Is Mary Kay a "pink pyramid" scheme?

AP

(MoneyWatch) Mary Kay products are sold primarily for women, by women. But is the cosmetics giant good for women?

Journalist Virginia Sole-Smith, a reporting fellow with the Investigative Fund at the Nation Institute, says no. In the August issue of Harper's Magazine, she contends that Mary Kay, founded in 1963 with an initial $5,000 investment by Mary Kay Ash, is less about empowering women than luring them into what the story calls a "pink pyramid scheme" that exploits its salesforce.

Sole-Smith said that under the company's wholesale business model, the company's sales staff is heavily encouraged to buy the products they then sell to customers. For Mary Kay's "consultants," the financial returns on that investment are often minimal, she said, and typically a far cry from the hefty income that the company wants women to believe they can earn peddling its wares. Indeed, while Mary Kary claims annual sales of roughly $3 billion, its salespeople often end up in debt, with boxes of unsold lipsticks, facial creams and other products. A handful of employees profit, but most don't. Sole-Smith writes:

A business in which only a select few earn real money while everyone else pays to play sounds a lot like a pyramid scheme. The Federal Trade Commission distinguishes between recruiting salespeople to sell a product, which is perfectly legal, and making money exclusively through "fees for participation," which isn't. What constitutes a fee is, of course, vague, but the FTC has charged some multilevel-marketing companies with employing pyramid schemes....

On "Pink Truth" message boards, detractors share stories of Mary Kay-sponsored divorces and financial ruin; a kind of battered-woman syndrome pervades.

Members struggle to understand how they could have fallen for the company's cheap marketing ploys, even as many of them continue to defend their particular recruiter or sales director as the exception.

Mary Kay rejects Sole-Smith's characterization of the company. "What's true for every independent beauty consultant is a simple model -- she signs an agreement directly with the company, purchases her products directly from the company at a wholesale price and then sells the product to her customers at a suggested retail price," the company told CBS MoneyWatch in a statement. "If she sells a $13 lipstick and bought it for $6.50, the profits are hers to keep. It's each person's choice on how much product she wants to purchase from the company to sell to her customers."

Salespeople are free to return any inventory they buy, the company added, while stipulating that Mary Kay agrees to refund only 90 percent of the purchase price within one year.

The company also accuses Sole-Smith of having a "narrow, biased point of view" regarding Mary Kay, claiming that the Harper's story "was written without any attempt by the writer to gain information from" the firm before the article was published. 

Not so, said Jason Chupick, vice president of public relations at Harper's. "Virginia Sole-Smith and Harper's Magazine gave Mary Kay ample time to respond to the story on numerous occasions prior to publication, but Mary Kay declined to grant Sole-Smith an interview," he said in a statement.

I spoke with Sole-Smith, who frequently covers issues within the beauty industry, about what she found in examining Mary Kay's business practices.

CBS MoneyWatch: In your article, you assert that Mary Kay positions itself as a "girlfriends' club" but falls short of its promises to women. How so?

Sole-Smith: Mary Kay uses a lot of powerful feminist rhetoric about "having it all" and girl power to manipulate women into buying products. The "business opportunities" rarely pan out. The company has precisely identified so many of women's fears -- that they can't be successful career women and great wives and moms, that the American workplace won't give them the flexibility that they want, for instance -- and says, "don't worry, Mary Kay has the answers." But it doesn't. Only around 300 of the 600,000 American Mary Kay ladies make a six-figure income. And they work incredible hours to achieve that.

MW: If Mary Kay is so exploitative, why is the company appealing to so many women?

SS: The company's founder, Mary Kay Ash, knew exactly why women were frustrated in the 1960s: the lack of gender equality, which meant they were dependent on their husband's income and unable to make much headway in the workplace. But she also knew that a significant majority of women weren't responding to the hardcore feminist revolution that say, Betty Friedan was advocating in "The Feminist Mystique."

