Tag Archives: multi-level marketing

[Inside the Pink Pyramid] Women Join Direct Sales For All Kinds of Reasons

Mary Kay Make Money Website Screenshot 08-01-12 at 2.19 PM

Everyone in the direct sales industry will tell you this. Last week, Mary Kay’s Vice President of Compliance, Laura Beitler told me on NPR’s On Point. Then Joseph Mariano, head of the Direct Selling Association said it. And then Mary Kay’s Vice President for Corporate Social Responsibility, Crayton Webb said it again, on KERA’s Think.

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Filed under Beauty Labor, Career Opportunities, Customer Cult, Makeup, Mary Kay

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[Inside the Pink Pyramid] Why Mary Kay is Only The Beginning

Investigative Fund Virginia Sole-Smith Mary Kay Direct Sales Industry

 

Today’s look at why Mary Kay is just the tip of a pyramid-shaped iceberg — is brought to you by the Investigative Fund, who asked me to dig deeper into the direct sales industry as a whole. I’ve been getting so many great emails from folks who have read the Harper’s story or heard one of the NPR interviews last week and one thing everyone asks is: “So what about [Avon, Amway, insert-your-direct-sales-of-choice-here]? Are they as bad as Mary Kay?”

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Filed under Career Opportunities, Customer Cult, Government Watch, Mary Kay, Press

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[Inside the Pink Pyramid] But Of Course, Our Products End Up With the Retail Consumer

When I spoke with Laura Beitler, Mary Kay’s Vice President of Compliance, on NPR’s On Point on Monday, she was quick to emphasize that “absolutely, the majority of our products end up with the end consumer.” But when we pressed her, she also had to admit: “We can’t and don’t track retail sales.” 

How can both those things be true? 

To avoid falling into the Federal Trade Commission’s official definition of a pyramid scheme, it’s very important for Mary Kay — and all multi-level marketing companies — to insist that their primary goal is getting their products out to retail consumers. But to avoid being exposed as a business where the vast majority of the sales force is losing money, all of these companies have to claim that they have no idea what those end retail consumers are spending.

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Filed under Beauty Labor, Career Opportunities, Customer Cult, Makeup, Mary Kay

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[Inside the Pink Pyramid] But You Aren’t Required To Buy the Inventory…


Industry Claim #1: Nobody is required to buy inventory. 

This is true. Antonella even told me so when we did my official Mary Kay orientation: You’re not required to purchase a single thing from Mary Kay beyond your $100 starter kit.

“But,” she said. “There are some advantages.”

Just because you aren’t required to buy inventory in Mary Kay, doesn’t mean you won’t get the hard sell about why you’d be crazy not to buy inventory. My experience and the experiences of the women in my story suggest that you’ll be pressured heavily to buy inventory “if you’re serious about your business.”

In fact, Mary Kay is set up so it seems like the only way you’ll ever make money is through large inventory purchases. If you’re not spending enough on products, the company finds other ways to cost you money, like charging you shipping and only shipping to your house — meaning you spend time and money traveling around to deliver your orders yourself. As Lynne explained on yesterday’s edition of NPR’s On Point, to stay active in Mary Kay, you have to place $200 in wholesale orders every month. [EDIT: Per Lynne's comment below, it's once a quarter, not once a month. — VSS]

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Filed under Beauty Labor, Career Opportunities, Customer Cult, Makeup, Mary Kay

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The Pink Pyramid: Paying to Play with Mary Kay [Harper's, August 2012]

Harper's "The Pink Pyramid Scheme" by Virginia Sole-Smith (August 2012) Cover Shot

My new cover story, “The Pink Pyramid Scheme” is out in the August issue of Harper’s Magazine.

This is a big one.

I’ve tracked this story for the past three years, since enrolling in beauty school and discovering that most of my Beauty U classmates moonlighted as salespeople for Mary Kay, Avon or another direct sales cosmetics brand. (An early report of my first Mary Kay encounter appeared on the blog back here.) “The Pink Pyramid Scheme” shares their story, along with the experiences of other Mary Kay ladies who have wound up divorced and in debt — some truly brave women who shared their stories with me even though leaving Mary Kay is, for many, like leaving a bad marriage and a religion combined. Think public ridicule, stigma, guilt, and serious emotional and financial fall-out.

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Filed under Beauty Labor, Career Opportunities, Glossed Over, Government Watch, Happenings, Makeup, Mary Kay

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Mary Kay Calling


Mary Kay and Missiles

The first thing I learned from Delores is that Mary Kay ladies don’t drive pink Cadillacs anymore.

Well they can — a shiny pink convertible is still one of the choices if you’ve earned Career Car privileges — but Delores drove up to Beauty U in a silvery-pink Chevy Equinox SUV. She wore a royal blue skirt suit with black fishnets and black knee-high boots plus lots of gold accessories and I later learned that the suit itself was a “Mary Kay Sales Director” suit that she had to qualify (in sales numbers) to wear, but that the accessories were all hers.

Delores carried in a pink tote bag brimming with catalogs, while behind her, Sue wheeled in a the biggest pink polka-dotted suitcase I’d ever seen. Upon closer inspection, the dots revealed themselves to be tiny hair dryers and makeup brushes. There weren’t any clients on the books, so everyone piled into the spa classroom while Sue passed out little plastic-covered cardboard folders. Inside, they held a mirror and a plastic tray, divided into different inch-sized compartments. Mine held the remnants of many prior product applications. The mirror in Blanche’s folder was cracked.

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Filed under Beauty Schooled, Career Opportunities, Makeup

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