Younique
| Company type | Private |
|---|---|
| Industry | Multi-level marketing, Beauty and cosmetics |
| Founded | 2012 |
| Founder | Derek Maxfield, Melanie Huscroft |
| Headquarters | Lehi, Utah , United States |
Area served | United States, Canada, Australia, United Kingdom, Mexico, Europe |
Key people | Derek Maxfield (CEO), Brian Holman (President), Monica Wihongi (Chief Sales & Marketing Officer) |
| Products | Makeup and skincare products |
Younique is a U.S.-based multi-level marketing enterprise focused on beauty and cosmetic products through direct selling. Established in 2012 by CEO Derek Maxfield alongside Melanie Huscroft, the company’s main office is situated in Lehi, Utah. From 2017 until 2019, Coty, Inc. held a majority 60% ownership in Younique, valuing the firm at $1 billion, before divesting its shares back to the original founders.
As of 2024, Derek Maxfield continues to serve as CEO, with Brian Holman occupying the role of President and Monica Wihongi functioning as Chief Sales & Marketing Officer. Younique’s operations span several international regions including the United States, Canada, Australia, the United Kingdom, Mexico, and various European nations, utilizing a network marketing framework centered on direct cosmetic sales.
Business model
Younique’s cosmetics are distributed by Brand Ambassadors and Affiliates who receive commissions based on their sales performance. To retain their active status, sellers are required to regularly purchase products regardless of their sales results. Similar to other MLM organizations, Younique promotes the recruitment of new sellers who market products primarily through social media platforms and online events. Initial commission rates begin at 20%, increasing to 25% after reaching $1,000 in sales, with additional earnings linked to recruiting others and benefiting from their sales volumes. In 2019, The Guardian compared Younique’s approach to pyramid schemes, citing that many participants experienced financial losses.
The company’s model parallels MLM firms such as Avon but places a stronger emphasis on digital selling rather than traditional face-to-face transactions. Digiday attributed Younique’s swift expansion largely to this digital-centric strategy. The Wall Street Journal noted that founder Derek Maxfield’s personal narrative—his Mormon background and survival from leukemia—served as a distinctive recruitment tool differentiating Younique from other market players.
Products
Younique offers a variety of makeup products for eyes, lips, and face in addition to skincare collections like Younique Royalty, launched in 2016 with an anti-aging focus. In 2019, the company released the Moodstruck Epic 4D One-Step Fiber Mascara, which achieved sales exceeding one million units within six months. That same year, Younique introduced an augmented reality feature allowing customers to virtually try on products, thereby improving user interaction.
In August 2019, Younique agreed to pay $3.25 million to resolve allegations that it misleadingly advertised its Moodstruck 3D Fiber Lashes mascara as containing “100% Natural Green Tea Fibers.”
Ownership
From January 2017 through August 2019, Coty, Inc. was the majority stakeholder in Younique after acquiring a 60% share for $600 million, placing the company’s valuation at $1 billion. The original founders maintained a 40% interest. This acquisition contributed positively to Coty’s profit growth during 2018 as Younique reported double-digit revenue increases in the second quarter. Nonetheless, in 2019 both revenue and profits for Younique declined compared to the previous year. Coty exited its investment by selling its ownership back to the founders in August 2019.