Pink Truth: The Mary Kay Pyramid is NOT Like a Normal Corporation

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

The Mary Kay Pyramid is NOT Like a Normal Corporation Jan 3rd 2012, 12:00 Written by Raisinberry The Corporate Rationalization… Recently I have been hearing about a comparison of Mary Kay and normal American Corporations. The ones who put forth the analogy want you to see the realistic and understandable scenarios of corporate structure and how Mary Kay mirrors the same structure. In many organizations, there are only a [...]

Raisinberry does a great job outlining the argument that I most agree with about why Mary Kay is just like any other company or income situation (alike but different obviously) but then does (in my opinion) a horrible job trying to explain why the argument she just detailed is flawed. Nonetheless, I will give it a little attention.  First: Since when do American Corporations require their employees to turn over their paychecks in order to have their JOB next month? Since when does Mary Kay require you to turn over your paychecks?  Am I missing something? She does accurately point out the difference between being an employee and a business owner, namely that employees don't take on any of the risk of moving product -- the company they work for does (see Honda in her illustration). She concludes by saying that this difference is what makes Mary Kay a fraud and not a legitimate corporation.  So all you small business owners and entrepreneurs out there, take note... by taking on the risk of carrying inventory, and spending money to hold your own merchandise, you are participating in what Pink Truth considers a fraud and can never be considered a legitimate American Corporation. Let's all take a moment and give thanks that Raisinberry and the friends over at Pink Truth are not in charge of setting up corporate practice laws! Those of you that are considering Mary Kay, here is what you should take away from this bit of information.  Pink Truth is right in pointing out that you take on RISK when you join Mary Kay.  YOU choose how much product you order and YOU are responsible for making sure it moves into the hands of retail customers - YOUR RETAIL CUSTOMERS.  Mary Kay does NOT take care of this for you, nor for that matter do they much care.  Obviously it is better for them if you are growing your client base and their training and material aims to accomplish this, but they are paying YOU to go out and find their customers.  The money that they could be spending with Network and Cable television, print, radio and internet ads (and so on and so on) is being spent on encouraging you to find new clients for them.  If you choose to create fake clients to get the prizes, that is your choice.  You are trying to cheat them, but really only cheating yourself.