Mary Kay Commission Plan Breakdown and Compensation Structure

Mary Kay Commission Plan

Hello, welcome to my Mary Kay commission plan review and taking the time to take a deeper glimpse into how it all works.

If you want to join this business, but are you are unsure of where to start, then you are in the right place.

In my opinion, I personally would always do some research on any opportunity I am thinking of jumping into.

Some may say to not research and just join, but I say that is the wrong approach, you want to know it’s a halfway decent program and an opportunity that has a commission plan that pays out, it’s great that you’re here today doing your due diligence.

I know that sometimes you fall into the trap of getting sold by the companies affiliates on how great the opportunity is so you end up joining right away, we’ve all done it, but we still have to do our due diligence.

I feel that the main importance of this review will be the compensation plan because I feel that the number one reason why most people get involved with MLM is to earn more money.

And without a company having an easy to understand compensation plan or a commission structure that you can break down and understand how to maximize earnings, it will be very difficult for you to be any kind of long-lasting solid earning foundation for residual income.

My whole purpose of writing this Mary Kay compensation plan review is so that you can get a total understanding of what the company is, and what it is all about, the products they offer and give you a great breakdown of the compensation plan structure and payout or the commissions you can make.

Those that are new to MLM, I wanted to give a quick overview of what Network Marketing is about.

Anybody that has experience with MLM can either skim through my version of what MLM is about to get to main sections of the Mary Kay part of my article.

Then I will get some guidance that I will share with you on how to start generating income from home that I found that work quickly.

And in my last section, I will close with my personal thoughts and feelings about the Mary Kay commission structure and also some thoughts on the opportunity.

Let the breakdown begin!

Mary Kay Company Quick Overview

Mary Kay Inc. is an American privately owned multi-level marketing company that sells cosmetics products.

In 2011 the company reported $2.9 billion in earnings for a team of around 5,000 consultants.

Direct Selling News (DSN) positioned Mary Kay at the number 4 spot on its 2015 DSN Worldwide Direct Selling Top 100 companies, with 2014 income of $4 billion in sales.

To put that in perspective, Avon (their principal rival) comes in second with $8.9 billion. NuSkin at number 9 with 2014 revenue of $2.75 billion.

Conventional cosmetic firms (brick and mortar) like Sephora ($ 2.11 billion) come close yet does not blow them away in terms when sales are concerned.

Mary Kay is based in Addison, Texas, outside Dallas. The company was founded by Mary Kay Ash in 1963. Richard Rogers, Mary Kay’s son, is the chairman, and David Holl is president and was named CEO in 2006.

So even though we are here today a few years later, Mary Kay is still running strong in comparison to other cosmetic companies in both the mainstream market and with other direct selling companies.

Even though Mary Kay Ash is not with us anymore, the foundations that she laid with her company were left strong and is thriving even today.

Richard Rogers is running the company now out of the headquarters in Dallas TX.

Manufacturing is most likely done in Dallas but also has a couple plants located in China, they use to have a plant in Europe but has been shut down for a while now.

Like I mentioned, Mary Kay was a brilliant businesswoman, she structured her business to attract other successful business minds that have built Mary Kay Inc. with its branding, advertising, selling and running one of the most successful businesses ever built.

I mean, you know it when you see a pink Cadillac rolling down the street that there is a successful top-selling Mary Kay consultant that reached a great earning level by selling MK.

Today they have more choices to pick from when it comes to their car program which is a Cadillac DTS or the CTS or you can choose to get the monthly cash option that equals to $900 per month.

May Kay also donates to charity as well, one of the charities that they gave a donation to is a physical violence shelter in the amount of $100k for just one of their donations given.

Mary Kay is a good company, and gives back, can’t doubt that!

Quick Look Into The Mary Kay  Products

Products are thoroughly looked into by the business, which teams up with independent medical professionals for its safety and also performance.

There’s a money back guarantee on all of their products, which utilizes exchange, substitution or a complete refund if buyers are not satisfied.

According to their satisfaction stats, 90% of customers are satisfied with their quality.

There are no products that are tested on animals in the North American plants but there is not that type of regulations in China so there are most likely testing done on animals in that country, just for the fact that Chinese law requires these tests to be done.

