Here is my review of the Mary Kay Compensation Plan
Mary Kay – The Company
Company Motto is “God First, Family Second, Career Third!”
Mary Kay sells cosmetics and personal care products. The company was founded by Mary Kay Ash in 1963.
Mary Kay is based in Texas, USA. Revenue for 2011 was US$2.9 billion.
The company claims to be a Dual Marketing program and not a pyramid or MLM company.
Take my word for it, Mary Kay IS a MLM Company.
Mary Kay – The Business Opportunity
When you join Mary Kay you are given the title of Independent Beauty Consultant.
The starter kit will cost you $100 and you will probably want some stock which of course costs extra.
Mary Kay will buy back your products at 90% within your first year if you decide to quit!
Inventory Options
1. Pearl Star – $4800 wholesale/$9600 Retail(60 customers)
2. Emerald Star – $3600 wholesale/$7200 Retail(45 customers)
3. Diamond Star – $3000 wholesale/$6000 Retail(35 customers)
4. Ruby Star – $2400 wholesale/$4800 Retail(25 customers)
5. Sapphire Star – $1800 wholesale/$3600 Retail(20 customers)
Please note that packages and prices may have changed.
They recommend that you write a list of family and friends etc…
Mary Kay – The Positions
Independent Beauty Consultant(IBC)
This is the starting position for everyone.
You will have to invest in the $100 starter Kit and order at least $200 wholesale each month if you want to be eligible for commissions.
Senior Consultant
Soon as you recruit your 1st IBC, you reach this position.
Once you recruit your 2nd IBC you are one step away from the next position.
What do you have to do to get to the next position?
Recruit some more of course!
You will now receive 4% commission on sales made by any of your recruits.
Star Recruiter
Once you recruit 3 to 4 new IBCs, this is your position.
You will now receive *$50 for each new recruit starting with recruit number 4.
Don’t start counting the dollars just yet, *new recruits need to make a minimum order of at least $600.
You will still receive the 4% commission on team members sales.
Team Leader
Recruit 5 to 7 IBCs and you are now a Team Leader.
Your commission on team member sales jumps up to 9%.
If you want to make it 13%, YOU will have to make a $600 order too.
Future Sales Director
Personally recruit 8 or more IBCs and you reach this Director position.
9% to 13% commissions on team sales plus the $50 for each new recruit.
Sales Director in Qualification
You will have to build a team of 24 active members(23 + YOU) within four months.
10 of the 24 must order a minimum of $600 during the 4 months.
The team must order a minimum of $4,000 wholesale per month.
You will receive an additional 9-13% on the sales created by this team.
Check the Further Information section below for the other qualification steps.
Sales Director
9% or 13% commissions on personal team sales.
$50 team bonus is now doubled so, $100 for each recruit who places $600 wholesale order.
13% commissions on unit orders if wholesale production is $4,000 or more, 9% if below.
Senior Sales Director
1 to 2 first line offspring units.
Same commissions as Sales Director.
4%(under $12k wholesale) or 5%($12k or more) on offspring unit production.
Future Executive Senior
3 to 4 first line offspring units.
Same commissions as Sales Director.
3 offspring
4%(under $12k wholesale) or 5%($12k or more) on offspring unit production.
4 offspring
4.5%(under $12k wholesale) or 5.5%($12k or more) on offspring unit production.
Executive Senior Director
5 to 7 first line offspring units.
Same commissions as Sales Director.
5 or 6 offspring
4.5%(under $12k wholesale) or 5.5%($12k or more) on offspring unit production.
7 offspring
5%(under $12k wholesale) or 6%(12k or more) on offspring unit production.
Elite Executive Senior
8 or more first line offspring units.
Same commissions as Sales Director.
5%(under $12k wholesale) or 6%(12k or more) on offspring unit production.
National Sales Director in Qualification
Offspring Directors in first line/senior/second line.
Company must accept you into the program.
Same commissions as Sales Director.
5%(under $12k wholesale) or 6%(12k or more) on offspring unit production.
Four consecutive month qualification period.
Personal unit and first line offspring units must make $100k wholesale production.
Second line offspring units must make $50k wholesale production.
National Sales Director(NSD)
13% commissions on Personal Team Orders
13% Sales Director Commission on Personal Unit Orders
10% National Sales Director Personal Unit Commission
9% Commission on first line units
4% Commission on second line units
2% Commissions on third line units
This is the position to aim for, bear in mind it will take a lot of work!
Senior National Sales Director
1 to 2 Offspring NSDs
Same Commissions as NSD.
9% Commission on unit of first line who becomes NSD
4% Commission on unit of second line who becomes NSD
2% Commissions on unit of third line who becomes NSD
Executive National Sales Director
3 + Offspring NSDs
Same Commissions as Senior NSD
Please note that you have to qualify for these positions every month so if you fall short then you will return to your previous position and will have to qualify again.
Mary Kay – The Commissions
Receive 50% commission on retail sales.
In order to remain active(receive commissions), you need to place a minimum order of $600 every 3 months.
The other commissions are stated above according to your position.
Mary Kay – The Products
Mary Kay has well over 200 products in their range.
Click here for Mary Kay US Products
Click here for Mary Kay UK Products
Further Information
Clicking on the two links above will open new tabs.
Mary Kay – Summary
Please note that I have never joined Mary Kay but had conversations with a few Reps.
I would also like to state that I have not tested any of the Mary Kay products but the high quality is well known.
The Mary Kay Compensation Plan works for YOU if you can sell lots of products and recruits lots of Reps at the same time!
POINTS
1. Recruiting makes you more money than selling the products!
2. You have to purchase $200+ of products yourself every month
3. Mary Kay products can be found selling on Ebay at below retail price
4. The cosmetic market is highly lucrative and extremely competitive
The quickest way to rise through the ranks is getting enough Reps in your team all selling lots of products!
I recommend gaining some marketing skills and funds before joining Mary Kay as a Rep.
Thanks for reading.
Rob Dennis
P.S. The Mary Kay compensation Plan changes frequently, please visit their company website for the most up to date changes!
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