Mary Kay - Watch Out!

[laura ryan]

Originally posted by UKDaisy
I sell Mary Kay. And I'm a lil' confused on how its a pyramid scam. I thought that it was a pyramid scam if the money someone else got came out of your money. In mary kay that doesn't happen. Like if I signed you up today you wouldn't be paying anything, the company would.

My director makes over 150,000.00 a year and its mostly off of makeup sells. We are a lil' unit.

There are a lot of good mary kay things that go on. SO I dont' think its a scam.

I am a little late responding to this one - reading thru the thread -too funny! btw - anyway, your director DOES NOT make all that money off "sales". The only thing many of the higher earners are selling is "inventory" and that's what you need to know about this business.

They are not selling product to the public - they are selling product to the distributors and for those orders, directors make up to 26% commission on their personal recruits. So, do the math. How much, at 26% would a director make on a 4200 inventory? Quite a chunk!

IN ADDITION to that, she'll get a number of bonuses for recruiting new ones, for exceeding production levels, etc.

Sales reps in Mary Kay are going National in record numbers AND in record time because they are selling inventory. I have documents on Mary Kay Opinions and my site www.thepinkingshears.org which are from Nationals who promote how to sell inventory to a new consultant and the new bonus structure which focuses on recruiting and that, from what I know is what puts them in a "pyramid" arena.

They've upped the ante to a 4200 Pearl Level inventory and the "new crop" of directors will tell consultants that that is "profit-level" implying anything less would not reap success. When a "seemingly successful" director communicates this to a consultant, for sure the consultant wants to be successful, so oftentimes, she will take the director's advice and borrow from Grandma if she has to to get amount of inventory.

The bonus structure for recruiting and commissions is turning MK into a product based pyramid, or a thinly veiled one., in my opinion. It has many payouts from multiple levels.

Since directors always flash their commission checks, ask to see her Schedule C, tax document for her business to gleen exactly what the income comes from.

Top director trips are reported as "income" and are valued up to $30,000. The lease/insurance payments MK makes on the "free"cars is reported as income as well as all the "free lunches" and prizes awarded by the company. The sales tax for the "leased car" is also reported as income as well as other awards.

So, I know you are assuming most of the income comes from personal sales and maybe some does, but don't make the statement unless you've seen her Business tax form complete with expenses/prize/award allowances.

The purpose of doing parties in MK was to work "full circle" meaning a customer is to eventually become a recruit.

All the direct selling companies are about recruiting and that's where the big money is.

Show me ONE consultant in this business who consistently sells $1,000 worth of product EACH week of the YEAR (I don't know who that would be, I don't know any) and that would net them $52,000 in "sales". Well, from that, knock off 25,000 which is what it COST them to buy the product. Knock off another 7% of tax on the retail value and delivery costs, books, promotional items, samples, etc. not to mention discounts and that further cuts in to that $25,000 they could make. That $1000 is IF (big IF) they sold ALL the product EVERY week at FULL RETAIL value. Unheard of in nearly all circles.

I've been writing to talk about MK for a few years now and I have yet to have anyone say THEY personally are selling at that level. When MK was publicly traded and was required to post their average earnings per consultant, the figure was $5,000/yr in "sales".

Recruiting is the name of the game - you do not move up in a direct selling company unless you do so and make production quotas.

[laura ryan]

Ironically, I do use it too and I have a few women who like it and have used it for years. I have no problem with the product, and yes, alot of people are sensitive to it; I heard that alot. I have a problem with the business model and the inventory loading and how they are pushing people to race to National (no more quotas then) on the backs of thousands of consultants who purchased thousands of dollars worth of unneeded inventory to "help" someone who said they "loved them".

The emotional card is played alot, love bombing, whatever. How many of our bosses, on our regular jobs sign a memo or email - "Love and BEElief" and sell the job as "girlfriend time" and let's have FUN and have slumber parties? NOT., But, that's what they use for "bait".

Women, starved for recognition and/or compliments fall for this and they know it. Mary Kay knew it when she saw how much they did for a gold goblet (first "prizes) and wondered what minks cars would get her? oops, I mean "them" to enrich their lives....uh huh.

[33girl]

Mary Kay isn't a pyramid scheme. It is multi-level marketing. Pyramid schemes do not involve product.

[pinkcadillac]

that's why it's called a "product-based pyramid scheme".
It operates in reality like a pyramid scam, but on paper it looks like a legal MLM.
(BTW, the line between MLMs and pyramid scams is very thin to begin with)
In reality, you cannot climb the ladder in Mary Kay without recruiting everyone within 3 feet of you, and frontloading huge inventories on new recruits. MK directors also push credit card debt, etc, to get people to buy the big inventories.
If you want to join just to get your products at a discount, and don't buy any inventory, you won't get scammed.
But if you join thinking you can make a decent income? You're in for a big surprise..

