Thursday, October 25, 2012

Pink Truth: The Non-Retail “Direct Selling” Company

Pink Truth
Facts, opinions, and the real story behind Mary Kay Cosmetics.

The Non-Retail "Direct Selling" Company
Oct 25th 2012, 11:00
Written by Robert FitzPatrick As market-based economies become the prevailing global model, millions of people are being exposed to sales promotions, income opportunity solicitations, and investment schemes with which they have no experience or knowledge. Vulnerability to deception and the need for consumer education correspondingly reach global heights. One especially dangerous deception is now luring [...]
We finally see where the 99% figure comes from.  Some observations.

1. This article itself suggests that 99% "will not see profit" which is different from "lose money" which is what Pink Truth often trumpets.
2. As applied to Mary Kay, (and II think most companies of this sort) is untrue or misleading.  There is no definition of "profit", but if we suggest that profit means more money coming in than going out, than even people with no one under them stand to see a profit (albeit a small one).
3. Even if the ones that have no one under them don't sell any of their product, but only use it themselves and pass it around to friends, they genuinely have not made a profit, but would not really be considered to have lost money either.  I don't suggest that most people who shop in a Best Buy lose money just because they left the store with less money than they had when they went in.  They have purchased products.  They have transacted business.  We don't call that losing money.

In other observations, he closes by saying that "cold facts" are what expose these so called pyramid schemes, but I don't see any cold facts in this article, only opinions, woefully lacking math skills and inaccurately drawn conclusions.

Pity.

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