She understood the web before there was a web….
There are a hundred million web sites.
Almost none of them make money.
That is the Gordian Knot of the 21st Century. Until we solve that one, we are nowhere.
Fortunately, and strangely, the problem has already been solved.
By Mary Kay Ash.
Who?
Mary Kay Ash…. of Mary Kay Cosmetics.
Stick with me.
Mary Kay Ash was a national training director for World Gift Company in Dallas, Texas, when she quit in 1963 to found Mary Kay Cosmetics on a personal investment of $5000. She built it into a multi-billion dollar business. But she had an idea.
Instead of selling in stores, Mary Kay Cosmetics would be sold by an army of sales consultants.
Last year, Mary Kay Cosmetics had fielded an army of 1.8 million sales consultants.
1.8 million.
What Mary Kay built, without realizing it, I think, was the world’s first social network. And she did it without the Internet.
If you know anything about Mary Kay Cosmetics, you know about the pink cadillacs that the top sales consultants get. The vast majority of that army of sales consultants, however, sell very little really – once they run out their friends and neighbors. But they are fiercely loyal – and even if they sell just a bit, they sell. It was the first Long Tail.
Mary Kay does not really sell cosmetics.
What she sold was a sense of belonging.
A sense of community.
A sense of self-identification.
The women (and it is almost all women) who signed up to be sales consultants for the company did so because the company offered them a chance to belong to a giant national network and to embrace an identity beyond their own.
What is Facebook, with its 350 million members, but that. What is MySpace? What is any social network?
But those social networks don’t sell anything.
Or rather, they are not empowered to sell anything the way Mary Kay Cosmetics was.
Online Social Networks are vast and powerful marketing machines tied to nothing.
The wheel spins all day long but it is not connected to any useful purpose.
Connect it.
Put Facebook to work. Give social networks something to sell – a way for their members to actually make a profit and you have an incredibly powerful creation.
Like nothing that has ever existed before.
It is not the websites that have to be monetized, it’s the users – the members.
If everyone on Facebook received a 15% commission for every case of cosmetics they sold, how many do you think they would move? How many blenders? How many vacuum cleaners? How many trips to Cancun?
Look at eBay. It’s all about selling the crap in your attic. People do it because they can make a profit out of it. My 15 year old nephew emptied his mother’s closet on eBay because he could make a buck. What about selling real things?
Is it possible to directly tie commerce to the immense power of social networks? I think so. Mary Kay Ash did it.
It involves a rethinking of how we engage in commerce.
We used to go to Bloomingdales to buy stuff.
We use to buy a newspaper for news.
When the Industrial Revolution came to Britain, former peasants took up running the looms.
Cottage Industry.
Maybe we can create Cottage Selling.
Maybe each person can become a Bloomingdales.
Maybe we can do for (or to) commerce what we have already done to journalism and information.
Fractionalize it.
But this time, maybe the participants can all make a profit.
Or at least a few can get a Pink Cadillac.
23 Comments
Elizabeth Sanchez March 10, 2012
In other words… what SCRIB is trying to say….
you can sell Mary Kay Cosmetics…. just DO NOT quit your day job!
Scrib September 08, 2011
Elaine, as someone who has never been in MK, I do not find it encouraging that you have been in the business over three decades and are only a Senior Sales Director. That is a LOT of time to invest towards a business that supposedly gives one personal growth, but does not give one medical, dental, optical, 401k/retirement benefits. MK Directors might get some insurance, but they have to keep themselves and their units ordering enough makeup in order to earn and maintain it. God help you if you fail to meet your quota the month your child and his pals decides to play the popular street game, “I Bet I Can Break My Arm Quicker Than You.” Bad stuff.
Also, I couldn’t help but notice your last six months of commissions. The last time you were listed in Applause Magazine’s “Commission Circle” section was clear back in APRIL 2011. The following month, the lowest figure in your division was around $4650 GROSS, and since you weren’t listed that month, that tells me you made LESS than the lowest figure listed. I don’t know what you brought in in actual sales for that month (if any) but let’s pretend you made $4640 for the sake of this example.
In Mary Kay, consultants are advised to work a 60/40 split, which means that 60% of your income goes to ordering inventory, while 40% is your profit. So let’s break things down a bit.
60% of $4640: $2784, which goes back into ordering more inventory.
