Friday, January 25, 2008

This whole 99% thing

Ok, I want to talk about this 99% thing. But, I currently don't have enough time to do it justice.

Pink Truth (and others) claim that 99% of those involved with Mary Kay LOSE money. They base this statement largely on a document from Pyramid Scheme Alert.

This quote gives a summary of the oft (mis)quoted statistic.

This report reveals that 99% of all sales representatives each year in the sample of companies
analyzed earned less than $14 a week in rebate income. This figure is before all business
expenses, inventory purchases and taxes are deducted. The figure therefore represents a
significant financial loss for virtually all that join these schemes. Additionally, the report shows
that on average no net income is earned on average by MLM distributors from door to door
"retail" sales.


First of all, it refers to the "sample of companies".

Second, it demonstrates the numbers about "rebate income" not all sales activity

Third, it shows $14 a week or less - not an actual loss. The "loss" comes from the expenses etc.

The basic premise of this 43 page document (I have not read it thoroughly yet) as I understand is that mathematically, a pyramid scheme is doomed to failure.

I believe this and the math supports it. I believe this is why a pyramid scheme is illegal. The question of whether or not Mary Kay is a pyramid scheme is at the heart of the discussion and is why Pink Truth invests so much energy into demonstrating that no one makes money selling product. If they can prove that no one makes money "selling only" they will prove that MK is nothing more than a pyramid scheme AND in a pyramid scheme, 99% fail MATHEMATICALLY true.

As I said, I do not have time to explore/explain this thoroughly (MKHonesty, I could use some help if you have it!) right now. I have been meaning to do a write up on this for a long time. However, doing it in a way that is honest and does not ignore facts will take a long time and 43 pages is a lot to sift through.

If you want to read the original document click here.

Give it a read, leave your comments about it... and if any of you want to do some solid research and email it to me, I would love to post it! (hint, hint - MKHonesty)!



34 comments:

  1. Oh, cool! I am looking forward to this.

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  2. Several here have said that they don't make much in the way of selling only. They've said that you really NEED to recuit to generate some money. I'd like to hear from them.

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  3. sorry lurker, I have EARNED roughly $18,000 -$20,000 yr SELLING not buying the products. 12 years straight court of sales and on target this year so you can sell, and it is sold to clients at retail. (I do have an occassional special about 4 times a year) but that is it. So I can't help you and as far as my unit. Except for three or four, most are consultants or senior consultnats because unless you want to be a car driver or director, there is far more money in the sales. JMHO

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  4. sorry lurker, I have EARNED roughly $18,000 -$20,000 yr SELLING not buying the products. 12 years straight court of sales and on target this year so you can sell, and it is sold to clients at retail. (I do have an occassional special about 4 times a year) but that is it. So I can't help you and as far as my unit. Except for three or four, most are consultants or senior consultnats because unless you want to be a car driver or director, there is far more money in the sales. JMHO

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  5. sorry, don't know why message double posted.

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  6. I have no team members right now. When I did have a team, my largest commission check was $96. My largest commission earnings in one year might have been $200, but I think that is high. My profit from sales last year was about $700. I sold roughly $1400 retail in 2007. I only held a couple of appointments and really worked maybe 2 or 3 months out of the year. So, $700 extra helped where it was needed. ;) The months that I wasn't selling, I didn't order anything.
    MK4ME--I'd love to know how many appointments you hold each week. I don't know if you've posted it before and I'm just forgetting. I strive to hold 2-3 appointments per week, but I really struggle with that consistency. I would love to make court of sales. :)

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  7. any question, any time, I don't mind. Shades, I still hold 2 -3 selling appointments a week. Not all classes some are facials. As far as income, I find ratio-wise I make out far better with facials, I believe it is the one on one attention. I have been fortunate, I do many day appointments. And I still prefer just 3 -4 at get togethers because I can still really work individually. When I get over 4, it seems like the connection goes down but I have also done groups of 20 - 30 at colleges, etc.. and still have a blast.

    I actually do very little on the weekends. An occassion bridal fair, expo.etc... or an occassional training but for the most, I am "off" on the weekends. Now I am very psyched because we have a super big bridal fair tomorrow, we have been part of it for 12 years. We have a vendor table and we prove the makeup for the models for the fashion show. It is just awesome and approx 500 brides tend to come thru.

