Mary Kay Cosmetics explains why the company is not a pyramid scheme and not a multi-level marketing comany. And Pink Truth responds.
“We’re not a pyramid scheme!”
“We’re not an MLM!”
You hear Mary Kay’s loyal followers chant these themes over and over. I think it’s pretty clear that Mary Kay Cosmetics is a barely legal product-based pyramid scheme. The company is built upon an endless chain of recruiting, and profits come from the frontloading of inventory.
As Robert FitzPatrick so eloquently explains, there really is no “profit” in an MLM, merely just a transfer of money from the lower level people to those at the top of the pyramid.