On Trend

Every year the directors are in a new suit, I think one of the things we all look forward to is seeing what color the suit is going to be (and of course the style). The last couple of years Mary Kay has been very accommodating in giving us a mix and match type choice so that we can even get two years out of our suits or at least some of our pieces. I absolutely love the black one that we currently have and the color for the coming year is purple. So this year, we can wear the new purple, or our black from last year or mix the two. We also have our choice of three different styles of jackets and dresses or skirts. It is nice to be able to personalized our outifts instead of looking like a bunch of stepford wives. I perfer a more relaxed, trendy type look to the "stiff" feel of the traditional three piece suit.

When I found out it was purple, I must admit I wasn't thrilled because well, I guess I just love the black. I found it interesting that one of the lead articles on MSN today was titled, "It's Time to Get Passionate About Purple ". Wow, okay guess MK knows what they are doing.

Who Should Teach?

Tonight at meeting, my director had two consultants with less than a year of experience do our training. To an extent, I have a problem with this. Don't get me wrong, I think it is great that they did different appointments lately. One did a lipstick class and the other did a spa class. I don't do many of those myself, so I'm open to hear how they work for others. With that said, I disagree with them being "in charge" of giving us promotion information if they don't understand what's written on the sheet of paper from our director.

This is where the misinformation began. My director wanted them to tell us that we are doing a promotion locally to have face models in a calendar that will be printed through Vista Print. We will choose 12 models. We did this last year in conjunction with the company's national contest "Model of Beauty." What the girls didn't realize was that there is no national contest this year. Now, I read InTouch just about daily. So, I thought this was inside info or something I had overlooked this week. I got really excited and sent out invitations to our event next week which is specifically focusing on our model contest. I thought it was also for a national contest that doesn't exist. Why? Because inexperienced people were talking about the promotions. They misread it. Since they were reading from a sheet of paper written by my director, I can only presume they know what they are reading. WRONG!

So, what are your thoughts? Directors, do you think it is appropriate for inexperienced consultants to lead the meeting? How long should they be in before they do this? Consultants, how do you feel if you have someone with less experience than you teaching you how to do your business? Do you think there are times when it is appropriate and times when the director should take over?

Here is what I think. I think if a consultant is new, but she has done something unconventional and had success with it, by all means she should share. I also think a new consultant that has been holding a lot of appointments can lead the skin care portion of meeting for guests. This way, the director is free to do the real training. The new consultant should NOT, however, talk about company or local contests or promotions as it is still overwhelming and she could get it wrong.

Here is what I think my director should have done (and believe me, she heard from me):

-Covered the details of this contest herself before splitting us apart.
-Have me or another consultant do the skin care for the guests and do the training herself (at one point it was becoming gripy and out of control)
-Only had the newbies talk about their respective experiences

Here are my general views (and I hope I'm making sense because it's late, but I gotta get it out) on the matter. Directors direct. They give the training, talk about contests and promotions, and make sure everyone is clear on what the rules are and whether it is LOCAL or NATIONAL or just our NSD promoting it. My director's director is very high D personality. I find more and more that I am, too. :P Who knew! I digress.

Consultants can teach on something specific. If Jane had a great spa class she should indeed be able to talk about it so we can learn from what she did. That is relevant. If Annie had large sales results from a silent hostess she did, let's hear all about it! If Linda did a lipstick class and sold tons of skin care, too; I want to know what she did. What they should NOT do is give out promo info impromptu without full understanding what it is.

When should consultants be given more responsibility? Should it be when they reach Red Jacket? Not if they did it in 2 months. Just because people are joining their team does not mean they are well read on what's going on. It means they are excited and exuding charisma. There is absolutely nothing wrong with that, but they are not ready to tell people with years more experience what is new in MK.

I don't like that if you aren't in a Red Jacket, it is as if you aren't working your business properly. There are people who have been in MK longer than I have who are not Red Jackets and they knew more than I know because they have been doing it longer. Just because someone is a Red Jacket (or has been one in the past) is not reason to have her acting as director.

My honest opinion is that in order to be qualified to "practice" being a director, one should meet one of two criteria (maybe three):

1. She should be driving free.
2. She should be DIQ (does it not make sense for someone who obviously has to lead to practice?)
3. She should be a Future Director (meaning she's probably driven free at some point and probably been a DIQ, too)

I think the reason you have a lot of misinformation in the first place is from people summarizing incorrectly; not understanding what they are reading in the first place, or just being plain bad communicators.

