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Is LR Health and Beauty still a leader in European direct sales?

LR Health and Beauty is a health and wellness network marketing company that has been in the game since 1985.

From haute couture and European supermodels to hot bods and international superstars, this European company really understands the power of a good celebrity endorsement or two. Or ten.

Whatever they’re doing, it has worked for them so far.

So have I been involved?

This video explains:

 

All good? Let’s continue…

Overview

LR Health and Beauty is a German company that was founded in 1985 and is headquartered in Ahlen, Germany. They’re one of the biggest players in the European direct sales game.

Their mission is to “give every individual on the planet the chance to better their quality of life with innovative and high-quality products, an attractive business model for sales partners, and numerous opportunities for all employees.” Pretty generic.

LR started out as LR Cosmetics, selling just a handful of fragrances and body products. By 1989 they’d sold their 1,000,000th perfume. In 1991, they expanded abroad, opening up shop in Austria and the Netherlands.

Since opening shop over 3 decades ago, they’ve expanded to Australia, Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Faroer, Finland, France, Greece, Iceland, Hungary, Italy, Luxembourg, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey and Ukraine. Their presence in the U.S. is still minimal.

In 2001, they introduced dietary supplements and nutritional products.

They really understand the power of celebrity endorsement. When they launched in Australia back in 2005, they did it with Ian Thorpe, one of the country’s biggest superstars at the time. Since then, Bruce Willis has created his own fragrance with LR, Emma Heming Willis designed shoe clips for them, and the couple are the current brand ambassadors for the company.

After that, supermodel Karoline Kurkova created her own top-selling fragrance, as did Heidi Klum.

They hired a new CEO in 2015 – Dr. Thomas Stroffmehl, an entrepreneur with years of experience in direct sales and a doctorate in European law. He manages the company alongside Dr. Andreas Laabs, the CFO, and Thomas Heursen, the General Manager of Global Partner Relations.

In 2014, they hit 228 million euro in sales. [1]

Their sales shot up a whopping 15% in 2016, reaching 258 million euro for the year. [2]

In total, the company now operates in 30 countries with over 1,100 employees.

How much does LR Health and Beauty cost?

Turns out, there are no minimum sales or autoship requirements.

Products

LR now sells over 600 products endorsed by major celebs like Heidi Klum and Bruce Willis.

This company has been around for a while, so their products have been tested again and again and won numerous awards. Their Colostrum and Aloe Vera products have been awarded the INSTITUT FRESENIUS quality seal, which involves regular, rigorous testing of both the product as well as its raw ingredients and suppliers.

LR also sells the largest number of IASC certified products in the world, a non-profit agency that certifies the quality and purity of aloe vera products.

They’ve also got a team of experts on their Scientific Advisory Board and doing product development for them. Dr. Robert Llewelllyn Clancy, an immunology and microbiology professor at the University of Newcastle, Dr. Martina Kerscher, a renowned scientist from Hamburg University, and Dr. Werner Voss, the founder and head of dermatological research company Dermatest are all heading the Scientific Advisory Board at LR.

Products fall into all your typical health and wellness categories.

Stars & Perfume

Unlike most health and wellness MLMs, LR places a huge emphasis on their fragrances. They have lines of perfume created by all kinds of celebrities around the world.

Dietary Supplements

These are your typical nutritional supplement products that target a range of different health concerns. Popular products include…

  • Aloe Vera drinking gels
  • Mind Master Green Energy formula
  • Defense Probiotic12 supplements
  • Figuractiv shakes and meal replacement bars
  • Basic nutrients
  • Specific support nutrients that support specific health functions
  • Vital Aging Reishi Plus and Woman Phyto

Cosmetics

LR’s personal care and cosmetics products are created by their cutting edge cosmetic scientists and dermatologists and feature formulas that are exclusive to LR. Products include functional care, skincare, hair care, and decorative cosmetics.

