Is Younique a Scam Pyramid Scheme? Exposed!

Are you looking for a Younique MLM review? Is Younique a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.

There is a good chance that you heard about Younique MLM through someone – a friend or family member.

Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Younique MLM.

I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Younique MLM.

To help you make a more informed decision, I have thoroughly researched the Younique MLM so I can tell you more about it.

As a disclaimer, I’m not affiliated with Younique MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.

At the end of this review, I’ll also tell you the best alternative to Younique MLM that has enabled me to make a full-time passive income online.

In this Younique MLM review, I’m going to cover the following:

What is Younique MLM?

Younique is a Multi-Level-Marketing company that sells make-up and other beauty products. It was founded in 2012 and has quickly grown to become a well-known brand in its industry.

By 2022, they will have over 500,000 distributors in the UK, US, Canada, Australia, and New Zealand.

They also place a high value on using social media sites and hosting “digital parties” to attract new customers and sales representatives.

Each presenter is given a website that they can use to make sales and find new employees by sharing on social media.

You’ll hear phrases like “Believe in yourself!” Another phrase they use to entice you to join their MLM program is “work toward your dreams!”

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Who Founded Younique MLM?

Derek Maxfield and Melanie Huscroft, siblings, founded Younique. They wanted to turn it into a business with a mission of providing healing and hope to people who had been sexually or physically abused as children.

Derek wanted to capitalize on the untapped opportunities he saw in the straight marketing business model after 12 years of developing software for the market’s biggest players.

Derek wishes to simplify the digital experience in a typical sales environment. Younique accomplishes this through social marketing and digital parties rather than traditional house parties.

As a result of good technology, Younique Presenters can run their entire business from the comfort of their cell phones at any time and from any location.

Melanie, on the other hand, collaborated with her brother to develop a completely new direct marketing experience.

Melanie’s skills in advertising, art, marketing, buying, and sales, as well as her eye for style and appeal, have benefited Younique since its inception.

What Products Does Younique Offer?

The company is proud to create items inspired by three things: nature, love, and science.

They sell cosmetics in the following categories:

  • Eyes (eyeliner, mascara etc.)
  • Lips (lip gloss and lipsticks etc.)
  • Face (foundation, bronzer and blusher etc.)

And more products in the “skincare” categories:

  • Masks
  • Cleansers
  • Toners
  • Serums
  • Moisturizers

Younique Moodstruck 3D Fiber Lashes, a lash thickening and lengthening product, could be considered their flagship product. It was the first thing they created that took off.

Touch Mineral fluid foundation, Moodstruck Dash liquid lipstick, and Moodstruck Legendary mascara are among their most popular and best-selling products.

All of their products are made with natural ingredients, and the majority of them are made with natural ingredients.

According to the All-natural Active Ingredient Source Facility (NIRC), a food is “natural” if it contains at least 95 percent of all-natural ingredients.

The remaining 5% could come from products that do not meet their natural needs but do not contain any potentially harmful artificial scents, colors, or fillers.

Even though the FDA approves color additives in makeup (except for coal tar hair dyes), they do not have the legal authority to approve makeup before it is sold.

In contrast, the rule states that make-up cannot be “faulty” or “misbranded.”

Customers, for example, must be safe to use if they follow the instructions on the label or use them in the usual or desired manner. They must also be classified correctly.

Companies and individuals who sell makeup are legally obligated to ensure the safety and labeling of their products.

If the FDA has solid proof that a cosmetic on the market is broken or mislabeled, they will definitely take action.

The FDA takes action as long as it is legal and based on what is most important for public health and available resources.

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What is MLM?

Before we get into Younique MLM, I’d like to explain what MLM is and how it differs from traditional business models.

Multilevel marketing companies are also known as direct sales companies or network marketing companies.

An MLM company does not pay you a salary.

You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.

There are several levels to this (hence multi-level).

Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).

You can earn $1100 by recruiting 10 people.

Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.

People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.

The ultimate goal of someone who works for a company like Younique MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.

How Does Younique MLM Work?

Younique is an MLM (multi-level marketing) company. When you join Younique, you will become a style consultant.

Typically, you start your own beauty business from home or online. You purchase the makeup that you intend to sell. Then you sell them to make a profit.

You can also collaborate with others to do your marketing while you train them.

As a result, Younique consultants are compensated for the sales of those with whom they have worked. This is the primary reason why Younique is referred to as a pyramid scheme.

To be eligible for the rewards and payments, you must have made a certain number of sales (more about this later in this Younique MLM review).

The issue is that the vast majority of professionals are unable to achieve these levels of sales. As a result, they are losing payments and rewards.

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Is Younique A Pyramid Scheme?

A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.

A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.

Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.

The directors of the organization receive a portion of these payments (those at the top of the pyramid).

The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.

Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.

Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.

The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.

Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.

People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.

Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.

Is Younique, then, a pyramid scheme?

No. Younique does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.

They don’t have to make money solely through recruitment.

Watch the short video below to learn more:

What is the Younique MLM’s Compensation Plan?

You can make money with Younique in 2 ways:

  1. Earning a commission by selling the products
  2. Recruiting new employees and earning bonuses from their purchases or sales

I believe that the only way to make a consistent good income is to recruit a large number of people to your team.

