Illusion

1 a obsolete : the action of deceiving
b (1) : the state or fact of being intellectually deceived or misled : MISAPPREHENSION
(2) : an instance of such deception
2 a (1) : a misleading image presented to the vision
(2) : something that deceives or misleads intellectually
b (1) : perception of something objectively existing in such a way as to cause misinterpretation of its actual nature
(2) : HALLUCINATION 1
(3) : a pattern capable of reversible perspective

Here we are collecting a variety of beliefs, sayings, & presentations that are common in Mary Kay (or other direct selling companies) where not all is quite what it seems.

"You've Got to Show Up to Go Up"

REALITY CHECK: Attending meetings and functions alone does not guarantee promotion or success.
Recruiting does.

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"A $3600 wholesale inventory is "profit level""

REALITY CHECK: For who? The director, yes. With that level inventory, yes, you have a lot of product and may have more things readily available to a customer, but having a large inventory without customers just means debt and does not guarantee profit. To gain a profit from the purchase of that inventory, you need to sell over $4,000 (the cost w/tax etc) to just break even.

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"Mary Kay's marketing plan is taught at Harvard Business School"

REALITY CHECK:: No, it's not. The "taught at Harvard" line is a classic "LINE" for MLM marketing. Read "Four Lies About MLM."

What IS true, however, is that Harvard Business School compiles numerous case studies of businesses and uses them to introduce their students to the business situations of the real world. Harvard Business School compiled a case study of Mary Kay in January of 1981 and has done several more since.
You can view them all at this link: Harvard Business School case studies of Mary Kay

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"There are no QUOTAS in Mary Kay"

REALITY CHECK: There are quotas everywhere in the MK world. From status to cars to units, you must attain and maintain a quota of production or you LOSE IT (status, car, unit).

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"Aerodynamically, the bumble bee should not be able to fly, but it does not know that and does so anyway."

REALITY CHECK: This analogy has been repeated ad nauseam in Mary Kay by Directors, Consultants, and Mary Kay Ash herself. See the links and explanation below for the real story.

http://www.howstuffworks.com/news-item223.htm

http://en.wikipedia.org/wiki/Bumble_bee

According to Cornell University physicist Z. Jane Wang, computer simulations of insect flight may help aerodynamic engineers design tiny insect-like flying machines. The simulations could also dispel the myth that bumblebee flight violates the rules of aerodynamics.

The notion that bumblebee flight is impossible according to the conventional rules of aerodynamics is a reflection of the poor understanding of aerodynamic principles in the early 20th century, said Wang, an assistant professor of theoretical and applied mechanics. Insects fly in a sea of vortexes they create by moving their wings. A vortex is a current of swirling air that moves against the main current of air. Wang has developed a new mathematical theory that explains how some insects can manipulate the flow of air around them, allowing them to switch from forward motion to a hovering position instantly.The study appears in the journal
Physical Review Letters.

Airplanes also create vortexes, but they are only minor nuisances that are left behind in a slipstream. Vortexes created by insects rapidly flapping their wings whip the air into a frenzy. Insects coordinate their wing movements to generate lift force and shed vortexes from the edge of their wings. Rotation of the wings in a figure-eight motion is the key to controlling lift forces and changing direction mid-flight.

To demonstrate this process, Wang developed a computer simulation that divides the airflow around the wing into a grid. She then calculated the flow of air at each point on the grid. The patterns that emerged provided some insight into how an insect coordinates its wing movements to create the vortexes it uses to hover.

Wang's computer modeling may lead to the development of tiny flying machines that could be used for aerial surveillance and other tasks. The designs wouldn't necessarily resemble the design of today's fixed-wing airplanes or helicopters. Now that the rules for insect flight have been quantified, designs of bug-like machines of any size can be tested on a computer. Computer-designed virtual aircraft using these rules can hover, fly backward and perform acrobatic maneuvers.

Submitted by Annette

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"When we hear about Million Dollar Directors & Nationals, that means they or their units have "SOLD" millions in product."

REALITY CHECK: When someone is referred to as a "Million Dollar" whatever in MK, it can be one of two things or sometimes both in some cases which are:

1: Unit has ORDERED at least 500,000 WHOLESALE in product during
the Seminar Year, which translates into $1 Million RETAIL VALUE or more.