    I only do unit meetings only every other week so that busy people have time to get booking and still get training. A very high "I" in my group tends not to last too long because we really focus far more on training than rahrah and recognition. (it isn't absent, but definetely not the focus) but that is what happens when your director is a major "s" - hey what would one expect, I was a corp. accountant/fiancial analyst for 15 years!! :)

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  8. Dave, I'm on my way back from Houston (Leadership conf) and it will take me a couple of days to get back up to speed with blog land.

    To say that I (and my wife) learned a lot in Houston from a lot of different people is to put it mildly.

    One thing I learned is that what works for one consultant/director is not automatically going to work for another. A person cannot just grab someone else's idea and expect it to be a perfect fit for her. Everyone's personality is going to affect how an idea/concept can be used. The other point/problem is that when someone tries to plug 'n play someone else's method, the second person is not going to have full ownership of the idea and it's going to show. A person has to tweak the idea until it becomes her own.

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  9. Oops... Pyramid Scheme Alert's mailing address is

    UPS Store #1027

    Drop boxes are so professional, don't you think?

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  10. Does no one else think it would be in MKC's best interests to start tracking actual SALES? I thought they used to do that. If all we have to go on is speculation and PT, then that's not much to go on! I asked my tax guy about it and he said he's done quite a few MK consultant/director taxes and they don't make anything. After all the deductions, there's nothing left. Granted, he doesn't do EVERY MKers taxes, but still.

    With the internet so easily acessable to so many it is easy to find PT and the other anti MK sites. Even this site, which claims to be balanced, most of those posting here are not making enough money in MK to do it alone. I think only MK4ME and MKHonesty (?). I don't always look at the names! That's only 2 out of how many that make more than minimum wage (if that) and that's BEFORE expenses.

    But if MKC came out with something that separated personal use (because there are no sales there), that showed how many were co paying for their cars (that should not be allowed IMO), deduct for the IBC's personal use, deduct the product that is returned. If MKC was not so secretive with their info then PT would have less to talk about. And if they did talk about it then it could be easily refuted.

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  11. Judi - I agree with your comment. Mary Kay should consider tracking the actual personal sales of the consultants. However, I suspect the reason why they don't is since their revenue and profit is based on sales to the consultants; thus, they probably don't really care and don't want to spend the corporate money on it. I would be very interested to see Mary Kay's financial statements. They are a private company so we cannot access them. However, I wonder how much revenue they get from providing training to consultants, along with the other stuff (ie, section 2). It would be very interesting to get a breakdown of how Mary Kay actually makes its money. A bit off topic -sorry, I just can't help being curious since I'm an accountant. I have always been interested in the cosmetic industry and how much it actually costs to make the products, etc. Another comment -while I think some can and do make money in Mary Kay, there just aren't very many of those, especially in the consultant ranks. It just gets back to being honest with someone re: the opportunity. In my career at a Fortune 50 company, I have coached over 200+ team members when I was their manager/supervisor and I didn't say things like, "You can be VP someday" right out of the gate! I do have someone I worked with closely (who was on one of my teams) who may be headed that route but that's 1 out of 200 over 17 years. You are careful early on NOT to build a distorted expectation for a number of reasons. Growth and development take TIME. Not to mention, you tell everyone that they will be VP...come on, it is a special mix of talents not to mention there are only so many top positions in the company...and eventually, you tell everyone the same thing, they are all going to know you aren't evaluating them as individuals and your judgement as a manager can't be trusted. Not to mention eventually Corporate HR and your chain of command is going to wonder what the heck you are doing in your career counseling sessions with your team members. The problem is that unlike the corporate environment I work in, the Mary Kay directors make money off what the consultants buy. So, of course, they have incentive to maximize that amount and some may then put more time into recruiting and motivating their team to stock product, then actually selling it. Of course, that eventually comes back to bite them, as the team members drop off, they have to keep getting more. However, I saw another post that said some of the directors are talking about focusing more on the end sale to the customer - kudos for them! That is great.

