Update to Chelsea’s Not-100 Face Day

Written by Parsons Green

Chelsea rested after her exhausting quest to do 100 faces in one day. She posted an update for us!

She had only 75 people show up, rather than the 100 she was going to do. Only 50 made a purchase. 25 of them were current customers who couldn’t even throw in a pity purchase. Robin and Ardiss are not even in Jamie’s area and they showed up to help for free.

And here we go with the retail nonsense. In her last update she said she collected $4,000 but that the retail would be much higher due to all her discounts. She reports here $7,500 “retail”…. Take of sales tax from the $4,000 she collected, and you see that the selling price of products was about 50% of the retail amount. In other words, Chelsea sold everything at cost!

She made ZERO from this event. (It actually cost her money to put it together and bring the supplies and food.)

If making no money from an event that took hours upon hours is their idea of success, you can see precisely why Mary Kay is not a business.

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8 COMMENTS

  1. The poster on the easel is crooked. Is that deliberate? (Like wearing your MK name tag upside down.)

    I wonder how many attendees expected one-on-one skincare consultations and makeup lessons. Instead, they got the folding-chair, plastic tray, large group, DIY version.

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  2. “If making no money from an event that took hours upon hours is their idea of success, you can see precisely why Mary Kay is not a business.”

    Unless…the sale of product was not the aim…but rather the recruitment of folks into her downline.

    Recruiting > sales = pyramid scheme.

    According to the US FTC anyway.

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    • And as a bonus, she unloaded a lot of inventory to make room for all the junk she’ll have to order to meet her year end goals… which will sit untouched until the middle of next June when she unveils her New and Improved 100 Face Day!!!

      Protip: ixnay the free food next year. There’s nothing like the word FREE to bring out the mooches. Ever seen those people who deliberately go to grocery stores to make a meal from free samples?

    • Well here’s the thing…

      YES… they’re told that the recruiting and the product orders after that is what the endgame is. But realistically, how many will she recruit from this event?

      Half of the people were already customers, and there’s very little chance they will sign up. Yes, you’ll get one person here or there who gets excited seeing an event and signs up after having been a customer for a while. But that’s not the norm.

      So she had half of 75 people as newbies. But we know some of those were children. So best case scenario, she had 30 new adults at the event. How many can she realistically recruit from that? And then of those who sign up, how many will place a big order? How many will order $600?

      I’d venture to guess that at MOST, she gets $5,000 wholesale ordered by people who sign up from this event. If her commission is 26% (which is the norm), then she makes $1300. And of course, she gets contest credit for it too.

      So yes, technically she makes money on the event. But take the $1300 and subtract off her costs for the event. Then divide the remainder by the number of hours spent on the event and spent trying to recruit the women afterward. I bet this event took at least 30 hours of her time in total, probably upwards of 40. She’ll spend at least 10 to 15 hours trying to recruit people afterward. So on the low end, 40 hours for the event. If we’re being generous and we say she has $1,000 net left after expenses, then her profit is $25 per hour. That’s BEST case scenario. (And don’t forget, she’ll likely give away prizes and free products to sweeten the pot for recruits, so that cuts into the profits too.

      And all of these calculations are ONLY IF she actually gets those recruits and their orders.

      The bottom line is that Chels would be better off working at her beloved Starbucks.

  3. It makes me sad that MLM Huns do not understand sales vs profit. How many now think she pocketed $7500 when she actually did not make a dime.

  4. I must be dense–can you explain her retail $7500/ $4000 – and her not making any money at this event?

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    • She bragged on Saturday night that she had brought in $4,000 in cash/payments for the day. When she did all the calculations, she updated that that represented $7,500 retail (catalog price) product moved. Consultants/directors pay MK Corp 50% of retail for all their orders, regardless of the price they sell to the final customer, so Chelsea paid $3,750 wholesale price to MK for that $7,500 of products, plus sales tax on the full retail (over $300 in her state). If she recouped full sales tax, she made a couple of hundred dollars before expenses. But it’s unlikely that she recouped all the sales tax, especially given her abysmal record-keeping. Plus she likely had to pay for all that free food and the space, not to mention samples, goodie bags, and other giveaways.

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