The Younique compensation plan is divided into eight color ranks that indicate how much a speaker is paid:

  1. White
  2. Yellow
  3. Pink
  4. Blue
  5. Eco-friendly
  6. Orange
  7. Purple
  8. Black

The following factors influence how presenters are treated:

  • Individual Retail Sales (PRS) – are items that you have personally sold.
  • CWS (Firm Wholesale Sales) – products marketed through the downline
  • Number of speakers you personally hire
  • Number of presenters your downline recruits

You’ll notice that a White Presenter is paid 20%. It increases to 30% once you reach the Black Speaker condition. You’ll start making money from your downline once you reach Pink status.

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10 Reasons Why I Don’t Recommend Younique MLM

1. The Good Reviews are Written by Younique MLM’s Affiliates

You probably have found some other reviews of Younique MLM and all of them are saying good words.

But all of them are actually paid to write, meaning they will receive a commission if you join Younique MLM via their links. Therefore, their words are often biased and not trustworthy.

Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.

By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!

Therefore, I recommend reading the reviews of those written by the non-affiliates of Younique MLM.

2. Very Few People Can Make Money With Younique

Success is difficult to achieve with an MLM company like Younique.

You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.

The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.

They will not be paid if they do not meet the quota.

As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.

3. Losses From Younique MLM Are Reframed As Investments

Younique MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom. 

But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.

4. Younique MLM is a Cult

Why do people continue to work for Younique if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.

Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.

MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.

Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.

Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.

MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.

5. You May Need to Purchase Younique Products Yourself

If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.

I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Younique. That’s why in the long term, you are going to lose a lot of money, not to mention making money.

6. Younique Products are Overpriced

As with other MLMs, Younique offers overpriced products. There are many other brands that offer similar products but at lower prices.

Therefore, you may find it difficult to sell Younique products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.

7. Younique’s MLM Business Model Has a Bad Reputation

Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.

MLM like Younique is fundamentally flawed. The distribution of commissions is skewed toward the top.

The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.

As a result, many people do not consider Younique to be a legitimate business opportunity.

8. Exaggerated Claims Of Income

Younique, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Younique.

Younique’s low retention rate can also be discouraging, as less than 41% of its distributors are active.

According to Younique’s payouts to distributors, over 99 percent of Younique distributors never make a profit.

9. Younique Is Like A Pyramid Scheme In Disguise

If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.

Every system that requires you to recruit people in order to make money eventually looks like this.

Younique is not a pyramid scheme in the traditional sense because you can earn money by selling their products.

However, in order to make a living, you will need to hire others in reality.

10. Recruiting is Required to Succeed

I don’t recommend MLMs to people for this reason. MLMs like Younique put a lot of effort into recruiting. Eight out of ten ways to earn money with Younique require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.

My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Younique review.

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How Much Does It Cost To Join Younique MLM?

Younique is a multi-level marketing company, so you must have a sponsor to join. If you don’t know any Younique presenters, the company can connect you with one.

Your starter kit will then cost you $35.

While you wait for your starter kit, you can use the Youniversity Training program to learn about customer service and advertising.

When you sign up, you’ll also receive a personal website with an online store, making it simple to start working from home right away.

In the fine print of the compensation plan, you can see that there are “demands” to remain active as a Younique speaker.

In other words, every three months, you must sell 125 “PUBLIC RELATIONS,” or approximately $125 in product.

Younique MLM Positive and Negative Feedbacks By Real Users

Positive Feedbacks

  • High-Quality Products
  • Younique MLM is simple to join.
  • The company is well-known.

Negative Feedbacks

  • It is possible to earn a small amount of money.
  • Younique MLM Is a Pricey Scheme
  • Younique is losing popularity.

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Is Younique MLM a Scam?

I cannot say Younique MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary. 

Can you make money selling Younique products? We already know that a majority of Younique reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Younique is by recruiting aggressively.

Also, Younique blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Younique MLM a scam.

My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.

I will tell more about my #1 recommended platform at the end of this review.

Final Verdict: Younique MLM Review

Here comes the conclusion of my Younique MLM review. Overall, I don’t recommend joining Younique MLM to make money.

You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Younique commission.

The worst part is that you practically have to ask your family and friends to join your Younique business opportunity. It’s not fun.

Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.

The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.

People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave. 

Why not consider starting your own online business if you want to earn money and have a flexible schedule? 

Thus, you can choose what you want to promote rather than having someone tell you what you must promote.

Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.

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The Best Alternative of Younique MLM To Make Passive Income Online

If you’re beginning your online business journey, you deserve a programme much better than Younique MLM.

My #1 recommended platform is called Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch.

When you join Wealthy Affiliate, you can get access to the first-class web hosting service, keyword research tools, community support, comprehensive training, writing tools, and other software to help you build an online business step-by-step.

You can register a free account with Wealthy Affiliate, which enables you to get started with affiliate marketing right away without paying a penny.

If you like the platform, you can then upgrade to the premium membership to get access to everything on the platform. There are no upsells afterwards.

But How Much Can You Earn with Wealthy Affiliate?

A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while applying what is taught inside Wealthy Affiliate.

Younique MLM Review

Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.

To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.

Where to Join Wealthy Affiliate?

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