Is Mary Kay A Pyramid Scheme? [Unbiased 2022 Reviews]

So, is Mary Kay a pyramid scheme?

That’s the question many people are asking when they look for a review in 2022 so my goal is to answer that question and provide you with all the info.

In this Mary Kay (mlm) review, we take a closer look at what the company offers, how much you can potentially make, and whether it is worth trying out.

Before I start…

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Table of Contents

Introduction to Mary Kay

Mary Kay Inc is an American multi-level marketing company that sells cosmetics products. The company was founded in 1963 by Mary Kay Ash and is headquartered in Dallas, Texas.

It reminds me of other MLMs in the cosmetic industry like Scentsy and Farmasi that I have looked into before.

Mary Kay Cosmetics

The company’s primary product is skin care products, but it also sells fragrances, color cosmetics, sunscreens, and body care products.

In 2019, Mary Kay reported net sales of $4.5 billion dollars worldwide, with a workforce of three million independent sales consultants.

The company operates in more than thirty-five countries and territories.

The sales people, usually referred to as Mary Kay distributors or independent beauty consultants, sell their cosmetics and skin care products online or through demos and party plans.

Who’s Mary Kay Ash

The company was founded in 1963 by Mary Kay Ash, a woman who had previously worked as a salesperson for another direct-selling company.

Mary Kay Ash

She started Mary Kay Cosmetics with the goal of empowering women to be successful business owners. She’s featured on Entrepreneur.com if you want a more comprehensive take on her journey.

The company’s first product was a skin care line called TimeWise. The line was originally developed for use in hospitals to help patients heal after surgery.

Mary Kay Timewise

However, it quickly became popular with consumers and is now one of the most popular products sold by Mary Kay.

In addition to selling products, Mary Kay also offers opportunities for women to start their own businesses through its independent contractor program.

Women who sign up to be independent contractors can earn commission on sales of Mary Kay products. They can also earn bonuses for recruiting other women to become independent contractors.

The company has been criticized by some for being a pyramid scheme, but it has remained popular and profitable for many years.

What are the Mary Kay products?

The Mary Kay products are a line of beauty and skincare products. They include makeup, skincare, fragrances, and more.

Mary Kay Products

The Mary Kay product line includes many different types of products, such as:

– Makeup

– Skincare

– Fragrances

– Sunscreen

– Lipstick

– Foundation

– Powder

– Concealer

Mary Kay Compensation Plan

The Mary Kay compensation plan has three main elements:

Retail profit

Retail profit is the difference between the wholesale price of a product and the retail price. For example, if a product costs $100 wholesale and sells for $200 retail, the retail profit would be $100. The more products you sell, the higher your retail profits will be.

Royalty commissions

Royalty commissions are based on a percentage of sales volume generated by each distributor in your downline.

The percentage increases as you reach higher levels in the company.

For example, if you are at level one in your downline, you may earn a five percent commission on sales volume generated by distributors beneath you. But if you are at level two, you may earn a six percent commission, and so on.

Bonuses and incentives

Bonuses and incentives are additional rewards that you can earn based on your performance.

For example, you may receive a bonus for signing up new distributors or for meeting certain sales goals.

How Much Does It Cost To Join Mary Kay?

The cost of joining Mary Kay varies depending on the country you are in.

There are two main starter options:

Mary Kay eStart

With this, Mary Kay provides you with an online store.

Mary Kay eStart

You also get online education to help you grow your business.

Mary Kay Starter Kit

The initial investment to become a Mary Kay Independent Beauty Consultant is $100-$200 USD.

Is Mary Kay A Pyramid Scheme? [Unbiased 2022 Reviews] 11

This includes your starter kit, which has products and samples to help you get started selling right away.

There is an upgrade available in the form of the Consultant Sample Pack which has the most frequently used product samples.

Mary Kay Beauty Consultant Sample Pack

There is also an annual renewal fee of $50-75 USD, which gives you access to continued training and support from Mary Kay.

In addition, there may be other costs associated with running your business, such as buying products to sell or advertising costs.

Overall, the cost of joining Mary Kay is relatively low compared to other business opportunities out there.

If you are serious about making money with Mary Kay, then the initial investment is definitely within reach of most people.

How Much Do Mary Kay Consultants Earn?

The average Mary Kay consultant earned $115 per month in 2017. The median income for all consultants was $180 per month, and the top 25% of earners made more than $200 per month.

This is from 2019 in Canada:

Earnings

In order to qualify for commissions and overrides, a Mary Kay consultant must purchase $200 worth of product each month.

This is known as the “production requirement.” The production requirement is not pyramid-shaped, but it does create a pyramid of sorts. The more consultants a Mary Kay consultant recruits, the higher her commission rate will be.

The average Mary Kay recruiter earned $16,700 per year in 2017. The median income for all recruiters was $21,000 per year, and the top 25% of earners made more than $25,000 per year..

What is an MLM?

Multi-level marketing (MLM) is a business model in which companies sell products through a network of distributors.

The distributors earn commission on each sale they make, and they also earn commissions on the sales made by the distributors they recruit.

Multi-Level Marketing

The MLM model has been controversial for many years, with some people calling it a pyramid scheme.

However, there are some key differences between MLMs and pyramid schemes that you should be aware of before making any decisions about joining an MLM company.

For instance, in a pyramid scheme, participants only make money by recruiting new members into the scheme. There is no product or service involved, and the only way to make money is to convince other people to join.