2. Individual has EARNED a million in COMMISSIONS over a period of time (this can span years).

The following clip from a newspaper article talks about an NSD. I've deleted a lot of the article with her
"I" story and pasted the parts to reveal that the author first says she SOLD TWO MILLION worth of
"goods" yet in the same article, it illustrates how she REALLY earns her money and that is by recruiting
and building directors and off springing Nationals. The way you build directors is by recruiting and getting those "initial inventory orders." So it's not about selling: Ms "C" as I called her, does not SELL, she RECRUITS.

Here are relevant parts of the article regarding "how they really make their money".....

As Ms. "C" talks about her 22 years with Mary Kay, selling close to $2 million worth of goods, ascending to Mary Kay's highest position, the mystery starts to unfold. It takes a lot to leave a career of cancer research for cosmetics and build a sales force of 1,500, a six-figure income and earn many admirers in the process.

Ms. "C" and the recruits would drive to Washington for training and meet weekly to exchange notes from the different classes. After building a team of 12, Ms. "C" became Tidewater's first director in 1973.

As director, she earns a commission from her unit's sales and by 1978, the group had sold $100,000 worth of products -- enough to make her a Cadillac driver.

She opened training centers in the area and in 1983, became national sales director after developing 20 directors throughout the state. She continued to have a small clientele but concentrated on developing directors and moving up the Mary Kay ladder.

In 1990, she hit the $1 million dollar sales mark with a growing sales staff. She had "offspring'' in 36 states. She was named an executive senior national director at the end of the year after developing her third national director.

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"Mary Kay is America's Best Selling Brand
for the last nine years."

REALITY CHECK: Follow this link to learn more.

In case that link doesn't work or disappears, the info is copied below:

Mary Kay Inc. refers to itself as “America’s #1 Best Selling Brand”.  Because Mary Kay is a private company they are not required to report statistics which would normally back up theses claims.  So here are some statistics, we did find, about other cosmetic companies who DO report sales.

From Estee Lauder's annual report, 2004 sales:

Skincare - $2,140,100,000 ($ 2 billion)
Makeup - $2,148,100,000 ($ 2 billion)
Total sales of skincare and color cosmetics = $4.3 billion

Estee Lauder’s sales of skincare and makeup exceed MK’s total company sales of $1.8 billion for all products. 

Many will try to refute these facts claiming that Estee Lauder has many “brands”.   Time Wise would be a “brand”, the Classic Basic Skin Care would be a “brand” and so would “Velocity” and the “Private Spa Collections”, so divide their total sales claim by each brand, then compare.

From Avon's 2004 annual report:
Total net sales = $7,656,200,000 ($7.6 billion)
(Note: Avon is reporting "net" sales, meaning after returns. MK reports $1.8 billion of "sales", which would imply that it is prior to returns.)

69% of Avon's net sales are of "beauty products" = $5,282,800,000 ($5.3 billion)

Comparison of beauty product sales
MK $1.8 billion
Avon $5.3 billion

BUT MK's claim is for "skin care and color cosmetics" only. We have no way to separate out only those sales, but since Avon's sales of beauty products are 3 times MK (AFTER accounting for Avon's returns but not MK's) AND considering that Avon‘s sales are PREPAID going directly to customers and not being stockpiled in basements and garages, Avon wins hands down.

Avon reports U.S. sales in 2004 as $2,227,100,000 ($2.2 billion). To segregate beauty products, 69% of that would be $1,536,700,000 ($1.5 billion) for the U.S. alone.

From Hoover's, a company that compiles data on companies, about Mary Kay:

Celebrating its 40th anniversary in 2003, Mary Kay is in the pink and in Avon's shadow (considering Avon's more than $6.8 billion in revenue in 2003) as the US's #2 direct seller of beauty products. It offers more than 200 products in six categories: body care, color cosmetics, facial skin care, fragrances, nail care, and sun protection. Some 1.3 million independent sales consultants demonstrate Mary Kay products in the US and about 30 other countries. Consultants vie for awards each year, ranging from jewelry to the company's trademark
pink Cadillac (first awarded in 1969). The family of founder Mary Kay Ash owns most of the company.

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"My friend, director, whoever drives a "free car" in Mary Kay!"

