Influencers who have built careers around Seint Beauty's multi-level marketing (MLM) model are grappling with uncertainty following the company's announcement of a significant operational shift set to take effect in October 2024. Formerly known for its makeup products sold through a network of sales representatives, or "artists," Seint's decision to transition to an enhanced affiliate program has sparked both controversy and concern within its community.
What is an MLM?
A multi-level marketing (MLM) company sells products through a network of distributors, who are often incentivized to recruit new distributors. Artists in MLMs, like Seint, make money by selling products and earning commissions from sales made by their recruits. While MLMs are legal, they are frequently scrutinised for their resemblance to illegal pyramid schemes, which focus more on recruitment than actual product sales.
Seint's Announcement
In early July 2024, Seint Beauty announced it would no longer operate using the standard MLM model. Instead, the company will shift to an affiliate program starting in October. According to a July 2 Instagram post from Seint, there will be no more "compensation for recruiting or team building efforts." The company aims to encourage actual sales of the product, rather than relying on a pyramid-scheme-like distribution model.
Many artists are concerned about how these changes will impact their income and careers. For those who focused on recruitment and team building, the new model represents a significant shift. Artist Savanah Poulsen expressed her disappointment on Facebook, feeling that the changes undermine her years of dedication to Seint. Poulsen plans to continue selling Seint products but will seek new opportunities to lead and mentor a team elsewhere.
Artist Kimi Beasley shared similar sentiments, explaining that the initial email from Seint caused confusion and fear among many artists. The email suggested a drastic restructuring, leading some to believe they were losing their jobs. Beasley later clarified that artists would now rank solely based on their sales each month, without the MLM structure to benefit from downlines.
Despite the backlash, some artists view the changes positively. Kaylee Chodkowski expressed her support for the new model, appreciating the shift towards a sales-oriented approach. She believes this move will legitimise Seint's business practices and eliminate the negative connotations associated with pyramid schemes.
Tracel Callahan reassured her customers that the changes would not affect their ability to purchase Seint products. She emphasised that, for customers, it’s "business as usual."
Transition Period
To support artists during this transition, Seint is providing a three-month period for them to adjust their business strategies. This period is intended to help artists focus on maximising sales opportunities without relying on recruitment. Seint hopes this change will ultimately provide greater rewards for artists who are dedicated to sales and customer service.
Seint's decision to move away from the MLM model reflects a broader industry trend towards transparency and accountability. The shift to an affiliate program aims to enhance the focus on product quality and customer satisfaction. However, the company faces the challenge of retaining its dedicated base of artists while navigating the evolving landscape of direct sales and affiliate marketing.
For many artists, the coming months will be a period of adjustment and adaptation. As the full switch to the affiliate model approaches on October 1, the response from Seint's community will be crucial in determining the company's future success.
