Younique entered the beauty industry and MLM world as a relatively new player when it launched in 2012, experiencing remarkable growth throughout its brief history. Social media became the primary catalyst for its expansion, with the company marketing products almost entirely through digital channels. Yet this rapid growth appears to have plateaued, as company revenues have been on a downward trend for the past few years.
The MLM landscape is vast and competitive. With numerous established companies like Scentsy and OPTAVIA vying for market share, where does Younique actually stand? This comprehensive review examines what this company offers and whether it delivers on its promises.
Younique Company Overview
Origins and Founding Story
Younique’s founding story sets it apart from typical MLM ventures. Rather than prioritizing products or profits, the company emerged as a vehicle to financially support The Younique Foundation, an existing charity dedicated to helping survivors of childhood sexual abuse.
Brother and sister duo Derek Maxfield and Melanie Huscroft launched Younique in 2012, bringing a fresh perspective to the MLM industry. Their vision combined supporting their foundation with empowering women through enhanced self-esteem and financial opportunities.
Derek brought valuable industry insight from his 12 years developing software for direct selling companies. He understood how technology could revolutionize the traditional direct selling model and better serve distributors. Meanwhile, Melanie’s 16-year background as a homemaker provided authentic connection points with the company’s Presenters.
Coty, Inc. acquired a controlling stake in 2017 for $600 million, establishing Younique’s valuation at $1 billion after just five years of operation. By May 2020, approximately 1.5 million Presenters had joined the company. While revenue peaked at $450 million in 2017, it subsequently dropped to $350 million by 2019.
Legal Challenges and Investigations
Since launching, Younique has largely steered clear of major scandals or official investigations. While pyramid scheme allegations occasionally surface, such claims target virtually every MLM company and typically lack substantial evidence. No formal investigations currently address these accusations.
The company did face legal issues regarding its Moodstruck mascara product. Despite Younique’s claims that the mascara contains natural green tea fibers, a class action lawsuit alleged the product actually uses nylon fibers. Without admitting wrongdoing, the company agreed to a $3.25 million settlement to resolve the litigation.
Current Leadership and Structure
Derek Maxfield continues leading the company as CEO, with headquarters remaining in Lehi, Utah. Melanie Huscroft serves as Chief Visionary Officer, channeling her marketing expertise and artistic background throughout the organization’s creative processes.
In an unexpected turn, Coty sold its majority stake back to the original founders in 2019. The beauty conglomerate acknowledged that Younique’s unique business model differed significantly from their other holdings, and declining revenues influenced their decision to divest.
The company maintains its position as one of the few MLM organizations selling products almost entirely through social media and digital platforms. Derek’s early recognition that technology could transform MLM operations has enabled Presenters to operate their businesses from virtually any location worldwide.
Product Portfolio
Younique concentrates on beauty products, with makeup comprising the majority of their catalog. Their extensive makeup range spans foundations and bronzers to eyeshadows and lipsticks, complemented by essential accessories like brushes and applicators.
The company has broadened beyond cosmetics to include comprehensive skincare solutions featuring cleansers, toners, serums, and masks. Their fragrance collection rounds out the offering, creating a complete personal beauty ecosystem for customers.
Marketing Strategy and Approach
Younique distinguishes itself through its near-exclusive reliance on social media for marketing and sales activities. The company remains among the world’s only MLM organizations conducting business primarily through digital channels. Industry experts credit this digital-first approach as a key driver of their initial explosive growth.
Social media platforms enable Presenters to host virtual product demonstrations and parties, reaching audiences beyond geographical constraints. These digital venues also serve as recruitment tools for building presenter teams. This approach has significantly expanded sales opportunities compared to traditional face-to-face methods.
Income Potential with Younique
With approximately 1.5 million presenters enrolled and declining sales figures, earning meaningful income through Younique presents significant challenges. Despite the beauty industry’s substantial size and consumer willingness to invest in cosmetics, enthusiasm for Younique appears to be waning.
Younique’s failure to publish an Income Disclosure Statement raises immediate concerns for prospective Presenters. However, analyzing available company data reveals troubling earnings patterns. The reality falls far short of most people’s financial expectations.
After accounting for business expenses, typical Younique presenters earn roughly $14 monthly. Additionally, maintaining commission eligibility requires meeting minimum sales thresholds, further emphasizing that Younique offers limited genuine business opportunities.
Getting Started as a Presenter
Becoming a Younique Presenter involves completing their online registration and purchasing the $99 starter kit. While no annual renewal fees apply, maintaining commission eligibility requires meeting ongoing minimum purchase requirements.
Earnings Structure
Younique promotes its straightforward compensation structure. Personal sales generate 20-30% commissions based on presenter status, while team sales earn additional 3-6% commissions. The compensation plan extends three levels deep into downline activities.
The company’s instant commission feature stands out, delivering payments within three hours of customer orders. This rapid payment system distinguishes Younique from other MLM organizations.
Marketing and Sales Methods
Social media dominates Younique’s marketing strategy, making presenters with substantial online followings more likely to succeed. These platforms facilitate both product sales and presenter recruitment through virtual parties and business opportunity presentations.
MLM Industry Comparison
Despite Younique’s streamlined compensation model compared to many MLMs, actual earning potential remains extremely limited. Their digital-first approach eliminates in-person sales requirements, which some find appealing. However, declining sales suggest the initial excitement surrounding the brand has faded, with consumers increasingly choosing more established makeup alternatives.
Final Assessment of Younique
Although customers generally express satisfaction with Younique’s products, the brand appears to represent a declining trend rather than a sustainable opportunity. While some Presenters capitalized on early momentum, the statistical likelihood of success remains remarkably low. Despite supporting worthy causes and promoting positive missions, Younique fails to deliver viable income prospects for those seeking additional earnings.
