expected $5,500 back from her returns made to the company, based on the 100 percent buyback. After following LuLaRoe-outlined procedures for receiving refunds, Elena says she has still not been repaid.

But the overwhelming sense of community was enough to attract prospective consultants to sign on to the company, despite growing concerns about everything from defective inventory to buggy sales systems.

Julia (not her real name), a mother of two, became a LuLaRoe seller in spring 2016. “I got hooked,” she says. “I got caught up in the limited prints, and if you find something, you better buy it right away because you never know if you’ll find it in your size again.” She stayed up late, nursing her newborn in one arm and scrolling through LuLaRoe sales online with the other hand.

If that sounds excessive, Dr. Art Markman, a University of Texas Austin psychology professor, says it’s common for people like Julia to join a direct sales business when they’re searching for a community.

“One aspect of multilevel marketing companies is that they try to capture people’s aspirations. You have people who would like to be successful — particularly financially successful — and don’t see another route to that,” Markman says. “They tend to capture people who feel often like they don’t have lot of power in their environment, which is why a number multilevel marketing companies focus on women and minority groups. They harness the social element of it.”

We are back from an unforgettable cruise with amazing Retailers, friends, and our helpful Home Office! Our last day, we had trainings sessions, some more water activities, and an amazing closing party! ❤️ #LuLaRoe #cruisinwithLuLaRoe

A post shared by LuLaRoe (@lularoe) on May 8, 2017 at 11:56am PDT

Before Julia joined LuLaRoe, she had grueling night-shift hours, which stole time away time from her two young children. LuLaRoe seemed like a way out. A friend who was selling for LuLaRoe encouraged her. “She said she made $10,000 in sales in one month,” Julia recalls. “She kind of led me to believe that this was profit.”

Julia’s initial inventory buy-in was $8,000 (packages start at approximately $5,000) and she invested another $3,000 in supplies for her pop-ups, such as hangers and racks. She spoke to her sponsor, reached out to consultants she found on Facebook, and talked to fellow LuLaRoe sellers at a nearby church.

“There were all these success stories. … Everyone was saying how great and wonderful it was,” she says. “There was no negativity, no negative feedback. It was all positive.”

Tough love or debt trap?

It didn’t take long for Julia’s LuLaRoe business to spiral out of control. She had invested $11,000, and then couldn’t move all the inventory.

She attended a LuLaRoe convention (not free), thinking she’d learn how to be a more effective saleswoman. Instead, it “was a giant pep rally,” leaving Julia disappointed and without new information or tips on how to sell her inventory.

Critics in the closed “LuLaRoe Defective/Ripped/Torn Leggings and Clothes” Facebook group — the most populated group focused on LuLaRoe, with more than 45,000 members — echo the claims made in the Oct. 13 class action filing: that LuLaRoe touts itself as a women’s empowerment platform, freeing working moms from the merciless toils of corporate employment in favor of being your own boss. But the critics say the sacrifices constrict more than they liberate.

By the one-year mark, Julia says, she was in debt to the tune of nearly $30,000.

“Consultants were also encouraged to max-out their credit cards with inventory purchases, all of which would be refunded at 100 percent, plus free shipping, should the consultants decide to stop selling for LuLaRoe,” the Oct. 13 class action filing alleges.

“The consultants we have spoken to, on average, have $10,000 to $20,000 in inventory they are seeking to have refunded, but we don’t currently know the total amount of damages, which will be further ascertained through discovery,” says the class action litigator Eck.

Dozens of LuLaRoe consultants with LLCs filed for bankruptcy in the last year. And while that might seem like a small portion of the thousands of nationwide LuLaRoe consultants, those are just the ones that appear in the court records because they include LuLaRoe in the name, and only reveal the individuals who filed an LLC entity to protect their personal assets from bankruptcy should they go into debt selling LuLaRoe merchandise.

If those numbers still seem small, consider this, from a 2014 Al Jazeera report: “Among the victims of the 10 most common consumer frauds, those defrauded by pyramid schemes are by far the least likely to file a complaint, according to a 2004 Federal Trade Commission report.”

