What is the Seint Beauty Makeup controversy about?

Many influencers are anxious about the recent changes at Seint Beauty, a makeup MLM, fearing their hard-earned efforts might go to waste. Until July 2024, Seint operated as a typical MLM, where influencers, known as Artists, sold makeup products.

Now, let’s break down what an MLM really is. It’s not quite the same as an illegal pyramid scheme, although the line between the two can blur. At Seint, Artists—basically influencers—make money by selling products. The more they sell, the more cash they pocket. Simple, right?

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But here’s where it gets tricky. Both MLMs and pyramid schemes push Artists to recruit others. Why? Because when those recruits sell products, the original recruiter (Artist A) also gets a cut. It’s like a chain reaction:

Artist A sells Product to Person B → Artist A earns money.
Artist A recruits Person B, who becomes Artist B.
Artist B sells Product to Person C → Artist B makes money, and Artist A earns a bit because they recruited Artist B.
And the chain goes on. Artist B recruits Person C, now Artist C, who then sells to Person D, and so on. Everyone up the chain gets a slice of the pie.

Now, why does this matter? Well, if the focus shifts from selling products to recruiting new Artists, that’s when it starts smelling like a pyramid scheme. According to the Federal Trade Commission, an MLM should pay you based on actual product sales to customers, not just for bringing more people into the scheme.

So, as Seint and other MLMs navigate these changes, influencers are left wondering if their role as Artists will continue to be lucrative or if they’ll need to pivot to avoid pitfalls that could turn their gigs into something closer to a game of financial Jenga.

 

What happened to Seint Makeup?

In early July 2024, Seint Beauty made waves by announcing a shift away from its traditional MLM setup to what it terms an “enhanced affiliate program,” slated to roll out in October.

Here’s the gist: while a pyramid scheme operates without regard to actual sales, the new affiliate model at Seint flips the script entirely.

According to a July 2 Instagram update from Seint, the company declared an end to compensating Artists for recruiting or team building efforts. Instead, the focus will squarely be on driving product sales and delivering top-notch customer service:

“Artists will no longer receive compensation for recruiting or team building efforts; instead, they will be exclusively rewarded through our affiliate program based on their dedication to sales and exceptional customer service.”

For many Artists who had already opted to sideline recruitment in favor of direct sales, this change won’t disrupt their business model significantly. The shift aims to streamline operations:

“Most of our Artists currently only sell to Customers without building teams of their own. For this group, the overall changes will be minimal but are expected to provide even greater rewards for their efforts right away.”

However, for those who did engage in recruitment, Seint is offering a three-month grace period to adjust their strategies toward maximizing sales opportunities under the new system:

“To support this transition, Seint is providing a three-month period for Artists to align their business strategies towards maximizing sales opportunities.”

This move by Seint marks a notable departure from the traditional MLM model, potentially reshaping how influencers and Artists engage with the brand moving forward.

 

Why is the Seint Change Controversial?

In early July 2024, Seint Beauty caused a stir with its decision to transition away from the traditional MLM structure to what it terms an “enhanced affiliate program,” effective from October 1.

The change has stirred mixed emotions among Seint’s Artists, particularly due to some initial confusion about what exactly the transition entails. An email sent to Artists hinted at restructuring that led to concerns about job security, as recounted by Artist Kimi Beasley:

“Late last night Artists received an email from corporate stating that in 90 days our entire company was restructuring to an Affiliate Program and our Leadership ranks at Seint would diminish. (Scary!)”

However, clarifications soon followed, assuaging fears about job losses and emphasizing a shift towards rewarding individual sales performance:

“What we know now is: Each month, Artists are to work independently for their own personal sales ‘rank’. Essentially, there is no longer an MLM structured rank to gain benefit from a downline. Artists rank solely on their own sales each month.”

For long-time contributors like Savanah Poulsen, who expressed deep emotional attachment to the team-building aspect of Seint, the change is bittersweet. Despite continuing to sell Seint products, she laments the loss of mentoring opportunities within the new model:

“You are still able to order Seint makeup through me but I will no longer be able to mentor and lead a team there. I will be leading and mentoring elsewhere because it’s part of my soul.”

Others, like Katie Blanchard and Christina Watts, expressed disappointment and frustration over the restructuring, feeling let down by the company’s decision to pivot away from the MLM structure:

“My heart hurts for [former team leaders] with the change corporate is choosing.”

“How do you do that to your people that have invested their heart and souls into your company. Just leave them high and dry.”

In contrast, voices like Kaylee Chodkowski and Tracel Callahan see the shift as a positive step towards clarity and sustainability, focusing more on product sales rather than recruitment:

“I love the new model and that it’s primarily based on product sales!”

“For you as the customer, it’s business as usual. Just keep wearing that makeup that you and I both love.”

Navigating these changes with a mix of sadness and optimism, Lisa Hutchinson encapsulates the collective sentiment of adapting to a new era at Seint:

“This is the part that kinda makes me sad for all the leaders in this business including myself… but we will continue as a sisterhood side by side with encouragement and confidence as we have always done with these changes.”

As Seint prepares to fully embrace the affiliate model come October 1, the company and its community are bracing for a transformative journey, balancing nostalgia for the past with hope for a sustainable future.