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Younique Pyramid Scheme: Is What Younique Does Really Illegal?

The Younique pyramid scheme is among the most discussed topics online.

Younique is an advanced cosmetics company.

The beauty industry is an extremely competitive one today.

Almost everyone wants to look pretty.

They want to use quality products and enhance their natural looks.

A lot of companies are cashing in on the huge demand.

Even in the direct marketing space, you have quite a few contenders.

You have many aggressive and successful companies like Mary Kay and Avon.

Younique too is latching on to the trend actively.

Just like the others, it is looking to reach maximum customers through the MLM route.

So, how profitable is the Younique pyramid scheme?

Does it really deliver the returns that they promise?

That is a crucial question.

That will determine whether it is worthwhile to invest in this story.

Younique Pyramid SchemeBut first of all, let us understand how the business fundamentals pan out.

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The Younique Brand

This cosmetics company was started in 2012.

It was started by a brother-sister duo, Derek Maxfield and Melanie Huscroft.

They created the company with the goal to empower women across the world.

The idea was to use women&8217;s product to help women gain financial independence.

They targeted women to achieve personal and financial success on the same platform.

They offer a wide range of cosmetics from face products to eye make-up.

Their range also incorporates many different lip solutions.

The price range that they offer is rather interesting.

It is not very expensive despite its direct selling model.

After all, this is not an over-the-counter product.

You need to contact specialized representatives who sell these exclusively.

Nevertheless, the average prices range between $10-29.

That makes this product extremely affordable for many users.

In many ways, this has also helped in generating a strong response to it.

If you search on the internet, the average response to their product is also satisfactory.

The specialized options are also very well taken.

The Moonstruck 3D Lashes+Mascara claims to increase lash volume by 400%.

Though there is no way of verifying it, the user&8217;s reviews are all positive.

Again, some site mentioned that most of these reviews are by representatives.

All said and done; this company is picking up the pace.

Though they do not publish sales data, 2015 numbers indicate a steady rise.

By the end of 2015, they have been recording monthly sales north of $50 million.

That makes you wonder whether it is worth investing in?

Well, here is a quick review of some of the key features of this business model.

Younique Pyramid Scheme: Growing at a Steady Pace

Often the problem with a pyramid scheme is there is no product.

The creators generate a revenue scheme practically out of nothing.

But with the Younique pyramid scheme, that is surely not a problem.

They have a pretty thriving product range.

What&8217;s even more encouraging is that these products have been a roaring success.

So, it is a legitimate multi-level level marketing unit.

Unlike illegal pyramid schemes, you can trace the founder.

Younique even has a registered office.

The company is also expanding its business.

That highlights the widespread acceptance of its offerings.

There are many who could raise questions about the MLM model too.

But as a business proposition, the response to this business model is positive.

Currently, Younique employs over 450 employees.

They have more than 500,000 representatives or distributors globally.

In fact, nearly 1000 distributors joined the company within 9 months of their launch.

In the UK, they signed up their first 1000 distributors in 30 minutes flat.

Not just that, their business is also growing at a steady pace.

They are handling competition from major players like Avon and Mary Kay very well.

According to 2015 data, they were the fastest growing cosmetic firm among MLM.

This is in a situation where Mary Kay operates with 3 million distributors.

Avon&8217;s annual sales have crossed $10 billion point.

But, Younique has still managed an impressive growth rate.

That speaks a lot about the business fundamentals of the organization.

It stresses the overall acceptance and product quality.

So, even if this is a pyramid scheme, it is making money.

Betting on Natural Products

You can see that they are targeting the market appropriately.

What do you think about when you go out shopping for cosmetics?

Well, you want fairly effective products.

You would avoid too many chemicals.

You want more herbal and natural options.

Also, you want something that enhances your beauty rather than ruining it.

Well, look at Younique claims.

They are making all the right noise.

They are marketing these cosmetics as inspired by nature.

Also, they are formulating products without gluten, parabens, BPA and many harmful chemicals.

Well, you can say this is what the company claims.

Does it make them that effective?

Perhaps, not completely, but at the same time, they surely have some positive effect.

The company cannot record such steady sales without delivering some results.

So, I would say that even if they are using chemicals, it is monitored carefully.

If a product is not effective, people won&8217;t buy it more than once.