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  12. I don't want my long post to detract from Judi's points - she makes good, valid points. Bottom line, if Mary Kay acknowledges the truth and provides more information, there wouldn't be much, if anything, left to speculate on. Women going into Mary Kay would have the facts - and so what if the opportunity for most is to make a modest amount of money? There is nothing wrong with that!

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  13. How, exactly, is MK going to track actual sales for the consultants?

    This would require consultants to send in every sales receipt for every sale into MKC. Then MKC has to do the accounting work to verify the numbers on the receipts. If they REALLY want to verify sales, they would need to track down every customer and make sure they were a live person and bought what the receipt said they did and paid what they supposedly paid.

    I still liken this as to Coca-Cola asking for their retailers to verify that they sold the soda they stocked on their shelves.

    Could it be (work with me here) that MKC actually assumes (yes, I know what assuming is) that MK reps are smart enough to not just buy product that will only sit on their shelves?

    Other than an initial inventory order, I really can't get my head around how people can keep ordering month after month after month just to sit stuff on their shelves. Seriously.

    Could it be that such a small number of people simply buy product for appearances sake that the company does not feel that this is a huge problem?

    I am not saying there aren't bad apples out there in MK Land, but I don't think that MKC tracking retail sales is a practical answer.

    If reps had to send in receipts and MKC had to raise prices to pay for the extra staff, etc., then PT and others would be screaming about how unfair the price increase was.

    JMHO

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  14. Coca Cola doesn't use the #1 best selling brand motto as a method of enhancing their selling. If you are claiming to be #1, prove it. And be clear about it. Don't mislead with your choice of words.

    And turning in sales receipts is not a big deal. If you are in this business as a business then you would want to track your sales anyway. Why not track it thru MKC?

    And I do believe there are more than just a few bad apples out there. I have seen it personally in more than one unit, and have family members who have seen it in more than one unit and we are no where near each other, location wise. I've also seen good units. I know they are out there, too. But don't try to say the bad ones are few and far between.

    If MKC truly cared about the consultant they would try to clean up all the discrepancies. If they tracted sales then they could refute the 99% fail theory.

    And I can't see how MKC could assume that each consultant is selling everything on their shelves when they hear about how many have so much collecting dust. I do not think MKC should be blamed for those who continually order. That is a personal problem. But why have a consultant order thousands right after signing up? What is the rush to have all that product before they have even done 1 SCC? And why does MKC want the IBC to cut their prices to get rid of the soon to be discontinued items? Why doesn't MKC discount it to consultants right now? But they are sure encouraging the IBC to take a loss to get rid of it.

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  15. hmmm... we are self-employed... I do not want to have to take my time to report my sales to MK nor do I think I should have to. And to steal Rebecca's famous line- everything is on intouch and years ago, we had new consultant workbooks that came right in the starter kit and every single little bit of information that people say they were never told was in writing and at their fingertips. Maybe because of my personality type I read the fine print but, I have always been taught, never sign on the dotted line before you read what you are signing. If you sign, you really have no right to complain because you made the personal choice not to.

    The irony of this is PTers are already complaining MK is too controlling because we have to use advertising guidleines and we can not sell like a retail establishment, could you even imagine if a consultant was told she had to turn in all her sales receipts for MK to police!

    There is no distributor that makes a subcontractor report to them what they are selling. It is none of their business if their customer is buying and what they are selling.

    I have not been able to find an answer, actually I don't know where to look but I would almost bet anything that all Companies report their sales figures based on their sales to the distributors, not on what their distributors sell to the general public. MK is no different.

    As far as the #1 claim it was always printed with a * - * and then it was stated where the info came from... it said something like based on.... I am sorry I do not know where to find that support info right now and am just too busy, we did our annual bridal fair today, over 500 brides and alot of them are very interested in having a get together!

    If a consultant finds she is stuck with too much product and can't sell it and doesn't like it, have her send it back for 90%, after a year I believe most people have a clue whether the biz is for them or not. And it is NOT MK's fault if there are individuals with such low self-esteem that they buy their recognition, I know this sounds harsh but seriously maybe once or twice, but give me a break, we are over 18 (must be to sign an agreeement) and there are risks to anything in life.

    I have always lived by the Motto, "if it sounds to good to be true, it probably is" .

