 I've done a lot in my life, but everything has led me to this, Tyra Beauty. Tyra Banks' legendary model turned startup investor and entrepreneur. So tell us about this company you're working on. What is Tyra Beauty? So Tyra Beauty is what I would like to call a cosmetics experience, not a cosmetics line. And we have a couple of taglines. One is we're beauty business and badassery. So the beauty is makeup. The business is that we have our entrepreneurs that are our social sellers that actually sell Tyra Beauty and make money and make a percentage of what they sell. And anybody can be what we call a beauty tainer. They're called beauty tainers. And then the badassery is we like to be a little dangerous, a little rebellious, have a little fun. And I launched it one year ago. It's Madsen Harnish back in my blue kitchen for another crazy video. Today, I'm going to talk about a company that I didn't even know existed until a subscriber told me about it. Today, I want to talk about Tyra Banks' MLM makeup line that she launched titled Tyra Beauty and how it massively failed. So that's what we're talking about today. Before we get into that, if you enjoy deep dives into unethical business practices and scams in the world, definitely subscribe. You'll probably like this channel and give this video a thumbs up if you'd like to see more videos like it. If you have a story to share about an unethical business practice or scam that you've experienced, click my link down below to my website so you can share your story. And well, let's get into the video. The company Tyra Beauty was, of course, flawlessly launched through an America's Next Top Model episode. Contestants had to be in a music video titled Booty Full, which was basically like a three minute long advertisement for Tyra's makeup line. Since I can't include the song itself because I'm pretty sure I'll get copyrighted, I'm just going to include clips. That was really intense. I'm just going to include clips of the video so that we can react to that. There was once a little girl with a dream. There was once an awkward, insecure, and unsure girl with a dream. I'm sharing that dream with you. Tyra Beauty is not just a cosmetics line. It's a cosmetics experience. Tyra Beauty is all about beauty, business, and badassery. Coming up to me and they're like, tie me over Tyra. And now it's time for me to tie you over. Let's get down to business. Two years ago, I graduated from Harvard Business School's owner-president management executive education program. Two years ago, I graduated from Harvard, I graduated. Okay, I just had to talk about this. In this video and also online, Tyra talks about her Harvard Business School graduation. But this is not the master's in business administration degree that Tyra received. In fact, she only attended a course called the Owner-President Management Extension Program. That's not part of the school's master's degree. And you only get a certificate of completion after the course. So it's a little bit misleading to call yourself a Harvard Business School graduate. And so many people were like, why the heck did Tyra go back to school? I went to Harvard so I can build and lead this cosmetics experience. Tyra Beauty is a 100% self-funded startup to give you the power to make your dreams come true. My goal is to help you to become the CEO of your life. What I call CEO, you sell it. AKA, be your own boss. What does that mean? You can start your own business by selling Tyra cosmetics. I'm galvanizing a community of entrepreneurs that I call beauty tainers. If you see it's basically just one long ad, it's kind of a ridiculous video. But the most upsetting video of all of this I have to say is Tyra Banks' video of why I created Tyra Beauty. So let's give that a look. I want to tell you the story of a woman. A woman that stayed married to her husband longer than she should have because she didn't have the money or the independence to leave a marriage that she felt was no longer a positive in her life. And one day she found the strength to leave that marriage and she moved her kids to a one bedroom apartment. Can we just talk about that for just one moment? The opening of why she created an MLM company was because it was inspired by a woman who was in an abusive relationship or a bad marriage and couldn't leave it because she wasn't financially able to. Yikes, that's a big yikes. In a very underserved part of Los Angeles, California and she slept on the couch while a little one shared a tiny room and she promised her children on that first night in that one bedroom apartment that in one year they would move to an apartment with two bedrooms. And guess what? She did just that. The first night in that two bedroom apartment she promised her kids that in one year they would move to a safer area and she did just that. She was able to move her family into their three bedroom dream home. That woman was my mama and one of those kids was of course me. Basically Tyra Beauty's selling point about this entire company is a story of her mom's hardships and struggles and how she rose from that and overcame that basically alluding to the fact that you can use Tyra Beauty's MLM company to overcome your struggles and hardships. For those of you who don't know what an MLM company is multi-level marketing companies like Mary Kay which I think Tyra Banks modeled almost her entire company structure after are companies where you're supposed to recruit people under you to continue selling product that you get a percentage off of. It's shaped like a pyramid so mainly only the people at the top are making money from the people that they've recruited who are constantly purchasing products. It's very very unlikely that people make any sort of money in MLM companies and the FTC has found that 99% of people lose money in an MLM scheme. So Tyra Banks created an MLM company because of her mom's hard work and success she found and is alluding to the fact that this company will help women