About Mary Kay

The Mary Kay compensation plan is one of the more complicated ones in the MLM industry. At the retail level it’s easy. Consultants earn a 50% commission on their sales. But once you get to the Director level – the level where you’ve recruited a downline – things get tricky.

While there’s no information readily available to confirm this, it seems that the 50% commission on retail sales applies equally to sales made in person, via parties, and online. However, the Director-level compensation plan seems to be built entirely on how many members of your downline order inventory at wholesale and just how much they order.

In other words, it’s assumed that all of the sales are happening because your downline is ordering products at wholesale and then selling them at retail. At this time, Consultants are required to make a $200 wholesale inventory purchase within their first two months to become active – meaning they can continue purchasing products at wholesale prices.

Then they are required to order $200 of product at wholesale every three months – to be able to continue buying products at wholesale.

But what if your downline wants to avoid buying inventory and instead wants to do their business over the Internet? It’s not clear what happens then.

It’s also important to note that information about Mary Kay’s Director-level compensation plan isn’t available online from the company – it’s only available on websites that have reprinted the information that’s been supplied to them by (frequently unhappy) Mary Kay consultants and former consultants.

This means that before you sign up with Mary Kay you have to make a decision. If you’re comfortable with traditional MLM techniques and you have no problem depending on your downline to purchase inventory in order to earn your bonuses, you may well do fine putting yourself on track to become a Mary Kay Director.

thumb sell mary kay Mary Kay Compensation Plan and EarningsHowever, if most of the people you know are already doing most of their business online, your best bet may well be to keep your Mary Kay business online and rely on online retail sales alone to earn your income.

This approach has several bonuses. You won’t need to purchase inventory – of course, you also won’t be able to purchase products for your own use at wholesale prices, either. But it also means you won’t have to do the kind of research that’s necessary to make sure you can actually sell the inventory.

The online approach also saves you from sales meetings, in-person sales and recruitment, and demonstration parties, and having the costs of these activities eat away at your 50% commission.

Which approach should you use if you decide to join Mary Kay? That’s going to depend on a lot of factors, including how comfortable you are with people, how comfortable you are with technology, and if you’re in one of the few demographics left where the majority of people aren’t doing a lot of their business online.
It’s important to be clear here – it’s not necessarily a bad idea to get involved in Mary Kay. In fact, it could well be that the issues mentioned above are going to dissolve quickly should the company wake up and smell the coffee that the Internet is here and really has changed everything in the world of network marketing.

And it’s still very possible for creative, driven people to earn money with Mary Kay, especially if they use the marketing tools that the Internet makes so readily available.

But it’s important for you to know that, when you become a Mary Kay consultant, you’re going to quickly be faced with some very important decisions about how you want to run your business. The fun you have with your business, and the money you ultimately end up earning, depends on your choosing wisely.

About This Author

 Mary Kay Compensation Plan and Earnings Ryan Nelson is the owner and operator of MLM FIles. His current focus is helping MLM / Network Marketing and Home Business Entrepreneurs have success with the Internet... He has generated over 7-figures using the online space. Learn More About -> Ryan Nelson

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