Long ago, someone at Mary Kay Inc. came up with this silly idea of calling Mary Kay a “dual-level marketing” program. Apparently, they didn’t like the fact that the system the company uses is multi-level marketing (MLM) so they made up a new name that they try to differentiate from MLM.
What, you ask, is dual-level marketing?
From Mary Kay’s Legalease:
“There is one wholesale sale (Company to Independent Beauty Consultant) and one retail sale (from Beauty Consultant to customer) of Mary Kay products. There are no levels of wholesales between the Company and the consumer through which products pass at varying discounts before sales. Thus everyone, …. purchases all cosmetic products directly from the Company at the same published wholesale prices for resale to consumers of their choice. Everyone has the opportunity to buy at the same discount irrespective of their level within the independent sales force career path.”
So this idea that there are 2 sales of the product (company to consultant and consultant to customer) somehow means it’s this made-up term of “dual level”. Whatever. Dual. Multi. It’s all the same thing to me. You can put lipstick on a pig, but it’s still a pig.
What I find really interesting is that the company always mentions that everyone buys from the company at the same wholesale price. There are no different discounts for people at different levels of the pyramid. THAT’S NOT TRUE!
Horrors, you say? Yes, horrors! Sales directors DO buy at a different discount from everyone else. Each and every sales director receives a commission of 9% to 13% on HER OWN PURCHASES of product from Mary Kay. That means she, in effect, buys at a greater discount than consultants.
I’m sure the Kaybots have a logical excuse for this, but I say if it walks like a duck and quacks like a duck, then it’s a duck!
Oh, and one more thing. If we’re looking at the majority of the sales in the company to determine whether it’s “dual-level”, then we really ought to call Mary Kay SINGLE LEVEL. We all know that most products are sold from the company to the consultant and then they never sell it to a customer. Single sale. Single level.
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