Benefits:

LR products claim to have a range of benefits, including:

  • Anti-aging
  • Immunity-boosting
  • Weight loss
  • Improved skin

Their popular aloe vera drinking gels are basically aloe vera juice, which has been called a miracle drink as of late. According to some research, aloe vera juice may boost immunity, aid in weight loss and digestion, and simply make you feel better. [3]

Side Effects:

A study by the National Toxicology Program in which they fed aloe vera juice to rats showed that the juice produced carcinoegenic activity in the rats, creating tumors in the large intestine. [4]

However, don’t go off and tell everyone aloe vera causes cancer. There’s no evidence right now to show that drinking aloe vera juice regularly is harmful to humans.

Compensation Plan

LR offers a 40% trade margin on personal sales which is around 28.5% commission. It’s not great, but it’s better than a lot of MLMs (hint: Empowr, Divvee, or uBox).

They also have 3 different car plans if you’re looking for a new ride. LR holds contracts with LR Polo, Mercedes-Benz, and Porsche. While car rewards are rarely a good deal in MLM (it’s a lease, not a free car, and more often than not, you get stuck footing the bill), they might have one of the best.

Monthly bonuses on your sales and the sales of your team members can get you up to 21% commission.

Of course, they also offer travel rewards and incentive trips.

Consultants are encouraged to sell through party planning, direct sales to family and friends using catalogs, online, and at markets.

None of these are really great methods for making money online, especially if you aren’t well-trained and extremely skilled when it comes to sales.

LR offers next to nothing in terms of training and support. While it’s cheap to join as a distributor, you get what you pay for.

Recap

The compensation plan is decent, but they don’t bring anything new to the table. LR still relies on the same old party planning/family and friends methods for making money, and those just don’t work.

This MLM also only operates in Europe and Asia right now.

They’ve been around for a long time, and they’ve really established a name and some trust behind their brand. But there are still a lot of geographic limitations. If you’re in the U.S. or Canada, you’re basically out of luck.

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 peddling products to your family and friends.

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Multilevel Marketing

Zija review: Nutritional supplements from moringa

Zija is a nutritional products network marketing company capitalizing on the healthful properties of moringa.

In May 2017 they acquired Xango, making them a bigger force in the health MLM space.

Run by a pioneer inventor in the herbal supplement industry and propelled by a top Harvard scientist, Zija is setup to do big things.

Overview

We’ll take a look at exactly what Zija is celebrating. You’ll find out whether the science is there to support the claims made about moringa. You’ll also discover how well their International compensation plan stacks up in a sea that’s brimming with nutritional energy drinks (hint: Tru Vision, Isagenix, and Visi).

First let’s find out about moringa.

Moringa Oleifera is a tree found in the foothills of the Himalayas known for its drought-resistant properties (1). The seedpods are eaten in Africa and Asia. The leaves are the most nutritious part and are eaten in Southeast Asia. The flowers are said to taste like mushrooms.

There seems to be no question as to the high nutritional value of moringa. It’s a good source of protein as well as vitamins, amino acids, minerals, and phenolics (2).

But delve a little deeper and the clinical studies aren’t there yet for many of the claims made by Zija Interntional. More on that below.

Who is Zija International? The founder of Zija is Ken Brailsford. He is credited with inventing herbal encapsulation, and with helping to bring moringa to the supplement industry after watching a documentary about the health benefits of consuming parts of the moringa tree.

Mr.Brailsford is actually something of a “star” in the herbal supplement world. He started Nature’s Sunshine in the 1970s, to capitalize on his new herbal encapsulation methodology. He ran that until 1979 when he left to become a stockbroker because of a noncompete clause with Nature’s Sunshine (3). He later went back but fully retired in 1997 until he founded Zija years later.

