An Ex-Consultant In the U.K. Speaks
It’s always fun to see how different (or not) things are in Mary Kay in other countries. Here’s some insight from a woman who quit Mary May in the United Kingdom.
As an ex-Mary Kay consultant in the U.K., I wanted to connect with you. I’ve been following and reading Pink Truth for a while now. I read Pink Truth whilst I was still in and your website has caused various moments of cognitive dissonance over the years. Yes, sadly it was years before I got out, the Love Bombing kept drawing me right back in.
Not helped by the fact that a lot of truths that are told about the USA business practices actually don’t work the same way in the U.K. & Ireland.
I noticed the post about Mary Kay Ireland today and thought after all this time I ought to get in touch. I can share so much information about what is going on over here.
But first I have to apologise, at one point I crept into the comments section of Pink Truth and said that all this business about inventory purchasing was not true and there aren’t the packages touted that they do in the USA.
Well the truth is that the inventory pushing is a lot more subtle, because of course inventory front loading is illegal, so we can’t be seen to be pushing inventory. However, “you can’t sell from an empty wagon!” was definitely sold to consultants by their directors. Some directors had their own recommendation for starter inventory, but Mary Kay U.K. & Ireland also have a rather underhanded way of getting consultants to buy more than they need. There’s a minimum £200 order retail value to get the lower discount of 30% and minimum £380 to get 40% discount. And that’s not even counting the sneaky gifts with purchase – free products with orders of minimum £100 or £200 – and there’s the £1,000 club incentive.
New consultants are encouraged to do their Fast Start to Success, challenging them to put through a £200 order in the first 30 days, a £380 in the first 60 days and a £500 in the first 90 days. Most consultants don’t manage to sell that much, but they’ll be encouraged to put the money in to get these products. After all you get free products and that’s free money, you can sell them at 100% profit… that’s the wording that directors use to get new consultants to part with their money. You wouldn’t leave free money on the table would you?
So I apologise for not seeing the deception at the time. I was so drinking the Pink Lemonade!
Now I’ve left a year ago, I am so anti-MLM now that I have started my own blog and Instagram and Facebook accounts as Road to Freedom @freefrommlm – and have had contact with Robert Fitzpatrick and regularly exchange messages with David Brear. I also exchanged messages with Prof. Bill Keep and am one of the moderators on Roberta Blevins Life After MLM group.
I’ve found out so many things since leaving, not just from Pink Truth, but also my own digging, especially into the business registration and records held at Companies House.
They make for some interesting reading, especially for someone who looks into fraud no doubt… Mary Kay doesn’t actually pay taxes in the U.K. they’re using a Tax Avoidance loophole. Apparently the U.K. subsidiary has been running at millions of loss year on year!
The records: https://find-and-update.company-information.service.gov.uk/company/02767620
The interesting thing on the first page is that they claim to do “ Wholesale of perfume and cosmetics “ and as such they’re admitting to only sell to consultants and not to end users, if they did they would (also) be retailers.
If you look at their filing record https://find-and-update.company-information.service.gov.uk/company/02767620/filing-history you’ll see that they are being threatened with compulsory strike off on a regular basis. Mary Kay Inc then has to reinstate their intent to bankroll the loss making subsidiary.
I’m sure you know much better than me how to read the Full Accounts for every year, but even I can see that they go from a turnover of £4,766,810, a gross profit of £2,047,884 to a massive loss of £20,909,671 in 2020 and 2019 the loss was £19,458,177
So where does the money go? Back to the USA under the guise of a loan.
There’s also a second company that’s registered to Tara Eustace, the President of European Region (including Russia) https://find-and-update.company-information.service.gov.uk/company/05945358 an IT company set up to sell IT services to Mary Kay U.K. Person with significant control: Mary Kay Inc.
That’s some of the stuff I’ve found out. It’s late now, but if you want to see more of what I’ve found or anything I can help to expose these scammers – they still owe me as they never paid the full amount of what I should’ve received for the 90% buy back and no paper trail!
I lost well over £15,000 in total over 9 years. Never made a profit, also never climbed the career path.
Visit the
If the US is getting a loan from the UK, isn’t that debt? Or is it just a way to avoid UK tax?
