Younique Pyramid Scheme - 7 Reasons Why You Might Want To Avoid It...
Are you being invited to join Younique?
Are you hesitant to make a decision before finding out more about the sales company and the MLM industry?
If that’s the case, this article is for you!
This Younique Review is a good place for you to start your journey of investigation.
We’re going to review Younique to decide if it really is the best MLM course out there.
We’ll talk about whether MLM is the right online business for you.
At the end, I’ll answer some of the most frequently asked questions regarding Younique and networking marketing in general.
And most important, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off MLM for good because it uses some of the same skills in a much more powerful and profitable way!
Check Out This Simple Way To Run A Digital Real Estate Empire Online
This is so simple, it should be illegal.
Table of Contents
What Is Younique?
Younique is an MLM company based in the United States that markets skincare and beauty products.
Founder Derek Maxfield, who serves as CEO, and Co-Founder Melanie Huscroft founded the MLM company in 2012, and it is based in Lehi, Utah.
Coty, Inc. owned 60 percent of Younique between 2017 and 2019.
Coty’s earnings rose in 2018 as a result of the takeover, with Younique seeing double-digit revenue growth in the second quarter.
However, Younique’s product sales and profits fell year over year in 2019, with Coty attributing the drop to decreasing hype, a complex business structure, growing customer awareness of the risks of MLM schemes, and Facebook’s algorithm changes.
In August 2019, Coty announced that it will be cutting relations with Younique, citing the fact that Younique was “clearly different” from Coty’s other businesses.
Following regulatory approval, Coty will sell its majority interest to Younique’s original founders as soon as possible, according to the company.
The exit terms will not be made public.
Younique Quick Facts
Founders: Derek Maxfield and Melanie Huscroft
Date Founded: 2012
Industry: Network Marketing
Address: 3400 W. Mayflower Way, Lehi, UT 84043-3261
Telephone: (801) 207-9753
Facebook Page : https://www.facebook.com/YouniqueProducts
BBB Rating : A+
BBB Accreditation : Accredited Business since 10/27/2014
How Younique Started
Younique was founded by brother and sister tandem Maxfield and Melanie Huscroft with a dream to make it a mission-driven company that would fund The Younique Foundation, which helps survivors of childhood sexual violence find healing and hope.
Derek wanted to draw on the untapped opportunities he saw in the direct selling business model after 12 years of creating software for top players in the industry.
Derek’s passion is to provide a simplified digital experience in a traditional sales environment.
Instead of a traditional home party setting, Younique does this by social marketing and virtual parties.
He enjoys developing simple but powerful mobile technology that allows Younique Presenters to manage their whole business from the comfort of their mobile device at any time and from anywhere.
Melanie teamed up with her brother and collaborated to develop a completely new direct selling experience.
Younique has benefited from Melanie’s expertise in the advertisement, art, marketing, purchasing, and sales, as well as her flair for fashion and beauty, since its inception.
Is Younique Cosmetics Going Out Of Business?
Despite product sales and profits falling year over year in 2019, and Coty severing ties with them, Younique seems to be moving on with a new lineup of beauty products that are about to be launched, such as:
- LUCRATIVE lip gloss
- BEACHFRONT tanning drops
- BEACHFRONT body cream
Is Younique A Mormon Company?
Derek and Melanie are both from Utah, a predominantly Mormon state.
The Church of Jesus Christ of Latter-Day Saints, also known as the Mormons, founded both Brigham Young University and Rick’s College, the schools that both of them attended.
Derek was a missionary of LDS church, which is typical of a young man from that religion.
Derek also wrote a book that talked about his faith after he suffered cancer.
What Charity Does Younique Approve?
Derek Maxfield lamented that someone should “do something” to help female survivors of child sexual violence pursue hope, healing, and self-esteem in a conversation with his wife Shelaine.
They knew they could make a difference together and established The Younique Foundation, an organization dedicated to inspiring survivors all over the world.
Shelaine Maxfield continues to serve as its President and Chair of the Board of Directors.
What Does Younique Sell?
The brand takes pride in creating products that are inspired by three things: nature, love, and science.
According to the website younique.com:
“Scientific research is used in the development of Younique cosmetics to ensure that our products contain high-quality ingredients that enrich and nourish the skin. Younique starts with Mother Nature as a source of inspiration for our products. Our in-house scientific team then creates a formulation that pays homage to the source of inspiration while still providing cutting-edge products. Our mission is to have products that are safe, clean, and pure.”
The following is an overview of their products:
- Eyes: brow, eyeliner, eye primer, eye shadow, lashes
- Face: BB cream, bronzer & blusher, concealer, contour, foundation
- Lips: lip care, lip gloss, lip stains, lipstick
Serums, moisturizers, facial masks, toners, and cleansers are part of their skincare collection.