All products are made by the Mary Kay researching team and are unique to MK’s markets.

The R&D team is a massive one and is highly respected in the cosmetic industry worldwide.

In just one year Mary Kay was granted over 130 patents, for a total of over 1200 in that year total for their packaging designs, technologies in modern design and for their innovative products.

The most recent patents being in the anti-age lines they have which include:

  •     Mary Kay® TimeWise Repair® Volu-Firm® Eye Renewal Cream
  •     Mary Kay® TimeWise Body TM Targeted-Action® Toning Lotion
  •     Mary Kay® TimeWise Repair® Volu-Firm® Lifting Serum

Mary Kay has 6 categories which are:

  •     Skin care.
  •     Makeup.
  •     Body & Sun
  •     Fragrance.
  •     Men’s.
  •     Gifts

The prices for their products are reasonable and affordable, here is a list of a few of them:

  •     Hand cream: $10
  •     Ultimate Mascara: $15
  •     Guy’s facial wash: $16
  •     Broad spectrum SPF 50 sunblock: $24
  •     Age-fighting moisturizer: $24 for 3 oz
  •     Perfume spray: $50

There are new products being constantly being released and can be found and purchased on any of the Mary Kay’s websites, brochures, catalogs, and of course any of the consultant’s beauty and house meetings.

The cosmetics come in all sorts of selections that can be made with fashionable shades.

There are always special promotions that customers can get to entice customer sales like:

  •     Free of cost make-up examination.
  •     Free of cost skin care examination.
  •     Hose a Mary Kay celebration and get free product.

The official website will also include special promotions that will be listed from time to time as well.

Mary Kay In Touch

Mary Kay also has what is called “Mary Kay In Touch” which is a website and is designed for customers and reps to make product purchases much easier and streamlined.

Here is a fantastic and instructional video showing you how Mary Kay In Touch works below:

I hope you enjoyed the Mary Kay In Touch video, now let’s get into the compensation plan, and how commissions are paid out and structured.

Do you want to know how you get paid right?

Mary Kay Compensation Plan

When you start with Mary Kay, it is very important to understand the compensation plan especially if you want to make some extra money with it, if it is just going to be a hobby for you then you can skip over this part.

But I feel that most of you that are here today is to learn more about how you get paid and earn commissions with Mary Kay.

So here is a breakdown of the commission structure and ranks.

Mary Kay Ranks and Qualifications

When going through the ranks, I must point out that you will earn on everything you could earn from the rank before the next one up.

The differences are that you will qualify for either bonus money for recruiting new reps, and the percentages that you can earn for personal team sales will increase.

I just wanted to point that out just because I got asked: “do I also earn this or that, from the rank I moved up from…”.

Independent Beauty Consultant – On this level, you are pretty much qualified after you paid for that getting started kit of $100.

At this level, you will only get paid for customer orders and reorders of 50%.

Senior Beauty Consultant – To qualify you will need 1 to 2 active personally sponsored reps, and you must be active.

You will be able to earn 4% of personal team commissions and from orders and reorders.

Star Team Builder –  Need 3 to 4 active personal team members and you must be active.

$50 will be paid out as a bonus when you sponsor your 4th team member on.

You will also receive a 4% personal team commissions.

Team Leader – To qualify you will need 5 to 7 active personal team members and you must be active.

You can now earn 9% or 13% personal team commission and team-building bonuses.

Future Independent Sales Director – You will pretty much earn the exact same thing as team leader rank, but you will be able to have more nonmonetary perks like recognition.

To qualify you will need 8 or more personally sponsored reps and you must be active.

It should be pointed out that I cover just the monetary commissions that you can make, Mary Kay also provides other bonus for rank advancement in the form of recognition announcements and attire that you can wear like pins and clothing, like a jacket.

Independent Sales Director-in-Qualification – You can qualify for this rank in 1 or 2 or 3 months as long as you achieve a few requirements that you can find in the compensation plan pdf. I understand you want to know them but I am more concerned about what you earn which is not that much more of the rank before.

So the earnings that you can make is 4% 9% 13% on all personal team commissions, and from customer orders and reorders and you must be active.