    I make money because from the time I wanted to I committed to doing 2 3 selling appointments a week consistently. There was no secret, there was no shortcut. Then I provide good customer service and continue to do my appointments and so on. It may not be "easy" but it is simple.

    And... I am still in shock and amazement that woman would buy star status, car, unit, etc...for recognition, I would feel like such a heel especially knowing that others that were getting recognized earned it..yigads, how in the heck does one think they are going to keep it once they get it- magic?? I just don't get it.

    shaking head.....

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  16. It would not matter if mary kay made all the changes that have been suggested. Those on PT and who are against this company as a whole would still complain and find fault. They (PT) do not seem to be interested in Mary Kay improving, so making changes will not make any difference. They only want MK to shut down. They will just find something else to gripe about. They are already inconsistant with their complaints as it is.

    I dont believe that Mary Kay is still using the #1 selling brand motto anymore. At least I did not see it the last time I was on intouch. There was a time that they could make that claim. Unfortunalty many consultants continued to use it even after MK stopped making the claim.

    Judi if you believe that there are more corrupt consultants and directors than there are honest ones, than I dont see how you really think that tracking sales by having consultants turn in sales reciepts would solve anything. That would require everyone to be on the honor system.

    Those that are prone to unethical behavior would no doubt send in phoney reciepts,with fake names etc.. I think that would make matters worse. We already know there are directors who activate folks without them knowing it and do other illegal things. Having folks report about sales reciepts would just be asking for trouble. There is absolutly no way to verify that kind of data.

    There probably is another way to track acutal sales to customers, but having consultants send in sales reciepts is just not the way IMO. You say that turning in sales receipts is no big deal, but I really thing it would be.

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  17. The only way to accurately track actual retail sales is to do it the Avon way: customer orders are collected by the representative and sent with the money (retail minus the commission percentage held by the representative), and then Avon sends the products to the rep for delivery.

    You cannot just send copies of pink tickets to MK as proof, because the opportunity for fraud is so easy. Heck, we use Blvd. I could generate thousands of fake "receipts" that look exactly like a Blvd receipt in minutes using an Excel/Word mail merge. There is a director in my wife's area who had a problem with a consultant submitting fraudulent weekly accomplishment sheets to obtain prizes. Commission has to be based on when the product moves out of MK's warehouse.

    The disadvantage of the Avon method is that there is zero opportunity for immediate delivery/gratification. It's no different than having a representative for the Sears catalog. (Yes, there are still Sears catalog stores in some small towns.)

    Tracking actual sales will not prevent someone from losing money in MK. A person can still buy things she shouldn't, like expensive office furniture, or other poor business decisions.

    As to a private company making its books open to the public, why? So that someone can say that not enough money was returned to the sales force, that the distribution was unfair, or that people working in the corporate office were eccessively paid. To me, that sounds like classic socialist/union doctrine that the worker always gets screwed by the corporation. (That said, I do believe that some executive pay is way out of line with reality, especially when the pay goes up as company performance goes down.)

    Objective1, you miss the point with you comment about promising the moon to a consultant. In the MK sales force, there is no limit to the number of people at each level, from senior consultant all the way up to NSD. A consultant does not have to wait for her director or even her recruiter to move up before she can. Nor is the consultant dependent on the good will of her recruiter or director for good annual evaluations or the annual pay raise.

    Objective1, I like your chutzpah. "if MK would just acknowledge the truth" Exactly whose "truth" is that? I doubt it is the truth of the 5,000 directors who just finished the Ruby, Sapphire and Diamond area Leadership conference. (I was there. I counted 5,700 seats in the main assembly. Very few were empty on Saturday morning (closing session). There were about 150 NSD's and 400 husbands (at the spouse class).) I didn't see a mass rush of high-heeled directors complaining that they had been scammed, and once again, not a single Pink Truth business card was to be seen, even on my wife's pink SRX parked in the outside parking lots every day.

    I've said this before, but there have been absolutely zero criminal indictments of MK by any local DA, state AG, US attorney or arm of the federal government. You'd think that with the "millions of women who have had a negative experience with Mary Kay", as stated by Tracy Coenen in the final sentence of Welcome/About Pink Truth, there would be 20/20, 60 Minutes, Primetime or some other investigative news organization all over this company. Not a single corporate whistleblower has come forward with damning documents.