And the company’s publicly available income disclosure statement warns:

“Figures are not guarantees or projections of your actual earnings or profits. They do not include expenses incurred by Independent Retailers in operating or promoting their independent businesses. LuLaRoe makes no guarantee of financial success. … Your success will depend on whether you possess these qualities and, if so, how well you exercise these qualities.”

Trying to get out of LuLaRoe

Trying to leave LuLaRoe can be even harder than swallowing sunk costs. There are logistical issues, such as shipping back excess inventory and waiting months for refunds to arrive, assuming the changes to LuLaRoe’s buyback policy — which used to guarantee 100 percent of inventory in acceptable condition be refunded after return, but now offers up to 90 percent with numerous stipulations — don’t retroactively leave you stuck with hundreds of LuLaRoe items and no way to return them. (Once your exit from the company is processed, you no longer have access to internal resources or documents, the new lawsuit alleges.)

As an alternative, retailers looking to leave host going out of business sales — or GOOBS, as they’re frequently called on social media — pricing their inventory far below suggested retail prices to cut their losses.

But LuLaRoe prohibits its retailers from hosting such sales. When asked about the no-GOOBS policy, LuLaRoe said, “We encourage Independent Fashion Retailers who are going out of business to return their inventory to LuLaRoe.” LuLaRoe also asks its retailers to agree to a non-disparagement clause.

“They use bullying and scare tactics if you’re trying to get out,” Julia said. “It’s been very stressful trying to get out.”

As with the LuLaRoe Defective/Ripped/Torn Leggings and Clothes Facebook group, consultants with whom Yahoo Lifstyle spoke say there are other closed Facebook forums that operate as pseudo-support groups and safe havens for consultants looking to sell their merchandise quickly, and where they share stories about working as a LuLaRoe retailer.

The “Defective/Ripped/Torn Leggings and Clothes” Facebook group lists rules that include statements like, “Anyone caught trying to get a consultant in this group in trouble with compliance, their upline, whatever, will be banned from the group.” Yahoo Lifestyle confirmed with a LuLaRoe spokesperson that among the tens of thousands of members are LuLaRoe corporate employees who work as moles to monitor which consultants are breaking the rules.

Another closed Facebook group with nearly 20,000 members, called “Leave the Woe,” is focused on helping struggling, independent LuLaRoe retailers conduct GOOBS by connecting buyers with the LuLaRoe clothing they’re looking for.

Christina Hinks is a former LuLaRoe consultant who frequently writes about the company on her blog, Mommy Gyver. “If I’m offline for a period of time, not posting, people think LuLaRoe’s sent people out to kill me,” Hicks said to Yahoo Lifestyle in a May interview. She’s joking, but says LuLaRoe has sent her “veiled threats” of a legal nature to get her to stop posting on her blog. In September, LuLaRoe filed a petition for discovery against Hicks to compel her to reveal the sources who she cites in her own blog posts criticizing the company.

When asked whether it’s tough to leave LuLaRoe, Mark, during his interview with Yahoo Lifestyle in the spring — before the buyback policy changed — defended the company. “One of my absolute core philosophies is if we take your money, we owe you value.”

Detractors call LuLaRoe a pyramid scheme. They call the company evil, and they blame Mark and DeAnne. And yet, LuLaRoe says 90 percent of its retailers maintain their business today.

“There is no issue with people leaving the business,” Mark says. “If this is not for you, I don’t need to trick you into spending your money and staying here.”

As for Julia, she’s still trying to claw her way out. Somewhere along the way, her sponsor — once an enthusiastic LuLaRoe flag-waver — also left.

Read more from Yahoo Style + Beauty:

Angelina Jolie, One of Hollywood’s Highest Paid Stars, Wore an Affordable Everlane Outfit

Tiffany Trump Quotes Muhammad Ali in Stylish Memorial Day Photo

Teen Faced her ‘Biggest Fear’ and Wore a Swimsuit to the Beach

Follow us on Instagram, Facebook, and Pinterest for nonstop inspiration delivered fresh to your feed, every day. For Twitter updates, follow @YahooStyle and @YahooBeauty.

