Many people are skeptical of direct sales organizations. They associate them with pyramid schemes or get-rich-quick-scams. Such skepticism is warranted as there are a lot of sketchy companies out there, but is Lilla Rose among them? Is Lilla Rose a scam?
There are essentially 6 “red flags” which signal that a direct sales company is a scam:
Red flag #1: High Enrollment Cost
If a direct sales company has a high enrollment fee, this is a sign that it could resemble a pyramid scheme, even if it is legal.
A high enrollment cost signals that there is a good chance the majority of your income will be made merely by getting others to sign-up, rather than through sales of a quality product to others not in the organization.
This is not healthy, and also a sign that once enrolled, you will be pressured into having to constantly bug your family, friends, and even strangers in the grocery store checkout line to get more and more people to enroll to sustain the pyramid.
When we look at Lilla Rose, however, we find a very low enrollment cost.
It is only $89 for the enrollment kit, and for that payment you receive over $300.00 worth of product, a free website, and an array of marketing supplies. There is a lot of value given in return for signing up.
Lilla Rose does not make a dime on the enrollment kits, nor do the consultants. This is a very good sign, and a great indication that it may not be a scam.
Lilla Rose also offers an optional add-on inventory kit at the time of enrollment, called the Fast Start Kit.
This benefit could be confusing when using the six red flags to evaluate a company for signs of a scam. It is a bigger investment, at $500, but it is not an enrollment kit, as one still has to enroll with the Party or Show kit. It is an inventory package, with over $1100 worth of product, so is an amazing deal on product, to help a consultant get off to a great start with inventory to sell at 55% profit!
And yes, their sponsor does make a nice $200 bonus on that Fast Start kit, but it is from sales of product, and not from the enrollment kit itself. This is an important distinction.
Red flag #2: You Only Make Income Through Enrolling Others
Similarly, even if the enrollment cost is not exorbitant, you will want to stay away from network marketing or MLM companies where your income is primarily generated through signing up others.
You should be able to make a good profit by selling product alone, without having to enroll a single person. Enrolling others should be icing on the cake; a nice bonus if you are wanting to make a higher income (and many times quite a bit higher!) but certainly not necessary for making a decent profit.
For Lilla Rose, this is exactly the case.
It is entirely possible to make a good income from selling product alone.
A consultant can sell at a craft show or at a home or Facebook party and make immediate profit and a good return on their investment of time.
Watch out if a network marketing company offers a piddly percentage of sales for your commission.
Obviously, it would be very difficult to make a good profit if you are only paid 5-10% on your sales.
With Lilla Rose, you are paid a hefty 30-45% on sales, with some opportunities to earn over 50%! This is a great margin for anyone in retail sales, let alone a direct sales company!
Of course, you are only one person and can only be in one place at a time, and only have so many hours in your day. Two people can reach more than one, so signing up more people to sell would definitely benefit you, and is recommended, but certainly not a requirement to make an income. This is a sign of a healthy direct sales company.
Red flag #3: No Outside Customers
If you are mostly going to be selling your product to yourself or other distributors in a particular model, you may want to reconsider. There must be third party customers buying the product for the direct sales company to be sound.
Yeah, it’s great if you think your grandma’s cookies are delicious, but if no one else does outside your family, it’s going to be hard to sell them. They’re not a viable product.
Lilla Rose, on the other hand, is viable, as the vast majority of sales comes from third party customers, and many repeat customers at that. People not enrolled as consultants with Lilla Rose love the products! This is a very good indicator that Lilla Rose is not a scam, but a legitimate business venture.
Red flag #4: High Quotas
If there is a high quota or a minimum amount that you are required to purchase yourself, beware, as you could lose a lot of money. If the company thinks their consultants have to be the ones making most of the purchases, odds are, the product or company isn’t that great.
Against conventional wisdom, you decide to start a cookie business with your grandma’s cookie recipe. You get your family members to be part of the business, and require them to buy 50 boxes a month, let’s say, since you need to cover costs and you don’t have enough customers.
This is BAD!
All the income is artificial because you are your only customers! If you want to make a real income, there can’t be a high quota or minimum amount that you have to buy yourself. More than likely, you’ll lose money.
Lilla Rose, on the other hand, has NO quotas.
There is no minimum to receive your commission or discount on your personal sales or to remain active. In order to earn bonuses off your team, however, there is a $200 minimum, but this is consistent with a sales-based business model rather than an enrollment-based pyramid model, and is actually a very good sign of a sound company.
Red flag #5: The Compensation Plan is Unrealistic
Closely check out the compensation plan. Is the pay-out realistic? Is it sustainable?
For example, if the enrollment fee is $300, and you make $100, not only on each person you enroll, but also for each person your team enrolls, where is that commission coming from? A company will not last long at that rate.
Lilla Rose has a very logical compensation plan based on percentages of sales, which is generous, but completely sustainable for years to come.
Consultants have the ability to earn a casual part-time income or a nice full-time income, based on their time, effort, creativity, and ingenuity.
Red flag #6: Product Is Not Unique and/or Overpriced
Beware of direct sales companies selling over-priced and unoriginal products. If the product is something you could get for less at Walmart, it will be very difficult to convince customers that they should buy from you.
Lilla Rose is not only extremely unique, but the Lilla Rose products are also very affordable!
And there you have it. Lilla Rose passes all 6 scam tests, so Lilla Rose is NOT a scam!
To learn more about signs of a healthy network marketing company, read Is MLM Really a Legitimate Business Model?
For more info on the Lilla Rose business opportunity, please read A Remarkable Opportunity.