The company is based in Lehi, Utah and boasts an executive team of “experienced MLM professionals.”  That would include CEO Rodney Larsen who was hired to promote the growth goals of Zija. Mr.Larsen has been with ZI since 2006 and his LinkedIn profile shows no other data before that year. Some Zija affiliate websites do mention that he worked for NEXX and a branch of NuSkin Entrprises before joining Zija.

President Brad Stewart’s profile mentions that he has managed his career “through vision and faith”. He has been involved in network marketing his whole life.

Executive Vice President Darrell Eyre started as an Amway distributor and has been in network marketing for 25 years.

COO Michael Hershberger has over 15 years experience in management and IT and an MBA.

The takeaway: apart from the Chief Operating Officer, Zija International is run by people who have pretty much always worked in network marketing. The founder is recognized as an important figure in herbal supplement history and founded one of the oldest and most successful herbal supplement companies in the world.

Zija International is a BBB accredited business with a rating of A+.

Products

The ZI products can be divided into three categories: moringa, ameo, and ripstix. Headed by  Harvard Medical School valedictorian Joshua Plant, the scientific wing of Zija International is actively engaged in formulating new products based on moringa and other botanicals.

Moringa is believed to support a wide range of health benefits, including anti-inflammatory support, improved digestion, improved mental clarity, increased energy, anti-aging, immune system support, and blood glucose level regulation. All of these benefits are listed on the Zija International website.

Scientific evidence and clinical trials, however, are hard to find.

There is one agricultural study  where mice and ruminants were given moringa tea. It was found that the white cell count in the mice who drank the tea was significantly higher. Mice also experienced reduced inflammatory responses.

In that same study, Moringa also improved cell viability in sheep and goats, and reduced oxidative stress from internal parasites. No effect on the gut health of pigs was observed, however (4). The results of this study have only been published informally to date.

The same Ag & Tech school that’s conducting that study is also looking into the use of moringa to promote animal health. Specifically, they’re researching moringa’s effects on the immune system (on B and T cells). In addition, they’re studying moringa’s effects on growth rate and performance of pigs. However, at this time it’s merely stated that more research is needed (5).

There is also a World Health Report citing the use of moringa in the use of water treatment in developing countries (6). But so far, not much has made it into the National Institutes of Health’s PubMed system.

The takeaway: moringa is incredibly nutritionally dense, but clinical studies are needed to support many of the health benefit claims made by Zija Interntaional.

Essential oils produced with clinical-grade standards and Zija’s exclusive patent-pending certification system.

Ripstix Hydration and Fitness Line – these are energy drinks in powdered form. Fitness supplements containing L-arginine (8) and electrolytes, they also contain fructose which some people try and stay away from.

Compensation Plan

There are tens of thousands of independent distributors working for Zija International. They have access to an extensive network of Zija training modules, including videos, an app, audio training, all of which is measured by a series of exams.

It’s the only MLM known to have a certification process for its distributors. Not only that, but every 90 days, distributors must re-certify. Passing exams means higher pay, too (7).

This is similar to how non-MLM companies handle their training. For example, public school teachers get pay raises when they pass graduate-level courses from accredited institutions of higher learning.

So what if Zija operates its own training, testing, and certification program in-house: it’s far above and beyond what you’ll see in other MLM companies.

Details:

1) IBOs profit by purchasing products at wholesale prices and selling them at retail (up to 25% profit).

2) Qualify to earn commission by being on autoship for at least 75 PV per month.

3) Get 10% of sales made by your personally enrolled recruits.

4) Team commissions and further bonuses as you advance in rank.

Recap

Zija appears to offer a good product. They have done a lot of things right and have a unique niche in the competitive nutritional supplement industry. But the income potential isn’t worth my time.

I’m not saying Zija International is a bad company – they’re not.

With any MLM, peddling products to your family members and friends at church might work for a couple months…maybe over a year if you’re lucky.

In the end, it’s still the sad story of selling hype and chasing the hot opportunity.

There is a better way.

Check this out. This will help wreck your money-chasing habits.

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