February 2026 Commissions for Nsds
The financial slide continues at Mary Kay Cosmetics. The national sales director commissions for February are out, and it’s still pathetic. 41 nsds made $10,000 or more in gross commissions (this is before chargebacks or business expenses), leaving 65 of them making less than that. That’s right ladies, a full 61% of Mary Kay national sales directors make less than $10k of commissions per month, despite this being the top position in the pyramid.
The count of nsds with commissions exceeding $10k for February in each division is:
- Sapphire 13
- Diamond 16
- Emerald 12
I wonder what it feels like to work like crazy to get to this top position in the company so you can finally make the big, executive money, and then end up making less than a mid-level manager with a regular job? The “executive income” just isn’t there, and I wonder how quickly others will jump ship?
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As others here have suggested, this seems more and more like a strategic cost-cutting measure. Those retirement annuities can’t be cheap. Downward pressure on commission income (thanks to My Shop and associated downturn in front-loading) limits this liability from the corporate balance sheet, while reducing operating costs in the meantime.
But I still don’t understand how MKC can justify the precipitous drop in sales revenue as front-loading revenue melts away. The only logical explanation I can come up with is correcting the books in anticipation of the sale of the “brand”. But my experience with M&A says to maximize revenue and minimize costs to optimize attractiveness to said suitors.
Unless, of course said suitors are asking questions MK is not currently in a position to answer, like, “How much product is actually purchased today by outside customers?”
I really dont see how an affiliate model helps corporate, unless they have an affiliate suitor who wants only the brand, and needs the above question answered.
It all points to an impending dumpster fire in the sales ranks.
What do you guys think? What am I missing? Could it strictly be incompetence on Ryan’s part? If not that, what?
Is it possible that Ryan doesn’t know how MLM really works, and that the initial inventory orders ARE THE COMPANY? Without frontloading, Mary Kay has no business.
I believe he knows.
So then what’s the deal with this affiliate model via My Shop?
I think that Ryan believes in “the brand” and thinks that magically this will work. He has somehow convinced himself that consultants really DO sell lots of products to consumers. If he was right, My Shop is a good way for MK to take control of the sales process and ultimately keep more profits for itself.
But he is wrong about consumer sales for this company. Thankfully, he didn’t bet the farm on My Shop. He has time to admit what a failure it is, and try to figure out a different way to revive the company.
I don’t think he’s the sharpest knife in the drawer, however, and he certainly doesn’t have nearly the experience he needs to be an effective CEO of a company this size.
I think you hit the nail on the head, Tracy. There’s no possible way he’s blind to the reality that front-loading is his primary source of income. But MLMs are dropping left right and center with far more adept leadership than Ryan. I think he sees the truth of the situation but doesn’t have the ability to right the ship.
My bet is he’s just milking it for all it’s worth for as long as he can before he ditches it completely. Who in their right mind would buy this company? Their assets? Sure. They have really nice manufacturing space in Dallas that would sell quickly. The headquarters building would be a tougher conversion–who wants a pink marble building other than MK?
He and his whole family have enough in trust to live for several generations without the faff of having to pretend to care about all his ardent admirers in the “sales” force.
Something I just thought of today: is it possible they’re headed towards Chapter 7 or 11 bankruptcy protection?
It’s a perfect storm of the company shrinking especially since 2020, Ryan’s mismanagement, and the suits against him for the trust money shenanigans. Them not hiring development, logistics, or IT people and (if true) selling off their real estate holdings are signs of serious debt.
The real estate sales, and concomitant savings on property taxes, insurance, maintenance etc. would no doubt amount to a serious chunk of change, but it’s a one-off, and I don’t know what good it does for a company allegedly worth billions. To me it smacks of unloading assets before a potential liquidation under Chapter 7.
Chapter 11 would put lawsuits against the company and debt collection attempts on hold while it goes through court, and give them the opportunity to restructure the company. I have no idea if it would apply to the lawsuits against Ryan, but I’m sure his lawyers would come up with something. Decreasing operating costs, selling real estate, and cutting NSD benefits to the bone could be attempts to head off insolvency and the restructured company being given over to their creditors.
I’m not a lawyer or financial whiz. I just like to ponder things.