Q&A
GENERAL

What does LR do?

Our mission is to give people a better quality of life and help them lead a self-determined life. We use our product solutions and attractive business model to give people the opportunity to earn an attractive (additional) income as independent sales partners by selling our product solutions and to build up their own business.


What does social commerce mean?

Our sales partners form a trusting relationship with the customer during the product consultation. They focus on the individual needs of the customer in the sales pitch. This relationship of trust is social commerce.


How are LR products distributed?

Our product solutions are sold to end customers by our independent sales partners. The special feature of our business model is that no other intermediary is involved in the sales process. Product sales take place exclusively between the sales partner and their customers.


PRODUCTS

How does LR develop its products?

LR has a research and development department at its headquarters in Ahlen. This is where innovative, needs-orientated product solutions are created based on the latest scientific findings and the power of nature. This enables us to improve people’s quality of life. More information


What factors influence the pricing at LR?

Various factors influence the prices of products in the upper middle price segment:


High-quality ingredients

  • LR uses carefully selected, high-quality raw materials.

  • Aloe vera products in particular contain a high proportion of aloe vera (often 90% or above), which increases their quality and effectiveness.


Scientifically sound development

  • Our products are developed in collaboration with scientists, dermatologists and nutritional experts.

  • Many products are clinically tested to ensure their efficacy and tolerability.


Strict production standards

  • Regular testing by independent institutes, e.g. Dermatest or IASC, guarantees the highest quality.


Made in Germany

  • The majority of our products are manufactured in Germany. ‘Made in Germany’ represents the very highest quality worldwide - and therefore also the high standards we set for our product solutions.


Personalised advice and service

  • Direct selling enable our trained sales partners to provide personalised advice to their customers.


Are LR products certified?

Yes, some LR Health & Beauty products have certifications or seals of approval to confirm their quality and safety. Here are some examples:

  • Dermatologically tested
Cosmetic products are dermatologically tested. We use our own LR ‘dermatologically tested’ icon to highlight the dermatological testing.

  • International Aloe Science Council (IASC)
The majority of the LR aloe vera products bear the ‘International Aloe Science Council’ seal of approval. This seal indicates that the aloe content, quality and purity fulfil the highest standards. www.iasc.org/certified_products

  • Additional tests and certifications
LR is committed to independent test procedures and laboratory tests to ensure the quality and safety of its product solutions.


The product details in the eShop provide information on which product bears the relevant seal of quality.


BUSINESS MODEL

Are there critical assessments of direct sales? How does LR respond?

LR has been operating an attractive and fair business model since 1985 that enables many sales partners to earn an additional income and achieve greater financial independence. We require our sales partners to demonstrate legally compliant and ethical behaviour. LR therefore uses a compliance management system certified by TÜV Rheinland.

TÜV Rheinland has therefore confirmed that we have established and implemented an effective compliance management system to fulfil the legal and official regulations and stipulations arising from our business activities. Violations of our ethical standards, laws, regulations or any other suspected unlawful behaviour or actions can be reported on our website. We will then take immediate action.


What are the requirements to become an LR sales partner?

No special qualifications or prior knowledge are required to become an LR sales partner. The conditions required to launch the LR business: persons of legal age, interest in the product solutions and official registration as a sales partner.


Does LR charge a participation fee to become a sales partner?

No, there is no participation fee to start working as a sales partner with LR.


How much money do I need to start my own business as an LR sales partner?

There are no obligatory product purchases when a new sales partner joins the company. However, a sales partner can start their LR business with a starter pack worth €150.00. The starter pack contains products worth €120.00 and sales materials worth €30.00.


Do sales partners receive a bonus for acquiring new sales partners?

No, there is no financial benefit to the recruiting party merely for recruiting new sales partners.


Can sales partners accumulate large stocks of goods to receive bonuses?

No. Sales partners are prohibited from accumulating stocks of goods.


Are sales partners allowed to return goods?

End customers in Germany have a 14-day right of cancellation (see terms and conditions in the eShop).

As LR is active in 32 countries, different regulations apply to our sales partners in their respective countries.


What determines the bonus of a sales partner?

The sales partner's bonus depends on their own turnover and the turnover of their team, i.e. the ‘downline’. Bonuses are awarded to sales partners who have a personal turnover of approx. €50.00 per month and who have taken part in a starter seminar.


How much do LR sales partners earn on average?

It is important to us that our sales partners have realistic expectations on how their business will develop. Being a sales partner at LR requires hard work, motivation and commitment. In our business, the earnings of a sales partner depend on their commitment, the time they devote to the business and their talent as a sales partner. Those who persevere will soon achieve an additional income of €300.00 to €2,000.00 per month. Their earnings can also be higher depending on their commitment, talent and the size of their network. For example successful LR managers achieve significantly higher returns.


COMPLIANCE

How important is compliance to LR?

It is important to LR Health & Beauty that the sales partners act in compliance with the respective requirements (legal, regulatory, contractual or other) at all times and that they minimise potential legal

risks in all areas of the company. Our aim is to create a respectful, cosmopolitan and tolerant environment in which people with different backgrounds and views can work together successfully.

LR has established a compliance management system (CMS), which has been successfully certified by TÜV Rheinland to ensure compliant and respectful working methods. TÜV Rheinland has therefore confirmed that we have established and implemented an effective compliance management system to fulfil the legal and official regulations and requirements arising from our business activities.


Does LR have behavioural guidelines that apply to different interest groups?

Yes, behavioural guidelines exist at LR to create a respectful, open-minded and tolerant environment in which people with different backgrounds and views can work together successfully. The foundation for all activities of the LR Group is our LR Code of Conduct for our employees and the Code of Ethics for our sales partners. It governs the behaviour and relationship of employees and sales partners with end customers, other direct selling companies and each other and represents a guideline for fair transactions with each other. The following topics are addressed among others: Equal treatment and equal opportunities, confidentiality and protection of business, property and assets, fair competition and regulations in international business, avoidance of bribery, corruption, money laundering or conflicts of interest. Violations of the LR Code of Conduct, the Code of Ethics, laws or other internal regulations will be penalised accordingly, depending on their severity and rate of recurrence.


What can you do to refrain from aggressive behaviour when cold-calling LR sales partners?

As a company with clear values and ethical principles, we attach great importance to ensuring that all sales partners know, understand, respect and comply with our Code of Ethics from the outset. We consistently investigate violations of the ‘Code of Ethics’, laws or other internal guidelines and reserve the right to take further measures in the event of repeated violations.


Is LR a member of an industry association? What are the advantages?

LR Health & Beauty works with various associations, including the World Federation of Directselling Associations (WFDSA), Direct Selling Europe (DSE) and the German Direct Selling Association (Bundesverband Direktvertrieb Deutschland - BDD). These associations specialise in direct selling and specify high ethical standards in the industry with which the member companies must comply. More information


How does LR deal with sales partners who violate standards of behaviour, such as partners who make unauthorised claims regarding healing?

We ensure that our sales partners are aware that health claims relating to food supplements and cosmetic products are only permitted within the legal framework. In particular, the stipulations of the Health Claims Regulation (Health-Claims-Verordnung), the Cosmetics Regulation (Kosmetikverordnung), the Therapeutic Products Advertising Act (Heilmittelwerberecht) and of competition law must be observed. Once we become aware of unlawful statements, we will systematically investigate them and arrange for the deletion of such. We reserve the right to take further action in the event of an offence.