This is not the case with MLMs, which typically sell a real product or service.

Pyramid schemes are illegal in the United States, and most MLM companies are not pyramid schemes.

However, there are some multi-level marketing companies that focus more on recruitment than selling products, and these companies have been accused of working like a pyramid scheme.

What is a Pyramid Scheme?

A pyramid scheme is a type of investment scam that promises unrealistically high returns and uses new investors’ money to pay earlier investors.

pyramid Scheme

A Pyramid scheme is often conflated with a Ponzi scheme, but they are different. The biggest difference between the two is that a Ponzi scheme only requires investment in something from members, promising returns at a later date.

Ponzi Scheme

A pyramid scheme, however, offers you the opportunity to “make” money by recruiting more people.

Most pyramid schemes share a common set of characteristics. For example, they

Promise high returns with little or no risk

These scams usually promise high, quick, or easy profits. You should be wary of anyone who promises you can make a lot of money with little risk and without much effort.

Require you to recruit new members to participate

You may be asked to pay upfront fees for the opportunity to earn these commissions by recruiting other investors, and you may be promised rewards for successfully convincing others to join the scheme.

Are unsustainable

Because pyramid schemes rely on recruitment of new participants to bring in money, they cannot continue indefinitely. Eventually, you will run out of new members to recruit thus the pyramid will collapse, and most people will lose their money.

Is Mary Kay a Pyramid Scheme?

Is Mary Kay a legitimate business or a pyramid scheme in disguise?

The answer is: no. Mary Kay is a multi-level marketing company, and like all MLMs, there is the potential to make money by recruiting new members to sell products.

MLM companies like Mary Kay are often wrongly accused of being pyramid schemes. A piece by Virginia Sole-Smith was on Harper magazine in 2012 accusing the company of misleading women.

In order to be considered a pyramid scheme, a company will recruit members while promising them they can make money solely through recruitment, not through selling products which is where Mary Kay clearly doesn’t fit the criteria.

Network Marketing in general gets a bad rep but ultimately there is a big difference between pyramid schemes and network marketing companies.

If you consider any MLM to be a pyramid scheme, then yes, Mary Kay is one. However, if you believe that only companies which focus solely on recruitment and have no real product are pyramid schemes, then Mary Kay doesn’t fit that definition.

If you’re considering joining Mary Kay, do your research to make sure it’s a good fit for you.

Mary Kay Allegations and Lawsuits

In recent years, Mary Kay has been the subject of a number of allegations and lawsuits. The most common allegation is that Mary Kay is a pyramid scheme.

Pyramid schemes are illegal in many countries, including the United States. Mary Kay has denied these claims, stating that they are false and misleading.

However, there have been a number of court cases that have ruled against Mary Kay.

In 2016, the Federal Trade Commission (FTC) filed a lawsuit against Mary Kay, alleging that the company was operating an illegal pyramid scheme. The case is still pending.

In 2019, another lawsuit was filed against Mary Kay by two former consultants. This lawsuit alleges that Mary Kay is operating an illegal pyramid scheme and is seeking class action status.

The Mary Kay company has denied all of these allegations and lawsuits.

Is Mary Kay Legit?

Yes we believe that Mary Kay is legit.

The Mary Kay company was founded in 1963 by Mary Kay Ash. The company is a direct sales company that sells cosmetics and skincare products.

Mary Kay is a multi-level marketing company, which means that its independent contractors earn commissions on the sales of their downline as well as their own personal sales.

The Mary Kay business model has been criticized for being a pyramid scheme. Critics allege that the only way to make money with Mary Kay is by recruiting new members into the business.

While it is true that recruitment is a key part of the Mary Kay business model, it is not the only way to make money with the company.

Independent contractors can earn commissions on personal sales, as well as royalties on the sales of their downline.

Mary Kay also offers incentives and bonuses to its Independent Contractors, which can help them earn more money.

Alternatives To Mary Kay

The Mary Kay pyramid scheme is a popular topic of conversation, and many people who’ve shown an interest in finding out more about it often question whether there are other companies like it.

There are a few alternatives to Mary Kay that you may want to consider if you’re looking for a new way to make money.

One alternative to Mary Kay is becoming an Avon representative. Avon is a direct selling company that has been around for over 125 years. You can sell Avon products online or offline, and there are no minimum sales requirements.

Another alternative is Rodan + Fields. Rodan + Fields is a skincare company that offers a variety of products for different skin types. You can become a consultant and earn commission on every sale you make.

Other MLM alternatives are Cutco Knives (specializes in high end cutlery) and Monat.

Conclusion

Overall Mary Kay is a legitimate company but it is certainly not without it’s issues. If you are thinking about joining Mary Kay, be sure to do your research and understand the business model. There are alternatives to Mary Kay that you may want to consider as well.

Is it a pyramid scheme? Technically no but there are people who would argue it is. The issue is that there are 100’s of similar companies and often network marketing / MLM style businesses all get tarred with the same brush.

Ultimately if you like the idea of it and want to give it a try you should do so provided you’ve done your due diligence.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

Go here to see my no.1 recommendation for making money online

(This is a 100% free training)

David Fortune

David Fortune has been the editor NoBSIMReviews.com since 2019. He is an expert at writing content on stock advisory services, side hustles, reviewing online business opportunities and many more topics. You can learn more about David on our about us page.

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