In a lot of ways, not much has changed. But here's what has: We have 8.3 percent unemployment, and male-dominated industries have been disproportionately impacted during this recession in terms of layoffs, while female-dominated industries are continuing to underpay their workforces. [Women] still (very reasonably) want a career that offers personal fulfillment and flexibility. This is why direct sales, and Mary Kay specifically, is recruiting in such record numbers right now. Direct sales just requires you to put some product on a credit card and -- bam -- you're "employed."

MW: How are current recruits different from previous generations of Mary Kay workers?

SS: Today's Mary Kay ladies are younger. Of the 94,000 people that Mary Kay recruited in the second quarter of 2012, a third were from Generation Y. Recent college grads, saddled with debt and facing dim job market, are especially vulnerable to this pitch.

MW: What was the biggest red flag for you during your reporting?

SS: When Mary Kay mentions in press releases that it had $3 billion in sales last year, they're only talking about wholesale orders, meaning Mary Kay consultants spent $3 billion on their products. But we don't know how much Mary Kay ladies earn selling those products in the retail market.

How can you be recruiting women with promises of "a lucrative full-time business opportunity" and "executive-level income" but not substantiate that with proof? You're constantly encouraged to buy more inventory than you can realistically sell, and the company's versions of "customer support" and "leadership training" usually boil down to more sales pitches.

When I was recruited and explained I didn't have $1,800 in cash to spend on an initial inventory purchase, I was immediately encouraged to open a Mary Kay Chase VISA credit card and put inventory purchases on that.

MW: Mary Kay says that it treats the people who sell its products fairly, offering large sales commissions and to re-purchase almost all of the inventory they buy from the company but are unable to sell. What's your take?

SS: There's no doubt that Mary Kay has set up their business model to look as safe as possible on paper. A 50 percent commission on every lipstick sale sounds quite lucrative, and a 90 percent buyback guarantee is a reassuring insurance policy. The problems occur when we try to put these policies into practice.

The women I spoke with for my article (and many who have contacted me since to share their stories) all agreed that it's extremely rare to pocket a full 50 percent commission on every sale; you must deduct business expenses like travel, hostess gifts and other party supplies. You must also contend with new inventory in every new catalog, which makes it difficult to sell old merchandise. And it's a common practice to hold sales and giveaways to drum up sales. Every time a consultant discounts her retail prices or buys more inventory before she has sold what's currently on her shelves, she takes the hit out of that commission.

It can be similarly challenging to take advantage of the 90 percent buyback policy. When a consultant realizes that she hasn't been able to sell her inventory and tells her sales director that she's thinking about taking the buyback, she's likely to receive tremendous pressure to keep on with her business. Meanwhile, she may be racking up interest and finance charges on a credit card carrying her Mary Kay inventory balance -- and those fees certainly aren't covered by the buyback policy.

The reason consultants are encouraged to put off the buyback as long as possible is quite simple: Mary Kay sales directors and team leaders have to pay back their commissions when a member of their sales unit returns inventory. If you're feeling guilty because you think you've failed at this business opportunity, you're unlikely to want to pass that failure on to your Mary Kay sisters and mentors.

MW: So is Mary Kay a pyramid scheme?

SS: The FTC defines a pyramid scheme as a business where the primary way you make money is by recruiting others to join the program and charging them fees for participation -- not by selling products to the retail public.

On paper, Mary Kay has set things up to avoid this charge -- nobody earns a commission off the sale of the company's starter kit, for example, which would be the most obvious example of a "participation fee." But in practice, it sure looks like a pyramid scheme.

Have you ever tried Mary Kay or a similar job? Please sign into the comments section and share your thoughts.

