These figured were provided by a director to pt - - Year 5:
CASH IN:
COMMIS. 24,821
SALES 5062
TOTALS 29883
CASHOUT:
Prod Purch 1311
Sect 2 supp 1113
MK Ded 10954
Seminar 1000
Leadership 750
Career conf 250
Fall Retr 250
Meeting sp 1500
Przs, nwslt 375
dir suit 250
website 125
office help 1000
Total Expenses 18878
Net income $11,005
These are figures that were provided from a director to pt as "proof" that directors don't make much money. Now according to what I read this director was a cadillac director and from the entire chart (this is year 5) year 4 was her first year as a cadillac director and year 5 was her second. What I find interesting is at first glance everyone would probably just agree, that there is not much money to be made as a director. I am going to preface this with I was only a Premier Club director last year and my commissions and car value was $14 shy of $50,000. So ...this "Cadillac" director earned 1/2 of what I earned in commissions??? Then if you look under expenses MK Deductions, well, it is copays and insurance payments for the Cadillac, with that large amount, this director had to have been paying the full coop payment of $900/month. My question would be, why not just step down to a Premier club director? No, it wouldn't have been easy but a director friend of mine was in this situation and shared her heart - any one that I knew had the utmost respect for her decision and totally supported her. Had she stepped down a level, she would not have paid over $10,000 to drive the cadillac and she could have been collecting $500/month cash comp payment... so she could have added over $16,000 to the above figures. (She would not have had to pay the Company the copay and she would have received $500/month). (and if she really wanted to still look like a Cadillac driver, the leasing company allows the driver to purchase the vehicle from them) - she could have purchased her car and then received the cash comp and I am sure more than covered her car loan payment.
My next point, look at her sales: $5,062 that figure is for the year!?! I know that it is "our business" and we can run it the way we choose but, I sold more in the month of June than she did in an entire year. Can we also see if she had increased her sales how she also could have added another quite a large figure to her income? Please don't say noone wants to buy Mary Kay, because it just isn't so. If I wanted to, I could have a booking every night, I don't care to. After 5 years as a consultant, she should have been able to have more money just in her reorders. So if she wasn't working with her unit and she wasn't holding classes and facials, what was she paying office help to do? And check out the amount of Product Purchases, her Sections 2 is almost as much?? If you aren't holding facials and classes and aren't selling anything, how do you spend that much on section 2?
The chart illustrated Year 1 - Year 5 from Consultant thru Director. Her best sales year was only $10,500. I am not trying to be insulting, simply pointing out, her sales were never strong.
These figures are not PROOF that a director can not make money, it is proof that we really need to build strong selling primary and recruiting secondary units. It also proves it is going to cost you money to "appear to be something you are not".
I am not trying to be insulting and I really want everyone to understand there is money to be made but it must be done doing this business the proper way. "buying your way there, or faking your way there isn't going to make you money, it is going to cost you money. And once you set yourself up on that slippery slope, it is going to be like stepping in quick sand, you are going to go down and the more you struggle the faster you are going to sink. Why not start the right way and build strong. Then when there are only 4 days left in the Seminar year and month, you can be having fun at the races, attending a pary, attending another race and painting the bedroom and planning a super duper graduation party for you beautiful daughter!! & Not changed to the phone and the computer or dialing for dollars. The bottom line, this director could have easily given herself at least a $16,000/yr raise!
Now lastly, if she was happy driving the Pink Cadillac and earning $11,000/yr than she has every right to be happy - perhaps she really doesn't need the income - well - she didn't loose money - she did earn some money and in the area I live a fulltime worker earning minimum wage would earn roughly the same. I would not be happy with that, but to each his/her own.
I hope this piece helps open some eyes to how just because you "see" it in writing doesn't always prove anything if you don't really know what you are looking at.
Have a Great Weekend Everyone!
Posts
I noticed the same thing. It really only proves that she did not sell very much, which is part of the problem. she probably put more effort into recruiting, or maybe she had some personal stuff going on that kept her from having as many classes and appts as she wanted. But if that was the case then she would realize that that is just life and not reflective of MK being flawed.
ReplyDeleteI was also looking at the office help part as well. I never understand why directors have office help if they are not bringing in that much money. If she wasnt selling that much then seems to me she wasnt too busy with appts, but who knows.
$5000 in sales a year, thats about $417 bucks a month, for a sales director thats pretty low. How are you gonna preach sales, when you arent moving product yourself?
People in my unit routinely move about 400-500 per month. Two weeks ago we had a challenge and me and 5other women including our director sold over $1000 each in one week!
It can be done.
You know what is really sad about this (and this is not directed towards directors who worked really hard and didnt make it for whatever reason) there are team leaders and DIQ's out there that are maintaining 4,500 a month and way before they become directors, because they are selling and recruiting and not working 40 hours a week. A TRUE successful DIQ is doing this 15-20 hours a week and a director should be doing it 25-30 but that is hard if you have a full time job.
ReplyDeleteSorry, I meant to say $400-$500 per WEEK!
ReplyDeleteI would be surprised if my former director is still a director. Her classes never held and she didn't know how to decide what to order and how much. She was all about recruiting. I was never able to learn any sales techniques from her. My red jacket was a recruiting machine but when it came to sales, once again, clueless, and her own makeup application (and application instructions) left much to be desired. The colors she initially picked for me were so pale as to be invisible. You gotta learn how to sell stuff and manage money before you launch into all this recruiting and cars and DIQ and what not! sigh. I had no one skilled to learn from, even if I had the sales personality, the techniques? not to be had from these two. blah.
ReplyDeleteAmen, learn the product and how to sell it before you start building a team! You can't teach what you do not know!
ReplyDelete