Mary Kay Inc. claims that their business structure is based on a concept called “dual marketing.”
They define it as separating corporate management from independent contractors. That definition, however, is the basic definition of independent contractor. An independent contractor is not an employee of the company and doesn’t receive any of the benefits of a hired employee.
The only definition I was able to find for the term “dual marketing” is the partnership between two companies that occurs when they decide to advertise their complimentary products together.
It appears that the term “dual marketing” was implemented by Mary Kay Inc. to attempt to hide the fact that the company is a Multi-Level Marketing company. MLMs elicit a negative response from many people, and aren’t considered to be “real businesses” by some.
However, Mary Kay Consultants earn money not only by sales, but by recruiting other people into the Company. Mary Kay Inc. pays Consultants a commission based on the amount of product that their recruits order from the company. Starting with their fourth recruit, Consultants also earn a bonus amount for each person they bring into the company.
Don’t be fooled: Mary Kay Inc. is a Multi-Level Marketing company that uses a Stair Step Breakaway plan as its compensation model.