Since this question was asked, I thought perhaps this poster may have wanted an answer...so I would like to do my good deed for the day.
"pinkpinkustink said: (she is quoting sommeone)
Everyone makes 50% commission on their sales (from a brand new consultant to a National Sales Director)" she goes on and says, "LIES, LIES......
Why do Directors lie like this? Directors get an additional 13% commission form their own orders, which means they actually purchase their products at a 63% discount!
WHY THE LIES OF OMISSION!!!!! "
I see flawed logic in her statement. When anyone places a product order from the Company, we all ibc, sd, or nsd receive a 50% (if the $200/minimum order or the earned discount is in place). Period. That is the truth. Now, a director will be paid a commission on the amount of unit production. This amount can be 9% or 13% depending on the unit production. - and according to pt all directors receive chargebacks monthly which will reduce or even wipe out (according to pt sources) the commission. So there is no guarantee what a director will get as far as unit commission. When an order is placed it is at 50% off at the time of purchase. The commission that is earned is paid the following month -
Spin it any way - all receive a 50% discount when we purchase the products, a director does not receive a 63% discount when placing the products. So I say there is no lie of omission, it is just an attempt to once again twist the facts. And we do purchase our products at 50% off retail. If the products are then sold at retail, one will earn 50% profit. It might not all be spendable profit, and after subtracting samples, etc... the net profit may be reduced to less that 50% - but the truth is we do purchase the products at a 50% discount and when selling the product at retail we do earn 50%. These are the simple facts.
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When I first saw this I thought this is the worst I have seen of misinformation! Everybody gets 50 percent off of their order and you get 4, 9, 0r 13 percent whether you are a director or not if you put in a 600 or on how big your team is and its ALL written down. I have never seen MK change that for the worse its always gotten better. This is why I say anyone new seeing that site would be so misinformed its a shame. I bet there are people who were doing well who may have dropped out because of information like this. Truth be told there are some NSD's who have been in so long that along with their National check they have 1000.00 weeks easily. People shouldnt be so naive to just look at what a director gets in a commission check to judge is she is successful or not. Its not talked about but there are some who have worked the business for five years or more and have a healthy reorder business and personal business. If you see a director making 3-4k a month and she has been in for a while I would venture so say she could be slamming down close to six figures with classes and reorders and selling to businesses
ReplyDeleteI agree with you.
ReplyDeleteP.S. I would venture to guess that anyone making a decent profit, as long as they felt their time was wisely spent, would not drop out because someone else got more commission than they did. I doubt they could manage to turn a profit in the first place if they could not figure out that inventory purchases and commissions are separate.
ReplyDeleteMiranda
ReplyDeleteI know how you feel about MK but at least you are willing to realize that there are some women doing well and that like any other business its cyclical. I have never said this but I have always appreciated your comments. When you speak its not like the Democrats and the Republicans its more like an independent!
I personally believe that the company needs an overhaul and so do many of the people in it...however, there are some very savvy women, like you guys here, who nevertheless navigate the system and have good people skills and are able to do well without fleecing anyone.
ReplyDeleteAnd...some of us are natural nine to fivers; some are not. Personally, I'd rather punch a time clock. Some people find this confining. And I couldn't sell ice cream in the Gobi desert! lol.
*smooches, all*
http://www.greshes.com/sales-blog/2008/2/19/the-excuse-of-market-saturation.html
ReplyDeletethis is a great link about Market Saturation and its about Mary Kay (well it mentions them to a huge degree) and before you read it YES it is positive. Its a fact and opinion.
I don't agree with the article because it doesn't methodically, scientifically break down the numbers to address market saturation; it merely labels people as excuse makers if they mention the problem. It contains no sound business analysis. This person appears to be advising the consultant to stick her head in the sand. They mention airline oversaturation as legitimate and then in the same breath declare that MK oversaturation is not real without giving any kind of logical support or evidence to their assertion. They gotta do better than that for me to find them credible.
ReplyDeleteSorry, you never see that $5.00 out of a $10.00 sale, it never goes into your pocket. You have expenses before, during & after a SK class, some are fixed, some are variable. I find that a certain NSD claiming that every $6.00 sale will net "$3.00 in your pocket" is dishonest. There is no mention here of net, gross, or any other type of profit, it's always "in your pocket!" As we all know, that fifty percent never reaches your pocket, it is impossible. I imagine that is why people drop out, they find that they are spending much more time & have many more expenses than was proposed to them at the beginning.
ReplyDeleteWell, I have never heard that specific terminology that 50% goes right into your pocket- ever . (It is strechting or twisting reality to a point. The bottom line is we buy the product at a 50% discount. If a lipstick is purchased for $6.50 and sold at $13.00 you will have made $6.50 - there may be other expesne to reduce that but in some cases there may not. I don't want to go on for pages but selling any item is going to end up with some expenses. If someone can't figure that out, they really don't belong in MK or any other sales business for that matter.
ReplyDeleteAnd there can be times you can pocket the whole amount... on certain size orders we get free product. Sell the free product at retail and it could cover many of your other expenses. I am not going to split hairs. - if someon wanted to get sarcastic, one could say well the 50% goes into your pocket but what makes it to the bank might not be 50% - but it is possible if you are smart ordering.
and the bottom line is and always will be (unless the discount) changes... we buy our products at a 50% discount which means if we sell it at full retail we have EARNED 50%.
Accounting 101 pretty much explains it.