    The hypothesis that MK is purposefully milking its sales force fails the test of who is going to replace the sales force when it figures out that it's being screwed. The people making this hypothesis assume that the MK's marketing is so slick, the prospective consultants so stupid, and the current sales force members either completely brainwashed or willing participants in the fraud.

    Enough, time to go to bed.

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  18. Not all who join MK or an MLM are looking to make a living at it. Many just want to earn a little extra money and want the social aspects. To dismiss these people and lump them in a "99% lose money" category is itself misleading. Well, IMO, it just plain wrong.

    So what is consultants only "earn" a couple hundred a year after expenses. That's STILL not a loss. Let me repeat that -

    it
    is
    NOT
    a
    loss.

    Therefore, to say that 99% lose money is incorrect. Period.

    Now, if these people were to rephase themselves, and say something like 99% don't make a lot of money, then okay, I could believe that to be more on the accurate side.

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  19. This comment has been removed because it linked to malicious content. Learn more.

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  20. Interesting that MSRP has been bought up. I'm not sure that the Amway ruling cited above would still stand in light of the Supreme Court decision on MSRP reported here: http://www.iht.com/articles/2007/06/29/business/prices.php

    Do I think MK could use this ruling to the benefit of its sales force? IMO (I am not an attorney), yes, in terms of preventing gross dicounting of products by online resellers (eBay, Touch of Pink, etc). MK may even be able to sue eBay directly for facilitating the sales. The question is whether the sales through unauthorized channels is really affecting the sales by consultants. Personally, I don't think so. Although as of right now there are over 14,000 listing on eBay and almost 509K listings on eBay Express, we have never had a customer tell us that she is not buying from us because she found it cheaper online.

    (I saw a listing for the old Styling Mousse, which is at least 6 years old, maybe 7!)

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  21. I think the reason why there are not any lawsuits is simply because it would take too much effort and money to prove wrongdoing in a court of law. If a number of consultants are losing one to ten thousand each or may be a bit more...it takes too much effort to band together and sue the director or corporation.
    It would be hard to prove "fraud" of this nature. I have two good friends who invested 50,000 each in a start up business (not an MLM). There were 5 investors total. Within the first month, one of the people involved begain taking money from the business (this particular person did not make an investment but was going to run the business). It was caught by one of my friends by the second month. Well, it's been over 2 years and one ongoing lawsuit later - both my friends are out their 100K plus legal fees so far. They can't go after the person since he has no assets. They are looking at the lawyer who was involved and who "wasn't surprised" that his friend took money from the business! Turns out, this guy did similar things in the past, got away with it. Yes, my friends should have checked out his background more thoroughly. It's just a sad situation. Even sadder that my friends have accounting/auditing backgrounds themselves! The guy also stole their personal information as well. It's a mess. Anyway, I just think the truth is that if you go into Mary Kay, you have to be eyes wide open. If you want to make a good living wage at it, you are going to have to work it and really think about the business aspect. You also have to be tough and tell your director if you don't want to buy more product or go to seminar. I mean, really, working a corp. job, you can't tell your boss, I don't want that training, you have to take it...but in Mary Kay, you are supposed to be running your own business and yet some consultants find it hard to say no to going to seminar?! Everyone just has to grow a backbone and do what is right for them. So, if all the women who join Mary Kay are like mk4me, then there would be no Pink Truth and no issues. (I do mean that as a compliment, mk4me). So, then it gets back to....there are some problems but hopefully the unethical will get weeded out and what's left is the ethical running the business and focusing on the end sales to the customer. Sad to say, I doubt I would be welcome on Pink Truth since 1) I have brought from MLMs (ie, attended and hosted a few Silpada parties and purchased from Pampered Chef - oh the horrors that I spend my money how I want) and 2) if I found a Mary Kay product I liked, I would buy it (there is a gal in my neighborhood that wears Mary Kay and I would go to her consultant). I'm into other makeup brands at the moment but things can change. I don't feel like it would be appropriate to not buy Mary Kay due to the actions of a few bad apples, that hurts the good apples! Okay, I better stop here now for the day. Take care everyone.

