Often, MLMs require sellers to purchase an initial package of some sort. Technically, Mary Kay is not a pyramid scheme because there are products to promote, as well as other bonuses and incentives, income is not directly tied to recruiting new members. about the pink pyramid scheme known as Mary Kay: The Pink Pyramid Scheme: How Mary Kay Cosmetics Preys on Desperate Housewives. It started out as a small beauty shop in Dallas that only has 9 products and 9 … The company offers stability and great brand recognition which are pretty rare in today’s world of fly-by-night MLMs. Mary Kay Cosmetics, Inc. is not a pyramid scheme. Is Mary Kay a Pyramid Scheme? Some MLMs, such as the Mary Kay Company, have been accused of being pyramid schemes in that the only way for sellers to make any real profit is for them to recruit other sellers; simply selling a product is not enough to generate any significant income. Nobody can deny that. Now, before we get into this, just know. Mary Kay is a network marketing company that offers an actual product and a sustainable business model, paying commissions on good sold, bonuses for new hires (or recruits) and perks like vacations and cars for top-performing consultants. I’m simply here to show you the pros and cons of Mary Kay’s business opportunity and give you my personal opinion. Mary Kay is a Multi-Level-Marketing company that manufactures skincare and cosmetic products.. Look: Mary Kay Ash is undoubtebly an inspirational figure and she built one heckuva cosmetics company. But by the average joe's definition they are most certainly a pyramid scheme. Using the fact that they are in business to prove that they are not. The company has been around over 55 years. If it was, I assure you, the FTC (Federal Trade Commission) would have shut them down years ago. For one thing, there is way too much competition. I presume you read the article above, “Former National Sales Director Says Mary Kay is a Pyramid Scheme”. Pyramid schemes are illegal. In 2012, Harper’s Magazine published an excellent article (the cover story!) Whether you decide to join Mary Kay … In truth, much like most multi-level marketing companies, Mary Kay is almost identical to a pyramid scheme, and the chances of success are very low. If you ask them if it is one they will say "It can't be a pyramid scheme, those are illegal." Bottom Line: Is Mary Kay Legit or Just Another Pyramid Scheme? Well, let’s see. Juliet. My Mom does Mary Kay. Nothing about this is illegal or scheme-y. So, by legal definition no they are not a pyramid scheme. The company was founded by Mary Kay Ash in 1963 with just an initial investment of $5,000. I thought today was a good day to take a trip down memory lane. Is Mary Kay a pyramid scheme like a lot of people say it is? The story got tons of buzz, and there were spirited discussions about it all over the place. Having said that, I do not recommend them. 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