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It's a shame that you have to make fun of a company, like Mary Kay. What an ignorant site!

And this comment bears alot of weight with me, (NOT!). "Making Fun" of a company is quite different that sharing real experiences and deceptions from the salesforce. Mary Kay has alot to account for because of what it condones, regardless what is written. Too many people are buying their way and then giving the illusion to consultants that they have "earned" their way.

Mary Kay is under the radar as far as being classified as an MLM, however, the IRS has a different view about their "dual-marketing" claim.

Check the definition out:

http://www.irs.gov/businesses/small/article/0,,id=141724,00.html

I've also copied it here:

Types of Direct Selling Companies There are two types of direct selling companies – single level marketing (SLM) or multilevel marketing (MLM). Single level marketing (SLM) companies reward direct sellers for their own personal sales activity. SLM direct sellers cannot take on other distributors or sales representatives. Income comes from commission or bonus on sales.

In a multi-level marketing company, sales representatives are able to sponsor other distributors or sales representatives and receive a commission or bonus on the sales made by their underlying resellers. This recruitment of down liners is necessary to increase a sales representative’s sales force and thus generate a greater number of sales. MLM’s are often referred to as network marketing companies.

Multi-level marketing differs from an activity called a “pyramid scheme.” Pyramid schemes are illegal scams in which large numbers of people at the bottom of the pyramid pay money to a few people at the top. The success of a pyramid scheme relies upon a never-ending supply of new participants.

Pyramid schemes seek to make money quickly. Multi-level marketing companies seek to make money with their representatives as the business grows by selling their consumer products. Multi-level marketing companies have a start-up fee that is small with a starting sales kit being sold at or below the company cost. Multi-level marketing depends upon sales to the consumer and establishing a market.


Interesting, I do not see the term "dual-marketing" where the IRS references the TWO types of Direct Selling businesses.

Interesting again is the statement that "the success of a pyramid scheme relies upon a never-ending supply of new participants". Hmmm, how many times was I told that you have to have new people each month to retain directorship, yes, new blood, new participants and "star orders".

So when your director tells you this month, towards the end of the month, that you MUST do a $2400 + inventory after you sign up - know that they are only concerned about their own production.

NSD's are "doing it quicker and quicker" these days and in fact, the training people MK Directors use have training modules called "Go Director Faster" and what do you think that entails? Holding classes? Taking your time to train new members? NO. Working the numbers get you to director FASTER and to National faster. Some current Nationals have only taken 3 yrs to get there. How many women have been left in their wake is a mystery to the general public, but not to Mary Kay, Inc. They indeed have the data.

Always beware of the end of a month ladies. Directors have production to make, goals to achieve and tell you that they'll not work with you unless you do X amount of initial inventory. That's hogwash. They should work with anyone who is interested in "selling" product, however that may be. There are some successful directors who actually sell the product themselves, thus being a better example to their members, however, it's my opinion that they are few and far between.

In this microwave generation, everything has to come fast, Mary Kay is not exempt, so hang on to your wallets, credit cards, piggy banks, marriages & most of all your conscience. It's not all what they make it to be, most will not make any sort of money they can claim as more than hobby income.

If you find yourself being approached by someone making claims about their MK income - ask to see their 1040's, IRS Individual Tax Return or their Schedule C (will show their expenses). Same goes if you have someone flash you their "high commission check" - ask to see ALL their commission checks for the year and their tax returns. If they do not freely provide them to you - it IS your business if they are making income claims, then RUN and RUN FAST. This is where FAST IS GOOD!

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