My cousin sells lipsense part time, has two young kids. She made $50,000 last year selling Lipsense. I know this for a fact because I did her taxes and saw all her legit paperwork.
The reason I heard that it is sold as an MLM is that it was originally sold by some other method, I think through a shopping channel and it didn't do as well. It is applied and removed a little different than regular lipstick. The company decided direct sales through home parties etc. Would be more effective where they could be taught how to use the product correctly and sample different colors. It took off after that.