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:
Income:
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)

Still stuck on this whole income thing

I mentioned this yesterday, but then found the following in the comments and just had to re-ask it.

1. What do you do for a living if you are making $100K/year?
2. What do you suggest for the "little people" that don't have that opportunity?

"getmeouttahere" threw down three comments in a row:

"You forgot the chance of getting about 300-500 a montn possible in bonuses for qualified recruits, and 100 a month for each of their own qualified recruits. BUT you didn't mention the fact that the person will more than likely end up making payments on a car, or payments on insurance, the deductions for gas for going to and from appointments, prizes for the little people, and as you already mentioned social security and insurance! LOL!! Executive income my -edited-.

OH WAIT WAIT WAIT - Don't forget, you get TAXED on all your prizes from the company. So that cute "free car" you get taxed on, that free vacation, you get taxed on, all that cute jewelry everyone wins, you get taxed on. I know an NSD who made $350,000 (that sounds like someone "making money" to me!) in actual cash income, but in prizes made nearly $400,000 on the 1099. Now you tell me, what do you think the taxes would be on $750,000 in TOTAL income, I bet it ATE UP nearly most of her actual cash income. So all these NSD's run around looking cute with not that much money when you think about it!!

OH OH OH - And the funniest thing I ever heard was that executive income bull. I make nearly $100,000 a year. I don't have any work expenses other than gas to and from work, which is about $50 per week right now. And of course, I like to eat at our cafeteria, so about $40 a week on that. LOL!! They pay for half my social security and medicare - which all employers do. They pay nearly 75% of my insurance. Not only am I earning a retirement which at the earliest I can pick up in 7 years at the good ole age of 35, or if I wait the entire 25 years I have to go, I'd get my actual salary then whatever it would be. Not to mention my own 401K matching. Some idiot had the audacity to tell me I'd make a great director, I should do this full time, what about my family?, OH OH OH and I get vacation time and sick time, does MK give that? I didn't think so..."

If you are reading this, "getmeouttahere" please tell me, at the ripe old age of 28, how did you manage to land this stellar career? I am not doubting that you are earning that, just curious about how likely it is that someone "working a dead end job" is of achieving that?

How much school did you go to before getting where you are? Do you really feel that anyone can "pop into" that kind of salary?

I know many people with Bachelors degrees + that don't even make $50k. What industry are you in, and are they hiring? I think I might quit MY job and come join you!

I'm just sayin'.