Alexandra Mondalek is a writer for Yahoo Style + Beauty. Follow her on Twitter @amondalek.

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#news #_author:Alexandra Mondalek #video #lularoe #hidden:vv_16x09:4032909c-f6ef-3ce5-a00a-db6274f66eae #_lmsid:a0Vd000000AE7lXEAT #lifestyle #_revsp:wp.yahoo.style.us #direct selling #_uuid:ba0470d0-f0d5-3c17-b336-818a1bd62828 #pyramid scheme #class action lawsuit #leggings

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typearls · 8 years ago

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Re: Entrepreneurship :2017 path to financial freedom

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On May 4, 2017 5:29 PM, "Christina Adegbaju" <[email protected]> wrote:

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The Company is rated 42nd in 2014 Direct selling news (DSN) top 100 mlm companies in the world. Longrich manufactures Top quality fast moving unique and highly effective products like Superbklean Anion sanitary napkins and pantyliners that helps to eliminate gynecological infections. Mosquito repellent sprays, Bamboo soaps, toothpaste, antiperspirants, energy cup, classy style energy cups, sheep placenta SOD body cream, Herbal/mosturizing body wash, mouthfreshners, hand cream,immune system boosting wine, calcuim, Vege fruits instant drink, decaffeinated cordycep coffe etc. HOW DO YOU BECOME A PARTNER? ENTRY LEVELS: (1) VIP -1680Pv(purchase value) N700,000 * (earn 1% share of global sales from 187 countries that Longrich operates from) + 12% weekly bonus! (2) PLATINUIM - 720PV N300,000 *(earns 12% weekly bonus) (3) GOLD - 240pvs N130,000(Promo Gold). N160,000-320pvs(Real Gold). *(earns 10% weekly bonus) (4) SILVER - 120PV - N70,000 *(earns 8% weekly bonus) You are allowed to select products of your choice worth your money! The catch is in achieving financial freedom through this opportunity offered by Longrich, if you decide to become a partner! Longrich offers greater profitability and flexibility! We have earners in 8figures weekly,Stockists in more states of the Federation and Entrepreneurs building their own biz empires! BENEFITS OF LONGRICH 1. Maximum of 3 legs 2. No time frame (no pressure) 3.No compulsory monthly purchases (target) 4. Weekly bonus payment {green thursday} 5. Grow at your own pace 6.Unlimited accumulation of bonus points 7. Leadership/getting to the Zenith with tangible results easily achieved. PROMOS Apart from bonuses paid directly into account every week based on your team's volume TRAVELS: The coy organizes minimum of three 'all expense paid' international trips annually for qualifying partners! In 2014, we had trips to Malaysia (FEB), USA (AUG) and China (DEC). In 2015 we had trips to Europe (France, Germany, Switzerland, Italy)- April/ Dubai(Feb)/Ghana official launch(May) USA(Aug), Singapore/Dubai(Oct)- China(Dec) - Homecoming Celebration! Etc CAR: There is a yearly Car promo, Longrich Int'l has awarded over 200 brand new cars within 4 years! HOUSE: 25Million naira worth of house is awarded from Star Directorship level! This money is accrued from your house incentive. You are simply expected to refer 3 people when you get started(could be family or friends) with the support offered by the team,those 3 people are taught ,trained and encouraged to duplicate their own team by using our social capital to build a community of entrepreneurs! In a nutshell, the business is fun, extremely exciting and rewarding! BONUSES 1. Performance bonus: Your entry status as silver(8%),gold (10% ) or Platinum/vip(12%) determines your earning power! PB is paid weekly on all generations till infinity! 2. Development bonus: (10% flat) paid on 2 of the highest PV(purchase value)per level! 3. Leadership bonus :( 10% - 45%) paid on sponsorship tree up to 12th generation according to your level/ranking 4. Retail order bonus: (25%- 50%) paid on retail/repeat orders! INCENTIVES 1. Platinum VIP incentive: (earn 1% of longrich global sales every cycle, can be converted to travel/car/house 2. Worldwide incentive: (earned from Diamond 4 level and above) 2.5% of company global sales 3: Star directors worldwide Incentive: (earn 2.5% of company's global shares) The earning potential in this business is huge, all that is required is DRIVE, PASSION, PERSISTENCE and ACTION. The earning percentages increases as you move up the marketing plan unlike in other networks that it decreases! Your earnings increases and explodes as your team grows, that's why it's possible for a distributor who has only been in d biz for only 6 months to earn 4m monthly! Qualify for trips and cars.... Performance bonus are paid on all generations till infinity. The compensation is superb and highly generous, and will lead to true financial freedom but you must WORK to achieve it, if you wait for a perfect condition, you will never get started, the best time to start is NOW..... BREAKING NEWS! Longrich Int'l now sponsors Star Directors for a 4 year (9 days per year) Executive MBA programme in USA! This mind-blowing opportunity takes effect from June 2015! This actually isn't completely new in LR, its just newly introduced to the Nigerian market! To God's glory we completed the 2015 session @ Regis University in Denver,Colorado. DON'T 4GET LR Int'l has 8 Research Institutes spanning across America/Europe and Asia...Abuja Nigeria loading for Africa!!! This isn't a 'Get-rich-quick Scheme' this isn't just Network Marketing(sales mentality doesn't thrive here) This is building capacity 4 that your Biz Empire that will announce your name to generations unborn! NOW is the time to step up your game cos The Biz has just Begun... Uy

