Tuesday, December 11, 2007

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'.
Posted by Jon Biron at 10:06 PM
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11 comments:

  1. AnonymousDecember 12, 2007 at 3:43 AM

    I don't know this person but I can understand their rant. This person is making more money than they could in MK. Unless they stuck it out for quite a while. Someone on this blog mentioned that they were in their 3rd or 4th year and barely breaking even. If this person is single, then they don't have the option of "working" their busineess until it grows. The need cash now. They would be retarded to give up this job, with all the perks, to do MK. But a housewife, or house husband, who doesn't need to work for immediate moeny and has the time and doesn't need the benefits, this could be an option for them.

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  2. AnonymousDecember 12, 2007 at 4:03 AM

    Judi, did you read my response to your question on the other thread? I'm basically saying I'm not making thousands because I didn't sign up for MK to make money. I signed up for fun, but my situation has changed and I am now working to make money and I have been. The beauty of it is this: if I don't want to put as much time into it, I don't have to. And when I cut out the time, I make less or no money. It's a pretty simple concept. I wanted a new hobby and found MK could make me a little extra money. I've learned that it has potential to make me more money and since I'm miserable in my day job and am having difficulty finding a new one, I'll try my hand at actually working my MK more and see where it takes me. So far this year, I'm ahead. I didn't say I was "barely breaking even." I said if I sell $300/mo, I'm breaking even as far as paying toward my debt and having money to spare that month. If I were working toward $300/wk it would be a much different picture. Also, I was single when I joined and at the time, I liked my day job. Things have changed recently that have made it less enjoyable. I now have more incentive to work at MK more.

    As for the comment above, you do NOT pay taxes on a MK career car because the car is not YOURS. It's LEASED by MK. It's not the same as winning a car on a game show. You have to pay taxes on those. If you take the cash instead of the car, you will be taxed on that. Prizes can be taxed depending on the value. I've not had to pay taxes on anything I've earned thus far. That helps me at tax time.

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  3. AnonymousDecember 12, 2007 at 4:50 AM

    Judi,

    I just don't understand if you don't like MK then why don't you just let it go.

    What other job can you have that you can get cash when needed? If you work for a company and say something comes up and you need cash right then can you get that from a job. No you have to wait for your paycheck. If you are in MK you can sell something and guess what you have cash.

    This business is not for everyone and yes it takes some longer than others to make a GRAND income. However I own a business outside of MK and guess what it has taken about 6 years of it to turn a profit. So you have to be willing to work it and wait for the rewards. This is with any business. However if you are working your MK the right way book, sell, book and then recruit guess what it will work. It depends on how willing you are to work it.

    I know you are going to say that you weren't trained. Well, my suggestion is find another meeting or call someone other than your director and ask them to mentor you or coach you. Where there is a will there is a way.

    I personally think that since you are still talking about MK you are not really ready to let it go. This is just my personal opinion and yes if you want some on this site that are directors would probably be willing to show you how to do it since you have said that you weren't shown. However you have to willing to put the time into it to make it work.

    I am not trying to be ugly in anyway I just don't understand because I did read on the pink untruth that you said you were not a "lover of MK" so why don't you just let it go? Just wondering.

    Have a GREAT MK DAY

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  4. AnonymousDecember 12, 2007 at 5:12 AM

    where is her proof that most wind up with a lease payment on the cars? I am about to turn in my current vehicle and have not made a single lease payment on it.

    let's also throw in that EVERYONE pays taxes on their vehicle, Mary Kay pays for my tax and tag each year. We only pay taxes on the value of the lease, just like income. EVERYONE DOES THAT! Before those in corp. America use their income to pay their car note, they have been taxed on it. How is Mary Kay different? Everyone is taxed on such things!

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  5. AnonymousDecember 12, 2007 at 5:48 AM

    Speaking the real truth "are people taxed on a company car?" in corporate america? I dont know the answer Im not trying to be smart. Also the people I KNOW who make 100k a year (not in MK) are either working 60 hours a week or more, they own their own company. or they are away from their family traveling, or on call 24/7. There are some who work 40 hours at that rate but not many. I would venture to say some top directors are working more than 40 hours a week (some not all). Unless you have built a viable business or have some investments its hard to make that kind of money working under 40 hours unless you are a TOP salesperson.

    ReplyDelete
  6. AnonymousDecember 12, 2007 at 5:58 AM

    I have let go of MK. I am not a consultant. I do not actively sell. I do get it for friends and family at my cost. I still talk about it so others are not put in the same situation as I am.

    ReplyDelete
  7. AnonymousDecember 12, 2007 at 6:04 AM

    And I think that the whole thing with the car is that it was promoted in my unit as "free". And if the driver does have to occationally make a payment on it, that is not something that was shared. If people would just lay it all out on the table BEFORE someone is signed up, most of these complaints would go away.

