Will SeneGence be the next Mary Kay?

Move over, Mary Kay. A former pink lady has started up her own cosmetics MLM, and she’s coming for you.

SeneGence hasn’t hit billion dollar levels yet, but they’ve built up some good hype around their products, especially amongst the younger crowd that giants like Mary Kay and Avon seem to miss.

So have I been involved?

This video explains:

 

All good? Let’s continue…

Overview

SeneGence was founded back in 1998 by a business maven named Joni Rogers-Kante.

According to her bio, this woman has been living that corporate America life since before she even became a legal adult. At the age of 16, she landed a position with the Sav-On Corporation, and by 23 she was an Assistant Manager. She kept climbing the corporate ladder, but then decided to move onto direct sales. She did some time with Mary Kay and, after becoming a top seller there, decided to go CEO and launch SeneGence.

SeneGence is headquartered in California. They’ve got an estimated revenue of $4.5 million, which is pretty low considering how long they’ve been around, but their LipSense product has lived up to the hype for almost 20 years now. People are still buzzing about it on social media.

The company has about 80 full-time employees. Their first international expansion was into Canada in 2001, then Australia in 2003. Since 2011, they’ve really been going global, opening up shop in the UK, Indonesia, Switzerland, and more.

SeneGence also has a pretty committed philanthropy arm, which is refreshing to hear. Their non-profit unit is called the Make Sense Foundation, and they’ve really been picking up steam lately in terms of fundraising. All of the money they raise goes toward women and children in need.

Their name comes from the combination of the words senescence (the aging process), intelligence, and synergy. Cute.

How much does SeneGence cost?

$55+.

The initial sign-on fee to become an independent distributor is $55. After that, you can purchase either the $95 Lips Kit or the $295 Glamour Demo Kit if you want to have some product on hand (which you do, because no one wants to buy makeup they can’t test).

On top of that, you have to place a minimum order of 300 PV in order to qualify for commission.

Products

SeneGence sells cosmetics products, and their gimmick here is long-lasting. They sell makeup that is meant to be all-day, semi-permanent, and water-resistant, and their product lives up to the claims.

LipSense, their flagship product, is a lipstick that never smudges and lasts up to 18 hours. You’ve probably seen it on social media before, because it’s everywhere. If you’ve ever seen a video of a beauty blogger with bright lipstick on using one finger to try and smudge their lips to no avail, that’s LipSense.

Of course, they have plenty of other products that fall into the following categories: skincare, anti-aging, face, eyes, lips, and body.

Prices aren’t cheap but they aren’t totally unreasonable. Distributors actually price products themselves because they make retail profit, so there are no prices listed on their website. However, for example, most distributors will sell one LipSense lipstick color for $25-$30.

Again, not cheap, but on par with designer makeup brands.

Opportunity

Like so many MLMs, a lot of people end up getting pulled into SeneGence because they like the products and want product discounts.

Your exact product discount rate will depend on how much you sell per month, but there are some pretty good rates if you can make the sales…

  • 0-99.5 PV: 20% discount
  • 100-299.5 PV: 30% discount
  • 300-749.5 PV: 40% discount
  • 750 PV or more: 50% discount

The compensation plan doesn’t disclose exact retail profit on personal sales, but it’ll depend on how you price your product and how much you sell (as shown above).

Basically, you get a discount on product and then resell it at a marked up price. If you can hit 750+ PV per month, you’re sitting at a 50% commission rate, which is fantastic. Mary Kay is just about the only MLM that can match the personal commission here.

Residual commission is paid on a unilevel structure up to 5 levels deep. You earn on your downline’s purchases and sales volume.

Your level 1 is your personally recruited affiliates, level 2 is their personal recruits, etc. Commission rates all depends on how much you sell.

Commissions on the purchases of your team are as follows…

If you purchase 100 PV, you get 10% on your level 1, 20% on your level 2, and 30% on your level 3.

If you purchase 200 PV, you get 10% on your level 1, 20% on your level 2, 30% on your level 3, and 5% on your level 4.

If you purchase 200 PV AND recruit at least 5 affiliates who qualify for commissions, you get 10% on your level 1, 20% on your level 2, 30% on your level 3, and 5% on your levels 4 and 5.

It’s a little harder to qualify for high residuals on the sales volume of your downline, but it’s also organized in a unilevel structure.

If you can sell a lot AND build up a large team who can also sell a lot, you can start earning residuals five levels deep that total 25%.

You need to build up a big following/team to make good commission rates, but the compensation plan isn’t half bad. There’s definitely room to make money here.

Recap

SeneGence has been around for a while, they’ve got a flagship product that’s well-liked and actually works, and they’ve got a pretty good comp plan. Imagine that.

But, their revenue still isn’t anywhere near where it should be, and 99% of their distributors still aren’t seeing any money at all.

The reality is, even if you do have great lipstick, it’s hard to get people to shell out $30 for one color, let alone more than one. Even if you convince people to buy a three or four, you’re still only making like $30, maybe $40 bucks. But it won’t be easy. Many distributors complain that they’ve held party after party and can’t make a single sale.

Plus, your start-up costs are huge if you really want to go all out. You’ll need to have samples of every color, which will cost hundreds.

The only way to make good money here is to already have a following in place that will open up their wallets and sign a contract every time you recommend it. If you’re a famous beauty blogger, a YouTube makeup artist, or a super popular instagrammer with 20k+ followers, go for it. This could be a good opportunity to make some money.

But if you’ve got a following that big, there are ways to make a lot more without dropping your dignity.

If you like passive income streams, there are much better opportunities out there.

In other words, you might like our training because it teaches the “good life” without selling products to your family and friends.

See our top 22 small business ideas of 2017

Click here

Lizzie

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