picture of senegence mlm headquarters

If you are researching the SeneGence MLM, then chances are that you were approached by a friend or family member who introduced you to this home based business opportunity.

They said it could allow you to make some extra cash from your home, in your PJs.

You might be intrigued at the thought of being able to make some extra money and perhaps finally get ahead in this expensive world.

But you’re also a bit sceptical.

After all, if something sounds too good to be true, it usually is, right?

So here’s the long and short of it:

The SeneGence business could potentially be a way for you to get filthy rich.

It’s true.

But it is NOT going to be easy, and it is NOT going to be fast.

Before we get into it, here’s what we’re going to talk about today:

  • How the company started
  • What they sell
  • How the business works
  • The compensation plan
  • How you can actually make this work

My hope is that after going through this SeneGence review, you will be fully informed and able to move forward with conviction, whether or not you decide to take advantage of this business.

SeneGence Company History

SeneGence was founded in 1999 by the current CEO Joni Rogers-Kante after raising money by successfully selling a chemist’s lipstick product called Ultralux. This product was later rebranded as SeneGence’s main product, now called LipSense.

The video below gives a bit of an overview of the company and how it got started.

The SeneGence company was initially based in Newport Beach, California. In 2016, the company leased a 50,000 square foot property in Foothill Ranch, California and moved headquarters to the new location.

In the first year of operation, the SeneGence business reported $1.7 million in revenue and $3.8 million the following year. Fast forward to today, SeneGence generates over $1 billion in annual revenue through over 500,000 distributors.

Since the company’s inception, they have been steadily expanding across the globe. In 2001, they opened a regional office in British Columbia, Canada. In the next few years, they opened offices in Australia, Indonesia, The United Kingdom, and Italy. 

Has SeneGence Been Sued?

Surprisingly, there are no SeneGence lawsuits of substance to be found. 

Most network marketing companies are magnets for lawsuits due to the fundamental misunderstanding that the general public has about the business model. MLM companies like Herbalife and Amway seem to be constantly bombarded with high profile lawsuits.

While there aren’t any lawsuits to speak of, SeneGence has still faced its share of criticism. 

An article published by The Outline in 2017 for example, stated this: 

The complicated pay structure may indicate that the company is close to being an illegal pyramid scheme.

This claim simply demonstrates the lack of the writer’s understanding of both network marketing and pyramid schemes, which are fundamentally different.

We’ll get to that later though.

SeneGence Products

picture of senegence products

Since SeneGence was founded, they have massively expanded the number of products that they sell. In fact, they have hundreds of products in their catalogue.

We’re not going to be covering the products in depth here today. We’d be here all day if we wanted to do that. 

Besides, you came here to learn about the business opportunity, right?

If you want to learn more about the products, there are many SeneGence reviews online that specifically cover the products in detail.

With that being said, let’s do just a brief overview of the SeneGence products.

As we alluded to earlier, the first product ever produced by SeneGence was the lipstick, branded LipSense.

To date, it is still their best known and most popular product.

But they sell a wide range of cosmetic products which fall into the following main categories:

  • Skincare
  • Anti-ageing
  • Makeup
  • Personal care
  • Haircare
  • Perfumes 

Is SeneGence Safe?

I don’t personally use SeneGence products. But if I was looking for a new brand of cosmetics, I would feel completely comfortable using SeneGence products.

They are produced in a highly regulated setting. Additionally, there seem to be very few major SeneGence complaints online.

One common complaint is that the LipSense lipstick seems to be “stickier” than other competitive brands… but that’s hardly a safety issue.

Where Is SeneGence Made?

SeneGence is made in the USA, which is another reason why I would be so comfortable using them myself and recommending them to you.

Is SeneGence FDA Approved?

This question doesn’t really apply since the Food And Drug Administration (FDA) doesn’t really regulate cosmetic products, though they have guidelines that need to be followed.

According to SeneGence, their products are made only with FDA approved ingredients.

Is SeneGence All Natural?

Yes. Not only are they composed of naturally occurring ingredients, but they also claim to not use animal by-products, lead or wax.

They are also cruelty free, meaning that no animal testing is involved in the development of their products.

Why Is SeneGence So Expensive?

Many network marketing products tend to be more on the pricey side. 

This is due to the direct sales marketing that is used to sell and distribute the products into the marketplace.

But at least you know what you’re getting.

Many products you buy in your local big-box retailer are much cheaper due to overseas bulk manufacturing, and extremely complex and convoluted supply chains.

