Selling products in your spare time can be a tempting way to make a little extra money. It even sounds easy, right? You could work a few hours a night and sell a few products a week. But are these opportunities really as lucrative as they would have you believe? Longrich is one such company that sells a variety of health products that are of interest to almost everyone. In this Longrich MLM review, we’ll see if the products are a good way to make extra money. It’s a bit complicated.
What is Longrich MLM?
Longrich is a Chinese multinational company founded in 1986 by Xu Zhiwei using a multi-level marketing (MLM) business model. The company’s U.S. office opened in 2015 and is located in Cerritos, CA.
The company sells a variety of nutritional supplements, organic products, household and pet care products, and beauty products.
Longrich has distributors and stockists (specialty retailers) in more than 50 countries. The company has three manufacturing facilities in China and has opened another plant in Nigeria.
In 2018, Longrich generated $1 billion in revenue. The company is not just an MLM. The company also manufactures products for Unilever, Walmart, Marks & Spencer and Estee Lauder, to name a few.
Are Longrich Products Worth Their Price?
This is where it gets weird. I took a snapshot of the products on the website, as you can see below. The prices ranged from reasonable to pretty expensive. I mean, who pays $97 for a water bottle?
But when I wanted to see the descriptions of these products and what ingredients they contain, there were no descriptions. No descriptions and no reviews. So it’s impossible to assess whether these products are a good price or not. The lack of information makes me wonder.
Interestingly, there is a section for customer quotes on the website. But there’s only one customer quote. If the products are so good, why is there only one customer commenting on the great price and quality of the products?
The Longrich Opportunity
When you join, you buy a starter kit. Then sell the products to your friends, family, and maybe colleagues. For all the products you sell, you get a commission. You can also recruit people to join your team. In the case of Longrich, you can also choose to become a stockist instead of a distributor, which is explained below.
How Much Does It Cost To Join Longrich?
The website offers a $50 starter kit that appears to include toothpaste, activated charcoal soap, hand cream, body wash and white tea soap. Individually, these products cost $58 at retail, so you get a discount as a distributor. Unfortunately, you do not have the option to buy your starter kit at wholesale price.
Another cost you may not have thought of is the hidden expenses of doing business. These include phone costs, stationery, gas costs, the cost of maintaining your car, advertising on social media, and creating, maintaining, and hosting your website. None of these costs will be reimbursed to you.
Can You Make Money With Longrich?
There are a few ways to make money selling Longrich products. You can be a distributor or a stockist. This is how it works:
Distributor: sell Longrich products directly to consumers, online through social media like Facebook pages, Instagram ads, Whatsapp chats or create your own website where you promote the products. You also earn money every time you recruit someone to your team.
Stockist: To become a Stockist, you must be a Longrich Platinum VIP member and have at least 100 people on your team. Once you achieve this, you can become a Stockist selling products to both your team and customers.
The compensation structure is complicated. There’s a complicated ranking system. There are five tiers of rank for the entry level alone. The currency shown in the figure below is in Nigerian Naira. For comparison, 30,000 Nigerian Naira is equal to approximately $73.27 USD.
Distributors are paid each week based on their PV. Each time you sell a product, you earn the PV (purchase value) of that product. Once you earn enough PVs, you earn commissions. You also earn PVs on any products you buy for yourself.
Based on the information above, you would need to sell 17 tubes of toothpaste to earn 60 PV and earn $73.27 USD.
Once you reach the VIP level, you can use the collected PVs as cash and withdraw them to buy anything you want. 1% of the revenue is distributed to all active VIPs every month. VIPs also earn commissions through qualification levels and bonus levels. These levels may change from week to week.
Pros of Longrich
No Experience Required: you do not need to have experience selling products to join Longrich.
Many Ways to Sell Products: you do not have to sell your products exclusively in face-to-face meetings. You can also promote products through social media and your own website.
Earn More by Recruiting: The more people you can recruit, the more money you can earn.
Cons of Longrich
Complicated Compensation Plan: The compensation plan has several levels just for entry-level distributors. There are qualifying legs and bonus legs.
No Reimbursement: No expenses you incur in the course of doing business are reimbursed.
No Product Descriptions: There are no product descriptions listed on the Longrich website. This makes promoting products very confusing and difficult.
Short Cancellation Window: Customers can cancel their purchase contract for a 100% full refund within three business days. Unfortunately, the clock starts ticking the moment you place your order. So if you receive your order AFTER the 3-day window you are out of luck.
Customers Pays Shipping: Shipping costs for returned items paid for by the customer and all returns must be authorized in advance.
Is Longrich A Scam?
Longrich isn’t a scam, but it is a typical MLM. The emphasis is on the distributors doing all the work in selling the products and recruiting other members for their team. Recruitment is where the real money is, but only if your recruits can stay motivated long enough to make money for themselves and therefore for you. You can find many people willing to buy a product once, if only to help you. It is very hard to find people who will buy these products over and over again because they know they are probably overpriced so you can earn a commission.
Making money with MLMs is very difficult unless you are extremely good at selling and have a large network of people to tap into. But, in this case, you can also sell through Facebook, Instagram, and your own website.
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