Wednesday, June 3, 2009

Directors Income

As I have mentioned before, prior to Mary Kay, I was a Corp. Accountant/Analyst. I read an article listing a Grand Prix/Saturn Director's Salary. I looked at it and said, hmmmm something doesn't sit right. I have been very busy lately (more personal than MK) but busy all the same. I had written the numbers down because I don't want to do anything against bloggers rules by copying. I don't have time right now to list every discrepancy I have but here are a few to start. I am going to do this in two parts: the first is what as listed as income, the second post I will do expenses and bottom line.
The figures she listed:
Commission $20,678.84
Prizes: $81.23
Car: $6,000.00
Product Sales: $5,319.93
Returns & Allowances: (350.00)
Cost of Goods Sold: (3703.00)

Gross Profit $28,027.00

According to this director, she earned $6,000 for her car which meant she was earning the full car comp. so her unit production had to be very close to $8,000 or more a month.
At 13% (12 months @ $8000) her commission would be $12,480.00
Her unit production bonus would be (12 months @ $800) $9,600
If we calculate her team production at $3000 @13% (12 months) $4680.00
(strong directors could have more team production)
Personal qualifieds 12 @$100 bonus (court is 24) $1,200
Wellness Bonus - awarded once a year $750.00

now because all this may or may not have been achieved but I am sure some of it was, every quarter a director has 5 star consultants, she receives a $300 bonus
(possiblity of another $1200) any time we have 3 qualifed unit member in one month there is another $300 bonus and if a unit adds 5 that bonus increases to $500 and in the last several years the Company has done a "beat your month total from the same month in the previous year" contest and earn a $500 bonus. So there is a possibility of another approx $3000.00 + ( could be less or more)

Now based on her sales (less the cost of goods sold and returns and allowances) she shows $1,266.93 more income - I am sorry if I offend with my next statement but that is really, sad, I have sold more than that in one month and so have some of my unit members. so.... with her figures and the Company pay plan... she also received $81.23 in prizes.... The figures come out to $33,058.16 + $6,000 for her car ......that adds up to $39,058.16 close to $40,000.

so how does she only show $28,027.00? $12,000 is quite a bit of difference, don't you think?

(this is not using the maximums possible nor the minimums possible, I tried to provide a fair base line)


  1. I agree that $12,000 is a big discrepancy. I read the PT blog post and I think that their point was to debunk the "executive income" myth. Even $40,000, although a decent salary, isn't executive income. And maybe the director wouldn't earn that much next year. Or she could earn more but I suspect not a whole lot more. I always just felt that the time and effort I put into MK didn't justify the end result.

  2. I would not call 40K executive; I would call it middle class in the area where I live. Erm, and I admit I make less than that. :( With all 3 jobs. Sadly, my profession seems not to be highly valued in terms of money, never mind that copy editors are hella necessary and that we need at *least* 4 years of college. Sigh.

  3. The most I ever made was 50K but I can tell you that right now if there is someone putting in 50-60 hours a week and they are making 60,000 and they can do MK and be home with their family and make 45-50 running a unit they are happier if they have a selling unit. I used to wonder why would someone leave a job making 70k to do MK and make 50k and be happy!! If you talk to women who make that kind of money they are burnt out and they really attach themselves to think pink mindset. Its a different way of life they are having fun which they didnt have on their job and yet they are still in leadership roles and whether you agree or disagree I think that is the hook with MK that is why they have been able to attract a lot of professional women. Those women we see in those pumps and suits in the office (not all) some are miserable and they are waiting for that next promotion or that next salary hike and its not happening.
    When they go to a meeting and see an NSD they what what she has and a car to boot. I wouldnt say that MK is perfect but there are women who have a need for attention, money and admiration and MK gives that for those who are willing to work or give it a try and be consistent.

  4. Imho, what an "executive" income is varies greatly on where you live. Personally, I don't always equate executive income with 6 figures -Where I live $40,000 is outstanding money. When I quite my "Corporate" salaried job in 1994 I wasn't even making that and yet I was working 60+hours a week and salaried with major responsibility and loads of stress. (when I could make a statement like, "well, the first time around, it is only off $5 million dollars", well... shows the degree of difficulty.)

    Give me 40/50k - flexibility and something I love to do and that amount is after deducts, cellphone, laptop, mileage, or no car payment, my home office, etc.....
    I ain't complaining...and when the kids are all gone, it will easily go up. Right now, I spend alot of time on family and don't do near the MK I could do.

    I do realize in some areas,that is not very attractive amount but than again in other areas it is great. So I love what I do, I can live of the amount I make... and what is that saying, "if you love what you do, you don't really feel like you are working"? or something to that effect.

    I am a high S/C personality type so the recognition doesn't "push" my hot buttons - but hey give me a prize for doing what I should be doing anyway, okay, I'll take it.

    It just came to me.... maybe this is the saying.. anyway...
    Love what you do and you will never work a day in your life...

  5. Elizabeth, just think how much her income would increase if she sold product. If her average production is $8,000, she is not working with a unit so large that she has no time to hold her own personal appointments. Even with my unit I sell on average - $3,000 a month.


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