That leaves you with $1856 for the month, GROSS. Now you have to subtract all your expenses for the month, which can include samples and supplies, gifts with purchase, the fee to attend success meetings (to say nothing of bigger and costlier events such as Seminar and Career Conference, which can easily drain a grand or more out of you), postage and shipping, packaging, advertising, business supplies, the phone bill, and auto expenses such as gas.
There are other expenses that may or may not be applicable to you, such as babysitting fees, office and household help, clothing expenses, and having to chuck out any expired inventory.
Whatever is left after that is yours free and clear. Question is, how much is left?
Love, if it’s personal growth you want, pick up the Torah, the Bible, and a few good titles from Amazon.com. MUCH cheaper.
***Side note for those not familiar with the following terms**
Applause Magazine: Mary Kay’s monthly consultant publication
Commission Circle: A list of the top 100 highest commission-making directors in five separate groups, or what’s known as “Seminar divisions/affiliations.”
Scrib September 07, 2011
A retype, since I fat-fingered the keyboard with that last post. It should read:
Let the record show that “helping†someone in Mary Kay culture does NOT mean helping them move, or kindly picking off the rabid squirrel that’s set up shop under their grill with a BB gun.
Now I shall sit down before I hurt myself. 😉
Scrib September 07, 2011
You are correct, Michael. Mary Kay consultants cannot make a decent living on simply selling the product. Recruiting is where the bigger money is and the ONLY way one can gain a promotion in Mary Kay or drive the pink cars, (which, incidentally, are NOT won by selling the product, but by recruiting bodies and loading them up with large (as in $1800-4800 large!) inventory packages). If there’s someone looking to move up the Mary Kay food chain, they need those below them to move up as well. As one of Mary Kay’s top leaders once said in a speech meant to guilt the downline into recruiting:
“…if you choose not to move forward in any level, you then rob everybody of their dream. EVERYBODY of their dream, not just me the National, you rob everybody of the dream. That’s a powerful thing, isn’t it?” (NSD Gillian Ortega)
Yeah, it’s a powerful thing, sister. Powerfully manipulative. It’s no secret that “selling the (pipe) dream” is considered more profitable than selling the face goop.
Elaine September 07, 2011
May I suggest that you pick up a copy of any of the books written by or about Mary Kay Ash. I think you would inevitably then be speaking from a position of knowledge about ‘what’ you are speaking. I’ve been a part of Mary Kay Cosmetics for 33 yrs. I was first an Independent Beauty Consultant and then became an Independent Sales Director. I had a profitable business before Mary Kay, however, there was not the opportunity for personal growth that I found these last several years being associated with these loyal, encouraging, Christian people. I can’t imagine doing anything else! I also lead a team of 100 women who feel the way I do. Oh yes, there may be some who don’t, but my guess is the percentage of those is far less than 10%. I’m sure the company average of other companies couldn’t say the same.
Please just read a little about this wonderful company before you make rash judgements. It may change your life, or perhaps the life of someone you care about, as it has mine.
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steve December 16, 2009
$ and nino AGAIN sound like dry drunks.
AA (which someone injected into this conversation) has a saying: “you can only keep what you have by giving it away”.
probably what keeps the “1.8M” consultants coming back moreso than the profit involved.
Nino December 17, 2009
“Dry drunks”? Never heard that before, drinking is not my area of expertise; but I’m always humble in the presence of someone who’s willing to share his intimate experiences in such personal area.
steve December 18, 2009
yeah, it’s a little known term; google only shows 759,000 results.
you gotta get out of that palmetto bug paradise a little more!
Nino December 18, 2009
You mean hang around with “dry drunk” people? No thank, you go ahead, I take my palmetto bug paradise instead, better company that’s for sure.
Michael Rosenblum December 14, 2009
Well, here is some quick back of the envelope math that says its not about the money alone. There are 1.8 million consultants and net revenues of 2.2 billion last year. Which means that if all the revenue came from the consultants alone, which it does not, then each consultant would earn on average just over $1000 a year. That is not an income that anyone can live one. There has to be something else going on here.
$ December 14, 2009
I know enough about Mary Kay, and those who work for the company, that heart is not why they are with the company.
It’s the money.
Money made from selling cosmetics.
Heart and self esteem alone don’t pay bills.
