Pink Truth (and others) claim that 99% of those involved with Mary Kay LOSE money. They base this statement largely on a document from Pyramid Scheme Alert.
This quote gives a summary of the oft (mis)quoted statistic.
This report reveals that 99% of all sales representatives each year in the sample of companies
analyzed earned less than $14 a week in rebate income. This figure is before all business
expenses, inventory purchases and taxes are deducted. The figure therefore represents a
significant financial loss for virtually all that join these schemes. Additionally, the report shows
that on average no net income is earned on average by MLM distributors from door to door
First of all, it refers to the "sample of companies".
Second, it demonstrates the numbers about "rebate income" not all sales activity
Third, it shows $14 a week or less - not an actual loss. The "loss" comes from the expenses etc.
The basic premise of this 43 page document (I have not read it thoroughly yet) as I understand is that mathematically, a pyramid scheme is doomed to failure.
I believe this and the math supports it. I believe this is why a pyramid scheme is illegal. The question of whether or not Mary Kay is a pyramid scheme is at the heart of the discussion and is why Pink Truth invests so much energy into demonstrating that no one makes money selling product. If they can prove that no one makes money "selling only" they will prove that MK is nothing more than a pyramid scheme AND in a pyramid scheme, 99% fail MATHEMATICALLY true.
As I said, I do not have time to explore/explain this thoroughly (MKHonesty, I could use some help if you have it!) right now. I have been meaning to do a write up on this for a long time. However, doing it in a way that is honest and does not ignore facts will take a long time and 43 pages is a lot to sift through.
If you want to read the original document click here.
Give it a read, leave your comments about it... and if any of you want to do some solid research and email it to me, I would love to post it! (hint, hint - MKHonesty)!