BTW, I saw one of the earlier posters is a Wright State University alumni--me too! *waving*

[pinkiebell1001]

Ok...I need help:P I work in a grocery store, and there was a woman who came in and she apparently worked for nordstrom. Well, she had this button that said "ask me how you can win a 500$ shopping spree at nordstrom"-well, i was curious, so i asked her how, and she said "Mary Kay!" and not wanting to be rude, I said I liked it! Well, she hasn't called me ALOT, but she's really pushy and she's like "Well come on in and do a spa day with your girlfriends; or come on in and we'll pamper you and such and such" and I tried to make it clear that I wasn't all that interested, and she just would not stop! She's calling me tomorrow (She wants to "check in" every morning ) and I just dunno what to say?! For you Mary Kay sellers, what does someone have to say to finally make you give up??? I mean, she seems like a really sweet lady so I really don't want to be rude, but I'm just really interested! What can I do?!

[kddani]

please stop calling me every morning. It's scary and stalkerific.

There's only so nice you can be to people like that. The nicer you are the more they'll try to take advantage of you

[Rio_Kohitsuji]

Okay, in defense of Longaberger...I like it My mom and my sisters are all into it, however, they've slowly weaned themselves, heh. Right now I can count 17 baskets in my room alone! People can go nuts with it though, dey crazy! I'm personally in LOVE with their pottery, you can't kill than stuff seriously! My mom was also a consultant...she made some serious bucks....paid for a few semesters

[wrigley]

pinkiebelle1001, even if she told you that she works at Nordstrom's she's walking a fine line. Most department stores like that have a strict policy against promoting a competitor, ie Mary Kay because Nordstrom does sell cosmetics, while you're on their clock.

Since you want to be nice ,thank her for the opportunity and that you're not interested and you changed you mind. It happens.

[CutiePie2000]

Originally posted by pinkiebell1001
For you Mary Kay sellers, what does someone have to say to finally make you give up??? I mean, she seems like a really sweet lady so I really don't want to be rude, but I'm just really interested! What can I do?!

Say to her, "Do you have a Do Not Call list? If so, I would like to be on it".

I don't know what the laws are like where you live, but in Canada, we passed privacy legislation and if someone says something like this to you, you MUST comply.

[UKDaisy]

Originally posted by CutiePie2000
Say to her, "Do you have a Do Not Call list? If so, I would like to be on it".

I don't know what the laws are like where you live, but in Canada, we passed privacy legislation and if someone says something like this to you, you MUST comply.

Say something like that. Some women are very pushy in this business. And when I say pushy I mean friggin' annoying. I, personally, do not make phone calls I only send out the brochures with samples and let them know via mail or one email every quarter about sales that are coming up.

You just have to simply tell her "look, I'm going to quit you all together if you don't stop hasseling me!" Be firm. Some of the women think its great to keep calling b/c it keeps them fresh in your mind. That's crazy to me. So just plainly say "i'm going to quit using mary kay all together or find another consultant if you dont' back off"

That's what I would do, and have done in the past.

[UKDaisy]

Originally posted by laura ryan
I am a little late responding to this one - reading thru the thread -too funny! btw - anyway, your director DOES NOT make all that money off "sales". The only thing many of the higher earners are selling is "inventory" and that's what you need to know about this business.

They are not selling product to the public - they are selling product to the distributors and for those orders, directors make up to 26% commission on their personal recruits. So, do the math. How much, at 26% would a director make on a 4200 inventory? Quite a chunk!

IN ADDITION to that, she'll get a number of bonuses for recruiting new ones, for exceeding production levels, etc.

Sales reps in Mary Kay are going National in record numbers AND in record time because they are selling inventory. I have documents on Mary Kay Opinions and my site www.thepinkingshears.org which are from Nationals who promote how to sell inventory to a new consultant and the new bonus structure which focuses on recruiting and that, from what I know is what puts them in a "pyramid" arena.

They've upped the ante to a 4200 Pearl Level inventory and the "new crop" of directors will tell consultants that that is "profit-level" implying anything less would not reap success. When a "seemingly successful" director communicates this to a consultant, for sure the consultant wants to be successful, so oftentimes, she will take the director's advice and borrow from Grandma if she has to to get amount of inventory.

The bonus structure for recruiting and commissions is turning MK into a product based pyramid, or a thinly veiled one., in my opinion. It has many payouts from multiple levels.

Since directors always flash their commission checks, ask to see her Schedule C, tax document for her business to gleen exactly what the income comes from.

Top director trips are reported as "income" and are valued up to $30,000. The lease/insurance payments MK makes on the "free"cars is reported as income as well as all the "free lunches" and prizes awarded by the company. The sales tax for the "leased car" is also reported as income as well as other awards.

So, I know you are assuming most of the income comes from personal sales and maybe some does, but don't make the statement unless you've seen her Business tax form complete with expenses/prize/award allowances.

The purpose of doing parties in MK was to work "full circle" meaning a customer is to eventually become a recruit.

