Mary Kay’s new “My Shop” for beauty consultants has been live for just over a month. This is supposed to be a new and improved way for consultants to sell products, but the real truth seems to be that this is a way to transition the company to an affiliate model either alongside or in place of the current MLM model.

Under the old system, a consultant could pay for a website that was run by Mary Kay Cosmetics. The company maintained the online shopping sites but the consultants had some choice in how they did business. They could either fill the orders themselves (which gave them flexibility in terms of discounts, gifts with purchase, shipping, etc.) or they could have Mary Kay ship the products directly to the customer.

With the new My Shop program, consultants have limited choices. The orders are filled by MK, period. Consultants can offer their customers a discount or free shipping, but not both. If you want to offer both to a customer, you have to convince the customer to not place the order on the website and instead order from you directly. Consultants make 30% to 50% of the selling price of the products, depending on whether they’re “active” or not. That might sound okay, but one big problem is that consultants have inventory sitting in closets and basements that needs to be moved out the door, and this new system doesn’t allow them to do that.

I bet you wonder how well the new My Shop is working? I’m glad you asked. I’d love to tell you.

Mary Kay offered up the statistics from the first month of the new online shops at their leadership conference in Nashville for sales directors and national sales directors. 42,000 consultants signed up for a shop. 21,000 orders were placed. They list 1,100 active consultants, but it is unclear what this means, exactly.

How do we feel about 21,000 orders? On average, there was one order placed for half of the consultants in the program. That doesn’t sound very good to me, but maybe my expectations are off?

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11 COMMENTS

  1. The biggest part of this, to me, is seeing how few customer orders there really are.

    This isn’t frontloaded consultants trying to unload stuff after much begging and whining (since no one tracks that) but people who wanted MK products enough to click on a website and buy them. What’s more, buy them under pretty ideal conditions: no party, no upsell, no nagging.

    That’s not a lot of orders from a company that loves to brag about how big and successful it is.

    It’s a big “oh hell no” to all the lies that have been told about carrying inventory: the products sell themselves. You can’t sell from an empty wagon – this is the wagon factory itself and it’s not selling stuff.

    It will be very interesting indeed to see how this plays out over the next 3 to 6 months and post seminar.

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  2. My Shop lets the consultant offer a percentage discount per order, or free shipping but they can’t offer both at the same time. The free shipping is only good for 30 days, and the consultant has to remember to go back in and re-add it if it expires.

    Consultants are asking their customers to send them a screenshot of their cart when they are ready to order. They can then send the customer a link to pay them outside Mary Kay so they can offer both free shipping and a discount. The customer would then get inventory from the consultant’s shelf,

    If a customer “forgets” to do this, some consultants are refunding the discount and shipping by sending money to the customer through Zelle or Venmo or Stripe.

    • “My Shop lets the consultant offer a percentage discount per order, or free shipping but they can’t offer both at the same time”

      As a customer, if I don’t get the discount AND free shipping, I’m not buying. I have PLENTY of other shopping and product options.

    • That’s too many hoops to jump through.”Sure Mrs. Mary Kay–I need lipstick. I’ll screen shot off the website and send to you.Oh you don’t have it in? That’s ok! I can’t wait 3 weeks for it”. That isn’t how it is going to work. A customer wants the product NOW. They are not willing to wait while you get it in.

      MK is in deep doo doo

  3. The 1,100 number reflected new consultants that signed up, but did not place a $225 wholesale order. They are receiving a 30% discount instead of 50%

    • Thank you! I was wondering how they were defining active. People are not flocking to sign up for that 30% off like they tried to say that people would.

      And I agree, Tracy, that these numbers are honestly small when you think about the number of areas, units, and IBCs there are and the fact this launched during holiday season where people are spending the most.

      • Here’s Ryan’s speech where he explains this slide. I think he’s meaning 1100 people signed up to be a consultant AND placed an order, it just wasn’t $225 wholesale.

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