Since SeneGence products are manufactured in the USA in a heavily regulated setting, it stands to reason that they would cost more money.

So, let’s talk business.

SeneGence Business | How Does It Work?

diagram of network marketing structure

As I’m sure you realise already, SeneGence is an MLM company, also commonly referred to as multi level marketing or network marketing.

So what does that mean? How does network marketing work?

First of all, SeneGence products are not available for sale in retail stores. 

Instead, they allow their customers the opportunity to become distributors for SeneGence and start their own business. 

This allows the company to save millions in retail fees and advertising campaigns. Instead of giving all that money to massive corporations, they choose instead to pass profits on to their own customers and distributors.

There are two things you would need to focus on as a SeneGence distributor:

  • Sell products
  • Recruit distributors

As a distributor for the SeneGence business, you would earn a commission for every single sale that you make.

You can also build your own team of distributors to sell products for you. This means that you would earn money from sales you make as well as every sale made by distributors on your team.

It really starts getting exciting when your team members start building their own teams…

Because you can earn income from those members as well, down to the 5th generation deep.

Jim Rohn used to say:

Profits are infinitely better than wages.

If you were to only earn money from your personal sales, your income would be capped. If you decided to take a break, your income would come to a grinding halt.

But if you can earn from the efforts of others in addition to your own, you can take a vacation any time and watch the paychecks continue to roll in.

After all, the richest people on earth became rich by earning income from the efforts of others.

Network marketing allows middle class folks like you and me to do the same.

So let’s talk about exactly how SeneGence pays you.

SeneGence Compensation Plan

There are four main types of compensation plans commonly used by network marketing companies, which include:

  • Stairstep Breakaway
  • Forced Matrix
  • Binary
  • Unilevel

There are definite pros and cons to each of these models which are outlined in my deep-dive network marketing analysis here.

The SeneGence compensation plan is based on the Unilevel model. 

diagram of senegence mlm compensation plan

The Unilevel structure allows you to build your team as wide as you want to, but you can only earn to a certain level of depth. In the SeneGence MLM, you can earn from 5 generations deep.

As a SeneGence distributor, you will need to achieve a certain level of sales each month in order to participate in the pay plan.

There are many nuances to the pay structure. The video below outlines exactly how it works.

Let’s answer a few common questions.

How Much Is A New Distributor Kit?

A New Distributor Kit is what you would need to buy in order to participate in the business. It will cost you less than $100, which really isn’t too bad.

The kit includes:

  • Getting started checklist
  • Beauty Books
  • Product testers and samples
  • Personal website
  • Business apps

Can You Really Make Money With SeneGence?

The answer is yes.

But it will not be easy.

Contrary to what you may have heard, network marketing is not a get rich quick scheme. It’s a long term plan. It will take extreme dedication, hard work, and a commitment to stick with it for the long term.

How Much Do SeneGence Distributors Make?

As with every other network marketing company out there, the average distributor does not make any meaningful amount of money.

This should be disclosed in the SeneGence income disclosure statement. Unfortunately, I was unable to find one.

no senegence income disclosure on their website

In my opinion, this is a bit of a red flag. 

And possibly even a legal issue.

The SeneGence average income is undoubtedly low as is the case with every network marketing company I’ve ever researched.

However, the earning potential is certainly there.

For example, one of the top earners in the company, Alicia Aldridge, earns roughly $900,000 per year.

That’s not a typical income and you should not expect to reach that level anytime soon.

What Percentage Do SeneGence Distributors Make?

The following information is outlined in more detail in the SeneGence compensation plan official document.

You will be required to hit certain sales targets in order to qualify for the full earning potential of the pay plan.

If you hit your targets, you will get paid out the following percentages from each generation of your team:

  • 1st Level: 10%
  • 2nd Level: 20%
  • 3rd Level: 30%
  • 4th Level: 5%
  • 5th Level: 5%

What Discount Do SeneGence Distributors Get?

As a SeneGence distributor, you will be able to purchase products for yourself at a 20-50% discount.

The size of the discount depends on the size of your order.

SeneGence Top Earners

According to the latest data available, there are not currently any 7 figure earners in SeneGence, but some people are making very good money.

The top 3 earners in the company are currently making about $900,000 per year according to data from BusinessForHome.org.

Their names are Alicia Aldridge, Cathy Hoolihan, and Elizabeth Howerton.

Is SeneGence A Good Company?

confused lady

Is SeneGence legit?

In general, I am a big fan of network marketing

In case you hadn’t realised that.

