False Earnings Claims

Another day, another set of false earnings claims from someone who should know better. Mary Kay sales director Kimminee Costello posted on Facebook over the weekend.  She listed a litany of “facts,” many of which are flat out lies.

Let’s break down her false earnings claims.

“Mary Kay has more women earning over $100,000 per year than any other company in the world.”

This lie has been circulating for years. There is not one piece of evidence out there to support this because it’s not true. But it’s been parroted for more than 20 years.

“The average income of a Mary Kay Director is $5,000-$25,000 a MONTH. This does not include any personal sales she is making, that would be extra income.”

TRUTH: The top 400 out of 12,000 sales directors make $5,800 or above. So her average is clearly a lie.
In fact, most directors struggle to make minimum monthly production of $4,500. Even if a director makes the maximum commission of 26% on all of that production, the commission check is $1,170. That’s the reality.

“The average National Sales Director earns $300,000 to over a Million a year.”

TRUTH: Of 220 national sales directors, half make less than $10,000 a month ($120,000 a year). Even many of the very top NSDs in MK don’t make close to $300,000 a year. Do you know how many NSDs make more than $300,000 per year? The “inner circle” NSDs.  12 of them.  Here is the listing of the NSDs “on target” for inner circle right before the end of last seminar year.

If Mary Kay is such a wonderful opportunity, why do they have to lie about the numbers?

UPDATE: NSD Elizabeth Muna gets in on it too.

Along with NSD Patrice Smith.

Sales director Carrie Zuberer follows suit with the same false income claims.

And sales director Mary Clarke.

Sales director Leah Dade too.

Senior sales director Tina Smith repeats it.

 

22 Comments

  1. Cindylu

    Nice that she glosses over the reality of MK. After 50 years NO ONE wants to book a stupid MK Party. There is something called the internet where those sharp women go. The reason they do their research is because of the dozens of scams women encounter day to day. Once they do their homework these women wisely avoid MK like the plague. Those who’ve bought the kit and product soon return it. They return it because intuitively they spot the daily lies such as: Training isn’t free, products don’t fly off shelves, there is absolutely NO Where to advertise and worst just when your product arrives the company mean spiritedly changes it.

    1. Char

      What a great example of how repeating lies are just as dangerous as starting lies. Repeated enough, others start to accept the lies as truth. Sadly, lying is fundamental in MLM, and telling the truth will get you nowhere.

      Can you imagine saying the truth:

      *99% failure rate, 1% top liars
      *Recruiting your own customers as competition is always encouraged or they might get stolen
      *No you don’t own your own business
      *Corporate can change methods and you’re SOL (see AdvoCare)
      *You pay corporate a fee and BUY their products
      *No salary, no hourly wage, no benefits
      *People hate MLM and will laugh at you
      *We’re exactly like LuLaRoe, Amway, Vemma, Herbalife, Vemma, One Coin, TelexFree, Zeek
      *The more you spend, the better for ME
      *Products similar or better are cheaper elsewhere – even ours are cheaper on eBay.
      *Mary Kay is MLM. Dual-marketing is made up.
      *Continued on page 2, 3, 4, 5

      So, can I sign you up? Credit cards accepted. (I’m hearing screeching wheels and seeing a dust cloud.)

      And now people know why they lie and repeat lies.

  2. Monique

    Thank you Tracy! When I tried to look it up on my own on Facebook it wouldn’t show anything but it made me sad when I clicked on your link and read all of her Mary Kay comments and her putting all this stuff out there and nobody even leaves a comment or like and it’s like it’s sad because she’s trying so hard but she doesn’t realize that it’s all just a fraud!!

    1. TRACY

      Exactly. At one time they did have a sales volume for certain products that put them high in the rankings. But those numbers were manipulated. It was the wholesale sales x 2, assuming all products are sold to consumers at full suggested retails.

      A. Only a fraction of products purchased by consultants are actually sold
      B. Much of it is sold at a discount

      So the figures used were inflated and were never an accurate representation of the amount of products sold to consumers.

  3. enorth

    ” Only a fraction of products purchased by consultants are actually sold ”

    I heard a NSD’s daughter say she had lots of old products on her shelves to give away as freebies. “Whatever you give her, it’s your favorite…”

  4. Get your facts straight

    That post she posted with their incomes “just before the end of the seminar year” that’s out of the applause magazine and had she actually read the heading posted above the income amounts she would realize those incomes normally are from 3 or 4 months before, so it will be a few mo the before you get the Applause magazine with their income for the entire seminar year, so yes they really do make $300,000 – 1Mil a year. They really do give away real diamonds cause real cars and on average a Director really makes $5,000/mo minimum not including personal sales. Around $1k-$2k is a DIQ Income. It’s real and it’s facts.

    1. TRACY

      You’re going to need to get YOUR facts straight.

      Directors do not make $5,000 a month. It’s simple math. Minimum production is $4,500 per month wholesale, which would lead to a commission check around $900 per month. Most directors struggle to make the minimum production. Therefore, most directors make about $900 per month.

      As further proof, a director making $5,000 per month in commissions would be doing $25,000 per month wholesale unit production. Directors making $5k per month are in Cadillacs, and only a small percentage of directors are in Cadillacs.

      As for the incomes I’ve shown from Applause… the headings in pink are what the NSDs are “on target” for. Yes, there were only 12 who were on target to make more than $300k by the end of the year.

      You’re welcome.

    2. Lazy Gardens

      “on average a Director really makes $5,000/mo minimum not including personal sales.”

      So you are claiming $5,000 or so a month in commissions and bonuses? Look at Applause’s listings of the commissions … look at the lowest figure for the top 100 of each area.

      The rest of the directors in that area are making LESS than that.

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