Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to a take look into the extremely popular health and beauty market with my LR Health and Beauty MLM Review. The online sale of beauty products can be extremely lucrative with many making a good living selling items via online stores and affiliate marketing. Added to this obviously is the array of supplement based multi level marketing programs that are available. So, what is the LR Health and Beauty MLM all about? Let’s have a look and see…

What is MLM?

Multi-level marketing (MLM) programs are the traditional mainstay of the ‘party plan’ world of products such as Tupperware, Mary Kay and Amway etc. and, of course within the beauty and cosmetics markets. It is quite prevalent within MLMs as well – mainly due to the fact that much of the sales and marketing is now being managed online.

The ‘multi level’ aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign’ into membership arrangements as well.

In short, the process works as follows:

1. You join the program, either via referral from another person (known as your up line) or directly through their website.
2. You promote the products of the company via parties, workshops or online.
3. As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
4. That new member is then placed ‘underneath’ you in a hierarchical arrangement (known as your down line).
5. You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
6. If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.

The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.

Who are LR Health and Beauty?

LR Health and Beauty promote themselves as always believing that there is more in that “along with health and beauty what this means for us is: more freedom, more community, more family, more possibilities…” The company was founded was founded in 1985 by Achim Hickmann and Helmut Spikke and has grown to 29 international sales companies, 1,200 employees and thousands of independent sales partners making them one of the leading direct sales enterprises in Europe..

LR Health and Beauty is based in Ahlen in Germany.

What do they Sell?

As above, LR Health and Beauty work within the beauty products market basing their products around the Aloe Vera plant. From what I can see, there is not a real list on their website (unless I am assuming you join the program) so based on the images there these products include:

• Supplements
• Gels
• Skin creams, sprays and gels
• Cosmetics

And don’t forget the Bruce Willis endorsed after shave as well.

Check out my: Mannatech MLM Review

MLM Program outline

The LR Health and Beauty MLM program calls their members ‘LR Partners‘ who are part of what appears to be a very simple program with a basic retail and downline commission structure. That said, their compensation plan is not easy to find and I found a number of much older versions as well.

Anyway, here are the basics as I have found them…

Base Commission rate: 40%

Down line commission rates: 3 – 21% to 6 levels (level 1 down line is 3%)

Minimum monthly spend to qualify for commissions

To qualify for downline commissions, Team Partners (TPs) are required to meet monthly PV targets of at least 250 per month. This can be made of personal or customer sales. Base 40% sales commissions however can be earned without the need to meet or maintain sales targets.

Payment terms: Monthly.

Application required?: Yes, Application form on website.

Purchase requirements to join: Not stated on website

Marketing materials provided: Not stated

Within most MLM programs, rankings and commissions are determined by the total personal volume (PV) generated by the LR Partner and their down line within a calendar month with points assigned to each product. These point allocations can range from 50 to 100% of the retail price of each product (before tax and shipping) and vary from item to item and currency of sale.

In the case of the LR Health and Beauty MLM program, PV looks to be calculated at around 100% of the USD retail sales.

How can I get paid?

Ok, so from what I can garner from the compensation plan that I found, there are only 3 ways in which LR Partners can make money when they promote and sell LR Health and Beauty products – as always, please comment below if there is more to this or my information is inaccurate.

These are fairly straight forward and outlined as follows:

1. Retail Income

Retail Income is the difference between the retail price and LR Partner price that they will earn from their sales to Customers, which is a 40% discount on the sales price.

This means that a LR Partner purchases the product at a 40% discount and sells to their customers at the retail rate which equals the 40% commission outlined above.

I was unable to see if this can be done online and the compensation plan prohibits ‘dumping’ – i.e. selling for less than the retail cost.

2. Qualification

Again, from what I can tell, the Qualification aspect of the compensation plan is LR Health and Beauty’s version of the traditional unilevel commission structures prevalent within many MLM programs. Within the LR Health and Beauty MLM program, commissions are paid to 6 levels based on total PV sales of the LR Partner as follows:

LR Partners must meet sales targets of at least 250PV per month to qualify for the above payments.

3. FastTrack Bonus

As above, there is not a lot of information here however in general MLM terms, FastTrack type bonuses are usually paid to new LR Partners who advance through the ranks within their first 30 or 60 days or so as a member of the program. I am not sure what the timeframe is here but the bonus payments are as follows:

Car Bonus

Whilst again there is not real information here, the compensation plan also makes reference to a corporate LR auto program.

Ranking structure

PM International, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the LR Health and Beauty MLM program are as follows:

As is common with almost all MLM programs, rank progression is the total sales within the partner’s down line. Ranks can rise and fall based on the ability (or dis-ability) to reach the required member and sales targets.

What is good about it?

So, after a good look around the site and looking at all the options I could find, I do like the following:

• Commission rates for entry level sales are very good.
• Commissions can be earned without the need to meet sales targets.

What is no so good about it?

There are also some things to be aware of including:

• There may be some joining costs.
• Compensation plan is a little unclear and hard to find.
• There are not the large array of bonus options found within other MLM programs of this type.

How much can you make?

LR Health and Beauty does not provide an income disclosure statement on its website (that I could find) however as with most MLM programs, it has to be assumed from the compensation plan that the percentage of members making the upper rank levels – and hence earning a living – is very low (usually less than 1%).

My final thoughts

Look, MLM is not an easy platform to make money in and there is not much that I have seen here to put this program above the many others I have seen. However, the program does seem to have a very high base commission option so if you are passionate about these products (or aloe vera) with a large customer list at your disposal and the ability to generate good sales, then the 40% base commission rates might just appeal here.

Once you have joined, there are not the usual financial pressures of needing to make minimum personal purchases in order to qualify for commissions as long as you can make them within your down line. Although from what I can see, I think if you are going to succeed within this MLM program, you will need to have a good array of demonstration stock on hand. You may also need to bump up your personal purchase quota if customer sales alone are not enough for you to qualify for commissions and/or discounts within a particular month.

There is also not the array of bonus options found in many other programs of this type.

I was unable to locate any negative reviews in terms of non-payment etc. although there were some negative comments (not as many as most others however) about the quality of customer service and the MLM program itself – although it was not really anything that is uncommon in regards to MLM programs or products within this niche.

Conclusion

So there you have it, my honest review and appraisal of the LR Health and Beauty MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.

Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.

Do you want further assistance with any of the above or need help to build your own health and beauty based website?

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Until next time

Have fun

Paul

Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price. This may include sales made via Wealthy Affiliate.