How to Make Unit Production
Written by JTA
After I left my role as “NSD to be,” I observed some very interesting and disturbing things with my Mary Kay offspring. They were doing fake orders (i.e. ordering products they don’t need and won’t sell) to make production. I’m sure it happened before then, and I either did not notice or chose not to face what was really going on.
I share this in the hopes that if you are a director doing any of these things you will see the futility and STOP.
I had offspring directors place anywhere from $1000-$3500 wholesale orders at the last moment of the last day of the month to get to $4,500. These are orders NOT based on sales, rather their amount is based purely on what number would get them to $4,500 so they would not lose their units.
Here is how I can tell they are “fake” orders:
- The orders are done every other month. MK requires that units do $4,500 a month wholesale. If not, the director will lose the unit. Missing one month is okay, but you MUST do it the next month. At times exceptions are made, but typically struggling directors do what they have to do to make production every other month.
- The orders are placed within an hour or so of the cutoff time. (Presumably to be sure no other consultants were ordering thereby allowing them to order less themselves.)
- The amount of the order put their production at exactly $4,500 or maybe a few dollars over. A real sales-based order would be a random number based on what was actually sold and not be exactly, coincidentally, every other month the exact amount to reach $4,500. Also it would be placed as needed vs. the last day of the 2nd month at the last minute.
In a few of the cases the order names and ship to addresses didn’t match:
- One Director placed a HUGE personal order ($3500 wholesale) but it was shipped to a unit member either in the attempts to hide it from her husband or that unit member actually paid for it for her.
- Another placed a $1800 in the name of a new consultant, did it at the last minute with a ‘declined’ credit card. This is a trick that Directors do to buy more time-you then have til the 2nd of the new month to resolve the order. Then she did a personal order for the remaining $900 wholesale that she needed to get to $4,500. The on hold order sat til the last moment on the last day when it could possibly be resolved. I can only imagine that she was desperately working with that new person to get the financing in place for that $1800 order. In any case, interestingly the order was shipped to the director. Did she pay for it? My guess is YES.
Because these ladies were like family to me, I worried for them when I saw these things happening. It is disturbing to me. I know they struggle with credit issues, family issues, and also personally with being deceitful in their businesses doing this type of thing. THIS IS NOT NORMAL for a healthy business! It is insanity, and it is wrong.
Can you imagine a regular business doing things like this to make numbers? An owner of say a clothing store ordering loads of clothes they don’t need that are soon to go out of style every other month to make a sales goal?
Finally, to really illustrate the futility of this, take a look at the 6 month income for my offspring.
Remember this is for 6 MONTHS TOTAL from April-September and includes personal team commission as well as unit commission. It does not include the car or car money if they got that, and it does not include expenses. It also does not include sales or the cost of their orders. It is strictly commission and bonuses if any.
- $2,018 minus expenses
- $2,215 minus expenses
- $4,608 minus expenses
- $14,744 plus car, minus expenses
- $2,426 minus expenses
- $11,630 plus partial money for car/or minus coop payments, minus expenses
If you extrapolate this out, the top earning director is making $29k annually before expenses. The lowest is at $4k annually before expenses. Keep in mind those with the lower earnings are doing huge personal orders every other month to maintain the ‘status and prestige’ of directorship. (So essentially, they’re spending any commissions they may have earned.)
How can anyone in good conscience pursue the position of National Sales Director when this is happening to their directors? This was not just unique to my offspring. You could look at NSD newsletters and see the production of the directors to know that it is common. The problem is that no one will analyze it because it is NEGATIVE.
The truth is the truth, it is neither positive nor negative. It is simply true.
There is SO much truth in this post! June 30 is the clearest example of how fake a lot of wins are. Last day of the last month and,often, the last few hours.
My physical health was wrecked by MK, and so was my mental health. I knew there were fake victories, but you can’t prove it. Nor were we allowed to openly and frankly discuss it.
When I was in MK, I thought it was SO WEIRD my director would say she’ll be up until midnight to put orders in. (And that Corp doesn’t allow consultants to put in orders the last day of the month. Weird. I wondered “Why does she do that?” For example, if Oct. is a little low on commissions she’ll make it up in November, right? No biggie. Especially because directors make so much money. /sarcasm
I think I even got a call thanking me for my order, but scolding me that it was the 2nd or 3rd of the month & not ordering the last day of the previous month.
But when you know directors need to top off orders every other month with their own money AND they’re making less than minimum wage for all the work they do, it makes TOTAL sense.
How exhausting this roller coaster must be!!! Month after month!
It is all part of the Pink Fog
I remember a number of directors with smaller units who did this all the time. They had basements and rooms FILLED with boxes (most unopened) of products they didn’t need. Any SD income they made went right back into ordering to keep their units afloat. It was sad. None of those directors lasted more than 6-8 months after their debuts.
I was at a Director meeting where a Director spoke excitedly on finishing her first Trip with over 50 boxes delivered to her porch by UPS. $1800 wholesale used to come in 3 boxes or so, and I don’t even want to add up how much wholesale hers were. Of course, another Director who has now “promoted herself” to a pretty high place in the company shared with me who she took out a loan at the bank to finish production for a Cadillac.
Note: If you have to buy it or have someone else buy it for you, it won’t sustain itself and will fold like a house of cards. Yes, it’s fun to drive a Cadillac, but those $900 monthly payments won’t be if you aren’t able to keep momentum and growth going.
You might miss a goal or some silly invitation to a luncheon, but you’ll have your integrity and better fianances.
I just wanted to let those of you know that I purchased a 3 year old/ 30K miles in perfect shape Caddy CTX 5 for 25K! No, they don’t hold their value and yes, I’d rather have my 2006 Saturn Vue Back! LOL! I only purchased a caddy because it was the best shape of all SUV’s available. It it nice but the quality is not superior. Bottom line: you are not missing anything…trust me.
Must be a coinkidink I say