[dessiford]

The woman writing this sounds very bitter. I just celebrated my 17 year anniversary with Mary Kay. It has allowed me to be a single stay at home Mom since I started in college. I have loved every minute of it. Yes, the sisterhood is great! Yes, you do have business expenses that come out of your 50% profit, but what business doesn't. I don't care what kind of business I started, there are going to be expenses. I found the things in this article to be very untrue. It is not hard to send your inventory back to Mary Kay as stated above. As a matter of fact the article states that you have to contact your Director, which is not true. All a Consultant has to do is return the product to Mary Kay. They never even have to talk to the Director. I am one happy Mary Kay Consultant and I DO MAKE MONEY :) No, I don't make six figures, but I made about 68,000 last year from working about 20-30 hours a week (only about 15 away from my house). Your article only points out women making more than 6 figures (which I do believe the number is much higher than what is reported), but there are SO MANY women making $50,000 to $100,000 per year working part time hours. I think that is saying quite a bit:)

[debrah20]

I have reviewed several comments and would like to add my own. This is my second time with dealing with Mary Kay, it was my choice and I would like to explain. I have not had much luck with holding a "job", in as such as most people I have worked for have been cruel, disrespectful and I have always felt that I have worked more than I have been compensated, short end of the deal really. I am a registered nurse by trade and made as much money as the directors do in Mary Kay. Want to know why I decided to go back into a company that "preys on women"; it is because I was working 60 or more hours a week, nights on call, being away from family, working 12-13 hour days and then having to come home, make dinner, clean up, do laundry and when I finally sat down it would be 9:00, get out my work computer and do documentation as I was a home health nurse and then hospice. For the last 10 years, I have seen nothing but death, sickness and abuse; can be a bit depressing. Then along comes Mary Kay again, with joy and happiness. Mary Kay is not just a "pyramid" scheme, yes, some directors are pushy, persistent to have recruits and say that they need to get inventory to sell; the first time I sold Mary Kay was exactly like that for me. I was pushed into buying inventory that was not selling, sold back the inventory just to pay the debt off. Mary Kay's policy once your inventory is bought back from the company, you are not allowed to sell again, you have to write a letter to be re-instated and it is up to a board to allow you to sell again. I did that, just for the very fact of being burdened with stress on the "job". Also, how many start up business adventures do you know that have not went into some sort of debt to get started? The addage, it takes money to make money is so true, especially if you want to start your own business. Mary Kay lays down the foundations of what starting your own business represents: determination, a sound work ethic, customer satisfaction. Many of the fortune 500 companies started out with loans, how you work your business and manage your money is going to either break or make you successful. It can be any start up company that you pursue. What I think personally is that as a consultant, I am not going to push people into debt that they cannot pay, unless they want to or have the means to pay it back, I am not going to push having loads of recruits just to line my own pockets. Yes, I have the normal debt to pay, a car payment, credit cards; Mary Kay gives you the tools to be successful. Has anyone read her book? She does not state that Mary Kay is the only business you can be successful; many people in direct sales are successful. It takes working your business, knowing a little bit about management of money to be successful. And what is a measure of success? For me it is achievement that I work hard for, being recognized for my accomplishments and being happy in what I do.

[momprenuer]

I'm not sure what some of you call criminal, but I think its criminal to interview and get hired at a fortune 500 company with a promise to move up if you move your salary up if you make or exceed your quotas. What.... isn't that what fortune 500 corporation does? It's sales, not McDonalds fast food register. I'm not going to receive a check just for standing still. If I don't make my quotas, I don't get paid and every single sales job that works off of commissioned works the exact same way.

I think it's hilarious how how people carry on as if they don't feel duped by there 9 to 5 when they find out that their raise or bonus that was promised isn't coming. Especially after working over time for weeks on end, missing family events and other important things. To me, thats criminal. I feel better knowing that I can make my own quotas and still spend time with my family like I want to. \

And as for the other expenses that go with being a business owner. Your miles, your wardrobe, your staff payroll, etc. isn't some hidden fee. Every doctor who runs a practice has to make up for their expenses. DONT GET IT TWISTED PEOPLE. Mary Kay is not a job. IT IS A SYSTEM FOR BUSINESS OWNERS to use as their own to make the kind of living they want. If you approach working as a job and not a business owner you will not make anything. There are recruiters that go out to colleges in every corporation. In fact you'd find many of them a places like job fairs, are those recruiters preying on your college kids with promises of making executive salaries...hmmm. YES they are. Not one recruiter ever said if you don't meet you quotas you wont get paid. The reason is, it's already implied. Some companies will give you orientation and thats it. The rest is on you to figure out to make them money while your worried about cuts and seniority and everything else.

