Mary Kay Recruiting Numbers Falling
In 2006, Mary Kay Cosmetics told the FTC in a letter in opposition to the proposed Business Opportunity Rule that it brought in 40,000 new recruits per month in the United States:
In the first six months of 2011, Mary Kay reported to ABC’s nightline that it brought in 200,000 new recruits, or 33,333 per month:
This may include recruits all over the world, which would mean that the U.S. recruiting figures are a smaller number.
And in the most recent quarter of 2012, Mary Kay reported 94,000 recruits, or 31,333 recruits per month:
Again, Mary Kay does not specify a region, suggesting this is a worldwide figure, and that figures in U. S. are therefore lower.
Mary Kay reported in their 2012 press kit that there are wholesale sales of $3 billion (this represents sales to consultants, at wholesale pricing) via 2.4 million consultants worldwide. This means that on average, a consultant purchases $1,250 of products at wholesale pricing from Mary Kay.
The 2011 Mary Kay press kit reported wholesale sales of $2.5 billion and 2 million consultants worldwide. This again averages to $1,250 of products purchased by consultants at wholesale pricing.
If we go back to 2006, we see Mary Kay reported 1.6 million consultants and $2.2 billion of wholesale sales, or $1,375 per consultant. This means purchases by consultants are falling, on average, so Mary Kay needs to recruit more consultants than in the past to keep up their sales figures.
Recruiting is obviously down in the United States, although Mary Kay won’t come right out and tell us that. If Mary Kay is like other multi-level marketing companies, it is safe to say that they are relying on large overseas markets in countries like India and China to fuel their growth.