A Little Formula to Figure Out if Your Mary Kay Director is Making “Executive Income”

Written by Raisinberry

July is one of the few times during the year that you might actually find out how well your Unit is doing. Mary Kay publishes commissions in Applause Magazine, the top pyramid dwellers, but the vast sea of some 13,000 North American Directors will never grace the pages.

In July, however, many Units announce where they finished at year end. If you can find out what your “Seminar Year End Goal” was to hit “whatever” Unit club, or how far away you were, you can easily estimate your Director’s paycheck. When your Director keeps this quiet,…well you know.

Remembering that she is paid on wholesale, not retail, any retail figure has to be reduced by half. So if your unit is in the $250,000 Unit Club, figure the amount at $125,000 wholesale. Now divide that $125,000 by 12 months and get $10,400 wholesale production per month. Your Director gets about 23% of that (if she’s over $5k per month, which means bonus money). She’s makes $2,392. per month excluding her personal recruiting commission. You can find her recruiting commission, commonly called a love check in your newsletter (unless she’s hiding from that).

If she is a strong recruiter, and gets star orders this will be a significant additional commission. Usually a Director posts her “love check” in the newsletter and you can see it will range from 100 to 1500 per month. If she only has 4 or 5 recruits for the year, or has relied on her on-targets and DIQ’s to bring ’em in, this number will be low. Very low. The listing of Seminar Sales Leaders gives you a picture because you can look at the names, divide the retail in half and total the possible commission guestimate at 10% because not all her months will be at 13%.  It’s nine percent (even if she does her own 600), if less that 5 order during the same month.

In our example, we’ll say the newsletter shows an average of $250 additional per month. She’s up to 2642.00. She also may have picked up some bonuses for recruiting over the year (She gets up to 500 for 5 qualified in a month…haven’t seen this happen much at all). Divide up another 1000. (generous). Add $90…we’re now up to $2,732 per month prior to business expenses.

So your Unit Club Director, at 250,000 retail production for the year is making roughly $2700 gross commission per month. On the generous side. Before expenses. And we know how considerable these are. Easily (twelve months) averaged at 800.00 to 1,000 a month, and we all have to pay taxes. (Unless you lose money-and most “premier club” directors ultimately do.) In this example, a woman clearing $1,700 a month after expenses is making $20K a year.

Now, how many units are at 250,000 “retail” in all of Mary Kay? As you go to Seminar or your awards night this month, observe how many Units even made it to any type of Unit Club. Twenty thousand per year is okay helpful money for any home. But it isn’t “executive” by any stretch so if you left your job to pursue it, you’re screwed. Of all the Units in MK, how many shine on that Seminar stage in Unit clubs? 500 per Seminar? 600?

Now why would we report on this? Aren’t paychecks kinda personal? In this case, absolutely not. Mary Kay’s marketing plan and “opportunity talk” elaborates on the high potential income of its consultants and Directors. They routinely share their “highest check” at Guest Events as the main bait to join.

Any consultant can see if she is being lied to. She can do the math on her own Unit, and even being generous with bonuses, can get very near a clearer picture as to whether her Director has, “paid for college with her MK check…purchased her home with her MK check, is making Executive Income part time from home with her MK check.”

Any guest can check what she has been told by simply asking the Director what is the average wholesale production per month of the Unit. She will never expect that question. She will stammer. You should press. She will give you a June Number (typically the highest month for most sales directors) because she has to spin it (following the tenets of positive affirmation). Then ask her what March was and January. With those numbers you can figure an average and you will have her.

Pink Truth Exists because Directors lie and are lied to. Directors “suggest”. Director’s “allude to” and we assume. Our first line of clarity involves getting Directors to admit and face what they work so hard to deny. They teach consultants to deny as well, by simply not allowing anything “negative” to be spoken. The end product is an entire group of sales people pretending they sell more than they do, and absolutely clinging to that “highest check” as their reality instead of the exception.

It was our assumptions and Mary Kay’s inability to be forthright with information and documentation of financial facts that we relied on, that caused some of us, to make horrible decisions. It’s called detrimental reliance, and it is cause for legal action…class action,  if David can still slay Goliath. But Mary Kay doesn’t promote (wink wink) what it makes it’s Directors say. We promote “top” check, not “average” check. We leave out expenses and the fact that the top check was 15 years ago. That’s negative. See why Mary Kay is fighting the “full disclosure” requirement that the FTC is promoting for Direct sellers? The truth will kill recruiting.

Do the math and find out exactly what kind of earnings YOUR director is bringing home, so you aren’t duped into “chasing the dream” that even your own Director can not catch.

3 Comments

  1. LR

    Why are commission checks called “love checks?” It’s not as though the company is giving you money because they love you, they’re contractually obligated based on the revenue you’ve produced. Aren’t they supposed to be serious business women?

  2. BestDecision

    This article needs to be on the home page every day! Executive income is only those CLEARING $177,000/year. After expenses. After taxes. That’s the current national average across all industries.

    Look at the May Applause, grab a calculator, and look at what NSDs are even making. Multiply their monthly check by 12, and you’ll see how few of them are even grossing $177,000/year. (hint: If your Director or NSD made less than $14,750 in commissions last month, there’s no way she’s making an “executive income” for the year.)

    Here’s my experience and observations on income levels for the month…IF a Director is making minimum production requirements to maintain this specific car:

    Cadillac $4,000/month
    Premier Club $2,000/month
    Consultant car $1,250/month

    And this is before taxes and expenses are subtracted out. Open eyes clear the head!

    As a side note, they haven’t reduced Unit Clubs to just $250,000, have they? They used to start at $300K.

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