MLM Companies: Younique: 14 facts you should know before joining [Review]

Virtual parties on social media…

Cosmetics on par with CoverGirl…

Payment within 3 hours of making a sale…

This isn’t your mom’s beauty MLM. It’s a new (and definitely more modern) way to approach network marketing.

Younique is a trendy cosmetics MLM with clever branding and marketing strategies. The 1950s are calling and they want their Tupperware parties back, right?

Telling companies they HAVE to embrace the digital revolution if they want to stay competitive is old news, but they don’t always listen. Younique, on the other hand, hasn’t just embraced it — they’ve made sweet, sweet love to it.

FAQ

1. What does Younique sell? Younique sells makeup, skincare, and fragrances to support their mission of building women’s self-esteem and validating their inner and outer beauty.

2. What are Younique’s most popular products? Younique Moodstruct 3D Fiber Lashes lash enhancer could be considered their flagship product. It was the first beauty product that went big. Other big sellers include Touch Mineral liquid foundation, Moodstruck Splash liquid lipstick, and Moodstruck Epic mascara.

3. How much does it cost to join Younique? You’ll pay $99 to become a Younique distributor.

4. Is Younique a scam? No, it’s a legit company selling real products.

5. What is Younique’s BBB rating? A+

6. How long has Younique been in business? Since 2012

7. What is Younique’s revenue? $400 million

8. How many Younique distributors are there? 1.19 million

9. What lawsuits have been filed? In 2017, a class-action lawsuit was filed against Younique for promoting their Moodstruck 3D Fiber Lashes as “natural” and containing “100% Natural Green Tea Fibers” when it contains unnatural ingredients and no green tea leaves at all. [1] In 2017, Younique sued Maelle Beauty and forced it to shut down for 5 months. Its founder was a former employee of Younique. [2, 3] In 2016, Luci Bags LLC sued Younique for violated trade dress, basically recreating Luci Bags and claiming they were created by Younique. [4] In 2018, the case was dismissed. [5] Also in 2016, Younique Products disputed with Mark M. Youssef over the trademark of Younique. [6]

10. Comparable companies: Avon, Mary Kay, Rodan + Fields

So should you get involved?

Product-wise this company might be legit, but if you’re just interested in the business opportunity, there are better options out there…

Click here for my #1 recommendation

Either way, here are 14 facts you should know before joining Younique.

#14. They were kind of an overnight success

Younique hit the ground running and reached their goal of 999 presenters within 9 months of launching. [7]

Then, in 2015 they were named one of Utah’s “emerging elite” companies [8], and co-founder Melanie Huscroft claimed Younique was the “fastest-growing company in the nation” (exaggeration?) after they exceeded $53 million in sales in the month of November alone [9].

Now they have over a million Presenters (distributors). [10]

This still doesn’t touch Younique’s cosmetics competitors — MLM giants like Mary Kay, who has 3.5 million distributors; Nerium, one of the fastest growing skincare MLMs; and Avon, the world’s largest direct seller with $5.7 billion in annual revenue. But it’s pretty impressive for a company that’s still learning how to walk.

#13. Beauty mogul Coty now owns a majority stake

In 2017, Coty Inc. acquired 60% of Younique for $600 million in cash. The company is still led by brother-and-sister founders Derek Maxfield and Melanie Huscroft, who own the remaining 40%. [11]

Coty is one of the biggest players in the global beauty scene, with more than 70 brands in their portfolio, including CoverGirl, Clairol, OPI, and premium fragrance and skincare labels Calvin Klein and Marc Jacobs.

#12. They’re operating globally

When Younique launched in the UK in 2014, they signed on their first 1,000 presenters in under 30 minutes flat. [12]

They’re now operating around the world: U.S., Canada, Australia, the UK, New Zealand, Mexico, Germany, France, Spain, and Hong Kong.

#11. Naturally based products

Consumers are increasingly skeptical about chemically-based products, and Younique’s products are “inspired” by nature.

Their makeup isn’t chemical-free, but it’s marketed toward the naturally-inclined and free of harmful fillers. [13] They claim their newest set of Moodstruck Addiction palettes are formulated without any gluten, parabens, PABA, BPA, or latex.

