You know I love to get my hands on these things: the real, live numbers that prove how few people are actually making money in Mary Kay. Now let me set this up for you to prove that almost no one is making that “executive pay” in Mary Kay.
A sales director driving a Cadillac is supposed to do $102,000 wholesale production over two quarters (previously it was $96,000 over two quarters). That works out to $17,000 wholesale per month, which equals a commission check of about $3,900 monthly (using the unit commission rate of 23%). That equals $46,800 per year gross commission if the director is just meeting the Cadillac minimums. (And then you have all the business expenses that must be paid out of that!)
A Cadillac director is supposed to be making the big executive income, but most of them aren’t even making mid-level manager money. Imagine bragging about the huge money you’re making, but in reality you’re making less than $50k per year.
In 2017, the production requirements went from $16,000 per month to keep the Cadillac, to $17,000 per month to keep it. But the cash compensation that you can take in lieu of using the Cadillac stayed the same at $900 per month. (Remember, you don’t GET a Cadillac and you don’t WIN a Cadillac. You get to USE a Cadillac for a period of time IF your unit keeps making production.)
And there are plenty of Pink Cadillac drivers who don’t make the minimum production, so their commissions are even lower AND they have to pay extra money to the company to keep the car.
Why do I do these figures? So that you can understand that all the directors below Cadillac (which is the vast majority) are making less than that per year.
In 2021, Mary Kay reported 1,000 pink Cadillacs on the road. That’s down from the 1,308 they reported in 2016. A drop like that makes me happy because it means fewer women are being swindled into signing up as consultants and buying inventory packages.
See how few in Mary Kay are actually making any money?
One of my most favorite things about an NSD?
Consultants returning orders means those commissions shrink.
Good grief, I’m just an accountant and I made more than that clear back in 1993! It just boggles the mind that they are willing to work non-stop ( a LOT more than my 40 hours a week) for such a small amount of money. I know, I know, there are those out there who would love to make that kind of money; however, they are also the ones I hope never try it because they cannot afford to lose money many months of the year.
Seriously, go be just about anything but an MK director, Cadillac or not. You will end up in a much better financial and emotional place!
Add to that, taking any full time job entitles you to sick time, paid vacation, and 401K benefits. Plus your taxes are already deducted so you don’t have to stress over that. If a Mary Kay director gets sick, who covers for her, makes up production and sales? No one. It’s really sad that Directors work so hard for so little actual benefits.
“It’s really sad that Directors work so hard for so little actual benefits.”—
Adding further to that is the kind of “work” they do. Their work consists of lying to everyone who breathes in order to recruit them into a pyramid scheme. You simply cannot not recruit, or have your recruits recruit, without everyone lying about the “opportunity”.
Sell your soul and work as a pyramid scammer to make crappy money with no benefits! Say that line to potential recruits and we see why it’s necessary to be a liar.
How do the director’s personal orders affect those numbers? Do they get commission on their personal orders? The director who recruited me posted that she was a 4-quarter emerald star, so she has been buying $1200 worth of product per month. She sells some of that, because she is constantly running specials. Her unit orders somewhere between $6000-8000 worth of product monthly.
“Do they get commission on their personal orders?” Yes, they do, which means that they are paying LESS than an IBC’sa “wholesale” cost.
Can someone share the email that Mary Kay Inc mistakenly sent out? Tiffany Stout spent 13 minutes on the Million Dollar Message hotline trying to smooth it over. Very curious….
This is a link. The extended credit only went to people who were stars. You couldn’t buy $1800 today and get more credit if you weren’t a star already. https://imgur.com/a/eaaKnhs
Ugh the “extra credit” crap 🙄 Basically nothing but a ploy to get consultants to order more product. They’re not doing it to be generous, they’re doing it to get more of your money.
MK Inc is always a circus. How can they flub this kind of promotion??
I told you! People take home more at Hobby Lobby or Target, yet they’ve made fun of how “little” nurses and teachers make. $46K is no more than $23/hr gross. HL and Target start at $30K/year, and their employees have no expenses and don’t get charged back if customers return merchandise.
Just wait…Leadership Conference flights, hotels, registration, and expenses are arriving on their bills now. Huge expense!