Do you know how many companies hire people, knowing there offices are filled for bankruptcy or will be closing soon. That's being duped. Or how many knowingly encourage their employees to do more towards that christmas bonus knowing there's not enough in the budget. But I digress..That's just considered the way things go and the average person just sucks it up and stays for years or looks for another lying 9 to 5 with another glass ceiling and false promises.


I know MK directors making a lot more than I would ever make at my 9 to 5 and are still able to pick up there kids from school and have dinner on the table. Thats my million dollar dream. For me, I don't need to promise of making millions from my P & L sheet, which by the way my director does provide contrary to the comment from the loving husband of a mary kay director above. You cant practice business at all without a P & L which again just goes back to my point of approaching Mary Kay like a business owner. Even if my director didn't show me how to maneuver around a P & L as a business owner, I have to figure that out. But again, I digress.

I'm a mary kay consultant because my time is mine to spend how I want, not anyone else's and MK's system allows me to follow my family first and make as much money as I want. No caps, no ceilings, no cuts, and no recession because the retail make-up industry has proven to be recession proof. CBS even thins covered a story about it...http://www.cbsnews.com/8301-18563_162-4802003.html

[mdbn365]

Here is the un-adulterated truth about Mary Kay (typically you only get one side or another, very polarized, and few honest opinions)

Background:
My wife is a Mary Kay Sales Director with a Pink Cadillac, I love her, but I don't love Mary Kay.

As for my wife, she loves it, she loves the notoriety, the CONSTANT reminders that she is a self-made woman who makes an "executive" income. She loves the trophy on wheels, that fact that she is looked at with so much admiration by so many women. She honestly and truly, genuinely to her core believes she is helping women.

But here is the truth:
Last year she made 77K in commissions and $30K in sales (15K sales profit). But 22K of the commissions where "prizes" such as jewelry and use of the Pink Cadillac (i.e. not stuff you can deposit in bank), Additionally she has two full time assistants which cost her about 15K each. Minus another 15K in office/travel/meeting expenses, etc she ended up making 25K. (And here is the real kicker - she still has to pay taxes on her profit, which includes the prizes, so the officially made 47K, despite the fact that nearly half of that is "prizes"). Since she is self employed she has to pay payroll taxes on her own income (including the prizes) for the FULL amount that the employee pays as well as the employer. (She she pays approx 15% for Soc Security, and 3% for Medicare, and another approx 10% for Federal income taxes).

So after paying 28% tax on 47K (of which 22K was "prizes"), which adds up to approx 13K in taxes. After paying taxes she is left with $12K in cash, some jewelry, and use of Pink Cadillac.

And she is one of the lucky 2%, at least she's not loosing money.

Here is what I did to open her eyes to this:

First some don'ts,
1. Don't try to convince her she is being preyed on.
2. Don't critize Mary Kay, etc, she won't be able to differentiate between criticism of Mary Kay and criticism of HER.
3. Don't call it a Pyramid Scheme (they are convinced its' a "Dual-level marketing" (yes, I know, like that is any different)

Do this instead if you value your marriage/relationship:

1. Be supportive and ask who she did on her last Profit/Loss (P&L) statement. (Keep in mind Profit/Loss statements are Business 101 for most companies - they reveal the truth about how well a company/business is doing).

Now keep in mind, she probably won't know what you're talking about. Surprisingly Mary Kay doesn't teach them to keep a P&L (perhaps since it would reveal in black/white how much they really are (or rather are not) making.)

If you are a supportive father/husband - generously offer to help her start keeping one. (Supportively point out that this will help her identify "inefficiencies" in her business. This is actually exactly what a P&L can do, however for most Mary Kay consultants it will show her that the inefficiencies add up to wiping out most or all of her earnings).

DON'T tell her you don't think she is making any money, just do the Profit/Loss statement for her. If she is a new consultant - she'll see it after just a month or two, if she is a director, it may take a few months.