They also have a feature called Youology on their website where you can create your own skincare solution with over 40, 000 potential variations.
You can also take a skincare quiz to see if you’re properly caring for your skin.
Rollerballs, fragrance sets, and signature scents are part of the fragrance collection.
They also have collections for just about everything, including brush sets, eye sets, lip sets, and face sets, among other things.
FAQ About The Products
What Is Younique’s Best Selling Product?
The lash enhancer Younique Moodstruck 3D Fiber Lashes could be considered their flagship product.
It was their first beauty product that went big.
Touch Mineral liquid foundation, Moodstruck Splash liquid lipstick, and Moodstruck Epic mascara are among the best-selling items.
Is Younique Really All Natural?
Every single one of their products is considered naturally-based, and most of them are all-natural.
A food is considered “all-natural” by the Natural Ingredient Resource Center (NIRC) if it includes at least 95% of ingredients that meet their requirements for natural ingredients.
The remaining 5% could come from products that don’t meet their natural requirements but don’t have synthetic fragrances, artificial colors, or harmful fillers.
Is Younique Made In China?
Younique products are currently researched, developed, and tested in the United States.
The People’s Republic of China currently manufactures and packages the product.
Younique‘s long-term goal is to manufacture and package its products in the United States.
There is currently no timetable for this to happen.
Is Younique Makeup FDA Approved?
While FDA does approve color additives used in makeup (except coal tar hair dyes), they do not have the legal authority to approve makeup before they go on the market.
Makeup, however, must not be “adulterated” or “misbranded,” according to the law.
They must, for example, be safe for customers when used according to the label’s instructions or in the usual or intended manner, and they must be properly labeled.
Companies and people who sell makeup are legally responsible for their products’ safety and labeling.
If they have credible evidence that a cosmetic on the market is adulterated or misbranded, FDA will take action against it.
FDA takes action within its legal authority based on public health priorities and available resources.
Are Younique Products Toxic?
Their makeup isn’t chemical-free, but it’s targeted toward the naturally inclined and doesn’t have any harmful fillers.
Are Younique Products Paraben-free?
All Younique products are Paraben Free.
Are Younique Products Vegan?
Some are. Propolis, which is made by bees, is used in some items.
Do Younique Products Clog Pores?
Younique does not have any ingredients that are non-comedogenic.
Is Younique A Pyramid Scheme?
Since the products are expensive and you need to sell $125 worth every four months, most people do not make a lot of money off the MLM opportunity.
Any distributor that does not sell this volume of merchandise must purchase it themselves.
This means that the only way to make a lot of money is to recruit more “presenters” into the company, making Younique very similar to a pyramid scheme in disguise.
So, is Younique a pyramid scheme?
Yes and no.
Let us take a look at the Wikipedia description of a pyramid scheme:
So, based on that description, Younique is not a pyramid scheme because they have products that they actually market and sell.
However, although the majority of MLMs have legitimate products or services, some MLMs sell very expensive goods that are difficult to sell and then mandate their members to sell a certain amount (quota) each month.
This means that the only way they can make decent money or avoid losing is to recruit more people to the company.
Although Younique “presenters” (also known as distributors, associates, or consultants) may earn money by selling the company’s expensive products, the presenters really need to recruit more people in the company to make good money.
But, when it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming an MLM seller, you’ve got way better options than Younique MLM.
Keep in mind, I don’t get paid to promote any of the programs I review. I personally think MLM is a great business model, but you could end up leaving way too much money on the table.
It is entirely possible to build a profitable, successful network marketing business.
And unlike Younique MLM, it actually provides real proof of real success from real people as recently as a few days ago.
Is A Pyramid Scheme Bad?
Some companies call themselves multi-level marketing when they are actually running an illegal pyramid scheme.
Even if a multi-level program does not break the law, if the actions, methods, or practices used to market the plan are unfair, unconscionable, or deceptive, the Consumer Protection Act may be violated.
It’s understandable that people have trouble distinguishing between a legitimate multi-level marketing opportunity versus an illegal pyramid scheme.
Government authorities and the industry are continuously debating where the legal boundaries can be drawn.
MLM is a legal and permissible business model that sells consumer products through a network of independent representatives.
The selling of products and services to the ultimate consumer must be the primary source of compensation.
Pyramid schemes pretend to be a multi-level marketing company by claiming to sell products to consumers.
However, there is little to no effort made to market the product.
Instead, revenue is gained in the traditional pyramid scheme by recruiting others to market the program.
When new “distributors” sign up, they are often pressured to buy inventory or overpriced products/services.
Pyramid companies make almost all of their money by signing up new members, and they often tend to mask entrance fees as the cost of required training, computer services, or product inventory.
