I love the idea of being debt free. I even love the idea of using Mary Kay Cosmetics to become debt free. The problem is, the second idea is nothing but a pipe dream for virtually all the women who get involved with the company.
Sure, the concept is simple. Buy for $1, sell for $2, and you have an instant profit of $1. But there are many obstacles to that actually happening.
The first problem is finding someone who wants to buy. Sure, there are some women out there who want to buy Mary Kay. The problem is that there are so many consultants and so many women who have tried Mary Kay in the past, that it’s hard to develop a solid customer base. Do some women do it? Yes. Do most? No. Mary Kay has an out-of-date business model that produces poor results for almost everyone involved.
If you do find someone, try getting them to pay full price for their products. The products at full suggested retail are simply overpriced for the level of quality. And then there’s the problem of so many women so overloaded with Mary Kay inventory from their experience with frontloading , that they’re selling it deeply discounted just to get it out of their houses. I don’t blame them for discounting. It’s better to get something for it than lose the entire “investment.”
And then there are all the expenses associated with selling Mary Kay products. That “$1 profit” is completely mythical because of all the expenses that go into selling. There are samples, supplies, travel expenses, shipping costs, customer gifts and incentives, and all sorts of things that add up very quickly.
But suppose you could do all of the above, then do you have money to pay down your debt? Not if you listen to your upline. If you’re one of the very few able to generate cash via Mary Kay, your recruiter, director, and national sales director will hound you about “investing in your business” and “building your inventory.” They would have you believe that you need oodles of product at your fingertips at all times. The reality is that you don’t!
To have MK nsd Linda Toupin tell it, it’s simple to sell lots of Mary Kay products if only you want to and you try hard enough. (Yeah, tell that to all those who tried and tried and tried.) And here’s how she tells you it goes down…
YOU WERE MEANT TO BE “DEBT FREE”!
By: National Sales Director, Linda Toupin
Wondering how you can start a business when you are already in debt? Here is how you can start your business and use Mary Kay to pay off ALL your debt!
- Sell $200 per week = $800 income for the Month
- Take $100 to pay loan for your MK business (Leaves $700)
- Use $400 to replace product sold (Leaves $300)
- Give $100 to yourself (Have Fun!) (Leaves $200)
- $200 to pay off other debt
- Sell $300 per week = $1200 income for the Month
- Take $200 to pay loan for your MK business (Leaves $1100)
- Use $600 to replace product sold (Leaves $500)
- Give $200 to yourself (Have Fun!) (Leaves $300)
- $300 to pay off other debt
- Sell $400 per week = $1600 income for the Month
- Take $100 to pay loan for your MK business (Leaves $1500)
- Use $800 to replace product sold (Leaves $700)
- Give $300 to yourself (Have Fun!) (Leaves $400)
- $400 to pay off other debt
- Sell $1000 per week = $4000 income for the Month
- Take $100 to pay loan for your MK business (Leaves $3900)
- Use $2000 to replace product sold (Leaves $2000)
- Give $300 – $1000 to yourself (Have Fun!) (Leaves $1000 to $1700)
- $1000 – $1700 to pay off other debt
Rapid Debt Reduction Plan:
- Write down all debt, numbering them 1-10 from the smallest to the largest
- Start paying off the smallest one first, making payments as large as you can.
- Make minimum payments on #2 through #10
- When debt #1 is paid off, start paying big payments on #2 and continue minimum payments on #3 through #10
As in all things in LIFE….Consistency is the KEY!
Sounds simple, doesn’t it? These simplistic (and fake) examples are meant to show you how “easy” Mary Kay is, and if you can’t do it, you’re a loser. Too bad it’s not that easy, because of all the above factors. Which is why so many women lose money in Mary Kay and come out of the venture than more debt than they went in with. Oh sure. Your recruiter, sales director, and national sales director would have you believe it’s all your fault if you accumulate debt while you’re in Mary Kay. The reality is that almost no one turns a profit in Mary Kay, and that’s just a systematic flaw in MK and multi-level marketing in general.