But in the end the beauty of this is you have helped her see the truth for herself, but all without becoming an "un-supportive bad guy". (I've heard of men convincing their wives to give up Mary Kay, but even then they are sometimes resented by their spouses who view them as the reason for the failure).

Businesses do a Profit/Loss for a good reason, Mary Kay doesn't educated their consultants about P&Ls, just to the P&L, and let it do the talking for you.

In the end when she expresses doubt in the business, let her know that forever and whatever she decides you will support HER. (Even then don't be too critical of Mary Kay, you could say things like "Well, I guess they have to make it seem good to recruit people", or "yeah, I guess I though the business was better than this")

At this point she is probably feeling like a failure and may be questioning herself. At this point I would ask her to ask her director about her Profit/Loss statement, etc. (Of course the director doesn't keep one either). She will see the light. Only after she has let it go can you confide that she IS NOT a failure - the business plan was always the failure.

The Sad truth is even the directors (the top 2%) are fooled. They genuinely think they are helping.

I didn't even get into the arduous hours she spent (probably 60-80/week) to keep her Pink Cadillac, time missed with husband/children, and constant stress that she was under.

I wish someone would do a 60 minutes about it, and encourage consultants/directors to do Profit/Loss statements. It would be revealing.

[DoubleDeeMe]

I personally have been in Mary Kay for less than a year now. I am in the process of winning my first free car, moving into a leadership position, and I LOVE Mary Kay, the business side. 100% of women start their Mary Kay business with an agreement and $116. 98% of women start their business with the intention of making 6 figure incomes and fail! Only 2% make it to even leadership position. Who knows what percentage actually make it to 6 figures, but it's less than 2. What does that mean? Not that Mary Kay is a SCHEME, but simply less than 2% make it to 6 figures. Many factors play into what makes a person successful...or pitiful in Mary Kay, ESPECIALLY passion, determination, and DISCIPLINE!! Most don't make it because they...we lack discipline and passion. Every SUCCESSFUL business owner is successful because they had passion AND discipline. Passion in their field or passion to succeed. And they were disciplined enough to get it! They tell their friends and family, not right now so that they give their friends and family everything they want later! Successful men and women didn't get there by hanging out when they should have been working! They worked LONG hours and weeks so that they could hang out for weeks at a time!

Mary Kay, the company, is not set up to make women spend all their money on products that no one buys. No one buys the products because you're not telling anyone about what you have or your telling people that can't even afford a toilet to pee in! You must be intentional to be successful. And it's not the company's fault you felt pressured into getting $3600 in inventory when you can't even afford $36 of gas a week! That's the pushy sales person that HELPED you make that decision and YOURSELF!! Mary Kay does not accept agreements from children! You must be 18 to start your business, which means you are capable of standing up for yourself like many women do and say, like I did, I don't feel comfortable with that!!! What other options are there or where can I find this info? We have a "team" system, but if at any point, I am not comfortable with who is leading me, I can choose to be led by someone else! Yes, the original person will still reap the benefits of my labor as long as I'm under the level that she's reached, but who cares? Everything you do, someone will get paid. You can choose, like I have, who leads you!

Is Mary Kay a pyramid? Maybe it is, maybe it isn't. I think that it is built like one but with better benefits and there's NOTHING wrong with a pyramid business plan anyway! Is it a scheme? Definitely not! What business can you start without some kind of initial investment? NONE! Even Uncle Sam acknowledges the losses that incur when starting a business! You as an individual must be wise in knowing YOUR strengths and weaknesses, if it be money management, discipline, time management, if your easily influenced, and so on!