REALITY CHECK: The cars are not free. In fact, MK Corporate does not want their sales force referring to cars as "free". You "earn the use of a car". There are quotas to earn it and quotas to keep it. If you fail to achieve a certain number of "active" consultants and/or if you fail to meet production requirements monthly or quarterly for your car an have used all your points in your car bank*, you must co-pay the lease payment along with the full amount of insurance per month and if production does not increase, you will get an "option" letter in which you can either purchase the car or return it.

At the end of the year, you'll get a 1099 from Mary Kay which includes a number of items related to the car which are reportable to the IRS as income. Included in those "items" are: Dollar amount of prize level each month:
($375/vibe; $500/Grand Prix; $900 Cadillac) & SALES TAX on the car (interesting item as cars are leased by MK).

Car bank - MK gives you a month's worth of "points" when you "earn a car" and for every $600 order
you get from a new recruit, you get 600 car points added to that bank to use in case normal production
falls below the requirements.

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"Mary Kay offers a 90% Buyback out of the goodness of their heart."
REALITY CHECK: MLMs/Networking companies are REQUIRED to have this.
See example of the statute for South Dakota, Section 2,
last paragraph: http://www.mlmlegal.com/sdakota.html

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"If you change your mind Mary Kay will refund you the cost of your started kit so you have nothing to lose."

REALITY CHECK: Mary Kay will only refund you the cost of the started kit if it is unused. All bonuses are deducted and you must pay cost of shipping and purchase insurance.

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"It's YOUR BUSINESS, you can do what you want with it.".

REALITY CHECK: No it's not. Consider the following: You are dependent on the company paying you commissions. You are bound and restrained by legal agreements when you sign up and when you are promoted to a director (6 pager for that one). You cannot advertise the way you want. You cannot sell product anywhere or anyway you want (can't even display it!). You cannot wear what you want to any MK event (unless your director lets you at her meeting), etc.

Independent, huh? I am becoming increasingly convinced, and it is my opinion, that the only reason they dub you Independent Contractors is to get out of paying a host of normal employee related benefits.

(submitted by Laura R. )

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"When I finish DIQ and become a director, "the hard part is over.""

REALITY CHECK: Unless you have new recruits each month who order inventory or a great unit that sells product; you'll have to be constantly replacing people in your unit. Some units have better retention rates than others, but they tell you that you'll "ALWAYS BE IN DIQ", even as a director and if you are in DIQ (Director-In-Qualification), you know what that means. S-t-r-e-s-s!

Funny, they DON'T tell you when you are IN DIQ that of the 30 members you get to "finish," 10 are already gone, 10 are on their way out and of the remaining 10, only about 1/3 of them will work (order) and if your unit isn't working (recruiting/sharing), you must. They tell you this on a tape AFTER you become a director, least that's when I found out and also found out that it was common knowledge.

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"My director "stepped down"; that's why she's no longer a director."

REALITY CHECK: While some directors might leave a thriving unit(?), there is a clause in the Director's Agreement called the "Termination Clause". That means that AT ANY TIME, a director can lose her unit for the following reasons: (for you travelers, pay particular attention to section (ix) below) Section 10. This agreement regarding Sales Director's activities may be terminated effective immediately at Company's option if Sales Director shall fail to comply with any of the terms and conditions of this Agreement or in the event of any of the following specific acts or occurrences:

(i) If Sales Director knowingly submit false or fraudulent information to Company to receive any prize, award, bonus or commission based upon Wholesale Purchase Volume, recruiting or personal sales or knowingly make any material misrepresentation of fact in connection therewith; or

(ii) If Sales Director shall knowingly submit or participate in the submission of any order which is not a bona fide order placed by the named purchaser for subsequent retail sale as a Beauty Consultant; or

(iii) If Sales Director should do any act detrimental to the reputation of Company or it's products or should do any act detrimental to any trademark, trade name or the goodwill connected therewith or any copyright owned by the Company; or

(iv) If Sales Director should fail to pay when due any indebtedness to Company, to other Sales Directors, Consultants or customers, or engage in other credit practices deemed detrimental to the image and goodwill of Company and it's associates; or

(v) If Sales Director should become physically or mentally incapacitated (incapacity being determined in the sole judgment of the Company), or withdraw voluntarily or involuntarily from active
participation in the conduct of her business as a Sales Director; or

(vi) If Sales Director should engage in any activity or conduct in violation of the provisions of Section 8.10; or