While SeneGence appears to be a legitimate company with some distributors earning hundreds of thousands of dollars per year, there are some red flags.

Why SeneGence Is Bad

Mainly, they lack transparency.

The fact that I could not find an income disclosure statement from SeneGence anywhere was the first red flag for me.

One of the other issues I have with this company, which is covered in this article from The Outline, is that distributors are highly encouraged to “front load” their inventory.

This means distributors are encouraged to buy a large amount of product as personal inventory, the idea being that “if you have skin in the game and you own the product, you’ll be more likely to sell it.

This is a fallacy, since many of the distributors go into debt in order to fulfill these “obligations” which often drives desperation in the long run.

And the worst mindset you can possibly have as a small business owner is that of desperation. People can smell it from a mile away and you will fail to be effective.

I should be very clear that the company itself does not require you to front load your inventory. Rather, it’s highly encouraged within the culture of the company.

Effectively it’s the same thing, but the SeneGence MLM company is shielded from a legal standpoint.

I’ll say it again… I am a big fan of network marketing in general. 

But I would not recommend SeneGence as a business opportunity for you.

Many SeneGence reviews will talk about only the good, or only the bad. I want to be transparent and give you both sides.

As talked about in The Outline article I mentioned earlier, some distributors quit the SeneGence business after it drove them deeply into debt… yet they continued to use the products for years afterwards.

So it really does seem as though they sell quality products, albeit through somewhat predatory means.

Is SeneGence A Pyramid Scheme?

pyramid scheme cartoon

Short answer?

No. The SeneGence pyramid scheme allegations are unfounded. 

SeneGence is MLM, or network marketing.

And there is a fundamental misunderstanding between network marketing and illegal pyramid schemes. 

Over the last few decades, there have been several large Ponzi and pyramid schemes that operated under the disguise of legitimate network marketing. 

When these illegal schemes inevitably collapsed, they received a ton of negative and very noisy attention from the media. 

And for good reason.

A lot of innocent and unsuspecting people got badly hurt.

The problem is that media organisations only reported on the crimes, but failed to educate the general public on how to avoid these scams. They never pointed out the major differences between illegal pyramid schemes and legitimate network marketing.

Instead, they made it sound as though these pyramids we in fact network marketing companies. This has caused the industry to suffer a major reputational hit over the last few decades.

So What Is A Pyramid Scheme?

picture of man contemplating

A pyramid scheme is simply a pyramid shaped organisation which requires you to pay a fee in order to qualify for a spot in the pyramid.

You will then be required to bring other people into the organisation so that you can get paid.

All you get for your money is a position in the pyramid… there are no valuable goods and services being sold into the economy.

This is really the problem.

If you have a “business” which doesn’t actually provide any value to the marketplace, then the market will not support that business. 

It’s simply supply and demand economics.

If you have a business selling bananas and you’re able to do it at a profit, the market will support that business because there is a demand for bananas.

People will come to your business and trade some of their hard earned money for bananas.

But a pyramid scheme does not provide value, which is why all pyramid schemes are doomed for collapse.

What Makes SeneGence Network Marketing Legit?

A legitimate network marketing company is actually not that different from a traditional business. 

They sell products into the real economy that people are willing to pay for.

It’s a value for value exchange.

People trade money (value) for products that they want or need (value).

The main difference between network marketing and a traditional business is the way in which the products are marketed and distributed into the economy.

Rather than using third party retailers, network marketing companies go directly to the consumer.

What About The Pyramid Shape?

Many folks get uneasy about the pyramid shape that a growing network marketing organisation starts to take on.

It’s a valid question.

But I challenge you to have a look at the organisational structure of a traditional business or corporation.

picture of the corporate pyramid scheme

Looks a lot like a pyramid scheme, doesn’t it?

Listen…

As humans, we will inevitably organise ourselves into hierarchies. It’s how we collaborate and work together. It’s truly what allowed us to evolve and climb our way to the very top of the food chain.

And any hierarchical structure will always take on the shape of a pyramid.

You see it everywhere:

  • Friends circles
  • Family
  • Small and large business
  • Churches
  • Government

It simply can not be avoided.

The difference between a network marketing hierarchy and that of the corporate world is that network marketing is inherently more fair.

If you are working in the mailroom of a large corporation, you will never earn more money than the CEO. Unless you are able to climb your way up the corporate ladder, displacing people all along the way, and take the CEO’s job for yourself.

With network marketing, you can certainly earn more income than anybody above you in the organisation.

