Mary Kay nsd Lily Gauthreaux spent some time discussing the “99% of people lose money in MLM” statistic this weekend. Her conclusion: She knows it’s true, but she doesn’t care. Because in all of her years in MK, she has never known ANYONE who has treated MK as a business and hasn’t made a ton of money.
She must not have met the millions of women have visited Pink Truth over the last 15 years. Because there are countless women who treated Mary Kay like a business, did all the right things, and still lost money (primarily because they were frontloaded with large inventory packages and they could never sell the products for a profit.)
Lily basically admits that 99% of people lose money in Mary Kay, but wants you to ignore it. Why? Because she says 90% to 95% of the people who join MK don’t want to make money anyway. We’ve heard this argument before, directly from the mouth of Laura Beitler, a Mary Kay executive.
If almost no one who wants to join MK wants to make money, why do they keep recruiting with false income claims? Why do they keep promoting this as a business if it’s nothing more than a wholesale buying club? What percentage of women do you think are frontloaded with inventory packages by Lily? Do you think it’s the 5% that she knows want to make money? Or do you think it’s closer to 50% to 70% of recruits? How ethical is it for her to frontload women with inventory when she knows they don’t want to make money?
Here’s something else to ponder as you watch the below video: Lily Gauthreaux is called a “Mary Kay Millionaire.” That means she’s super successful, right? WRONG. Lily is in the top position in Mary Kay. And she makes less than $10,000 per month in commissions before subtracting business expenses. MK only lists the NSDs who make more than $10,000 in a month, and Lily is never listed. Not even in June, which is always the highest earning month for members of the pyramid. Yes, Lily turns a profit in MK, but it’s nowhere near an “executive” income even after almost 12 years in the company. Don’t be like Lily.