In Mary Kay, the pyramid-toppers want you to believe that you control your own income. That you don’t depend on others. If you want a raise, you just go out and get it for yourself. You, as a director, can control your income with the amount of activity you do.
Nothing could be further from the truth.
Directors are almost completely dependent upon others for their income. The idea that they can “just sell more” or “just recruit more” is not as simplistic as they make it seem. The director is dependent upon others being willing to open their checkbooks or lay down their credit cards in order to be paid commissions. Dialing for dollars? Sure sounds dependent upon those who answer the phone.
One particular handout used by many NSDs in Mary Kay explains the dependence upon others this way:
Myth: Directors have to depend on others for their income.
Let’s look at an scenario where NO ONE in a Director’s unit orders product in a given month. However the director is working classes each week and she has 5 personal Qualified recruits in the month. Company average order size for a new consultant is $1000 whl.
$5000 whl. 5 new personals
+ $1500 whl. Director’s personal order tracking her for NCSales.
= $6500 whl.Production from just the director and her 5 new consultants
Let’s see what that income looks like:
$650 income from $5000 whl from 5 new recruits (13% Commission on personal recruits)
$845 income from $6500 whl from your unit (13% Director Commission – directors get paid on their entire unit including personal recruits again plus their own order. )
$500 income from the $100 Bonus per personal new Q. recruit
$500 income from the bonus for a unit that has 5 Q. recruits in one month
$600 income from the volume bonus of $100 per $1000 production (over $5000)
Total $3095 Income as a Director This income is from just your personal 5 new recruits and your own $1500 whl. Order.
Add to this $1000 income from $2500 in retail sales w/ 60/40 split ($1500 whl. Reinvestment)
$4095 Total Income for the month…from Directorship and personally selling the product.
NO ONE in the Director’s existing unit ordered at all.
Now let’s look at what happens to car production requirements:
$6500 whl. production
$3000 car credits (director’s receive $600 car credit per qualified personal recruit)
$9500 in car production for the month… Premier Club production!
Myth BUSTED!! Directors only need to depend on themselves.
This doesn’t prove anything other than the director is totally dependent upon others (her personal recruits) to place orders and others (her customers) to buy products.
And let’s not forget that holding these classes and finding these recruits is much harder that they’re making it out to be. If this scenario was played out, the director would have 60 qualified recruits in one year. How many of the 14,000 or 15,000 sales directors have ever done that? And aren’t the sales directors supposed to be the best the company has to offer.
Yet again, setting unrealistic expectations and misleading people about the income and the effort.