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  22. Oops, tht was 50K of listings on eBay Express, not 509K.

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  23. Objective1, people file class action lawsuits every day. Heck, a person can file a lawsuit and then the lawyer advertises for more disgruntled people and has the class certified.

    Tracy Coenen certainly understands that, and she is no slouch in using a lawyer to intimidate a person. Just go ask ME at mypinktruth.wordpress.com. Why hasn't she filed a lawsuit and tried to get a class certified? I can think of several reasons, but the biggest ones are
    (a) her lawyer says that she doesn't have a case,
    (b) her lawyer won't take the job on contigency because he/she doesn't see a payout in the end,
    (c) there are no criminal cases to use to backstop the civil case,
    (c) (the reason used by the anti-MK groups) MK has structured the business to be able to hide behind statements that they did not originate or condone the activities of a few directors/NSDs.

    The only current lawsuit I know of is by Robin Blackmon-Dunda, which last time I checked is going nowhere. Her lawyer, David Eisenstein of San Diego, CA, has filed a 2nd amended petition on Dec 4, 2007. I have not had the chance or time to compare the amended version with the original to see what was changed.

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  24. objective1: " So, if all the women who join Mary Kay are like mk4me, then there would be no Pink Truth and no issues. (I do mean that as a compliment, mk4me). "

    objective1 - no offense was taken, and I beleve, a thank you to you is in order, thank you!

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  25. Another story from a long time ago.

    I remember it was a very dear elderly director that had a unit member that started doing so wonderfully. (Now us oldies (but goodies) remember we use to staple our sales tickets to the back of the summaries when we turned them in and then the directors would return them to the consultant. Well Director Dear's consultant started doing so great, every week she would turn in her summary sheets with sales tickets and each week this consultant was breaking records. The director was awarding her tons of prizes for her acheivements for SALES, good $$ prizes too. This went on. This consultant wanted to earn a car and become a director. Now Dear Director went and did several interviews with consultant and they add a few team members and then consultant felt confident enough to do this on her own. Wow, DearDirector (so sweet, grandmother style) was so happy for this girls success. Then Seminar. NSD made big deal of this consultant. DearDirector was in tears so happy for her consultant.

    About 6 months after Seminar, this little old sweet director got the chargeback of her lifetime. This consultant. Had thousands and thousands of product. a about 8 starter kits. .... who would have believed it. The director was in shock, but I have seen her summaries and her sales tickets. I interviewed several of the people, my heart broke for this director. I believe this almost killed her, I know it broke her heart. She had been checking, the summaries and sales tickets were there. What she had was one really warped consultant. This poor director never encouraged her to order and never tried to pressure her. But she still ended up with the chargeback and what was to me the biggest tragedy, the hurt that this consultant actually used the director to toout her consultant's success to the rest of her area. And I was happy to see the directors support this poor director because she was so embarrassed, and she thought many would think she had promoted this, but she was as innocent in all of it as a new born babe.

    So I know this case is extreme but it does show having receipts doesn't mean diddle. Unethical cheaters, will always be unethical even if it hurts others.

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  26. MK4Me, I've heard similar stories. Not usually quite so extreme, though.

    I wouldn't be the least bit surprised if every single director has experienced at least one consultant in her unit falsifying her actual sales in order to receive some unit prize or recognition.

    To quote MK4Me, "Unethical cheaters, will always be unethical even if it hurts others."

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  27. Actually, there IS a way that MK could (somewhat) track sales.

    Some DS companies offer 3 ways to place an order: direct to client, direct to hostess and direct to consultant.

    The main drawback to this system is the high shipping cost for the customer. :(

    A big benefit to the rep is that it discourages inventory and deliveries.

    If MK changed their system and offered this kind of service, then they could, theoretically, track sales a little better.

    Although if someone orders directly from a rep's MK website, doesn't it get shipped directly to them? Not sure.