Also, they don’t do animal testing. [14]

#10. A Generous Sign-On Kit

It costs a one-time fee of $99 to become a Younique presenter, which is pretty standard if not a little high. But presenters don’t have to turn around and buy inventory, and they get $225 worth of product, including the mascara that won them a cult-following and still sells 16,000 units a day. [15]

lipstick

1 Moodstruck 3D Fiber Lashes+
1 Moodstruck Addiction Shadow Palette (palette will vary)
Angled Shadow / Sponge Brush
Beachfront Self-Tanning Body Lotion
Splurge Cream Shadow in Elegant
Cream Shadow Brush
Shine Eye Makeup Remover Cloths
Skin Care Sampler
Foundation Sampler
Bronzer Sampler
Pigment Sampler
Blush Sampler
Lip Gloss Sampler (Set of 10)
Lip Stain Sampler (Set of 7)
Shade Stick
White Charm
Black Oval Presenter Case

#9. Super simple compensation plan

Younique’s compensation plan is one of the simplest in the industry.

Statuses are colored, you start at white and work your way up to black, gaining additional commission and perks with each bump.

The first chart explains the requirements for each status, and the second lays out the compensation for each status. While a 20-30% commission rate is nothing special, (Mary Kay offers 50%), the royalties folks with higher statuses can make off their recruitees means there’s definitely potential to make money.

#8. You have to recruit to make good money

This is a big negative. It’s the reason a lot of MLMs get called pyramid schemes and spam — they rely on recruitment over product sales.

While Younique definitely focuses on product sales, it’s true that you’re not going to make a fortune off commission alone.

Without recruiting, even if you sold $10,000 worth of product, you’d only make $2,401 after the cost of your starter kit. If you sell that much every month (not easy), you’re bringing in an annual salary of only $30,000 before taxes.

#7. Instant commission payments

Getting paid faster doesn’t mean you’re making more – or does it? To millennials, instant payment is a deal maker. Nearly two-thirds of millennials say being paid immediately helps their finances and a quarter actually prefer quicker payments to a pay raise. [16]

Through Younique’s PayQuicker system, commissions are deposited into Presenter accounts either instantly or within 3 hours of sales. Presenters are even given their own Younique branded debit card so they don’t have to wait for the money to transfer to their bank accounts.

#6. They have a strong message

You know what else millennials love? Working for a cause they believe in. [17]

The message behind Younique promises to “uplift, empower, and validate women” in an industry full of impossible beauty standards. Younique even uses regular people, their own Presenters, rather than professional models to show off new looks in their catalogs.

#5. Sales support a good cause

Younique puts their money where their mouth is when it comes to their mission.

Younique products were partially created in order to fund the Younique Foundation charity. The cause is personal for co-founder Melanie Huscroft, who says “Our goal was to build a company that would become so successful that it could ultimately fund a foundation for women who were sexually abused.” [18]

The charity raised $1.2 million in 2017, and half of it was spent on healing services [19]

#4. You never have to buy inventory

That’s right, no minimum order requirements.

The largest taxi company in the world owns no taxis (Uber), the most popular media owner creates no content (Facebook), the most valuable retailer has no inventory (Alibaba), and the largest accommodation provider owns no real estate (Airbnb). [20] Digital disruption has arrived, and Younique gets it.

Products are shipped to customers directly from your Younique site, so your sales are done 100% digitally.

This also means…

#3. No more home parties

Who actually wants to be the hostess with the mostess? Setting up, catering to guests, cleaning up afterward — no thanks.

And let’s be real. If younger folks are forgoing actual parties in favor of staying in and watching Netflix, they’re not going to come out in droves for a “party” where there’s no keg and someone’s selling them something.

Younique Presenters never host a single home party. Instead, they create and host virtual parties via social media platforms like Facebook.

#2. Social media masters…or obnoxious spammers?

Relying on social media for marketing is a double-edged sword.

It’s easier, and if you know your way around social media and internet marketing, you can really leverage it.

That being said, people are (understandably) fed up with seeing their Facebook and Instagram feeds littered with sales pitches and “party” invites from friends trying to sell to them. And many Younique distributors are guilty of this.

#1. Younique is TRENDY

The cosmetics industry is tough. Avon is literally older than your grandma who wears it.

Younique may be the new kid on the block, but they’re going for Prom Queen.

Younique’s battle strategy is clear: target younger markets. Well, at the rate the company has been trending, they may have them cornered.

Could Younique be the future of direct cosmetics sales? We’ll see.

Recap

While Younique may be a great company and the trends indicate they won’t be losing popularity anytime soon, they’re still MLM and the industry has flaws. Not saying it would be impossible to make money, but your time could be better spent.

Look, I’ve been involved with network marketing for over ten years so I know what to look for when you consider a new opportunity.

After reviewing 200+ business opportunities and systems out there, here is the one I would recommend: