Is Younique a scam? Another beauty MLM or a pyramid scheme?

Is Younique a scam

We all know cosmetics and beauty products are essential to every woman’s life. These products help improve their skin and enhance the outer body appearance. So, selling them could be very profitable. But can it be good enough to make a living? Younique thinks so. It is an MLM company that offers beauty products and a way to make money selling them to others. Is Younique a scam? Can you really make money by just selling Younique products?

You’ll find the answer in this Younique MLM review post. You will also learn about how Younique MLM works, what products and compensation it offers, and the pros and cons of joining its MLM program.

New to MLM?

Read: What is MLM Business

What is Younique?

Younique was founded in 2012 as a company that sells a wide variety of beauty products and cosmetics with a mission to empower women.

Younique’s founders Derek Maxfield and Melanie Huscroft adopted a network marketing business model to promote and sell their products which mainly focuses on digital sharing platforms rather than face-to-face selling. Its product line includes make-up, skincare, beauty, and personal care categories.

Younique had more than 500K sellers as of 2022. It was partly acquired by Coty, Inc. between 2017 to 2019. Younique is located in Utah, the US and has a significant presence in other parts of the world like New Zealand, Australia, Canada, etc.

What is Younique MLM?

Younique MLM is a business opportunity for individuals especially, women who are looking to make a source of income by selling its products. Under the Younique MLM program, women can earn commissions on personal sales as well as on the sale of their referrals.

As said earlier, Younique prefers to use social media and digital parties to showcase its products and attract new customers. The company offers training, a website, marketing tools, resources, and a comprehensive compensation plan to its MLM members.

How does Younique MLM work?

Younique MLM opportunity works for women who can join the platform as independent ‘Presenters’. To enroll yourself, just create an account and pay $35 to choose a starter kit.

This will gain you access to Younique’s presenter network, products, deals, and a business kit with all the tools to get you started. Once you are good to go, you can start sharing the products through different platforms and make a commission on every sale.

Younique products

Younique produces clinically-proven, high-quality, and allergy-free products. They cater to different types of skin, body, and color. Some of the key products offered by Younique are:

Make-up: The make-up section has products for the eyes, lips, and face. The eye segment consists of lashes, liners, shadows, primers, palettes, mascara, and brushes.

Younique products

Under the lips category, you will find lipsticks, glosses, lip-care, and liners. For facial beauty, Younique offers foundations, creams, primers, highlighters, etc.

Skincare: Skincare products include masks, toners, serums, moisturizers, etc. The products are sold under the series called YOU.OLOGY. All the products are effective in providing a natural glow and shine to your skin.

These products are a combination of vitamin c and natural food ingredients that help improve overall aging and skin complexion. Skincare is also boosted by collagen shots to enhance the radiation and glow.

Younique has a unique return and refund policy. The products can be returned within 14-days for a full refund, within 15-30 for 80% refunds, and within 31-90 days for equal value product credit or product exchange. Such a return policy can give a lot of boost to your selling campaign.

Are Younique products worth their pricing? 

Beauty and cosmetic products have a huge market and global appeal. So, Younique is one of the many companies that are part of this industry’s bandwagon.

The product reviews are a mixed bag and most of the users found the results and effectiveness of Younique products just satisfactory.

There are some reviews that have criticized Younique for selling over-priced products.

The overall rating stands around 3-stars on SiteJabber and Trustpilot platforms which is just above average.

Younique product reviews

Still, while comparing Younique products with some of its alternatives here is what we have found:

A serum foundation from Younique costs $42 and some of the highly-rated serum foundations on Amazon costs $9 and more.

A set of lipsticks (3-pieces) from Younique is priced at $72 whereas a set of lipsticks (5-pieces) from Revlon costs just $28.

The user reviews are proven true and it is evident from the above comparison that Younique products are pricey and fall short of expectations. Expensive products with poor reviews are not an ideal situation to sell products regularly.

How to make money with Younique MLM?

To make money with Younique MLM, you will have to host digital parties or share the products online with your relatives, friends, etc.

If someone buys products through your shared resources you earn:

  • Commissions on personal sales, and

Or when someone joins your team and makes purchases or sells the products further you can earn:

  • Leadership Bonuses

Younique compensation plan

When you achieve both the above aspects you become eligible to earn money through the Younique compensation plan which offers:

Retail Royalties (commissions) – The retail commissions can be earned up to 30%. This starts with instant retail royalties of 20% which are paid within the first 3 hours of your sale.

In addition, you get 5% retail royalties on top of 20% if you achieve 500-999 personal retail sales volume in a month. The percentage increases with the increase in the number of volumes tier. Retail Royalties are well complimented with Fast Start First Level Royalties that can be earned when you start enrolling referrals.

Below is the table for better understanding:

A minimum of 125 PRS (Personal Retail Sales) volume is a must to remain an active member. Besides entry-level presenter, there are 5 more levels to achieve with each level having its own volume requirement highlighted with color names.

There is white and yellow for the entry-level presenters,

Coral and pink for the exceptional level presenters,

Blue and teal for the exemplary level presenters,

Green and orange for the elite-level presenters,

Purple and black for the exclusive level presenter and,

Black 1,2, and 3 for the executive level presenters.

Once your referrals start to purchase or make sales your level increases to where you can earn:

Younique compensation plan

Circle Royalties – 3% to 5% bonuses on the sales of your direct referrals. The percentage also depends on your personal level.

Advancement Bonus – Once you achieve the pink volume requirement under exceptional presenter level you can make $100 which goes up to $30000 for black 3 executive level presenter.

Paid as Bonus – This bonus is paid in addition to the advancement bonus. You can make $50 as an exceptional level presenter and up to $5000 as an exclusive level presenter.

Generation Royalties – Generation royalties (commissions) are paid to presenters who achieve Elite level and above. The generation royalties percentage is calculated on the number of active sponsors and their recruit’s sales. There are 1-5 level generation bonuses to be earned between 1% to 8%.

The compensation plan seems to be very complicated. These are all fancy terms used by all types of MLMs. In short, you have to sell the products and recruit people consistently to make money with Younique MLM.

Can you make money with Younique MLM?

As seen above, one needs to be very consistent in terms of product sales and team building to make some money with Younique MLM.

But making money for a long time could be challenging. This is because the MLM business model is non-sustainable without people. The more you recruit, the higher will be your chances to make good money. And, a majority of people fail to achieve this due to intense market competition and sales targets.

You have to sell products worth $125 minimum to continue working as a Younique presenter. The volumes go up to $500 worth of products to be sold as a top-level presenter. Simultaneously, your position depends on the performance of your recruited members as well who have to achieve their own sales target.

The other downside of working with MLMs is startup and maintenance costs. The joining cost is low (just $35) but things go awry when you start working as per the Younique MLMs compensation plan. Add to this the traveling, gas, and other promotional costs and you end up paying more and earning less.

Most MLMs release the income disclosure statement of their distributors. Even this is not available for Younique so, it is difficult to tell how much money an average Younique presenter can make.

Is Younique a scam or a pyramid scheme?

Younique is a 100% legit company that sells beauty products since 2012. Its aim is to help sexually abused people by giving back some share of its profits earned through the network marketing business model. The company is not a scam at all.

Younique is not a pyramid scheme because its members have the option of making money by selling its products. The recruitment of people is required to earn additional bonuses. Pyramid schemes hardly have any products/services to sell and make money only by recruiting more and more people.

However, Younique has been criticized for being a pyramid scheme in disguise where its presenters (distributors) lost money to sell its products.

Younique lawsuit

Younique had to face a class-action lawsuit in 2017 for making false claims on one of its products’ ingredients. The product Moodstruck 3D Fiber lashes were found to be containing unnatural ingredients against the claims of natural green tea fibers.

Younique agreed to settle the lawsuit by paying $3.25 million. 

Pros

  • Proven history – Younique has been around since 2012 which is a positive sign of its legitimacy. MLMs usually have shorter existence due to their risky business model. Younique can be relied upon from a joining perspective.
  • Low start-up cost – Younique’s start-up cost is as low as $35. This is against the normal trend of established MLMs who charge at least $100+ as a joining fee. Yes, you may have to spend a few 100 hundred dollars extra in purchasing a Younique premium starter kit but that’s an upgradation to your joining business kit.
  • Noble mission – Younique’s mission is to uplift the section of those women who are victims of sexual abuse. As a Younique presenter, you get the opportunity to be part of this helping cause by donating a certain amount of your earnings/product purchases.

Cons

  • Too many alternatives – Younique isn’t unique in terms of its product line. The beauty segment is overcrowded with many such MLMs and traditional companies. Some of the popular MLM competitors of Younique are Avon and Mary Kay which can make selling more difficult.
  • Over-priced products – If not for competition, your selling process will definitely get impacted by Younique’s product pricing. The products are greatly expensive and some of them are even badly reviewed for their performance.
  • Hiring is money – You will have to focus on hiring people to make a good amount of money with Younique MLM. Since the main source of promoting Younique products is social sharing you need to have a huge following of people who trust your recommendations. This is the only way to remain competitive and taste financial success in this business.
  • Demanding sales target – The sales target is directly associated with your Younique membership. This is another disadvantage where you have to ensure product sales worth $125 every quarter to remain an active member. You may have to fulfill this by purchasing products for self-consumption or forcing your team members to do so.

Conclusion: Is Younique MLM recommended?

Younique has nothing new in terms of product offerings and compensation. A few positives are its joining cost and helping cause.

Younique’s products aren’t competitive and neither cheap that can boost its sales. If you cannot sell you cannot hire and without fulfilling these two conditions you cannot make money.

My personal recommendation is to stay away from Younique MLM. There are better alternatives to making money that can fetch you higher returns on investment.

I suggest you Google the topic and go through them one by one or if you want to save your time and effort doing it then check my recommendation below.

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