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finance-guy · 8 years ago

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Can You Make Money With Avon

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In 1886 a door to door book salesman named David McConnell had an idea. He thought thought he could make more money door to door selling perfume than books, and he was right! More than a century later, his vision lives on as the company we know as Avon Products (NYSE: AVP).

Today, Avon is one of the best known self employment opportunities in the world. Mums, (and some dads) all over the planet have considered Avon as a way to earn some extra cash. Here at The Finance Guy, we decided it was time for a streetonomic review of Avon. We will find out if this is an opportunity for financial freedome, and will see how much the average Avon Representative earns.

Avon have a global network of close to 6 million Representatives who are contracted and paid through a network marketing system. Here at TFG, we believe that you can't make money with mlm, but we will review the Avon numbers and find out if Avon representatives are turning a profit.

How Much Do Avon Representatives Earn

Like all MLMs, Avon offers representatives the chance to work for themselves and control their own income. Avon is presented as an opportunity to take control of your financial future. Members will stand in line to sign you up, but our Avon review suggests that most Avon representatives are not making money!

After multiple Google searches, we were unable to find a valid link to any version of the Avon income disclosure statement. This made us ask if Avon is intentionally hiding the income details from the public. Therefore all the information in this review is based on the 140 page long, very publicly available 2015 Avon Annual Report

Our financial math review of Avon found that in 2015 most representatives did not earn much income. A summary of the maximum earnings per Avon representative, is shown below:

As we were unable to find an Avon income disclosure statement, we gave them the benefit of the doubt, and assumed that all Avon representatives were earning the maximum 50% commission on all campaigns. At maximum commission, the Average Avon representative earned less than $1,100 in retail commission in 2015.

Our calculations were based on the assumption that Avon had approximately 6 million representatives world wide (as stated in their annual report), and that all reps earned 50% on every sale from every campaign (so total commission earned by reps would be equal to the total revenue reported by Avon ). Even with maximum commission, the numbers suggest that Avon Representatives are not making a profit

Our calculations found that on average, Avon representatives made less than US $25 per week in retail commission. Does this sound like an opportunity for financial freedom? Let's not forget that we have not included any expenses. Avon reps need to pay for all the time, effort, brochures and materials used for promoting and delivering Avon products to their customers.

Retail profit is not the only way for Avon representatives to make money. Those who recruit and build a team of Avon Represents below them will qualify for incentives or 'Leadership Bonuses'. The amount of these payments depends on how much Avon products your recruits sell.

We once again used information found in the 2015 Avon annual report to estimate how much Avon representatives are earning from these incentives. Our findings are shown below:

Avon did not include the leadership program incentives as an item in their annual report. We have therefore assumed that these payments are included in total 'selling and admin costs'. Once again we decided to be as generous as possible and we assumed that this entire amount was paid out to Avon representatives. We estimated that Avon representatives earned average incentives of $590.53 during 2015.

Our review of the2015 Avon Annual Report found that after sales commission and leadership incentives, average Avon Representatives earn less than $135 per month from Avon. That is total income, not profit. To find the profit, we'd have to deduct all the time and money they spend in order to stay active and promote Avon. Our review suggests that after costs, most Avon Representatives are losing money!

Are Any Avon Representatives Making Money?

We have read posts which claim that some high level Avon representatives are earning upward of $2 Million per year. While we were unable to verify any of these earnings, we believe that they are true. Just like all MLMs, there is a small percentage of Avon representatives, who are earning a lot of money!

If you attend an Avon recruitment presentation from Avon, you will hear stories of high income earners. The presentation will claim that they are an example of what is possible for anyone. The truth is, that those who make money are the rare exception. Jon Taylor has proved that 99.7% of people who join network marketing companies, will lose money. This is shown in his free book 'Multi-Level Marketing Unmasked'.

Network marketing companies want you to believe that they offer the path to financial freedom. When they are prospecting for new recruits, they will focus on the 0.03% of people who are making a profit. These success stories are presented as an example of 'what is possible' if you join. These claims are true, it is possible to make a fortune through MLM, but it is highly improbable. Only 1 in 333 MLM members will ever turn a profit. Why would you invest yourself into a business with a 99.97% failure rate?

Is It Easy for Avon Representatives to Build a Team?

In any direct marketing system, the best way to make money, is to build down line. This is done by recruiting new members to the system. Once the people you recruit start making sales, you start earning commission from their sales as well as from your own. When your down line start recruiting new members, you will earn from all their sales, as well as from the sales of any new members they have sponsored.

If you join Avon, and you successfully recruit a team of new representatives, then you will qualify for Avon's Sales Leadership incentives. They will tell you that building a team is as easy as sharing the opportunity with a few friends and having them tell all their friends. In reality building a network marketing team is very difficult.

Avon claims that 2015 was a good year for team building. The annual report states that they made 'significant progress' by achieving ' Active Representative growth of 1%'. This was considered a success because they were able to 'reverse declines in Active Representatives'. This is not good news for Avon Representatives who are trying to become sales leaders. The annual report shows that during 2015, there was one new Avon Representative for every 100 existing Avon Reps.

Would you want to join a system if your chances of growing your team by just one new member per year is 1/100? Even if you manage to recruit lots of new members, there is no guarantee that your team will grow. Another major problem with Avon and most MLMs, is the extremely high turn over rate. In previous years Avon experienced 'declines in Active Representatives', which means that even though new recruits might be joining, there were more people quitting. If you want to be a sales leader with Avon, you will need to constantly recruit new members. Your first goal will be to replace all the members who quit or become inactive, your second goal will be to try and grow your team.

Why Is It So Difficult To Make Money With Avon?

Avon was once considered a great way for stay at home moms to make some extra money in their own time. Selling home delivered cosmetics from catalogues, was a great business model. It offered people the convenience of shopping from home, and allowed representatives to earn a living without venturing too far from their local neighborhood. Unfortunately Avon has not kept up with the times

Shopping from home is no longer a unique value added service. Thanks to the internet and companies like Amazon, there is very little we can't buy from home and have delivered within a few days. Avon's catalogue model is not competitive in the modern market.

It is possible to buy Avon online. Their website offers customers the option to purchase either 'directly from Avon', or 'with a local online representative'. Avon members can become 'online representatives' buy paying Avon extra fees. This will provide them with their own referral link so their customers can buy from them online.

The problem with being an online representative, is that Avon still requires you to deliver the goods to your customers. This means that unlike other online businesses, you will only be able to sell to customers who live within delivery distance of your home. You can't use the internet to promote your Avon business to new customers from all over the world. This is perhaps why most webpages run by Avon Representatives are designed to recruit new members, not to sell product.

If customers buy directly from Avon, they will pay the same price for the products. Avon will keep the commission instead of allowing a sales representative to earn it. This means that unless online representatives ensure that their customers use their specific links, it is possible that they will lose commission because of direct purchases. This means that instead of supporting members, Avon is competing with their own representatives for online sales.

