Are Multi-Level-Marketing Companies Like Mary Kay Building American Dreams?…Or Destroying Them?

As with most multi-level-marketing companies, Mary Kay Cosmetics’ sales force “is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit.”

All-too-often, Mary Kaybots are loathe to admit that their pink pyramid is nothing more than a multi-level-marketing scheme.

In fact, Mary Kay and its predatory sales force work hard at convincing its victims that Mary Kay is not a multi-level-marketing scheme by euphemistically calling it “dual marketing“–which, according to this definition, Mary Kay is not a dual marketing company.

The fact is, there is little difference (other than the product) between Mary Kay Cosmetics–except, perhaps, its predatory tactics aimed primarily at unsuspecting women–and any other multi-level-marketing company.

According to the Federal Trade Commission:

In multilevel or network marketing, individuals sell products to the public — often by word of mouth and direct sales. Typically, distributors earn commissions, not only for their own sales, but also for sales made by the people they recruit.

Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money. [Emphasis added.]

In this CNBC video, the multi-level-marketing industry is examined and multiple problems exposed. While Mary Kay Cosmetics is not specifically mentioned here, the facts presented can be applied to just about every multi-level-marketing company–including Mary Kay.

Related:

• Federal Trade Commission: The Bottom Line About Multi-Level-Marketing
• Mary Kay By The Numbers: Shedding Light On Mary Kay Cosmetics’ Pathetic Pink Pyramid
• Forbes: Mary Kay Preys on Women
• CNN Money: The money behind Herbalife, Mary Kay and others
• Life not so rosy for women selling Mary Kay cosmetics
• Mary Kay Ladies Are Really Just Pawns in a Pyramid Scheme

FTC Testimony – 99 Percent Lose Money in MLMs by MaryKayVictims

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