    ReplyDelete
  8. AnonymousDecember 12, 2007 at 10:14 AM

    Judi says
    "someone would have to be retarded to give up this job, with all the perks, to do MK"

    You got that right!! But who says that you always have to give up your job? Where is it written that in order to be a MK consultant you must give up your day job? I dont know what this woman does for a living to be able to make $100 thousand a year, but I would never approach her to give up her job to do MK.
    There have been women who have given up corporate careers, but they have done so because of other reasons as well. Having a dream salary does not mean you have a dream job. If you have a family I sure you will have to sacrafice some family time at that level. Each woman has to know what is important for her.

    Also judi I have always been confused to as to why you stay in MK and I remember you say it is because you like the products and you can get them at cost. But if you are not a consultant and if you are not active, how are you still doing that?

    ReplyDelete
  9. AnonymousDecember 12, 2007 at 2:25 PM

    Oy... this is one of my favorites....

    I made 6 figures a year prior to MK. I am not quite at 6 figures yet in my MK businesses, however it took me over a decade in the work force to go from 28k a year (oy... did I just date myself) to $100+k. Hello DUH. This is a business, if you expect to make 6 figures your first year, you need to research opening and running a business. Read the SBA website and just get an overall education. The IRS does not even expect the average business to turn a profit for 3 years. THREE YEARS. Now in MK you can do it faster because we have so many advantages (such as someone else doing R&D, Manufacturing, Marketing, Marketing Research, etc etc etc.)

    Oh... that is right. We are taxed on the cars and prizes. *sigh* Golly... let me think ... was I taxed on my stupid mouse pad, t-shirt, ink pen or squish ball with the company logo when working in the private sector. Uh. NO... but then... really... how could one place value on such incredible gifts (for those who did not catch it... that was ripe with sarcasm). BUT WAIT... was I taxed on my bonuses??? Uh... YES and heavily without the benefit of tax deductions. What's that? Of course I was taxed by the IRS? Um... yeah, those would be the same people taxing me on my free car, star consultant prizes, star director prize, and whatever else I bring home from the company. Yes that is right, the IRS not MK does the taxing... last time I checked with my bookkeeper anyway.

    Yes, my bookkeeper - the same one that said... "wow, you had a good month in X", I said oh really? She said, "yes, well if this unit production bonus is what I think it is." Yeppers.... (obviously this was as she was setting up my stuffs).

    Yep yep... I pay about $50 a week for gas too... my insurance is less than $30 a month and I have not had a car payment in years... 5 to be exact. When I worked for another company my car payment was over $400, insurance around $130 and I still paid for gas. Yep. I think I have a better deal now. Even though I get taxed for the car, I get to write off my mileage. I think that I would probably still come out ahead in that argument.

    With regard to retirement, it may be there. Depending on your employer and your plan. As for the 401k, I have one too. It is also tax deductible because.. well I employ myself. So I have the same benefit as you, without matching, but that is OK with me. Lots of folks don't have matching, and hey maybe next year I will - cuz I can increase my investment any time I want to.

    Does MK give us vacation or sick time? Why would they? We don't work for them. Do I give myself vacation and sick time? Yes I do. With greater flexibility that I ever had working my 70+ hour per week six figure job.

    So if you want to depend on someone else for your income and the security of you and your family, that is OK. In fact it is GREAT! Just remember, that some entrepreneurial thinker with the spirit of many of these independent businesses owners started that very company you work for and thankfully they had the stick-to-it attitude that provides them or their company the success it receives now. The person who started that company was not someone who was waiting around looking for someone to ensure their "sick" time or "vacation." Nope, the were most likely a savvy dreamer with the spirit of an entrepreneur looking to make their way in the world and hmmm... they probably make more than those who work for them yes?

    Without risk, there is no reward.

    ReplyDelete
  10. AnonymousDecember 12, 2007 at 6:55 PM

    pynkmyst, don't forget that when you purchased your own car, you got a nice tax/tag bill each year. Where I live, it's a big bill. MK pays my tax and tag now.

    So what if they tax our prizes? If you win money on Jeopardy it is taxed.

    I do not usually recommend that one give up a good job for a Mary Kay career. I say get started, build your MK business, lower your hours in your other career and phase from one to the other gently. That is much more possible for most women, and brings much less stress. Why quit your other job right away (unless you are miserable) when you do not know if you will like being a MK consultant or director?

    If we just think through most things in MK, there is a logical answer.

    Colleen, you are right. Most who make an "executive" income work many, many, hours per week, FOR SOMEONE ELSE. Most in MK who make that kind of money still have their flexibility and usually have cash to hire help with the house, etc., and are able to be with their children. You cannot watch your children or be involved with them when they are at home and you are in an office downtown.

    Again, let's compare apples to apples. How many jobs are there out there for women to work from their homes and make executive incomes? NOT MANY! At least in MK I have that chance and it's a better chance than I had at my old job.

    KEY POINT COMING...
    Most women who come into MK do so because they are NOT making that kind of money, or something else is out of balance or missing in their lives. If everything is right in your world, then stay put. If MK has something that you need, give it a try. I spend little time trying to recruit people who are happy with their lives as they are. I am looking for those who have a need that MK can fill, and even though that is a lot of women, that IS NOT everyone on the planet.

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  11. AnonymousDecember 12, 2007 at 11:11 PM

    so true... they also did not pay my hefty downtown parking bill...

    ReplyDelete

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