Showing posts with label frontloading. Show all posts
Showing posts with label frontloading. Show all posts

Friday, March 27, 2009

Is frontloading necessary?

7 comments
Well, I hope everyone has a nice weekend - something to chat about while I am away. I know many feel that a director frontloads a consultant because her commission depends on it.. but 13% of $3000 is $390 once placed, the consultant has lots of inventory and then will not place another order for quiet awhile (at least not of a substantial size). If a consultant starts with a $600 and starts selling and then orders a $600 every month while she is selling and building her inventory and client base... in five months - if she placed a $600 each month, the sales director would still earn the very same $390, 13% of 5- $600/ws orders would be the exact same in pocket.. .and a consultant that is not overstocked is going to be far less scared to death or tempted if she doesn't get off to a good start to freak out and return the product those casuing the sales director to be charged back much of that $390.

So, if I am going to end up with the same abount, it only makes sense to me to go about it the way that is also best for the consultant. I would rather not get the commission if she didn't get started right away, then to have to be charged back.

Wednesday, March 12, 2008

Can Corporate control their Directors?

25 comments
I really wanted to limit my posts to one per day so people could have the chance to discuss and not be overwhelmed, but Eversleigh made a comment that I thought deserved a post of its own. Thanks, Eversleigh, for sharing your point of view!!

Eversleigh said:
  • "I know that consultants are not "employed" by corporate, but I find it hard to believe that MKC does not know what is going on with all the frontloading and buying dictatorship. And if they DO know and choose not to do anything . . . I just can't get excited about that kind of company."

I will give my view of this and then I encourage you all to voice your opinions.

  • First, MKC may or may not know what some (not all) Directors are doing in this regard. If they don't know for sure, how can they do anything without proof?
  • Second, there is "legal" and there is "moral". If a Director is doing things legally and not breaking any laws, then I really don't see what MKC can do about it.

Let me give 2 examples:

Let's say I am a Director and I go over your inventory options with you. At no point do I tell you that a certain level is "required" - but I strongly suggest that you open with a "full store". However, the final choice is yours (which it is). What can MKC do about this if the new consultant regrets her initial inventory choice (other than offering the 90% buyback)? Ultimately, it is HER choice, right? Personal responsibility comes into play here.

Let's say a Director is "buying" her Directorship. Unless she is doing something illegal (such as activating a rep without her knowledge), I still don't see what can be done.

And, no, I don't think that all consultants should be punished/micromanaged because of some bad apples.

Okay, ladies (and gents) - let's hear what you think!

For Further Reading...

This Week On Pink Truth - Click Here
Pros and Cons of Mary Kay - Read or Contribute or Both!
First Post - Why I Started This Blog
The Article I Wrote For ScamTypes.com (here) (there)
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