Mary Kay Sales Directors Dropping Like Flies

What a difference a year makes. Check out these numbers that Mary Kay Cosmetics is reporting for calendar years 2007 and 2006. They are admitting to losing 1,000 directors in the U.S.

Anyone want to bet it's more? They had 14,000 directors year after year after year…. now corporate is admitting the numbers are dropping.

2007:

  • Wholesale sales of $2.4 billion.
  • Mary Kay® products are sold in more than 35 markets worldwide.
  • The company’s global independent sales force exceeds 1.8 million.
  • Throughout the company’s 45-year history, some 500 women worldwide have risen to the rank of Independent National Sales Director, the pinnacle of achievement in the independent sales force.
  • Approximately 34,000 women across the world currently hold the position of Independent Sales Director, with approximately 13,000 of them located in the United States.
  • Currently, some 1,900 independent sales force members in the U.S. have earned the privilege to drive a Mary Kay pink Cadillac.
  • Currently more than 12,000 women worldwide have earned the use of a Mary Kay Career Car.

2006:

  • Sales reached $2.25 billion at the wholesale level.
  • Mary Kay Inc.’s international presence spans more than 30 markets.
  • More than 1.7 million Independent Beauty Consultants worldwide.
  • Approximately 500 women worldwide have attained the position of Independent National Sales Director, the highest status within the independent sales force.
  • More than 33,000 women across the world have reached the rank of Independent Sales Director. In the United States, more than 14,000 women have attained this position.
  • Currently, approximately 10,000 independent sales force members have qualified for the use of a Mary Kay Career Car in the U.S.

If you look closely at the figures, you see that the growth in top line revenue is strictly attributable to expanding overseas, to countries like India. It's clear that the sales figures in the U.S. have fallen, and there are at least 1,000 fewer directors than there have been for the last several years.

We all know that Mary Kay lives and dies by DIQs and sales directors. They're the ones pushing production to meet qualifications and minimums. Fewer directors means much lower income for Mary Kay Cosmetics.

Consider this: At the minimum production of $4,000 wholesale each month… 1,000 fewer directors in the U.S. means a reduction of income by at least $48 million per year.