Does Avon Help You Promote Your Business?

Avon does not do any marketing to the public. This task is delegated to the army of Avon Representatives. There is a wide range of promotional brochures and other marketing tools, but like the website, they all come at an additional cost to the Representatives. If you decide to become an Avon Representative, then you will be able to purchase products at wholesale prices, but will need to depend on your sponsor for any additional support.

Before you join Avon, you should ensure that you have a sponsor who is already successful, and can show that they are supporting their team. The 'upline' will be your main source of knowledge and support. For example if you join Avon through a website, it is quite likely that you will never meet your sponsor in person, and will probably not get a lot of support. Essentially you will be working on your own from from day one.

Why Do Avon Representatives Want to Recruit You?

If you speak to a current Avon Representative, they will do their very best to convince you to sign up and become an Avon Representative. They will parrot all the standard MLM claims about why Avon 'is the key to your future financial freedom'. It's unlikely that they will mention the fact that they are currently earning less than $25 per week from this 'key to financial freedom'. This does not mean that they are intentionally lying. Most active MLM members believe the that they are on the path to financial freedom, despite the fact that they are losing money!

According to the indoctrination, the key to success with Avon is in becoming a sales leader and recruiting new Avon Representatives. You earn income when your recruits make sales, so in theory, the more you recruit, the more you can earn. Avon Representatives want you to join their team so that they can make money from your sales. To be more precise, they are recruiting you to try and reverse their losses.

Avon Representatives are taught that recruiting new members is the key to success, ironically, the more they recruit, the less likely they are to succeed. The MLM model used by Avon, encourages constant recruiting of new Representatives with no regard to the existing market. When companies hire new salespeople, it's usually in response to a marketing strategy. They are either trying to grow into new areas, or they are reacting to strong demand from customers.

MLMs could learn something from the corporate world. As a corporate sales representative you'd be allocated an area or a specific product, or even given a portfolio of customers to look after. As an Avon Representative, you are selling the exact same products as all the other Avon Reps, and it's possible that they will competing with you for the same customers.

If you become an Avon Representative, you will essentially have your own duplicate version of an Avon sales business, offering identical products for sale. It's like going into a McDonald's, no matter where it's located, you know what you're going to get from the fixed menu. In this sense Avon is similar to a franchise. New entrants have a carbon copy of an existing business.

MLMs often claim to be similar to franchises, but they are not. Franchises are careful about opening new branches. They make sure that applicants are qualified to run the business and they will only allow new branches to open in approved locations. If McDonald's used the MLM system of expansion, they'd allow 7 new franchises to open in within 100m of an existing outlet. Then they'd tell the owner of the original one to be happy because they now have a 'down line'. In this example, we'd expect that the original outlet would see their sales fall by 87.5%, or 7/8, and all 8 shops would lose money.

By encouraging constant recruitment of new members, Avon is creating an unsustainable system. There are simply too many Sales Representatives, and not enough customers. If you are an Avon Representative, you should not consider recruiting any new members unless you have so many customers that you can no longer service them alone anymore.

Our Final Say

As an Avon Representative, you will have the opportunity to sell their products for commission. How much you earn is entirely based on your ability to make sales. If you are exceptionally good at selling, then it is possible that you can turn a profit with Avon, but you are more likely to make money from regular sales job. Very few people turn a profit from any MLM system. Unless you are near the top of the system or extremely lucky, then it is highly improbable that you will ever make a profit.

Avon has one advantage over most other MLMs in that they actively sell to retail customers. This means that Avon Representatives know right away that making money involves selling product to customers. Our review found that in 2015 the average Avon Representative earned less than $25 a week in commission. This should be a major red flag to anyone who plans on earning a living selling Avon

People join Avon with dreams of financial freedom and the hope of earning a little extra money. Unfortunately the vast majority of them will not make any money, and after time and expenses, most Avon Representatives will lose money.

If you are looking at joining Avon, or are already a Representative, we'd love to hear from you in the comments section below. Especially if you can share any success stories or advice for new Reps.

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