Minimum Wage Sales Directors

I’ve broken down director income before. At least 5,100 sales directors in the U.S. make less than $16,800 per year. 3,000 sales directors make between $16,800 and $40,800. The other 900 make more than $40,800. But think about that. 10% of the sales directors make more than $40k. 90% of the sales directors make $40k or less.

Here are real numbers from one sales director who ended up in a Cadillac. You can see her year 4 commissions are Cadillac level commissions. But the whole thing is still a trainwreck. Even during that Cadillac year, she only netted $29,000 out of her MK business.

This woman left a $60,000 a year job with full benefits to do Mary Kay. She ended up averaging $14,000 of income per year with no benefits, and had the added burden of self-employment taxes.  She didn’t include the income from the “free car,” but she also didn’t subtract any business use of auto, which would have canceled one another out.

And the truth is that the expense numbers are pretty conservative. It’s easy to see how a director could spend much more on the events and promotions.

Take the $14,000 per year and assume this director was working 40 hours a week for 50 weeks out of the year. She made $7 per hour.  If she only worked 30 hours a week, that’s $9.33 an hour. And you know that 30 hours a week as a Cadillac director is not reasonable.

Cadillac directors really have it made in Mary Kay, don’t they? If you’re in a pink car, you must be successful!

 

 

8 Comments

  1. MLM Radar

    Looking just at product purchases and sales:
    This Director spent about $26,000 on products plus $6,000 on Section 2 items (samplers, mirrors, bags, forms, sponges, etc.). Total spent on products and sales material was $32,000.

    Her sales were $36,000. Gross profit from sales (before other expenses) was $4,000, which is about $1,000 per year. $4,000 gross profit on $36,000 sales is 11%, not 50%.

    This was a Director. Selling should have been easy. She earned almost no profit from sales, yet told her recruits they could double their money selling products.

    What you hear from a Mary Lay sales director and what the truth really is are complete opposites.

    1. TRACY

      And we should be clear that this woman was not a “bad apple.” She wasn’t someone who “wasn’t working the Mary Kay way.”

      She is doing exactly what 90% of sales directors do. She was ordering products she didn’t need and couldn’t sell because she needed to keep up production. She told herself the lie that she’d eventually sell the stuff.

      This is NOT an isolated incident. It’s the norm.

    1. NayMKWay

      Simple: front loading. In years 1 and 2 her sales totalled far less than 2x her purchases. In year 1 she sold less than 1x her purchases. In year 3 she got smart and sold down her inventory.

        1. Chanel

          Each Beauty consultant experience is definitely different. There definitely has to be balance and money management when owning your own business. The directors earn commission along with personal sales.

          1. TRACY

            No each experience is not different. Over 99% of people lose money in MLM. That’s the same.

            You do not “own your own business” with Mary Kay. Read more here: http://www.pinktruth.com/2018/01/23/mary-kay-not-a-business/

            Yes, directors get commission and can make money from selling products. The sad truth is that there is very little profit to be made from selling the products. Read more here: http://www.sequenceinc.com/fraudfiles/2017/12/lack-of-retail-sales-in-mlm/

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