Independent Sales Director – At this level, you get paid a bit more with a leadership bonus. So all prior earning possibilities that you can earn from plus a Sales Director unit volume of sales generated from all sales directors at 10% but for a qualifying level.

Here is a chart of the Director bonus, which is important to note that it is in theory.

Sales Director Mary Kay Bonus

At this rank is where things get interesting.

At this rank, you can qualify for the Cadillac car program and extra bonuses that are paid out when your team advances.

Independent National Sales Director – At this level, you are pretty much-making job retiring income and can live very comfortably.

At this level, you are qualified for many monetary perks like the car bonus and company pools, and more. You can find more information about the qualifications and perks here on Mary Kay’s qualifications PDF.

Independent Senior National Sales Director and Independent Executive National Sales Director – At this point of the pay structure, you are living life and should retire, refer to the pdf for more details.

Independent Elite Executive National Sales Director – At this level, you are with the top elite of Network Marketers and living the life of luxury where bills are barely a thought in your mind.

If you would like to learn about the qualifications and perks please refer to the PDF at this point.

The Cadillac Car Program Qualifications

Mary Kay Cadillac Car Program

Further Commission Plan Breakdown

Just wanted to go into this section to try to cover more on the compensation plan in this section, hope it helps.

  1. Classes and Facial – Here is where you start, in at this rank you will be able to earn 50% profits on any sales generated.

The company gives you an average per class size that you would hold, but those numbers are not that accurate when starting out.

After you hold over 100 classes, maybe those numbers will make more sense, but for now, I am going to leave those “averages” per meeting set by the company out of the equation and just give you that bare bones numbers you can make.

  1. Reorders – When your customers place a reorder, you will also make 50% commissions from the reorder as well.
  2. Dovetail – This is kind of interesting, if you would be unable to hold the class, you the inviter would have to pay the person that held the class for you 15% of any commissions made.
  3. Personal Recruiting – At this level, you will earn recurring commissions of 4% up to 3 active IBC’s or the ones that became reps also that you personally recruited into Mary Kay under your ID. Commissions are paid directly by the Company to the Consultant.
  4. VIP Car Program – Refer to the Cadillac qualifying chart above.
  5. Directorship 13% Commission & monthly bonuses paid on a monthly basis to the sales director. This check is based on the unit’s wholesale production.

Directors also may qualify for a Unit Volume Bonus of $500.

To become a rep for Mary Kay is a very simple process.

To start, like I mentioned before you just need $100, also as a rep, you will earn 50% of anything you sell if it’s sold at the retail list pricing.

With some of the things that Mary Kay is doing makes it very attractive for people to become a rep for Mary Kay, as a matter of fact, there are around a half a million.

When you start Mary Kay provides all of the promotional material you will ever need to become successful like:

  •     Free custom color look.
  •     Free business announcement eCard.
  •     40% savings on a business kit with business cards.
  •     50% discount on your products on a Mary Kay website.

Another great feature if after a year of trying to figure out whether this opportunity is right for you or not and you decide it’s not, you can return any unused products and the starter kit that the company will buy back from you at 90% of the cost you paid for it.

There is a plethora of training available to all new reps which makes it somewhat easier to get started.

Ok so when an IBC reaches the senior professional level, it is at this point where you will make 4% commissions on all downline sales.

That percentage increases as you increase in ranks, as much as 13% when you max out the compensation plan.

And like what was discussed before there are perks or bonuses that you get when you hit certain levels of the commission plan like that pink Cadillac lease for 2 years which is one of those bonuses.

Some other car bonuses included at the lower levels, a white Chevy Cruze, which is available in a special color Lipstick Red limited edition and is provided to qualifying IBCs, which you can also opt out of getting the car and opt-in for the cash option at $375 each month.

When you move up the rankings to the mid-ranking of the commission plan you could choose a Camry, a Chevy Equinox or the cash option which is $500 per month.

To get the Pink Cadillac bonus you will need to have $100k in sales per year to qualify.

So there is one catch that you have to understand for all of the car bonus programs.

If you fail to qualify in any month after you qualify for the car bonus you will have to pay that month’s lease amount until you gain the qualifications that you reached to get that bonus.

And if you never are able to qualify after that, you are basically stuck in that lease with the payments that you will have to pay.

