Company Name: Lilla Rose
What Is It?
An MLM that offers an extensive range of hair accessories, including many that are unusual or unique.
Lilla Rose has the standard limitations of an MLM, including the reliance on team building and direct sales. Nevertheless, this company is one of the better MLMs out there, offering fairly unusual products at a decent price, and a simpler model than most.
There is a range of different direct selling companies that focus on the field of fashion and beauty, including those that sell jewelry, accessories and even clothing. But, Lilla Rose does take a different approach than most. In this case, the company’s focus is firmly on hair products and accessories.
Within this general category, they have a range of different types of products, including hair clips, hairbands, bobby pins and sticks.
I can see the appeal of the products that are on offer here. In most cases, direct sales companies tend to promote products that are easy to find elsewhere. This means that distributors face considerable competition from physical companies, in addition to competition from other MLMs and even from other distributors.
That’s not the case when it comes to hair accessories. Instead, there are relatively few companies that specialize in this area and many of the products are fairly similar to one another. In contrast, the products from Lilla Rose tend to be a little more unusual and even unique.
At the same time, it’s easy to imagine people buying many items from the company over time. After all, as is the case with jewelry, people often end up choosing accessories to match mood and outfits.
That pattern is most common when the products from a company are affordable and this does appear to be the case with Lilla Rose. In particular, most of the products on their site were under $20 and some were under $10. Plus, even the more expensive categories were reasonable. For example, most of their hair bands come in at around $24.
This might be more expensive than other brands and options. However, the price range is pretty good for this type of company and the products are cheap enough to encourage people to make multiple purchases.
The other important thing to consider is quality. It’s pretty much impossible to work out the quality through the company’s website and unfortunately, reviews for the products aren’t much help either.
This is because, in most cases, people tend to review the potential of Lilla Rose as a way of making money, rather than the company’s products. Additionally, many of the bloggers that do review the products are also distributors. So, it’s hard to tell how much of their information is real and how much is biased.
Nevertheless, I did notice that reviewers were mostly interested in the overall styles that the products offer, rather than the quality of the product. Overall, the reviews that I found did suggest that the product range works very well. However, take that information with a little caution, because many of the reviews contained phrases like this:
Still, there are thousands of types of jewelry and hair accessories being sold in stores and online every day, so there's no reason to believe that these are any worse than any other company's products. As far as products go, I approve!
In terms of products, Lilla Rose is one of the better options for an MLM that I’ve seen. I like the way that the products are reasonably priced and are also pretty unusual. Both of those areas are pretty big advantages if you’re trying to make money. But, the products are still only one aspect of the business. The actual opportunity that the company offers is just as relevant.
So, let’s take a look at that.
The first thing to note about the opportunity is that it’s party-based. This is a really common approach among MLMs targeted at women. The underlying concept is like the image below suggests, where distributors use gatherings as a way to show off the products and make sales. Ideally, this means that distributors are supposed to make sales mostly at the parties.
Those parties are a bit of a double-edged sword. On the one hand, people get to interact with one another, which creates peer pressure and they also get to handle the physical products. This can increase the likelihood that people will actually make a purchase.
But, on the other hand, this model also makes things much more complicated. One key aspect of the party approach is that the distributor hosts it at somebody else’s house. That person is called the hostess. Basically, that hostess gets various freebies and discounts based on the total amount of party sales.
In theory, this should work in the distributor’s favor, as it allows them to market the products to different sets of people, based on the friends of the hostess.
However, I have seen this done in the past and it often doesn’t work as well as you might think. Typically, the parties tend to attract similar groups of people, so you’re often marketing to the same people over and over again. That’s a real issue because people get less interested in the products over time and less likely to buy. How many times can you sell some hair ties to the same group of girls?
In many cases, distributors find that the first few parties that they hold are fun and easy to make sales at. However, as time goes on, getting people to turn up and actually buy something gets progressively harder.
Now, you can also make sales online through a website, which is always a nice touch. However, this is just a duplicate website, so you would have to manually drum up traffic for it, like getting friends and family to buy off there from Facebook. If you haven't sold stuff online before, that might not seem like a big deal, but as an online marketer, I can tell you that it's important your website is unique (especially the written content).