If you sell more products, recruit more reps, and generate more revenue, you will earn more money.

You are paid purely for results rather than status.

Another Reason For SeneGence Scam Rumours

picture of unprofessional network marketer

Another reason why the SeneGence scandal or scam rumours are so pervasive is due to how the business is often unprofessionally represented.

Since the barrier to entry for network marketing is so low, many people will join the business for the wrong reasons.

Perhaps they think it’s some type of “get rich quick” scheme… at least initially when they first get started.

But they quickly learn that network marketing is a hard gig, and not for the faint of heart.

As they try and fail to sell products and recruit their friends and family, they start to become desperate over time.

This leads to them becoming pushy, annoying and obnoxious.

Their friends and family start to become concerned, thinking that they got roped into some type of cult or scam.

And I truly believe that this is where many of the SeneGence scam ideas are born.

How To Succeed With SeneGence MLM

picture of excited woman in front of computer

One of the most important things to understand about earning a long term sustainable income in network marketing is this:

Duplication.

Duplication in the context of network marketing is when you are successfully making sales and recruiting reps, and having successfully taught your team to do the same thing.

This is important because if you achieve duplication in your team, your team will eventually sustain itself and keep growing without any more effort on your part.

This is the holy grail for network marketing.

Imagine taking a month-long vacation where you don’t work on your business at all, but your income keeps coming in and maybe even grows.

That’s the dream, right?

Naturally, you might think that you would need to learn how to become a master recruiter and learn all the advanced sales and NLP (neuro-linguistic programming) closing tactics.

You might be tempted to focus on finding real estate agents or sales people for your business because you think to yourself, “They would be great for this business.”

But that’s actually wrong.

If you’re recruiting people into your group using advanced closing techniques and complicated internet sales funnels, how do you expect to grow a team of fifty to a hundred thousand people with the skills to duplicate you?

Remember, the real power and leverage to network marketing is that you can grow a group that will eventually keep growing your group (and income) larger and larger regardless of whether you put in any more work.

But most network marketers miss this.

If you convince somebody to join your SeneGence business using one of these advanced closing strategies, your new team member will probably be asking herself the next day…

“How did he convince me to sign up for this? I wasn’t even looking for a business opportunity! I could never convince somebody to sign up for this thing.”

Your new team member will quickly experience buyers remorse and drop out.

This is way more common than you might think.

But if you brought a team member into your organisation using a simple system that duplicates, she will likely have a completely different experience.

She might think to herself the next day…

”Wow, I really wasn’t looking for a business opportunity, but how lucky am I that this came across my path! It seems really easy to build this business, I could easily do what my sponsor does!”

There is a much higher chance that your new team member will stick around.

And if she uses the same simple, duplicable system that you used to bring her into the team, her people will likely feel the same way when they join the business.

This is what leads to massive duplication and a team so big it would make your head spin.

Let’s talk about three things that you need to understand about duplication.

I. This Is A Teaching Business

It truly doesn’t matter what works to recruit or sell products.

There are a lot of strategies and complex systems that work to recruit or make sales…

But what really matters in this business is what duplicates.

Would you rather have a sleazy car salesman in your group who’s stubborn and unwilling to change his ways…

Or would you want the Kindergarten teacher from North Dakota who’s teachable and willing to learn a simple system that works?

I’ve got nothing against car salesmen, by the way.

In fact I used to sell cars…

That’s why I can tell you that you want the Kindergarten teacher on your team, not the sleazy car salesman.

At the end of the day, this is a teaching business much more than it is sales or recruiting.

If you keep that in mind and teach your team members the same principle, you will experience much more long term success than the closing master that recruits 20 people a week but can’t get anyone to stay in the business.

II. Always Use The Tools

If your lips are moving, you should be directing someone towards a tool – Randy Gage

If you’re talking to a potential prospect about the business and she asks you a question, you should always defer to one of your third party tools. 

What do I mean by that?

The SeneGence MLM company will have tools available to you that you can use to help explain the opportunity or products to your prospects.

This might come in the form of a product catalogue, brochure, CD, thumb drive, or website.

So when you get a question…

You don’t need to know the answer.

You just need to know where to find the answer.

After you’ve been in the business for a while, you’ll start to know the answers to all the questions that you get.

I would still argue that you should continue to use your third party tools.

Don’t act like an expert (even if you are one) because that’s not very duplicable.

Your prospect will think…

“I could never do the business because I don’t have the extensive knowledge that I would need to be successful.”

