Find Money for Your First Order

A Mary Kay sales director’s entire life revolves around recruiting and initial inventory orders. Units are maintained with initial inventory orders. Cars are won with initial inventory orders. The first order a consultant makes almost always represents the most product she will ever order.

Thus, lots of time is spent training directors on how to “pull inventory” (as Dacia calls it). Part of the trick to getting someone to order thousands of dollars of inventory is finding the money to do so. If you’ve got someone who needs to make some money, how likely is it that she has a bunch of money lying around to buy MK inventory?

So our buddy Linda Toupin (recently retired NSD) had a helpful handout as part of her sales director “boot camp” that she sold to sales directors. (The cost ten+ years ago was $770!) It’s all about finding money to buy that inventory. The first option includes cashing out investments and retirement accounts. (Terrible idea!) And then there are all the ways you can borrow money from people.

Notice that the very LAST way Linda suggests you find money for an order is by SELLING PRODUCTS. Imagine that! They claim you’re going to have a retail business, and yet the last possible way you could get money to by products from MK is by making sales to customers!

8 Comments

  1. MLM Radar

    Mary Kay is a debt-free company! How? They get YOU, the consutant, to borrow the money that finances all that inventory. You take on the debt risk for them.

    When you’ve done the borrowing, the next thing they make you do is take on all the inventory risk. You get cases and cases full of inventory, with absolutely no idea what customers you don’t have yet might order. You’re not allowed to exchange any of it. You’re not allowed to return any of it unless you’re quitting forever.

    Then, since the company has no risk in financing the inventory, and almost no risk in getting stuck with products that customers won’t buy, MK happily changes the packaging, the colors, the formulas, and the product names with little or no notice. You’ve agreed to take on all the risk, and they’re happy to take on all the rewards.

  2. morningstar

    Part with your money, I need it, let me count the ways. Notice how it is done with detached almost whimsical emotion.

    Purchase something and the fake emotions get turned on to the max. This also is a strategy, one that got me I dare say.

    1. NayMKWay

      Recommending selling silver and gold is bad enough, but what I consider worse than that? “Piano.” I had a visceral reaction to that one. Our baby grand has been in our family for nearly 80 years. It was passed down to me by my father and will go to our son or daughter. If some pushy director came into our home and recommended selling our family heirloom to buy a bunch of make-up so she could hit quota, she’d be out the door before she finished her sentence.

      “You will need to buy starter inventory. ‘You can’t sell from an empty wagon,’ you know. Why don’t you raise some cash by selling that pi…”

      “Bye, now. Don’t think this hasn’t been fun. Because it hasn’t.” [SLAM]

      My point is: this is a HORRIBLE idea to give directors. Most people I know who own a piano are emotionally attached to it, and would strongly resent anyone suggesting they part with it for any reason other than severe privation. This is NOT the way to establish a good business relationship with your recruit.

    2. Wasrings90

      She must think her recriuts actually have expensive gold & silver jewelry to sell… LOL..

      And yes I have sold some of my jewelry so I could afford groceries at one point in my life… It was a very hard decision to make, and I assure you it was the very last resort at the time I had…

      Also the suggestion of selling the China kills me, my set was given to me by some of the most amazing people in my life and they are now gone. I use my China a lot and it brings me joy and makes me smile. MK products don’t do that….

  3. PurpleH

    She missed the method practiced in the Summach National Area in Canada: use $1800 of your student loan! You know, the money you and your children are supposed to live on while you are working toward certification for a real job.

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