do the same when in reality they'll just lose money. I just really hope that no one watched this video and could relate to that experience and thought that this company could genuinely help them with what they were going through because it really can't. And my mama is somebody that thinks outside of the box if there was like a more modern and an edgy and a fun independent business opportunity available for her back then she would have created that financial freedom and achieved those goals sooner. So scammy, so scammy. Any sort of scam ad always has the word financial freedom in it every time. So what is Tyra Beauty and how did my mama's struggle lead me to here today? Tyra Beauty is a groundbreaking cosmetics company. We're a social selling business which means that you can actually sell Tyra Beauty products and make money. Our products are innovative. We've got unique training sessions. Welcome to Hollywood. In immersive events that can coach you on how to maximize your sales. We're all about something that I call beauty taintment. Y'all, we got a music video. We got a bump and anthem. We like to get to the next level with Tyra Beauty. And we've got entertainment beyond that to help support your biz like no other company. From reading articles about Tyra Beauty they targeted the young Instagram crowd. So very young women who are very naive to business and don't know much about it that's who Tyra Beauty targeted. To target very young women obviously in your marketing and advertising and focus of Instagram is even more disgusting because they're even more naive to the ways of business and the fact that this is a scam. Hey, Tyra Beauty is my dream. And I'm seeing my big, fierce outrageous goal come to life. I created this company to help you reach your beef off. And that's the thing that annoys me the most about all interviews that Tyra Banks has about this company. She is acting as if she's this financial guru who is gifting you another female this power of creating your own financial freedom now through Tyra Beauty and she's like this caring person who cares about you and wants your best future and that's why she created this. As if it's some charity or nonprofit it's an MLM company where most people are going to lose a lot of money but are thinking that they're gaining financial freedom. It frustrates me the terminology that so many of these companies use when it's very obvious that they're alluding to the fact that you can make a lot of money which is an income claim but it's not necessarily illegal because they're using vague words like financial freedom achieve the success that you want the success of your dreams none of that is stating anything specific so they can skate around the laws and regulations while still creating these false claims that lead people to believe that this is a legitimate opportunity where they can make money that they really can't. Whether it's having some incase of emergency cash incase of emergency cash incase of emergency cash exactly that. What I'm talking about is making new friendships that will last you a lifetime or maybe you want to pay off a loan or develop a whole new life. Get out of debt develop a new life make new friendships all of these are claims that they are making that really won't come true the majority of people can't even get out of debt through an MLM company they get more into debt. But I want you to get that fair space in a couple of minutes so that when you become a beauty tainer you can bring transformation to your customers. Now what do you need to be successful as a beauty tainer? You'll need to be a makeup artist or an expert a salesperson have a million rich friends all you need is a passion the passion to transform your life and to get that b-fog. So how do you do that? Well, you join us and you help us expand the definition of beauty for others and helping them reach their goals while you are going after your goals too and get this you have me to lean on your marketing engine to help you reach customers near and far. I'm your CEO I've got your back that's why I'm telling you to put so much money into this and recruit others because I have your best interest in mind. I will say I have to give credit where credit is due Tyra Banks is very obviously a genius marketer the way she creates those phrases like beauty tainers and bootyful a lot of this launched around 2015 2016 is when Tyra Beauty really came out and hit the market and that was right at the time that Facebook MLM marketing company started to get pretty huge so the timing is right there to make a really successful business off of exploiting others but it didn't quite get there and we're going to dive into why so if you go on to Tyra Beauty's website right now all of their products are sold out their video smack my fat lash and line-up is completely down it's not even a real video video unavailable it seems like the Instagram was deleted completely everything is erased Tyra Beauty used some dangerous phrases like get out of debt financial freedom and it was the company itself making those claims so they're a little bit more bold which makes me believe that they probably experienced a lot more crackdown because Tyra Beauty shut its doors completely in 2017 it completely stopped its direct sales direct sales business model claiming that it was going to go towards more retail sales but that never happened either the reason as to why the company's shutdown seems largely unknown they didn't say the exact reason as to why they decided to stop the direct selling business and when I researched all of this I found very little that would say exactly why the company shut down Tyra Beauty itself said the brand's commitment has always been to help empower people by giving them the tools and encouragement they need to succeed Tyra Beauty will continue to sell its innovative and transformative cosmetic and skincare products through its e-commerce operations included a link of course and other channels where