Archive | Business Basics

Multi-Level Marketing is NOT Like Corporate America

One of the common statements made by people in favor of multi-level marketing is that it is just like corporate America. We call MLM a pyramid scheme, and corporate America is a pyramid too! That’s simply not true.

While the SHAPE of the hierarchy of people looks like a pyramid in MLM and in corporate Amercia (one person at the head of the company, a few below, managing several below them, and so on)… that is where the similarities end. Continue Reading →


“Playing Ball” in Mary Kay

The concept of “playing ball” in Mary Kay is simple. It’s a fancy way to say that if you aren’t ordering, your director won’t help you. It doesn’t really matter if you have a ton of inventory that you’re working to sell off. All that matters are your current orders. No new orders, no help.

Here’s how one Mary Kay nsd explains it:   Continue Reading →


Mary Kay Cosmetics: A Pink Predator

A while back I appeared on HuffPost Live, discussing multi-level marketing and its negative effects on those who become distributors. Below is a clip in which I discuss my opinion that Mary Kay Cosmetics is one of the most predatory MLMs available.


The Four Stages of Your Mary Kay Business

Here’s a cool Mary Kay training piece that the sales directors pass around ad nauseum. Someone made up four stages for your Mary Kay career. Below are those stages, with my description of the reality of those stages in italics.

This is the stage where you are doing the things that are most productive in this business, such as using and sharing the products, showing others the opportunity, attending your Success Meeting, planning your work and working your plan, reading, and learning all that you can about the business. You initiate communication with your Director and set goals on a weekly and monthly basis. You play by the rules – book 5 to hold 3- and always are aware that you are in a learning and building stage and within that, comes hope and excitement. Continue Reading →


Getting a Bank Loan For Your Mary Kay “Business”

 One sales director is suggesting that new Mary Kay consultants use this letter to get a bank loan. Yes, she’s suggesting that the consultant actually present this nonsense to a bank loan officer. I’m afraid to say that this isn’t quite going to cut it.

To: Loan Officer

Business Proposal

I recently became a Mary Kay Independent Consultant and I am applying for a Small Business Loan to get started. Mary Kay is the best selling brand of facial Skin Care and Color Cosmetics in the U.S. and is the largest Skin Care Company in the United States. Continue Reading →


No, You Can’t Be “At Home With Your Children” While Earning a Living in Mary Kay

If you’ve been around Pink Truth for a while, you know the chances of making a real living in Mary Kay are slim to begin with. Even the 2% of current consultants who have supposedly reached the upper levels of success as sales directors…. Most of them aren’t making a real income.

If they’re lucky, they’re like almost all of the directors, they’re making $10,000 to $20,000 per year . That’s not bad if you’re comparing it to a minimum wage job. But in the real world, we don’t exactly call that making a living or having career earnings.

But let’s suppose you believe $20,000 a year is a good living. Can you really earn that while being “at home with your children”? Because Mary Kay recruiters will lead you to believe that you can. Well, not really “lead you to believe”… They’ll falsely tell you that you can! Continue Reading →


New Mary Kay Consultant: Do I Need Inventory?

You’ve just been recruited into Mary Kay, and your recruiter and sales director are telling you that you need inventory. You can’t sell from an empty wagon! No one wants to wait for their products! Sephora has products on their shelves, so you should too!

Unfortunately, purchasing inventory is one of the biggest downfalls for women in Mary Kay. Women end up with more products than they can sell, but they still end up needing to place orders for inventory they don’t have, and their inventory stockpile gets bigger and bigger.

Even if you try to be cautious and only purchase a small amount of inventory, you will run into problems. If you can find customers, you will not have the products they want to order, so you will be constantly placing orders. There are minimum order sizes, so you will find yourself ordering extra products you don’t need, simply so you can meet the minimum.

One Pink Truth member came up with this answer to the question “Do I need inventory?”:

This is a twofold question. First of all, do you need an inventory? Certainly not in the beginning. Most women are familiar with online ordering, and waiting for their products. Women that order from in-home distributors expect to wait for their products. So as you begin your experience with Mary Kay, you need to take time to determine your customer -base, and see what you sell the most of.

If you are tempted by all the free products that are included in your initial order, remember that it is like buying things you don’t need, just because they are on sale. Don’t fall into the trap of getting “free” product and ordering product you don’t need just to meet the bar for the next bonus. Unless you sell it, it becomes debt, not an investment.

What size inventory should you have? As you gain customers, you will begin to have an idea as to what products you sell the most. When you are able to determine what would be valuable to have on hand, then you can slowly begin to order a couple extra things here and there to have ready for your customers when they order. To be honest, you do NOT NEED TO HAVE PRODUCTS ON HAND. Charge your customers shipping if you need to, and order their products in groups. In any given month, several customers may reorder, and then you can place one order at the end of the month.

Do not, under any circumstances, allow your director place your first order, especially if you have decided to buy an inventory. She will order you a sampling of almost every product, things you may or may not be able to sell. YOU need to determine what products you will sell, and no one else. This is your decision. If you do not know what to order, do not order inventory! Make a smart business decision and wait until you have the money to place an order, money generated from your sales.

Please avoid getting a credit card and placing an inventory purchase on it. It is debt, according to any financial adviser. It affects your credit score, opens up yet another temptation to buy even more extras for your Mary Kay adventure, and starts you off on poor financial footing.

You may lose a few sales because you don’t have products on hand. However, the small amount of profit you might have made on those sales is nothing compared to the money you will lose by stocking inventory you don’t need, purchasing additional unneeded products to meet order minimums, and the interest you will pay on the credit card debt related to your inventory purchases.


The Myth of Stability In Mary Kay

A favorite passtime of many Mary Kay sales directors is bashing “Corporate America.” They refer to jobs as “J.O.B. – Journey of the Broke” and generally criticize the lack of flexibility surrounding traditional jobs.What they forget to mention is the steady paycheck, the benefits, the paid vacation, and all sorts of nice things.

One of the big fallacies they promote is that Mary Kay offers stability, while Corporate America does not. Nothing could be further from the truth. Sure, things in Corporate America can change quickly, and jobs can be lost. But Mary Kay is really the height of instability.employers offer to their employees.

Ask any sales director or former sales director. “Dialing for dollars” is a monthly ritual. Your earnings are based upon whether your unit has had a good recruiting month. You depend upon orders by consultants (usually for unneeded products) in order to earn your living. Continue Reading →


Another Reason to be a Star Consultant: Your Director’s Paycheck

Mary Kay executives, directors, and national sales directors always focus on certain activity levels that they say help the consultant. When I say “activity levels,” I really mean buying levels. So for example, you’re encouraged to order enough to be a “star,” or recruit enough to be a “red jacket,” and the like.

Why are these levels important? Well it’s definitely not for the benefit of the consultant. It’s for the benefit of those above you in the pyramid. Certain ordering levels can give your director a bonus or extra car credit.  $600 is the magic number in Mary Kay, and once you find this out, you can see the manipulation your director uses surrounding this figure. She’s always trying to get $600 more out of people, and with good reason. Continue Reading →


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