Recruiting and Ordering Numbers

magnifychartsYou always wondered what the recruiting and ordering statistics were in Mary Kay. One national broke it down for her area. I’m not sure how much of it we can believe, but it’s at least a starting point.

As you expected, the number aren’t good. Almost everyone fails in MLM, and these numbers reflect the failure. People don’t fail in MLM because they’re lazy or uninformed. They fail because simple math makes it so. It’ a pyramid with huge numbers of women at the bottom. There aren’t enough women to sell to or recruit in order for many of them to be successful.

Here are the numbers the NSD laid out for us:

  1. 1/3 of your consultants will order an average of $400; 1/3 are thinking about it; 1/3 are on the way out
  2. Your unit should recruit a minimum of its size (exclusive of personal recruits)
  3. Company statistics indicate a new recruit will place an initial order of $1,000
  4. 20% of your unit will generate 80% of your production
  5. 1% of people are natural leaders; 2% are learned leaders; 97% are followers (it’s okay to be a follower, however, followers seldom become directors)
  6. 3% of your unit is leaders. Calculate 3% of your unit size. Unit of 30 has less than one leader, a unit of 50 has 1.5 leaders and a unit of 100 has 3 leaders.
  7. A consultant will recruit 1 out of 5. A director will recruit 1 out of 3. There is one prospective recruit at every class. Using these figures you can always tell a consultant how many classes she is away from her goal. For ex. Red Jacket she needs 15 classes. Car 60 classes.
  8. With whom do you spend your time? 45% of your time should be spent with your new people. 45% of your time should be spent with key people. 10% of your time should be spent with those on their way out.

It all sounds so cold, doesn’t it? Well they tell you it’s a numbers game and it is. Mary Kay has been in business so long and they know exactly how these numbers shake out. They know how many will win the cruise promotion. They know how many will place an initial inventory order of $1,800 or more. They know exactly how to work this system to benefit corporate the most.

It’s so sad once you know the truth.

7 Comments

  1. Cindylu

    Fifty years of lies and using women for this mlm’s personal gain. Women leave because they can’t afford this scam. The party system from fifty years ago is an outmoded ridiculous recruiting scheme. I can recall attending these stupid female gatherings simply because women help each other. We helpveach other with baby showers, bridal showers, casseroles during a tragedy and house warming gifts. When our friends start a new home business venture we get sucked in to going. We rarely enjoy those stupid mlm jewelry parties, substandard makeup parties and over priced plastic ware. Shame on this company for continuing to mislead with cultish slogans and Christian sayings. It should be interesting when this mlm implodes and many NSD’s aren’t top earners or relevant anymore. The fall out when it hits the top end scammers should be intense.

    1. Coralrose

      #3- The average initial order. That’s the only average the company knows. Since they don’t track retail sales, they actually don’t know the sales of the average Skin Care class (despite what your director says). They don’t know the average profit a consultant makes on sales per month. They only know how much consultants ORDER from the company.

    2. NeverAgain

      The latest trend with parties is to have them on facebook. I have been invited to several with family members who, I assume, get a percentage of sales in free products. I don’t feel the need to buy anything, though, family members or not. I understand that people are busy but they’re inviting/expecting me to spend my money without even giving me a cup of coffee. They even have cooking product parties without the cooking demonstration and food samples.

  2. Mountaineer95

    There is one aspect about MK (and MLMs in general) that I keep coming back to, because the numbers given by the upline/Corp, when extrapolated, prove that the structure cannot work. It’s exemplified here by the quote “A consultant will recruit 1 out of 5”. Okay, let’s go with that figure: a consultant will recruit one out of five. This is where we need Tracy et al to do the maths: how many MK consultants exist right now, and if they all recruit twenty percent, after adding in these new consultants who were just recruited then what is our new number we use for total consultants who will also recruit one out of five…then add this number of new recruits to the last consultant total and then when this third batch of consultants recruits twenty percent, we again have higher number of consultants, and this number now recruits twenty percent…you see how, exponentially, this “statistic” shared by the director is not possible. Read that, Kaybots? It’s not possible.

    1. Lazy Gardens

      That’s 1 out of 5 *that they get to attend a party* …. and those numbers are hard to find.

      You can do a simpler calculation of how it doesn’t work by taking the reported “sales” and dividing by the reported number of participants. It’s an amazingly constant number – $1200 to $1500 average for most MLMs. And if one consultant makes more, someone else is making less.

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