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I read your grievance against Mary Kay. Inventory is a personal Choice and is not forced on you. Yes there are women who run their business incorrectly and there may even be some who use pressure tactics, but Mary Kay does not do that. We are all Independent business owners and as such we are responsible for our actions and choices. I do point out the importance of inventory and the tax benefits of that investment to new consultants and we base their options on their current financial situation and CURRENT goals, they should start with what is right for them at that moment, otherwise they will lose interest faster if they are overwhelmed and as a sales director, I would rather someone be happy with their business, if they find out they need more they will get more... start where YOU feel comfortable. Then if a consultant follows the 60/40 rule and only re-orders based on product sold, she will never run into the problems you described. That is what I was taught and what I teach, but that does not mean that they listen or practice what is taught... again it is a personal choice and an independent business.

The 60/40 Rule is this, place your initial inventory order on a Credit Card (or Loan, the interest for that inventory is tax deductible so do not fret about the interest rate, but NEVER use that credit card again for inventory purchases, your sales are for re-order) - Sell $200-$300 a week - Week 1 deposit all of your earnings in your Mary Kay devoted checking account, then send off a check to your credit card for that month (double the minimum payment), then divide the remaining balance 60% re-invest in business (Re-order, Section 2, PCP) and write out a paycheck to yourself the 40% to deposit in your personal account. Week 2, 3, 4, 5 - Simply divide 60/40, you already paid the credit card payment for month in week 1. Be sure to place a one time order each month to benefit from the free stuff you get that counts towards queens court and is 100% profit. Also the Mary Kay devoted account should not be used for anything besides loan repayment, re-order, and your paycheck. Your other expenses, such as guest events, supplies, etc. come out of your profit... or your paycheck (personal account) when you file your taxes then you use them as expenses from your income, so the expenses should come out of your INCOME.

I hope you make GREAT business decisions and avoid embezzling from your family and your business. Follow the plan and you will be successful and happy in running your own business.

*****THE RIGHT WAY TO HANDLE YOUR MONEY***************

ElizabethCondarco  - 31 Mar 2005

managingmoney.pdf (Your business financial plan)

You said: "Be sure to place a one time order each month to benefit from the free stuff you get that counts towards queens of court and is 100% profit" What if you haven't sold anything? And, what happens when those 2-4 classes each week interfere w/family functions and/or get cancelled? Everything looks great on paper and MK has many publications to reinvest. So, if this is such a great plan, why do so many directors claim bankruptcy or are broke?

I don't know whose 'grievance' you read, but I enjoyed your comment that Inventory is a personal choice and is not forced upon anyone. You are right to an extent. We are not hogtied to do inventory, so it's not 'forced' but what does happen is that we are pretty much told to order at a 'profit level' (3600 - just short of the 4000 a director needs for monthly production) - so if we don't order at a 'profit' level, we are told we won't be as successful? SOME directors use whatever tactics they can to squeeze inventory out of women, not forcing, but really coming very close to it. Some directors even use their own credit cards to give 'loans' to consultants who don't have money up front because they are so desperate. We are told, and Mary Kay herself said, that you 'can't sell from an empty wagon' - so it's MK's teaching that we NEED inventory. I've heard directors tell broke women who really can't afford inventory that the reason they aren't successful is that they need MORE inventory. "Women are impulsive', 'the eye buys', etc. etc. So, call it what you may, but the way you paint 'inventory is a personal choice', as if we'll never succumb to someone's sales pitch about inventory (someone who we trust - they are godly women anyway) - seems to eliminate anyone else's responsibility in that decision and I bitterly disagree with that concept. Directors make it their JOBS to get those inventories and even use the teaching that they won't spend their time with you unless you start out at $1800 or over! Some directors raise the bar much higher - those are the very same women the 'little girls' ooo and awe over, but don't realize they are successful because they get the 'numbers' in the form of inventory and recruits.

What I always like to ask, and forgive my repetitiveness, is when someone comes on here and claims this and that and makes the statement that "if you do this, you will be happy and successful" - so my question to you (and don't feel attacked, I am not attacking, moreso trying to retrieve facts because there are too many unsubstantiated claims about income potential in this business) is 1) do you follow this and if so, how do you budget Seminar, Leadership and all the other out of state events into that 40%profit you make from your sales, or do you use the commission from your consultants to pay for those expenses.

I also found very interesting your comment about 'embezzeling from your family and business'. This is not the first time I've heard the implied 'stealing' used from a MK director such as yourself. I find it curious that many directors really push for consultants to pay for the initial inventory somehow, even if it's getting a loan from your grandma. They go thru every 'credit' avenue with you to 'find' the money to 'fund' your much needed initial inventory. So, you are saying it's OK to go into debt to buy initial inventory, but from then on, you better not? So what if someone couldn't, after very hard work, move that inventory - does that fall into your category of 'embezzeling from the family finances?' or is that simply now just a 'bad debt' - or worse, could it be the consultant who failed just didn't work hard enough?

I would be very interested in hearing about your personal money management, say for the month of March, or any other given month. I always like to ask these questions, because it seems to be your conviction with promises of anyone doing as this says will be successful. I think the other 98% of the sales force would like to see your personal math from your personal experience rather than a copy of a publication Mary Kay wrote.

I think many broke directors would also like to see your success plan as it applies to you. Most of us have already seen the 60/40 split, as I said, looks great on paper, so if you have achieved success from this math, please share.

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managingmoney.pdf	view update	15606	01 Apr 2005 - 02:18	ElizabethCondarco	Your business financial plan
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