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Can you make money with Mary Kay?

If you buy a distributorship, you want to know how much money you can make.

If you buy a franchise, you want to know how much money you can make.

If you buy into a MLM network, you want to know how much money you can make.

But the current disclosure laws in Canada and US do not make it mandatory to disclose how much participants made in the past.

Tracy Coenen picks up this theme in her blog, and writes about whether you can make money by being a sales woman in Mary Kay:

"In theory, you can make money with Mary Kay. In reality, most women (upwards of 99%) actually put more money into MK than they ever get out of it. There is a tiny fraction of women (something like five one-hundredths of one percent) who make an executive income with Mary Kay. There's another fraction of one percent that make a little money.... typically in the neighborhood of $20,000 to $25,000 a year.

Most everyone else is spending more money stocking up on inventory that they have little hope of ever selling.

But what about that retail product?

Aren't women buying it? Not in significant enough numbers to generate a real income.

The recruiters push big inventory packages, telling you to "think like a retailer."

Except you're not like a real retailer.

You're one person with tons of restrictions on how and where you can market and sell the products.

You have no foot traffic like a real store.

You don't have any window shoppers who can be drawn in."

I don't have a problem with part time sales staff making less than minimum wage, holding sales parties at their convenience.

What I have a real problem with is the attempt to hide from the public the real chances of earning a living wage selling Mary Kay products.

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Full post as published by Misleading Advertising Law on July 03, 2008 (boomark / email).