(vii) If any dispute, disagreement or controversy should develop between Sales Director and fellow Sales Directors or between Sales Director and Beauty Consultant's in Sales Director's Sales Unit,
which in the sole judgment of the Company may adversely affect the reputation of Company, the reputation of MK products or the goodwill related to the trademarks or trade names owned by the Company; or

(viii) If the Wholesale Purchase volume of Sales Director's Sales Unit for two (2) consecutive calendar months should be less than the Minimum Sales Unit Production defined in the Schedule of Commissions and Bonuses and no extenuating circumstances, as determined in the sole judgment of the Company, be present. (If company shall determine that extenuating circumstances DO exist, it shall, by written notice, advise SD of the particular month or months, during and at the end of which, total monthly Wholesale Purchase Volume of the Sales Unit must again meet the monthly Minimum Sales Unit Production); or

(ix) If, for any reason, SD shall leave and remain outside the US for a total of 90 days or more during any period of (12) consecutive calendar months. Termination under this section 10.2 shall be
effective at Company's option upon mailing to Sales Director written notice of termination or at such other subsequent date as may be specified in such notice, except in the case of termination for
failure to maintain Minimum Sales Unit Production, in which case termination maybe made effective by Company as of the last day of the last full calendar month that Sales Director's Sales Unit failed
to meet Minimum Sales Unit Production.

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"You make 50^% "Profit" on your sales."

REALITY CHECK: Profit = Sale Price less Cost and Expenses related to the product. So, already,
if you buy a bag to put the product in, you've cut into your "profit." Also, Mary Kay Corp is now promoting "Hostess" incentives on their website, but who is paying for them? I really don't believe they're paying for this "free stuff"? Hmm. More profit lost. Check out "Have a Party" on their website at:

http://www.marykay.com/whatsnew/hostaparty/freestuff/freestuff.aspx?tab=whatsnew

Then again, the consultants are probably so "excited" that Mary Kay has included a professional presentation for hostess incentives on their website that they don't even realize or care that it's digging into their profits.

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"Mary Kay offers free sales training."

REALITY CHECK: You will more than likely pay a weekly due amount at your meeting and if you miss a meeting, you may STILL have to pay that week's dues. Directors pay rent on the meeting room, no matter whether you are there or not and they pass the cost on to the consultants. It is common practice for several Directors to share a meeting place and time. This way, they can not only split the rental fee for the room but also have a larger group of women at a meeting. And a larger group of women makes for a more "exciting" meeting, among other things. Although a Director may have, for example, 50 women in her unit, only a small percentage of those women are going to bother to attend the meeting. Many of them live out of town or out of state and can't attend. It wouldn't be unusual for a Director to have only two or three women in their unit at a meeting, so combining meetings with another Director is certainly a plus.

You are highly encouraged to bring a guest to your weekly "success meeting". Part of your training as a consultant is how to invite guests to meetings by referring to it as a "girls' night out" or asking your guest to be a face model for you. Most meetings begin with the Director(s) telling their story of how they were led to Mary Kay and wowing the crowd with the dollar amount of their highest commission check for one month. Then there is usually a recognition for the consultants and their past week's sales, culminating in the "crowning" of a queen of sales, which is the woman who sold the most in the past week. Guests are then usually whisked to another room to be instructed by a Director or consultant on how to apply the company's latest color cosmetics. The results of the guest's self-application techniques will be displayed for everyone later on in the evening when the meeting resumes--hence, the "face model".

Besides the weekly meetings, there are numerous "special events" which usually consist of training and/or lectures from some of Mary Kay's top performers and Directors. Some events last a few hours, while others may last for an entire weekend. These cost money as well, and consultants are highly encouraged to attend. Most of these events are regional and require travel time of several hours, perhaps even hotel stays. One such event is the "area retreats" that many National Sales Directors hold for their Directors and consultants. These retreats usually run from Friday night to Sunday afternoon. Consultants pay for travel to and from the event, a registration fee, and for lodging as well.

Every spring, Mary Kay corp puts on "Career Conference" in several cities around the country. This weekend event features training, speeches by National Sales Directors, addresses from various corporate "celebrities", and recognition of Directors and consultants. It's like a scaled-down version of the company's Seminar held in Dallas every summer. Once again, this is a regional event. So you may be a consultant in Utah, for example, but the Career Conference for your area is being held in Denver. You are responsible for your airfare or driving expenses, registration fee, hotel costs and meals as well.

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