So, now, I will ask David's questions (he mentioned I bring these up when I told him what I was going to write about).

What, if anything can Mary Kay, Inc., Directors, and/or consultants do to combat the proliferation of misinformation? :D

Here are my thoughts:

Mary Kay, Inc. could perhaps require directors to streamline consultants they decide to put in charge. Make sure they understand what they are talking about. They could also make specific training requirements before advancements are awarded. For example: a Red Jacket must have 3 active recruits, but perhaps should do some type of written assessment on InTouch. If they don't pass, they don't advance. Just a brainstorm. They can get the commissions, but they can't get the jacket. The same goes for becoming a director. Experience is certainly required to be a director. There is way too much responsibility in that position for someone to breeze into it after just a few months in. Again, I'm brainstorming. These ideas may not even be realistic.

Directors would most likely hold the most responsibility in this situation. Because of the independent structure of our business, it needs to be up to directors to make sure their consultants have correct information and understand it well enough to convey it accurately to others. We are possibly the only Mary Kay someone may ever see. If we blow it, we've blown their impression of the entire company. First impressions are everything, you know?

Consultants need to read, read, read, read, and READ InTouch and other resources available to them. Miracles Happen, Mary Kay on People Management, Living a Rich Life, The Mary Kay Way, More than a Pink Cadillac are all books consultants should read. Mary Kay Ash's autobiography is like reading a training manual for how this business is designed to operate on the personal, regional, and national levels. Don't limit yourselves to Mary Kay books, though. There are a multitude of great business books out there.

Honest, ethical Director speaks out

The following is written by Speaking the Real Truth - all I did was copy and paste. :o)

- MKShay

------------------------------------------

Yes, I am still happy with my MK business. And, I'm not torqued at those here, but at one of the latest posts "over there".

This is what really gets my goat, is when someone over there tells their experience and thing slings it all over the rest of us.

If you want to speak for herself or first hand stories, fine, do so, but leave me and the other thousands of MK consultants and directors that you do not know out of it.

I too was a monthly Miss Go-Give. I too and well liked and respected and plan to become an NSD. But,

-No, I did not fake ANYONE to become a director and do not teach others to do so.-My first line offspring have not faked their units either.

-Yes, I have counseled consultants who I felt were ordering more than they should. I have actually told them to stop ordering until they sell some products!

-No, I have never pumped in large amounts of inventory out of my personal budget to make production...NEVER.

-Yes, I have encouraged another director that I saw doing so to step down, I told her that she wasn't saving anything. (And no, she was not mine, so I was not gaining anything).

-I have counseled my offspring that we do not buy production, we sell enough product to warrant our ordering a significant amount each month, thus taking personal responsibility for our units, setting an example of a successful consultant, and making money at the same time.

-I do not encourage consultants to start with inventory that is over their heads. It's really dumb to do that anyway because a scared, overwhelmed, woman usually does nothing, and like it has been pointed out, it can all be returned. My return rate is very low, and consultants regularly contact me to re-join my unit.

-I am happiest when I know that my consultants are making money and so am I. If you build correctly and train your people correctly, this will be the case. When you help enough women get what they want from their businesses, and they are earning money, unit production takes care of itself. REALLY. That is the way that MK is supposed to work.

Please stop blaming me/us if you and others have bastardized/hijacked the system for your own benefit and now you feel badly about it. We are not all like you. I am glad that you finally got a conscience, but those who are truly repentant, don't need to blame others or sling mud onto others undeservedly.

Fess up for your own crimes, and leave the rest of us out of it please.

My Senior is legit, as is her Sr. and our NSD. I know these women and know the intimate workings of their businesses. They are ethical and they make money, every month. I've been around and I've seen it all, the good, the bad, and the ugly, and there is some in MK, but please stop acting like there is no good or that all of us are bad.

Whew, I feel better now.

Drop Some Names

Per a recommendation from a reader, and because I have been deplorably absent lately, I present (finally) a "new" topic!

What "big name" director do you know?

What interaction did you have with her? (personal conversation, lunch, etc.)

What was your overall impression of her?