Not only are pyramid schemes bad, but they are also a waste of money and time.
Since pyramid schemes rely on the recruiting of new members to generate revenue, they often fail as the pool of potential recruits becomes depleted (market saturation).
Except for the handful at the top of the pyramid, most people lose their money as the scheme falls apart.
Is A Pyramid Scheme Bad?
How Much Do Younique Reps Make?
The Younique Royalties Program has 8 color ranks that determine the commission status of presenters: White, Yellow, Pink, Blue, Green, Orange, Purple, and Black.
The status of Presenters is determined by:
- Personal Retail Sales (PRS) – are products that you have personally sold.
- CWS (Company Wholesale Sales) – products sold through the downline
- Number of presenters you personally recruit
- Number of presenters your downline recruits
Let’s start with your commission rate (also known as Retail Royalties):
When you look at the top line in the picture above, a White Presenter earns a commission at 20% and increases to 30% once you achieve Black Presenter status.
You’ll start earning commissions from your downline once you reach Pink status (aka Circle Royalties, First Generation Royalties, etc).
Now, moving on to the complicated part of the compensation plan:
CIRCLE ROYALTIES – the money you earn when someone you’ve directly recruited (your downline) sells Younique products.
FIRST-GENERATION ROYALTIES – a percentage of the revenue you get when someone on your downline recruits someone to your business and this new recruit sells products (e.g. your recruit starts her own downline and achieves Green status).
SECOND GENERATION ROYALTIES – the amount of money you earn when a member of the first generation downline recruits someone who sells Younique products.
THIRD GENERATION ROYALTIES – are a percentage of the income you earn when the second generation recruits someone who sells products.
The Bottomline of the Compensation Plan?
The percentage of royalties you get (which can vary from 3-6%) is determined by how many people you recruit and how many of them go on to recruit others.
How Much Does A Younique Green Presenter Make?
To achieve Green Status, you must sell $500 each month, have three eligible presenters (each of whom must sell $125 per month), and have total circle sales of $2000 each month.
You must, however, have a limit of $10,000 in wholesale revenue for your business.
This is the total sales for everybody on your team, both the people you sponsored and those below them.
When you reach Green status, your commission increases to 30% and you get an additional 5% on circle sales.
This leaves you with a 3% commission on the remainder of your profits, which we consider first-generation sales.
If you are paid as a Green status presenter, the very least you can get is $490.
Here is a sample computation to help you better understand this earning:
Personal Sales: $500 x 0.30 = $150
Circle Sales: $2000 x 0.05 = $100
1st Gen. Sales: $8000 x 0.03 = $240
Total: $150 + $100 + $240 = $490
You can certainly make money with Younique MLM, but if you’re gonna put in the amount of grueling work to become a Younique Presenter (which, trust me, isn’t easy), you might as well bring in some REAL money.
The program that helped skyrocket my online business to $40,000+ per month teaches some of the same network marketing skills but shows you how to monetize them in a much, MUCH more profitable way.
Who Is The Highest Paid Younique Presenter?
Amber Voight, who lives in Elk River, Minnesota, is the highest-paid Younique presenter, earning $33,000 a month in May 2014 with 9,000 team members and $1,200,000 in sales.
Amber Voight is a Black Presenter, the highest rank in the Younique compensation plan.
What Is Our Top Recommendation For Making Money Online In 2021?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Younique MLM falls short is in scalability.
There’s only so much time in a day and there’s only so many people you can reach to sell by yourself.
MLM companies know this! Which is why they push so hard for you to recruit for your downline…you can’t get rich with it as a one man/woman show.
But what if you could make even more money off of little local websites without having to spend hundreds of dollars on overpriced products and a bunch of time recruiting people to sell under you?
With this digital real estate program, you can make recurring monthly income without constant sales to your friends and constant recruitment!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a LOCAL website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service-based business, tree service, plumbing, towing, etc.
How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example, and go by worst-case scenario.
Let’s say you build and rank the site and only 10 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $500 a month!
See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to worry about:
- Your upline getting paid before you
- Begging your friends and family to buy from you
- Recruiting people all the time
Now getting back to Younique MLM… You only get what’s left of the pie if you meet a monthly quota…
The course we recommend actually allows you to collect HUGE FLAT RATE DEALS. Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group much better than the Younique MLM group in our opinion. This group is much more active.
Unlike Younique MLM, where you’re getting maybe $10 per sale, you could be getting 10-20X THAT.
A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Younique MLM, more people have been able to walk away from their 9-5 job as well.
Digital real estate allows you to have total passive income with most of your day being spent WITH your friends, NOT selling to them.
Now, I know you probably have tons of questions…