Interestingly, the site for Lilla Rose focuses on the rewards that people get for being a party hostess but offers relatively little information about being a distributor. This always bugs me about network marketing companies – they rarely give you the whole picture of what's happening, and you have to talk to someone inside the company, so your inquiry immediately turns into a sales pitch.
The Compensation Plan
Lilla Rose may not make its compensation plan evident on the site but thankfully there is still information online about it. Now, as MLMs go, this company actually has a fairly simple plan. Awesome!
The first part of the plan is income from profit, which looks like this:
This means that your percentage per sale goes up as your monthly sales increase. One nice thing is that you can actually hit the top percentage just from your own monthly volume, without building a team. That’s unusual for an MLM. With that in mind, you could theoretically make a decent profit from the company, although that does depend on the sales that you make.
Nevertheless, the real emphasis isn’t on your own sales but on building a team by recruitment. While it is possible to make money without doing this, most of the potential bonuses come from having a team. The basic structure looks like this:
Across the top of the image are the five ranks within the company. Each rank has its own set of requirements, including how much you are supposed to sell, how much your team needs to sell and how this is distributed among your team. Below those requirements is the percentage bonus you get from the ranks below you. So, as you get higher in ranks, your potential for income increases.
That model is the same across pretty much every MLM out there and it’s even where the term MLM comes from (it stands for multi level marketing).
Personally, I don’t like the model. It creates a lot of complexity and honestly, recruitment is never as simple as it sounds. Even simply selling to friends and family is a tough gig and many people find themselves alienating others in the process. Recruiting is more complex still, especially as most people you know aren’t going to have the time or money to invest in this type of business.
Nevertheless, I will note that the model for Lilla Rose is simpler than most. I’ve seen many MLMs where there are ten or more different ranks, along with more complex requirements for progressing through the ranks. Plus, Lilla Rose does offer more potential for making money through sales alone.
Companies like Lilla Rose make direct sales sound like an easy and fun way to make money and even be social. But, it’s important to understand that this isn’t the case. Regardless of the industry or the type of product, direct sales is no walk in the palk. This is even more difficult with an MLM, because you don’t have formal training in sales, plus you are trying to convince people to buy something they might not have even considered before.
Even if you do successfully manage to make sales early on, keeping that momentum is another challenge. In many cases, people will start to lose interest once they have purchased a few products from you. To keep the business going, you really need to be effective at finding new customers and also growing your team.
It certainly is possible to achieve all of this and within any MLM there are some people that do. However, it’s important to understand the challenges before you get involved, because many people simply do not have the social connections or skill to make money in this way.
Though I don't agree with the MLM business model as a legitimate way to make significant income, I see no major issues with Lilla Rose as a company. It's not something I would personally get involved with, but I can see how some people might enjoy it.
MLM VS Affiliate Marketing
Lilla Rose is one of the better MLMs out there, both in terms of the products and the compensation plan. In fact, this is one of the few companies that I would recommend if you insisted on getting involved with an MLM. Nevertheless, at the end of the day, it is still an MLM and that is always going to limit your potential to make money.
One of my biggest issues with MLMs is that they are needlessly complex and rely on selling to friends. There is so much that you have to worry about, especially because your income is tied to your rank and that can change one month to the next.
In contrast, if you use an approach like affiliate marketing, you don’t have to worry about a complex model at all. No selling to friends or family, no parties, no team building, and you don't have to buy product yourself.
Affiliate marketing is also much easier to learn and there is a lot of really good training out there. So, you actually get to learn the skills you need, rather than trying to guess.
The single best option when it comes to learning affiliate marketing is a training site called Wealthy Affiliate. This site is my key recommendation for anyone trying to make money online and it’s even where I learned many of my techniques. In fact, I’m still a member of the site today and I’m still learning new things as I grow my business.
Whatever type of product you decide to promote, it's important to own your own website to grow your business.
Parties only work if you have a network of friends with money in their pockets. Network marketing only works if your friends are interested in joining business opportunities.
With a website you can reach the entire world, and only promote great products to people interested in what you have to say. Plus, you open up doors to multiple streams of revenue like affiliate sales, ad click revenue, paid advertising, and even selling your own digital products.