All the direct selling companies are about recruiting and that's where the big money is.

Show me ONE consultant in this business who consistently sells $1,000 worth of product EACH week of the YEAR (I don't know who that would be, I don't know any) and that would net them $52,000 in "sales". Well, from that, knock off 25,000 which is what it COST them to buy the product. Knock off another 7% of tax on the retail value and delivery costs, books, promotional items, samples, etc. not to mention discounts and that further cuts in to that $25,000 they could make. That $1000 is IF (big IF) they sold ALL the product EVERY week at FULL RETAIL value. Unheard of in nearly all circles.

I've been writing to talk about MK for a few years now and I have yet to have anyone say THEY personally are selling at that level. When MK was publicly traded and was required to post their average earnings per consultant, the figure was $5,000/yr in "sales".

Recruiting is the name of the game - you do not move up in a direct selling company unless you do so and make production quotas.

Why do I feel like I just got bitch slapped by you? Oh wait b/c I did.

I actually visited your website and found it somewhat beneficial. However, b/c of your last post in respond to my post I'm slightly peeved.
Pm if you wanna talk.

[staffies]

Originally posted by CutiePie2000
With regards to companies like Mary Kay, AVON, Partylite, that scrapbooking company (I forget the name), AMWAY, Pampered Chef and Market America.....


IF THE PRODUCTS ARE SO WONDERFUL, WHY DON'T THEY SELL THEM IN STORES?

I am a male MK consultant and the reason we don't sell in stores is so that the company can offer great prizes. You see, MK is not a get rich quick but it's nopt a pyramid either. Every consulant earns the same 50% on every product she sells. You pay $100 for a starter kit which includes over $400 of free product and all the supplies to demonstrate the product to 30 women. You have the option to order product, but if you don't order it, you won't have anything to sell. And your director will work a plan with you to get this if you can't afford it - ways to earn free product.

If you do recruit people, MaryKay Inc. pays you comissions. The way they cab afford to do this is because they don't have the overhead costs of stores, salesforce (we don't get salaries) and distribution channels.. Also, we just introduced advertising, ut our costs are minimal compared to other companies - because of this model they can afford to give great prizes.

Mary Kay Ash started this company to enrich women'slives and allow them to earn what they worked for. If you are interested in more about the company and ho it works, visit my website at www.marykay.com/sstaffieri and click on "Start a Business".

Stephen
sstaffieri@marykay.com

[Tickled Pink 2]

Originally posted by pinkiebell1001
Ok...I need help:P I work in a grocery store, and there was a woman who came in and she apparently worked for nordstrom. Well, she had this button that said "ask me how you can win a 500$ shopping spree at nordstrom"-well, i was curious, so i asked her how, and she said "Mary Kay!"

That is really weird, because I am a MK rep and someone sent me this email that said something similar. Anyway, when I clicked on it, it grabbed everyone in my address book and sent an email to them telling them "Hey there's this really cool website where you can get a $500 shppoing spree from Nordstrom". I apologized to everyone on the list when I realized what it did.

[pinkiebell1001]

LOL...well as far as i know, her 500$ shopping spree really is legit, but who knows. She ended up calling me the next morning, but i didn't anwser, so I'm assuming she's either A) given up, or B) decided a different plan of attack, lol. All I know is that I plan to avoid avoid avoid!:P

Originally posted by Tickled Pink 2
That is really weird, because I am a MK rep and someone sent me this email that said something similar. Anyway, when I clicked on it, it grabbed everyone in my address book and sent an email to them telling them "Hey there's this really cool website where you can get a $500 shppoing spree from Nordstrom". I apologized to everyone on the list when I realized what it did.

[laura ryan]

Originally posted by kiteflyerzl
I was walking through the mall the other day and this lady stopped me. She was a MK consultant. Said they were on the lookout for "sharp" looking people for before/after makeover photos. I told her that MK skin care makes me break out and that I'm an Estee Lauder and Lancome addict (both facts are true). When she left I wasn't sure if I should be flattered that she thought I was "sharp" looking or offended that she thought I needed make-over. How "sharp" can I be if you think I'm a good makeover candidate.

Well, telling women they look "sharp" is one of the teachings in MK, truly. When I first heard it, I was flattered, but then as I got more involved and heard others say it (then heard what they "really" thought behind their backs when the credit cards weren't readily available) I found that I could never call someone "sharp" again. EVEN if they DID look sharp, I couldn't say it. It's one of the things they ruined for me.

What they are really looking for are recruits who look like they have money. We WERE told by a National Sales Director's husband at a DIQ (Director-in-Qualification) meeting that we really needed to look for women with "credit". See how it works now? MLM=Recruits=Sharp women=Credit cards

I was even told to not talk to anyone who had filed for bankruptcy! - Saying "she filed bankruptcy" to your upline is like the worse thing you could ever say......well, almost because the WORST thing you can say is I QUIT!