We often hear Mary Kay (and other MLMs) compared to normal corporations. This is how they rationalize the pyramid. Those who compare MK to corporate America want you to see the realistic and understandable scenarios of corporate structure and how Mary Kay mirrors the same structure.
In many organizations, there are only a few at the top who make the majority of the money. Think CEO, CFO, President, Vice President, heads of departments. Like Mary Kay, thousands of workers make minimum wage while these leaders earn the big dough.
The lesson here is that if you work hard, if luck would have it, if the stars align, you might work yourself up to Dept. Head, and someday be a Vice president. Likewise, Mary Kay tells you the same thing. Work hard, and you will make that climb, but even better for you is, the TOP positions are not already filled! You can be a NEW CEO of your own company!
The theory is true for sports figures as well. Thousands upon thousands of kids all over America try out for, and play, various sports. How few make it to regional championships..and how few make it to the professional sports leagues? A very few at the top get paid the biggest bucks while the majority of those in the league make much less, and still the majority who play do not make it into a league at all. This is the nature of things. The best rise to the top and get paid the biggest bucks and that is just the plain reality of business in America. That is Mary Kay’s reality as well, they say. You just are having trouble accepting that MK is a corporate structure that rewards the best with the most money, and the best will always be a small percentage.
This argument is given to make you come to your senses, you Anti-MK zealots!
Except, there is just this one small problem.
Does corporate America require employees to buy and stockpile the product that pays the commissions to their CEO? Does the salary of that NBA player depend on all the team members charging refreshment stand product or game tickets to their credit cards? Since when do regular corporations require their employees to turn over their paychecks in order to have their JOB next month?
The money to operate regular company comes the usual way: through good and services purchased by consumers. A regular company that required its sales force to purchase the goods and services themselves so they can get a commission and remain with the company would be a huge red flag!
Mary Kay’s analogy that it is like all other corporations overlooks one very important thing. The majority of their income is on the shelves and credit cards of their independent sales force. How many Honda employees had to charge the months production at the Honda plant to keep their job? How many NBA stars got their paycheck collecting from the players in the locker room?
This is the fraud of MARY KAY and will always be the reason why they will never be a legitimate business. They do not care about, nor to they track, nor do they post, nor do they promote actual retail sales… paying commission on actual retail sales. The figure would be so low, the company would be humiliated and the sales force would pack up and quit. Not even consultants buying for their own use would order $6,000 retail in a year.
So the next time you hear the analogy that “Mary Kay is like all other companies, they all operate like a pyramid…” ask your Mary Kay defender if all other companies base their employee paychecks on how much of the company’s product the worker has on his credit card.