[maclean96]

While what you say about your own experience may be true, that Mary Kay has been very profitable, my daughter had a far different experience. She is a very sweet, well dressed college kid, who worked hard all summer to make money. When she got to school in the fall, she was preyed upon by Mary Kay consultants who signed her up, took all of her summer money, as well as two other girls on her dorm hall. (How could they all sell to the same market?) The first night, she felt it was the wrong decision and told her pyramid leader she wanted out. The girl continued to pressure her to stay until well after my daughter had opened samples, etc, and cannot recoup her money on some of these products. She then told her parents what had happened. I think she was targeted because she is a nice girl who believes in the best in people, an expensive lesson. She was crying, hasn't slept well, her studies have suffered, and she is now selling everything left at wholesale to try and recoup the $800.00 she forked over. Was it her choice, absolutely, will her dad and I bail her out? Not a chance, as it is a valuable lesson, but I will go to my grave railing on Mary Kay as a sheister company looking to exploit vulnerable young girls who are looking to make spending money at college. What a horrid horrid company. Anti-woman to the core.

[Giadadekatielaurentis]

Some of these comments are just silly--the fact that you've worked for pyramid schemes does not make them ethical.

And saying that laziness is not rewarded is really inappropriate and shows a lack of understanding of these women. They are not lazy; they were duped--and when they realize that they've signed onto a losing proposition, some of them choose not to (wonder of wonders!) throw good money after bad.

Businesses like Mary Kay provide a service to NO ONE. There is no reason people shouldn't be able to buy these products online (try even a couple of cheesy demonstration videos if you think people REALLY want to see demonstrations and aren't just being polite)...in fact, wait! You CAN buy products online from eBay, for one, where obviously MANY women want to get OUT as quickly as they can.

I know this could be a blow to some--I've struggled with direction in my job/ career and I know it hurts--but there is no reason for consultants in these businesses to exist. None. Again, people could buy online or in stores if that opportunity were available to them. Sadly, most of the consultants are apparently forking over the dough that keeps the uppercrust of the business together!

And the McDonald's comment...really? First, McDonald's, while definitely a huge and wealthy corporation, may have ethical shortcomings itself. Second, no, people won't wait a week for a burger, but they WILL for any number of non-urgent items that don't go bad. (Actually, McDonald's sandwiches seem to bizarrely avoid going bad as well. But I digress.) McDonald's is a business...they build a structure to serve people hot(if questionable) food at a quick pace. There is a reason for (presumably) each employee in the building; when they have no use for more employees, they (presumably) put a freeze on hiring. Mary Kay does not.

And check out pink truth. They actually make a LOT of sense.

[maclean96]

Thank you for your terrific comments, here here!

[almightyspazcat]

Two years ago, I became "employed" by Mary Kay. The representative that got me started took my sales. There always happened to be something out of stock, then she'd step in (even to my own friends) and finish the sale by suggesting something else and take the credit and money. I was unemployed, and needed money badly, and what she did was borderline criminal. I just want to let people know to be careful.

[maclean96]

Thank you for these comments, my daughter had the same experience, what a racket. I'm sorry this happened to you, seems so anti-woman to me!

[cklawson]

Mary Kay offers some wonderful products, especially in the skin care line. However, for the Independent Beauty Consultant, it is a business opportunity that can be successful if you are willing to work your business and if you are passionate about it. Let's face it, someone who is passionate about baking and chocolate will not be successful as a MK Independent Beauty Consultant, will they! Remember the gentleman who quit medical school to become a chef? He obviously found his passion and went after it. While I love Mary Kay products, I am not passionate about them or anything to do with them like beauty, skincare or makeup. I sold MK in my thirties because I wanted to get the products half off for me and my friends and family. I wasn't looking to recruit or "walk the stage". I do, however, believe that many consultants are pushed to recruit in order to get the car or the Cadillac. Instead of being intentional in their recruiting (target marketing) the "right" people, they are mass recruiting just about anyone. Many recruited consultants don't have an entrepreneurial spirit or the personality for selling or owning a business. I have indeed witnessed directors pushing huge inventory purchases on their recruits by telling them to pay for it with a credit card or take out a small business loan. I don't think Dave Ramsey would approve of that. In summary, MK needs to have strict guidelines about recruiting and inventory purchases. I know some have gone into massive credit card debt purchasing huge inventory packages. There really needs to be guidelines on those things. But, I still love their products and the idea of helping women.