What about her inspired you? (either positively to do better, or negatively to "never be like that")

{On a side note, please feel free to recommend topics, or email me if you have an interest in being an author for this blog. There is a lot that can be talked about, feel free to bring it up.}

Can we "fix" the problem?

Lookingforanswers made the following point recently:

"A rateMD.com type of thing sounds like it would be good to have but for MK Directors and above so that new people coming in could choose the unit they'd like to work with."

Around Christmastime I made a similar suggestion on the forums at Pink Lighthouse.

I am not saying that it would be simple... certainly would need a lot of work in the logistical department, and many, many people will "cry foul" when they find themselves on the proverbial "naughty" list.

Not to mention we have all observed where someone (or corporate themselves) is BLASTED for using standard business operating procedures, so there would have to be some things that are off limits in the "scrutinizing" department!

Considering all that, what criteria - if such a service were available - would you want to be able to rate directors you had worked with?

What criteria would you want to be able to see before you signed with a certain director?

If you had a friend (or even a casual acquaintance)who had invested significant time and energy into recruiting you, but worked in a unit with a "shady" (not to be confused with Shades!) director, would you bail on that friend in favor of a "better" unit? Or would you stick it our regardless?

Obviously the problem presented in the last question would need to be addressed as well as many others. I am NOT suggesting that it would be easy! But I do think there should be SOME form of accountability that directors are held to and this MIGHT be one way of doing it.

Thoughts?

Expenses and tax write-offs

Disclaimer: The following is for general discussion. If you have specific questions about your tax write-offs or legal issues, please consult your tax preparer or attorney.


One of the things you may hear from the anti-MKers is that the commission checks for Directors are "misleading" because that is what they are paid "before expenses."

Employee checks are "before expenses" as well, aren't they? I mean, the employee has to pay for gas, food, clothing, pantyhose (if female) and a whole lot of other things from that check. However, if someone asks "How much are you paid?" the employee would never say, "$45,000 - but that is before expenses." Of course not.

Anti-MKers say that when figuring your average hourly commission you should take your travel time into account. I don't. I have never been paid for my travel time to and from work. It is just assumed that you have to drive in order to get to work - your commute is your problem.

HOWEVER, you can (generally) write off your mileage as an independent contractor (for business-related travel).

Let's look at some comparisons between employee vs. independent business person. But first, let's look at some qualifications for tax breaks. You must:

1. Operate a legitimate business, not a hobby.
2. Demonstrate that you have an intent to make a profit.
3. Work your business like any other real business (not just on your lunch hour or the golf course)
4. Show regular and consistent activity. (For example, one hour a day, 4-5 days per week. This is why MKers are encouraged to block out "Mary Kay time" each week to consistently work their business.)
5. Be able to demonstrate your expertise in your business category OR your efforts to gain expertise by learning from others.
6. Document your business income, expenses AND ACTIVITY. (Notes in your daily calendar usually are sufficient.)

Write-offs are not automatic, and each person is unique. Be sure to consult with your attorney or tax professional (not your Uncle Bobby John) to discuss your tax situation.

Now let's look at your expenses.

Employee (generally cannot write off these expenses):

1. Gas/wear and tear on car/mileage
2. Car insurance
3. Rent/Mortgage
4. Travel
5. Meals
6. Car payment/Lease

Independent Contractor (can write off these expenses if qualifications are met):

1. Mileage
2. Car insurance
3. A portion of rent/mortgage
4. Travel (if business-related or if business is done during the trip)
5. Meals (again, if business is conducted)
6. A portion of the car payment/lease
7. And more

Businesses write off every single penny they (legally) can so that their tax liability is as low as (legally) possible. Why? So they pay less taxes (legally)! You WANT your taxable income to be as low as possible (legally) so your tax liability is lower!

So if I travel 100 miles round trip for a SCC, I can write off whatever the IRS says I can per mile (let's say 50 cents). So in this example, I have 100 x .50 = $50 in a tax writeoff for mileage!

Did I pay $50 in gas for the trip? No. The IRS mileage takes into account gas, wear and tear on the car, etc.

So can you see how putting miles on your car can quickly reduce your taxable income? And that is just one example. I can't do that just for driving back and forth to work.

Directors do have expenses. IBC's have expenses. The great thing about it is that these expenses are tax deductible!

Employees have expenses, too. They just don't usually get to write them off.