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  28. Hey Shay, to answer your question about customers ordering through the personal MK websites: no, the company does not ship the product directly to the customer. What happens is the customer places an order and the consultant receives an email notifying her of the order. It is then the consultant's responsibility to deliver the product to the customer. ;)

    I don't know. I like having inventory because with cosmetics, most women don't want to wait for certain items. Now, maybe MK could employ something different for limited edition items because people don't seem to mind waiting for those; but when it comes to regular line skin care and mascara and such, people typically don't want to wait for that. Just speaking from my experience. :)

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  29. The Company shipping the orders to the customers would cost the company more money, and IMO would increase the cost of the products. It would definately increase the cost to the customer, as Shades said, the high cost of shipping the customers pay.

    As MKHonesty said, tracking sales will not prevent a consultant from losing money.

    Our customers not having to pay shipping, our customers receiving their products right away, are two things that set up apart from other companies. Also, the profit we make (uh, GROSS profit) selling this product also sets up apart. That 50% thing. I could be wrong, but seems to me like Avon is about 20%.

    If a woman joins MK, and can't (or won't) control her spending, her expenses, her inventory ordering, gets herself into financial trouble, then she shouldn't be in MK. She either needs to get control of her spending and ordering habits, or get out of MK.

    Mary Kay, Inc. does NOT need to big brother us. We are grown up adults, we manage our household budgets, etc. We are intelligent people. We are not idiots. (Well, I believe this applies to most of us anyway. Clearly some in MK (and some who have recently gotten out - see PT) don't fit in this category.)

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  30. From experience, I know that many of my customers call me when they have squeezed the very last drop out of their bottles (tubes) and need what they want asap. They wouldn't want to wait for the Company to ship it and I would loose clients.

    My goodness, even I have been stuck in the shower thinking, doggone it, I meant to put a new 3 - 1 in here last night when I used the end of the tube and then end up shaking and swearing or wrapping a towel around me and making a mad dash dripping water all over the place to grab a new cleanser. If I wait until the last minute and I have product in my home, why would I think my clients are always going to be thinking ahead and ordering before they are almost out.

    I would never, ever want to not have inventory on hand.

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  31. LOL @ mk4me -

    Yep, I know what you mean. Most people do wait until they are out or very close before re-ordering.

    This, IMHO, is a really strong argument for contacting customers once a month or so and seeing if they are getting low on anything.

    As far as having MK ship directly - I agree with what everyone says. The cost would be higher to the customer and some people don't want to wait. There is no guarantee that actual sales are being made, either.

    Just thought I would point out how other companies do it, since it has been mentioned before how MK "should" keep track of sales better. :o)

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  32. Hey Shay, maybe trying to track consultants actual sales isn't the answer, maybe before accepting an agreement, the Company should make a potential submit a psychological evaluation and an IQ test to make sure, they do not have an addictive personality type, a low self esteem and a high need for recognition at any price, and the intelligence not to continue to order if they are not selling the product and run up thousands and thousands of dollars in debt??

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  33. Maybe a credit check before ordering inventory. If you don't get approved, you have to start from scratch. :P Kinda kidding. ;)

    MK4ME (and everyone--this is funny)--my husband has a fit if I leave the 3-1 by the sink and don't put it back in the shower so he can use it. I thought he was humoring me until he had a conniption fit one day--and he didn't know I was home. So yea, people WANT THEIR SKIN CARE!!! LOL

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  34. (First i have to tell that i dont speak inglish very well because im from PR, so sorry about all the wrong words and everything) Im a consultant since 1998 and i always have money with MK. Remember that all the bussiness are the same if you stay in your home and just tell negative things you never gonna do nothing happens. Here in PR we pay 7% in taxes and the only thing that you have to do is take that % from your clients, they know that they have to pay taxes always when they buy something in every store that they visit, so dont be shy in telling them that they have to pay the taxes. And remember DONT BUY INVENTORY IF YOU DONT SELL THE INVENTORY. I always tell my MK girlfriends that dont do orders just for have a ring, a car or some prizes THEY HAVE TO REALLY WIN THE PRIZES JUST IF THEY REALLY SELL THE INVENTORY, so the prize is really free and you have all that money in your pocket. Thats all the magic about $$$. The money still there but you have to always have your mind in the reality and do the work and everything is gonna be all right in the bussiness, because MK are a wonderfull products and a wonderfull opportunity!!!

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For Further Reading...

This Week On Pink Truth - Click Here
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First Post - Why I Started This Blog
The Article I Wrote For ScamTypes.com (here) (there)
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