But if you always defer to a third party tool, your prospect will realise that there’s no need to be an expert and that she could totally do this business, too.

III. Stick To The System

You will likely get to a point in your business where you start to think…

“There must be a better way!”

You’ll be tempted to go online and find ways to recruit and sell products on the internet rather than following the proven system laid out before you by your sponsor.

Now I’m not saying there’s anything wrong with using the internet to build your business.

I’m actually a fan of it…

Eventually.

Just don’t start there.

Initially, it’s very important to follow the system that has been duplicated by others in your company so that you can create duplication in your own team.

If you bring someone into your group and they see you floundering around trying to add people by spamming your social media, your people are going to notice this.

And they’ll try it too, rather than following a proven plan.

Just stick to the system and teach your recruits to do the same, until you’ve built a sizeable organisation.

At that point you could consider altering the system or adding to it.

But don’t think you know better when you’re first getting started.

For a full detailed guide on how to succeed with MLM, be sure to read this step-by-step guide to success in network marketing.

Building SeneGence Online

connecting with human through a computer

After you’ve built a sizeable team and you’re starting to experience some duplication, you could start thinking about using the internet to expand your business.

After all, we do live in a digital world so it would be silly for you to completely ignore the internet.

Here’s a quick outline of how internet marketing works and how you could apply it to your own SeneGence business.

It really comes down to 3 steps, although this is a gross oversimplification.

I. Create Content

This content can be in the form of articles, blog posts, YouTube videos, Twitter threads, Facebook posts etc.

The main objective is to provide a ton of value to your readers.

When your reader asks herself a question about network marketing, you want to be the first person who comes to her mind because of all the valuable content you’ve provided her online.

You’ve become a thought leader.

Oh and by the way, NEVER mention your company name online!

II. Build An Email List

You could offer some type of freebie to your content readers, like a free ebook, free weekly newsletter, free course etc.

If you’ve successfully built trust and become an authority figure in your readers’ mind, they will want your free gift.

The only way they can access it is to sign up to your email list.

III. Email Your List Regularly

After your reader joins your email list, you should continue providing value.

If the first thing you do after they join your list is to spam them with a business opportunity or product, they will immediately unsubscribe and you’ll never hear from them again.

But you have to make money, right?

So it’s OK to send out offers here and there, but do it sparingly.

I would say about 80% value and 20% offers is a healthy ratio.

I must repeat this though.

Don’t bother trying to learn how to build your business online unless you’ve already built a substantial team offline and are experiencing a healthy amount of duplication in your team.

There’s no need to overwhelm yourself more than you already are.

Don’t spread yourself out too thin.

Learn one skill first, get really good at it, and then add on another skill.

The first, most profitable skill in network marketing is recruiting and teaching…

Creating duplication.

For a full in depth guide on how to succeed with MLM using the internet, you can read this detailed digital marketing blueprint here.

SeneGence MLM Review | Conclusion

wrap it up meme

So the big question is, should you join the SeneGence MLM?

As you know by now, I am a really big fan of network marketing. I think it offers the little guy or gal an opportunity to get out of the rat race.

The type of opportunity that’s typically reserved for the “elite” in our society.

But whether or not you should join SeneGence is another question.

Ask yourself, do you have a real passion for beauty and makeup products?

Having passion is one of the most important things for anyone building a home business. It will allow you to persevere through the hard times that will inevitably come.

The very first network marketing company I ever joined was a health and wellness MLM.

It was a really good company, with quality products and wonderful people.

In fact, I still use the products every day over ten years later.

But I was never able to succeed in the business. I never made more than $500.

It was because I just wasn’t passionate about what I was selling. It made me ineffective when speaking to potential customers about my business and products. And as soon as things got tough, I didn’t have the passion to pull me through.

So if you truly have a passion for beauty products, this could actually be the opportunity you’ve been looking for.

But let me be brutally honest…

I can not in good conscience recommend this business to you for the reasons I outlined earlier. There are much better alternatives; companies who are radically transparent and sell world renowned products.

For example, you could have a look at Avon or Mary Kay.

But at the end of the day, it’s your choice.

I only hope that after reading this article, you will be armed with all the information you need to move forward with conviction and confidence, no matter what you decide to do.

If there are any questions that I failed to address, feel free to leave them in the comments section below and I’ll get back to you as soon as I can.

author: johnny

Written By:

Johnny Friesen

 

Just a blue collar guy passionate about finance, network marketing, and writing. When I'm not working on a car, you'll find me working on various side hustles and sharing my musings with the world.

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