The Reality of “Cadillac Director” Earnings

 You know I love to get my hands on these things: the real, live numbers that prove how few people are actually making money in Mary Kay. Now let me set this up for you to prove that almost no one is making that “executive pay” in Mary Kay.

A sales director driving a Cadillac is supposed to do $96,000 wholesale production over two quarters. That works out to $16,000 wholesale per month, which equals a commission check of about $3,200 monthly (using an average commission rate of 20%). That equals $38,400 per year gross commission if the director is just meeting the Cadillac minimums. (And then you have all the business expenses that must be paid out of that!)

And there are plenty of Pink Cadillac drivers who don’t make the minimum production, so their commissions are even lower AND they have to pay extra money to the company to keep the car.

Why do I do these figures? So that you can understand that all the directors below Cadillac (which is the vast majority) are making less than that per year.

As of 2014, a reported 1,300 pink Cadillacs are on the streets in the U.S., meaning less than 10% of sales directors have them.

See how few in Mary Kay are actually making any money?

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6 Responses to The Reality of “Cadillac Director” Earnings

  1. raisinberry January 12, 2015 at 8:57 am #

    And lest anyone forget, the Directors are the top 2%er’s…remember? Remember being baited to become a top 2%er?? SOOoooooo…

    OUT OF 100% sales consultants, 2% are Directors, and OUT OF 2% of the Directors, less than 10% of THOSE TIPPY TOPPERS, make 38K a year BEFORE….BEFORE….pay attention now, BEFORE, expenses…

    Getting the picture now?? So beating a dead horse, 90% of Directors make less than, MUCH less than 38,000 a year Before annual expenses of around 7,000-13,000.00 depending on their prize program, travel, participation rate, outside Unit meeting, assistant, etc.

    Next time you hear one tout their “highest monthly check” ask them when it was and what their AVERAGE monthly check is…and get ready for the sound of crickets.

  2. 4:8 girl January 12, 2015 at 9:32 am #

    Oh my. This makes my head spin! I left MK exactly 2 years ago this month, while I was in DIQ. One of my best decisions ever. I had thought of it for a few months, but speaking w/former directors & perusing the Applause magazines (commissions) & our unit/area newsletters cemented the deal for me. Not only do I make WAAAAYYYYY more $$ working less than 20 hours/week, I absolutely love what I do as a professional! As MK always says, “the numbers don’t lie”. Ha ha ha ha! Got that right! :)

  3. Tia January 12, 2015 at 5:56 pm #

    This has to be one of my favorite articles on here because it really breaks through the lies with some actual numbers. Let’s face it, no one joins Mary Kay not wanting to make money (unless you claim you are a personal use consultant, which is another story). Show this to any IBC and see what they say!

  4. BestDecision January 12, 2015 at 8:45 pm #

    Don’t hate me for saying this, but our commission on a base Cadillac production of $16,0000 wholesale was 23%, not 20%. 10% unit volume + 13% unit production commission. I used to figure my checks were about 1/4 of my unit’s production for the month, and it usually was just about that.

    But, you’re very accurate in saying an “elite” member of the sales force was clearing WAY less than $48,000/year before taxes and expenses. What part of that is “elite” and “prestigious”?!

    May I also add another nugget: NSDs used to not be required to be Cadiallc drivers to debut. It’s sad, and, actually, a turning point in my factors to resign because everything had started to whittle down that NSDS were becoming that weak as to mandate a change I who could be one or not. That says it al!

  5. SuzyQ January 12, 2015 at 9:35 pm #

    BestDecision— you nailed it. It will be very interesting to see what happens with the seminar realignments and nsd earnings.

    • BestDecision January 13, 2015 at 5:14 pm #

      Thanks, SuzyQ. I didn’t want to come across as arguing, but since we’re all lumped together as “liars” who don’t portray the business accurately, I wanted to step up and leave no room for that kind of bickering.

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