The U.K. is bankrolled by a loan from the US parent company. The U.K. subsidiary makes a few million in profits, but the US company gives them a loan that’s bigger than the profit, so the U.K. subsidiary is in debt to the parent company. Because debts have to be paid before taxes, it means the U.K. company doesn’t pay taxes in the U.K.
Presumably – and I’m no expert, so I’m only guessing – there is a benefit to the US parent company as well, moving money into subsidiaries, giving the money out as a loan, that must have tax benefits for the USA based parent company as well? I don’t know the tax rules in the USA that well. However my logical mind can figure out that if the subsidiary makes 2 million in profit, that the loan doesn’t need to be 20 million to use the legal tax avoidance loophole, a loan of say 5 million would suffice.
Now think of Mary Kay Worldwide… they’re in how many countries? Oh yes, 35 in addition to the USA? So if the US parent company bankrolls 35 x $20 million, that’s $700 million… you can’t pay taxes over money that you’ve lend out to others can you? Just saying…
Could someone who understands accounting explain this 20 million pound loss better? They have a loss for several years, don’t pay UK taxes, and money goes back to MK USA in the form of a loan….? And with regular losses, the UK subsidiary is basically being told, “Get it together or you can’t do business here anymore?”
This is insane… what other international locations are experiencing the same things?
I should clarify – I understand profit and loss. What I’m trying to wrap my head around is how MK UK is running ~20 million pound loss year after year and still somehow in business and not paying UK taxes.
I don’t know these international tax laws, but I do know that MLM is highly profitable and Mary Kay doesn’t lose money. Ever.
So MK US is propping up the UK subsidiary and preventing it from being closed….?
Robbing Peter to pay Paul?
No, what I think is happening is that the UK sub is profitable, but MK is able to shuffle money around in a legal way to make it look unprofitable and therefore avoid UK taxes.
Yes and I wonder if they are avoiding US taxes at the same time by making a “loan” which creates a liability and affects the balance sheet differently than regular revenue. I made a C in Accounting so not really sure… 🙂
Wonder what God’s thoughts are on this tax strategy? Or maybe He’s too busy working on getting Chelsea, Cleta, Karen and Rachael to NSD?
I personally don’t have a problem with companies navigating the tax code to reduce their taxes legally.
Same here, Tracy. We do this as individuals, so why not companies? Especially when it’s legal and above board. I do what I can to reduce my overall tax liabilities.
No need to apologize. So many of us have been where you once were. ❤️ Thank you for sharing your perspective! I’m only familiar with how Mary Kay works in the US, I had no idea the UK branch operated so differently.
I am also in the UK and in MK. I pretty much joined for a laugh so in years to come I could say ‘Lol, remember that time I joined an MLM?’. Since joining I have learned that even joining for a laugh, with 0 intention of ever recruiting anyone is just supporting an unethical business practice. I have sold a bit.. but its SO cringe, trying to guilt friends and family into buying your substandard stuff. Its also so pricey for what it is; Boots literally sells its own brand stuff, which is great at a fraction of the price. I recently attended the UK online Mary Kay Seminar.. again, I guess just to say that I had? It was so stuffy and out dated. It always is. We had to make vision boards and all sorts of absolutely cringe things.
The ladies in my unit are sweet… but its very telling that one of the more ‘successful’ red jackets said on a recent unit meeting that one of her goals is to get out of debt… She’s been with MK for quite a long while. Strange, that she’s still in debt if its such a great opportunity.
Anyway, I have emailed and enquired about the return of my inventory as I have been a member for just under a year. I DO have some products that I love and use, but have stocked up on those before January’s price rises, and I intend to return the majority of what I now have in my cupboard, and put the refund amount into better things. I feel vaguely bad for my recruiter. She’s a red jacket but also barely has time for MK. I am always so tempted to ask in our whatsapp group how long it took people to start seeing a real profit, but have always bitten my tongue. Lol. Its my director’s B-day today, so maybe I won’t terminate my account QUITE yet. I have most defo put in my last order, so will wait till mid-month to terminate and return my inventory.
Make sure you keep accurate records of the products you bought and return. They’ll send you a list of products that you’re allowed to return. Any products that you’ve received, any prices and bonuses will be deducted.
They won’t send you any confirmations, no paper trail! You just happen to get a payment on your bank account and that’s it. Make sure you check it!
They shortchanged me and I’m still owed £250 which I’ve written off along side the £1,000s of inventory that’s still sitting in my dining room!