The Moonstruck mascara alone sells over 15,000 units a day.

So Younique has identified its customer concerns appropriately.

They are also taking the required steps to get the best results.

Starter Kit a Major Incentive

But all said and done; is there latent value in the Younique pyramid scheme?

That is the primary concern.

Well, think about it; what entices anybody to a multi-level marketing program?

Basically, it is the payment terms, the investment.

But most importantly, it is the return prospect.

Essentially, the return is calculated by the kind of money that is invested.

In this context, the Younique starter kit is worth mentioning.

There is nothing striking in the one-time.

The registration fee at $99 is at par with most other cosmetic companies.

But, the incentive is in the details of it.

Representatives or distributors don&8217;t have to buy anything up front.

Their initial investment is only this $99.

They are not saddled with inventory worth couple of thousands.

Instead, they get products worth $250.

This also includes the mascara that made the company famous.

Apart, there is a comprehensive range of samples and product offerings.

The presenters can use these at their convenience.

You can also offer samplers to potential clients.

This will help them better appreciate the product quality and buy more from you.

Even if you don&8217;t delve into these details, it sure is a lucrative deal.

For $99, you get products worth $250.

So, you are getting a 100% return on your money instantly.

If you want to join a pyramid scheme to earn money, this is a great offer.

Easy to Understand Compensation Plan

The compensation plan created by the Yonique pyramid scheme is also quite interesting.

This addresses one of the most significant problems posed by pyramid schemes.

Invariably, the compensation plan is rather confusing.

But, with Younique, this problem is sorted out quite simply.

The presenters are classified into different groups on the basis of the sales.

The compensation plans group them in different colors.

This helps anyone understand the different categories rather easily.

White is for starting level, and black is the final milestone.

You get additional perks and commission with every jump.

The rate of commission is less or perhaps at par with most leading players.

Mary Kay offers 50% commission as compared to the 20-30% that Younique pays.

But, the real deal clincher is the royalty amount.

As you go up the hierarchy chain, you definitely get higher royalties.

That means you can easily make money through this means.

You Have to Recruit to Earn Profit

However, this clarifies why a lot of people are against the Younique model.

If you want to earn a reasonable amount, then you need to recruit more people.

That undeniably is the only way to make sustained gains.

Recruitment more than product sales is the source of sustained revenue flow.

That alone can help members at the bottom of the chain to earn money.

If you are looking for a potential reason why you don&8217;t want to join, this could be one.

If you want to treat this at par with another job, you have to recruit aggressively.

In case you just sell products worth $10,000, you can only make a little more than $2000 a month.

So, without recruiting, you can only earn an annual salary of $30,000.

That too, without tax deductions.

Once tax liabilities are deducted, you are left with very little.

Let&8217;s face it; selling $10,000 worth products is not simple every day.

You have to put in at least 10 hours every day, and even then, there is no guarantee.

The real bump in salaries comes in when you recruit people.

The more you recruit; the better is the rate of returns.

You Get Faster Payment in Younique Pyramid Scheme

But, the advantage is you get paid a lot faster.

You don&8217;t have to wait for months to get your commission.

For many, the instant payment could be a major factor.

A quick survey indicates that for many, getting paid immediately is more important.

They assign greater importance to this over a pay rise.

So in that context, Younique offers a favorable deal with its customers.

The point is, whatever you might be earning, you have to get the money when you need it.

The Younique pyramid scheme has quick pay option.

As a result, the payment gets deposited in the presenter&8217;s account within 2-3 hours.

They also don&8217;t have to deal with the money transfer.

Younique provides then with a unique debit card.

With this, they can directly withdraw money from their own account.

So, you are able to withdraw the money almost instantly.

This can be very handy at the time when you need large sums immediately.

It allows you to take advantage of ready cash.

If you compare with Mary Kay or even Avon model, this is far more profitable.

A Credible Cause

The lack of credibility is one of the biggest problems with a pyramid scheme.

Almost invariably pyramid schemes are considered shady.

They are assumed to be run by unscrupulous people ready to cheat you.

The lack of a product or authentic information exacerbates this problem.

But with the Younique pyramid scheme, the realities are very different.

You just don&8217;t have a thriving business model, but also a credible cause.

Part of the cosmetic sales revenue is given to the Younique charity foundation.

According to co-founder, Huscroft, this was one of the triggers for starting Younique.