Mary Kay Commission Breakdown With Videos

Here is a video that explains the Mary Kay pay regarding the difference between a consultant and a director.

How To Earn $1000 In One Week With Mary Kay

Here is a great video that one of MK’s consultants share on how she was able to earn an extra $1000 per week in Mary Kay business.

How To Get Started As Mary Kay As A Consultant

So after you see what is involved and what it takes to earn with Mary Kay with one of its consultants you will have to submit an agreement that is basically saying that you agree to be an independent sales consultant for Mary Kay and then you will need to purchase a starter kit which includes demonstration material for $100 plus tax and shipping.

This doesn’t include product.

The Mary Kay Opportunity

Here is a video I found that explains a lot about the opportunity of Mary Kay by some of the top reps.

Mary Kay Pay Structure Final Thoughts

You are going to want to work with how this compensation plan is structured.

You will want to set a schedule and keep up with it every single week even if not that many people show up to your presentations.

Be creative on how you put together your presentations, refer to the videos to get some tips.

To maximize the compensation plan and to earn more, you are going to want to recruit other consultants into the business, and not just sell to customers.

The key is to get your customers on as consultants!

As you can tell in this article and some of the videos that are my review, it is possible to make a great income with Mary Kay.

The Cost To Join Mary Kay

As I explained before the cost to join is a starter kit that includes demonstration material for $100 plus tax and shipping and does not include any product for what I can see, but might include sample products in the kit.

At the time of writing this review, I can’t seem to find if you will need to be on an auto-ship program to stay commission qualified, but I am hearing that Mary Kay will be offering one not so much to stay commission qualified, but for some type of discount.

Conclusion on the Mary Kay Business Opportunity

Mary Kay Inc. is a big household name in the cosmetics industry.

Many people are surprised to learn that Mary Kay is in the Network Marketing area of business.

Business continues to do better each quarter and patents on their products continue to be released.

The company has a solid foundation and does things right when it comes to business and marketing.

Mary Kay is a solid business opportunity that you can get involved with.

But here’s the thing…

To be honest, statistics show that unless you have an existing list of builders or “skilled Network Marketers”, you will have to recruit over 100 people to find just 1 to 3 builders that will help duplicate your efforts.

And with the old-school tactics that most MLM companies want all of their reps to practice you are going to eventually go running out of people to talk to. So what ends up happening is people will try to market their business online.

But with Mary Kay and other big companies, you will not be able to do this effectively due to their strict rules against advertising online.

But this can work, but you will need to lead with a different offer first.

I do have a great offer that you can use listed below.

Taking the time to work the Mary Kay opportunity side is just one way that you can make money from the Internet.

With the number of opportunities and programs that are out on the Internet right now, there are so many other possibilities to earn from home that you have to pick from.

I’m not saying Mary Kay is not a good company to work, it might be the perfect opportunity for you.

There have been plenty of times in my experience that I have witnessed a person with little to no experience join a company and blow it out of the water and make some incredible income.

Now, success didn’t just fall into their lap, we all had to put a lot of time and effort into the business.

But is possible to achieve when you have the burning desire and motivation, and when you have that, you can become successful with the Mary Kay compensation plan.

I personally started out in Network Marketing and have built huge teams in several companies through the power of Internet Marketing.

With that said, if I were to start all over, I wouldn’t have started with Network Marketing, I would have started with some type of affiliate program that is offered on the Internet because I have found that more people have much faster success and make more money when starting with affiliate marketing.

That is why before getting started with anything, you should really check out my #1 recommended resource below.

But if you already joined Mary Kay or eventually decide to join, then I want to wish you the very best and hope you do extremely well with it, but if you run out of people to talk to, then I would suggest checking out my link below, it will help you find more people for your business.

And don’t worry if you are thinking that you can’t do it because you think it may interfere with your company, what I’m sharing is not in any competition with any Network Marketing company that is on the market.

If you enjoyed reading this article about how to earn money with the Mary Kay commission structure, make sure to share this article by sharing it on all the social networks simply by clicking on any of the social share buttons on this page.

And again, I hope you now have a better understanding of how the compensation plan structure works and if you decide to join and work it, you can be better prepared to earn more money with Mary Kay.

Thank you.

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