it is excited to continue to share its products mission and message so basically they alluded to the fact that they're stopping the direct selling and continuing with other avenues Tyra left all of the sales reps completely without a job and the whole thing collapsed in and itself or more like all of the people who invested their money invested their money weren't able to make that investment back as if they ever were going to but they weren't even given a chance or a refund for the investments that they made they were just completely left out to dry having poured money into this business and not being able to get anything back here are some of the reactions of the women who were sellers for Tyra Beauty and how they responded to the shutdown of Tyra Beauty at Tyra Banks and Tyra Beauty I cannot believe I'm going to have to I'm blind I cannot believe I used to look up to you I just can't hardly believe what you did to all of us beauty tainers as you called us we worked and struggled and hustled on the daily for supposedly us but it was all just for you I will never look at you the same again and I will not support anything you put your name or hands on excuse for an entrepreneur a business owner, a leader, a celebrity and really even a human by Felicia wow a lot of these women who were sales reps felt like Tyra Beauty had basically used them to garnish a ton of sales and hype around her beauty company and then transition into retail once they already had established a customer base another person said we'll never support this woman in anything she does ever again sickening how she played us and then used the people who trusted her and worked for her absolutely disgusting I used to look up to her now I see she's nothing more than a fake lying sell out another person said you do know the same karma is a bitch sadly what you did to all these women something will come back at you 10 times worst worse I'm sure I used to think you were cool now I think you are horrible and that's my theory as to why they never ended up doing retail sales I don't think they expected the backlash to be this big they thought that they could just transition into retail sales and then begin selling their brand that way and completely carry on business as usual but that's not really the case in my opinion they handled it all poorly and it just kind of highlighted how much they really did not care about their beauty tainers or the well-being of the women who were investing into the company they just wanted to make money build up the brand and move on completely with lack of regulation on how MLMs can treat their distributors this is a sad reality that can happen to many MLM companies now imagine with all the anti MLM buzz going on right now the FTC and other governmental agencies can decide to start cracking down on MLM companies more if companies feel that that's starting to happen they could decide literally on a whim to just transition into retail and completely cut out all direct sales channels at the drop of a hat and this same situation has actually happened to another MLM company recently as well I received a message from one of my subscribers shortly after filming this video and they said, hi Madison I discovered your channel recently and really enjoy your videos anyway, thought you might be interested in this little bit of MLM information I have I used to sell for lugging army bad idea as I have no sales skills and barely know anyone but I'm still on their mailing list I got this email recently there are no longer going to have affiliates more money for the company I guess and the email says first off, thank you for being a part of the lugging army family many of you have been with us since 2016 and helped develop the lugging army brand while earning an income and building your own businesses these past four years have been so inspiring and it has been a blast to watch you build your businesses as well as interacting with you all along the way unfortunately apparel sales have been plummeting since 2018 2019 was a very tough year 2020 is going to be far worse we have cut expenses to all-time lows, negotiated manufacturer discounts, laid off employees and unfortunately that has not been enough we have come to the point in our business that we cannot sustain any longer with heavy hearts we are devastated to inform you all that we are obligated to close the affiliate program it just goes to show that any company can really stop their direct sales business at any moment and everybody who is independent on that MLM company is suddenly completely out of business since MLM representatives are defined as independent contractors legally MLMs can change their business model at any time they please and leave all of their sellers completely in the dust so all of this financial freedom is actually the complete opposite it's very unstable I also wanted to include in this video some research on America's next top model and how shady Tyra Banks was kind of behind the scenes with America's next top model but this video has already gone on long enough so instead I'll be linking that article in the description if you'd like to read more about America's next top model and how shady it really is it really does make sense that a woman that has made a fortune off of exploiting young and vulnerable women in a TV show would try and create an MLM company that does the same and it's a disappointment that honestly Tyra Banks got away with it from what it looks like they were never really sued from what it looks like they were able to just kind of take their cash and run and that's really disappointing so that's all I have to say about Tyra Beauty that whole thing is mind blowing to me and strange and crazy and I wanted to share it with you guys if you like this video definitely give it a thumbs up and subscribe for more interesting deep dives into businesses and situations like these and I hope you guys have a good rest of your day until next time have a good one