Yes, the Mary Kay ladies are guilty of repeatedly making false earnings claims. The 50% profit lie is probably the most common. And even Mary Kay Inc. is guilty of pushing this lie. (It’s not just those “independent consultants” who are running around saying bad things!)
No, you don’t “make 50% of everything you sell.” No, you don’t make 50% profit on product sales.
If you sold everything at full suggested retail and never discounted or gave away anything, you’d have 50% gross profit. And from that, you have to subtract all your business expenses like shipping, supplies, demo products, training, etc. to get to your net profit. If you’re lucky, you might make 40% of what you sell. More likely, you make 25% of what you sell. (Or if you’re Ali Zornes, you make no profit because you discount everything down to wholesale in an effort to make/keep a pink Cadillac that your unit production doesn’t support.)