[clynn12]

I am a Mary Kay consultant and have been one for almost 2 years. This business has changed my life in so many ways. I do make some income (roughly $400/mth) but that is because it's all I'm choosing to work it right now. But it has brought out the best in me in the fact that I am more social and I am meeting lots of sharp women and making friends that will last... I was signed up for 4 months before I even decided that I was going to sell the product... I really just signed up because I'm cheap and I wanted the products at half-price... but I loved the product so much I decided to send out an email to about 70 of my email contacts and that's how my business started... and for a year that's all I did... used email to sell product... this year I have joined the meetings and decided to invest in a small amount of inventory (which I have sold 3x over). I only buy as much as I can afford... no one has approached me about opening a credit account in any form. My director did share these options with me but never said it was something I must do...

I'm not that well versed on pyramid schemes, but by what I do know I am of the opinion it is not a pyramid. Anyone of my team members can choose to work their business more than I do and ultimately rise above my level on the success ladder. This business will work if you work it... it will not land in your lap and grow if you just sit on it. So for those who did not sell their inventory it could have been they were not actively working their business, their director advised them on buying the least popular inventory (if they sought advice at all), or they really did just buy more than they should have in the beginning. I really have heard my director and others around them tell new consultants to invest less in the beginning and build up to what they want their business to be.

My director is 28 years old and has supported herself and paid off thousands in debt in the 8 years she has been in Mary Kay full time. Did it all come in the beginning? No, she had to work her way to a larger customer base and team members that willingly work their business. She is now driving her 3rd free car and will soon be in qualifications for her pink cadillac. She is an everyday person just like me. She just loves her business, she loves the products she sells. And her work ethic has given her a life she loves.

I usually don't reply to things like this but I love this business and this product so much that I didn't want to stay silent about what I KNOW the business to be. I cannot vouch for every director out there. I'm sure there are some directors whose goal is to get you to purchase the most and team build to benefit her advancement up the ladder, but not my director and really not any of the ones I have met in my part of the world... my unit is all about helping each other build their business at the pace and magnitude that they wish to build it. I am a SAHM and right now I am choosing to go a little slower so I can be more involved in my children's lives, but when they go to school I will definitely pick it up and build my business more... to me that's the beauty of Mary Kay!

[TCW1121]

Did you complete a P&L to determine your $400? In other words, did you subtract your costs (mileage, marketing, discounts, hostess prizes, etc.)

[paidonservices]

If you sell a product or service it's not a "Pyramid Scheme"
Nobody in MK makes money just because they got a new recruit. Products have to be sold.
Any company can be called a "Pyramid Scheme" if you try hard enough.

Most businesses fail..That's just the way it is.

But MOST people don't get that opportunity to succeed in business because of the costs involved in a traditional business.

A McDonald's costs around 1 million dollars to start...and yes, they have to buy inventory before they open... Nobody is going to buy a hamburger and wait a week to get it...get it?

When I was a carpet cleaner I had to be ready to clean before I came to someone's home or business...They weren't going to pay for it and THEN let me buy the cleaning solutions. Get it again?

Most of the critics are just not business minded. The people who get in and fail are more than likely JOB minded.

You know how "jobs" work right?... They pay you just enough so you won't quit and you work just hard enough to not get fired.

In business you are only rewarded for your efforts... Not your laziness.

Oh, and if you own your own business you don't have to beg for bathroom breaks and YOU get to decide when to spend time with your family... NOT your employer.

[buddyrally]

Hi Paidonservices,

Thank you for your post. Your right 95% of folks out there are JOB minded and do not have a business mindset. It does take a passion for what you do and money to succeed in business today. Ive been with a wonderful group that is the the Leadership and Self Help business that is not only helping people in their network marking business be successful, but also has materials to help those 95 % Job minded folks become the best they can be in their world too. Thanks for setting the record straight as lots of folks as you know have preconceived ideas before checking things out. Feel free to look at my website if you would like to see what I do. www.the-team.biz/39909417/Home.aspx.

Sincerely

Mike Bookstein

Best wishes to you and your future