It seems like every day I talk to someone who is looking for a way to bring in some extra cash. Is multi-level marketing a good way to make money? Younique is a MLM skincare and cosmetics company based it Utah. In fact, it’s literally 10 minutes from my home. I’ve driven by their headquarters hundreds of time, with little knowledge of the specifics of the company. Because of this, writing this Younique review has been particularly interesting to me. Is it possible to make money selling cosmetics? Let’s find out…
Younique is an MLM company founded in 2012 by a brother/sister team, Derek Maxfield and Melanie Huscroft. It is the first direct sales company to exclusively sell and market their products on social media via Virtual Parties. This is unlike other MLMs where traditional parties are held in individual homes.
Hosting parties virtually is as simple as sharing a link to your own connections on social media. Of course, there’s more to it than that, but the idea of virtual parties is a great way to leverage the power of the internet.
Younique Quick Look
Founders: Derek Maxfield / Melanie Huscroft
Cost to get started: $99.00 to become a presenter
Purpose: Make money via recruitment and selling cosmeticsYounique’s mission “is to uplift, empower, validate, and ultimately build self-esteem in women around the world through high-quality products that encourage both inner and outer beauty and spiritual enlightenment while also providing opportunities for personal growth and financial reward.”
That’s a really great mission statement, although I am wondering how spiritual enlightenment plays into the picture. I like that the cosmetics are formulated with high-quality ingredients that nourish the skin, are good for every skin type, and are backed by scientific research.
In my opinion, the quality of the cosmetics must be top-notch for an MLM to work because the products need to speak for themselves. Let’s delve deeper into the nature of MLM.
What Does MLM Stand For?
MLM is an acronym for multi-level marketing. You may have heard this type of marketing also referred to as network marketing, referral marketing, or pyramid selling. Many people have a negative connotation of multi-level marketing, because not only is a representative of the company responsible for selling their products, but the representative’s livelihood depends on recruiting and training other representatives who will be “under them.” This is how commissions are earned.
The more people you have in your “downline, the more profit you have the potential to make, and the more income the company brings in.
This is where the phrase “pyramid scheme” comes from. The aspect of recruiting people to be in a pyramid, or downline, can be quite off-putting to the people being recruited.
I’ve experienced this firsthand with pushy MLM marketers who won’t take no for an answer. I’ve always wondered if they truly believe in the products they’re selling or if the whole affair is just an avenue for them to make money. People’s motives tend to be blurred when money is involved. It’s the nature of the game.
Pros And Cons Of Network Marketing
At first glance, MLMs look attractive because you’re not confined to an office environment 40 hours a week, you can enjoy flexibility in your schedule, and work when you want. Additionally, multi-level marketing is a proven business model, and it doesn’t cost a lot to get started. The money-making potential is even greater with the ability to use social media to extend reach. But is there more lurking behind the surface that is less transparent?
The downside of MLM is that people join with high hopes of hitting the big time, and when that doesn’t happen quickly enough for whatever reason, they quit. A high turnover rate is part and parcel of the network marketing industry.
Another con is that getting recruitments to sign up under you is not as easy as they make it seem. Selling is selling after all. Add to this the fact that many people are turned off my multi-level marketing because they’ve been burned in the past. Essentially, many wanna-be MLMers aren’t willing to put in the work required to sell products and gather recruitments.
Like any business, you get out of it what you put into it. Having said that, people are obviously making money with MLM, it’s figuring out if you have what it takes to be one of them based on your personality, work ethic, determination, and motivation. Another determining factor is if you are passionate about the company’s products. Each of these factors apply to Younique since it’s an MLM.
Watch the video below for more specifics of how MLMs work.
Facts About Younique Skincare and Cosmetics Company
The company employs over 200 employees, has 1.19 million distributors, and boasts a yearly revenue of 400 million dollars. Both the integrity of the company and its products is vital to your success and reputation. Any time you align your name with a company, you run the risk of your reputation suffering if the company lacks transparency or becomes involved in any shady practices, such as false advertising.
A quick Google search yielded some interesting information. In 2017, Younique cosmetics company was involved in a class-action lawsuit for allegedly engaging in false marketing pertaining to their Moodstruck 3D Fiber Lashes. Apparently, the “natural” label, which purports to contain 100% natural green tea fibers, not only doesn’t contain green tea, but uses ground-up nylon as an ingredient. Does this duplicity apply to other products, as well, or was this an isolated incident, in which we don’t know the full backstory?