The Younique charity foundation helps sexually abused women with the fund they raise.

So, you are not just looking pretty and helping others look pretty.

You are also beautifying people&8217;s lives with Younique.

You are helping many to find a direction.

The paucity of funds can often nullify great causes too.

But, you are helping Younique maintain reasonable sales.

This means you are also helping the foundation run smoothly.

This is a very positive feeling.

Almost anyone would like to be associated with a cause like this.

What&8217;s better, they even get to earn from that association.

This also lends quite a bit of credibility to the brand.

They also generate a lot of goodwill among potential customers.

Often knowing the cause can make them spend more generously.

No Inventory, No Home Parties in Younique Pyramid Scheme

One of the biggest reasons why I would never opt pyramid schemes is the inventory factor.

I don&8217;t want to be bothered with an investment that I am not sure if I can sell.

In fact, if you see, even big businesses are becoming inventory free.

Facebook, one of the world&8217;s best-known brands has no asset.

Airbnb today is synonymous with quality accommodation.

But, they don&8217;t own any.

Even for that matter, look at how Amazon is conducting its business.

Younique is quick to latch on to this digital revolution.

Younique presenters do not have to store inventory.

The products are sent directly to the customers.

As a result, the presenter does not have any additional responsibility.

This also means as a presenter; you do not have any upfront investment.

You only order what the client has paid.

That reduces your leverage to a large extent.

As a result, the commission that you earn is an absolute return on time.

This is particularly encouraging for many participants.

Especially for those who don&8217;t want to handle the additional hassle.

Not just that, home parties are also another major irritant.

Setting up parties, hosting a group of strangers, providing food for them, all seem useless.

You could begin asking what is the outcome of all this.

But the sad part is this is an important part of the deal for many companies.

Younique presenters don&8217;t have to host home parties at all.

Instead, they connect with other presenters and customers via the social network.

You can use Facebook to connect with interested people.

In this way, you can expand your reach and get more clients.

But at the same time, you don&8217;t have to deal with inviting people over.

Younique Represents The Youth

Think about why you would buy a brand?

Be it apparel, shoes or cosmetics; you need to identify with it.

Only then, you will feel confident about buying those products.

But older cosmetic MLMs like Avon are patronized by the previous generation.

To the modern youth, it feels more like using what grandma used once.

But with Younique, you can easily solve the problem.

It is trendy and in sync with the present generation.

The result, more and more users identify with the brand.

The Younique pyramid scheme also adapts easily to current digital demands.

As a result, it becomes the obvious choice for many looking for trendy options in the budget.

Younique Is a Better Business Bureau Registered Company

Younique pyramid scheme reviews on BBBThe other thing that attracts my attention about Younique is that they are registered with Better Business Bureau or BBB and are accredited by them since October 2014.

According to BBB, there are 27 reviews and 68 complaints so far.

44% of the reviews are positive and 56% of them are negative.

Some or most of the complaints have nothing to do with Younique company and its products, and are all related to the referrers&8217; and referrals&8217; disputes.

On BBB, Younique has an overall composite score of 4.27 out of 5 which is great.

Obviously, Younique is good in replying the reviews and resolving the complaints which is against what you see with the other pyramid schemes that usually think about nothing but making more money.

This differentiates the Younique pyramid scheme, of course if it is really a pyramid scheme, from the others.

At least we can say that Younique is not a pyramid scheme and is a good and customer friendly one company that probably uses a MLM system to promote the products.

Not all MLMs are illegal and illegitimate.

And Younique is fully legal and legitimate with a good BBB record.

Younique Pyramid Scheme Appears to Be Genuine

It has a credible product and is associated with a good cause.

The company is also clocking steady sales.

But that said; does it represent value?

Well, it will be wrong to say you will earn nothing from the Younique pyramid scheme.

But at the same time, your earnings would be really low.

Your earnings won&8217;t gallop ahead like its sales.

Active recruitment is the only way to bring in a steady income.

But even that won&8217;t continue forever.

Once the warm markets saturate, you will find it difficult.

Moreover, with digital revolutions products are increasingly sold on the digital platform.

Avon is now available on Amazon.

With time, even Younique might become available.

In that situation, the role of a presenter would be unnecessary for product sale.

But, you can still join the Younique pyramid scheme for additional income.

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