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!