Here are some additional questions regarding Younique’s cosmetics: Are they superior to drugstore varieties, especially considering the cost, and are they exclusive to Younique? The products are not exclusive to Younique distributors, they can be found on Amazon, including Younique’s Behold translucent powder, their 4D one-step fiber mascara, and their Beachfront bronzer.
Furthermore, the cosmetics are not FDA approved, and the cost is steeper than the cost of makeup you’d find locally. Does the quality of the ingredients warrant the steeper price tag? Check out this discussion to form your own opinion.
How It Works
The process works like this: You sign up with Younique and become a “Presenter.” You’ll be encouraged to purchase products so you have personal experience with them. You’ll also be selling the company’s cosmetics, while recruiting others to do the same. You can use social media as a platform for selling by setting up virtual parties, which can be a tremendous benefit, especially if you’re an introvert.
While hosting virtual parties requires less physical effort than does hosting house parties, it also means you’ll need to up your game on social media, where the competition is steep, and the algorithms are constantly changing. Upping your game on social media can be intimidating, and will be dependent on your existing social media skills.
Social media is a vast web of algorithms and analytics, and each network is different. The competition is steep so you’ll have to constantly be upping the ante, in terms of innovation and creativity. Every time you host a party, you earn what is referred to as “Y-cash.” When people buy a product, you earn points, which are converted into Y-cash. You can then use your “cash” to buy products you personally want to use.
You’ll also earn commissions on products you sell, but first you’ll be required to have a sponsor. Incidentally, products come with a money-back guarantee. The initial investment to become a presenter is $99.00. This fee includes a presenter kit that has an array of products representative of each type of cosmetic available, giving you personal experience with the products. You’ll also be given a website to further your promotion efforts.
Essentially, your job as a presenter is to sell the cosmetics company’s products and sign up people to be in your downline. When those recruits sign up people under them, you make money. The screenshots below show the different status requirements and royalty levels:
- Reasonably low-price to get started
- Your own website, including an e-commerce store
- Product kit with cosmetics from each category
- Instant commissions with Younique’s PayQuicker system
- Weekly complimentary training provided by Youniversity
- Access to a private Facebook group
- Younique is a global operation
- Company is rated A+ on the Better Business Bureau website
- Colored-coded compensation plan is easy to navigate
I haven’t tried the products personally, but from what I’ve read, the products are comparable to Rodan + Fields, Avon, and Mary Kay. Products are formulated with all-natural ingredients, excluding the makeup, which is not chemical-free, but does not contain toxic fillers. The newest palettes are free of gluten, BPA, parabens, and latex, and are not tested on animals.
- False advertising regarding ingredients
- No recruitments, no commissions
- Must be social media savvy
- Competition is steep
- Mandatory sales quotas
- MLMs have a negative connotation
- No discounts when buying products for yourself
If you’ve ever been in sales, you know how stressful it can be. The lion’s share of the money presenters make with Younique is based on recruitments, rather than cosmetic sales. It’s not an easy endeavor to get people to sign up.
It doesn’t help matters that many people have a bad taste in their mouth regarding MLMs, you’re going to have to bypass that breach, to even get them to listen to your initial spiel. You’ll also need an impressive downline of recruitments to make money.
There are over a million presenters working for Younique. In order to outshine the competition, you’ll need to develop innovative marketing strategies. Are you willing to brainstorm and troubleshoot ways to overcome the challenges inherent to selling and competition?
There’s also a mandatory monthly sales quota you must meet. If you don’t sell at least $125.00 worth of product in a three-month period, your account can be suspended for up to six months.
MLM is a viable business model, so no Younique is not a scam, but a reputable cosmetics company. This is apparent by their annual revenue, and the millions of presenters who are making money. Whether you can make money with the company is up to you. Do be aware that the primary task of working for an MLM is to recruit people to sign up under you.
This can be difficult and stressful, especially if you don’t have a “salesy” personality. There is a high burnout rate with multi-level marketing. Your ability to succeed will be determined by your expectations, your passion for the company, your ability to go the distance, and your work ethic.
If all the stars align in these areas, then yes, MLM may be for you. However, if your expectations are to make money quickly, without putting in a significant amount of work, you’re going to be sorely disappointed.
If you are looking for a proven way to make money online, and are willing to work hard and be consistent, check out my #1 resource for online marketing by READING MY REVIEW or clicking the banner below. It’s one-stop shopping at its finest. Or create your free Starter account here. It’s completely low-risk to get started – no credit card required.
What do you think, does the cosmetics company, Younique, provide a good opportunity to make money? Let me know in the comments:)