In fact, it’s the very act of making that money that gives them self esteem!
If they weren’t making money for themselves, they’d be doing something else, with a different company.
MsLika December 14, 2009
As a member of the sales force of Mary Kay Cosmetics, I must say that it is very clear that $ and Nino know NOTHING about the heart of the company. Firstly, MK is NOT a multi-level marketing company, but rather dual marketing; very different. But really, if the cosmetics were to go away tomorrow – which we all know won’t happen; cosmetics is a billion-dollar industry & Mary Kay HAPPENS to be the number one selling brand of skincare & cosmetics for 15+ years – what would be left is the supportive, business-minded, PHENOMENAL people in the company – both independent sales force & at corporate – who will continue to be an amazing network of multi-talented women (& men) who will be far more meaningful to the world than Facebook or MySpace users could EVER be!
Thank you, Michael Rosenblum, for recognizing the talent & foresightedness of Mary Kay Ash. She truly is one of the greatest entrepreneurs of all time! For those who don’t know…you MIGHT want to do a bit more research…
Scrib September 07, 2011
“Firstly, MK is NOT a multi-level marketing company, but rather dual marketing; very different.”
I have a challenge for you, MSliska. Check out the following statements. Have you ever heard your Mary Kay leaders use any of these?
1. Some will, some won’t, so what – next!
2. A successful way to introduce someone to the opportunity…is to ask for their advice…simply tell them that you’ve just started your own business and you want to show them your product or opportunity and get their opinion.
3. You’ve got to be able to hear “no†and say to yourself, “…I know my opportunity is worth it…it’s just not the right time for them.†That’s having unshakable faith.
4. Read the best books, listen to the best tapes, and surround yourself with positive, high-energy successful people.
5. Don’t participate in negative talk – even under the heading of “being realistic.â€
6. Prospecting is a numbers game.
7. Objections are nothing more than questions in disguise…to respond to most objections, I like to use the “feel, felt, found†approach.
What’s that? You’ve heard ALL of these used within Mary Kay? That’s odd, because I quoted every last one of these directly from John Kalench’s book, “Being the Best You Can Be in MLM.” Now why would a “dual-marketing” company be practicing multi-level marketing tactics, I wonder?
Oh, right. It’s because Mary Kay IS multi-level marketing. A recruiting racket is still a recruiting racket no matter how you claim it’s structured.
Debora December 14, 2009
Mary Kay did focus on belonging…..the money was there for woman especially single mom’s to make extra but the SELF ESTEEM was a huge part…no matter how small the sale you were rewarded and praised.
Maybe American companies she go back and take a lesson on what really motivates their employees to be great employees other than the WAGES we all need!
Nino December 14, 2009
“and it’s not because they love the cosmetics so much… what they love so much is the community to which they became members and what it gave them”
That’s BS Michael, and you know it. Mary Key is a Multi Level Marketing company and nothing more.
It so happen that we did work for them when I was in the Northeast, we video their recruiting marketing sessions and being belonged to a community wasn’t even in the agenda, money was the reason that everyone was there. Like all the MLM companies they had top performers giving their spill because the more new recruits were bying in the more money they made.
Community my ass, MK is all about money. Do you seriously think they they nurture with a community kindness those who under perform? How do you come up with all this BS I have no idea.
Kelley December 14, 2009
As a Mary Kay consultant, I take exception to your comment. The community and culture of Mary Kay is no BS. Yes, it is a successful company and makes lots of money. What sets it apart from other direct sales opportunities is Mary Kay herself and the community and culture she created. I sell but even if I never sold another cleanser or lipstick, I’ve gotten more out of this experience in terms of personal growth and relationships than any other work experience in my life. Mary Kay literally saved my life. Perhaps for you, it is all about money. However, I think Mary Kay has proved you can be a socially and morally responsible company, with good values, and excellent compansation and be a stellar success by anyone’s definition. What makes it work is the community – you can’t move up without helping someone, without connecting with people, without becoming part of a team.
Scrib September 07, 2011
“…you can’t move up without helping someone, without connecting with people, without becoming part of a team.”
So in other words, the common Mary Kay recruiting interview claims of:
“You own your own business!”
“You are your own boss!”
“You can move up as fast or as slow as you like!”
…are all bunk. And let the record show that “helping” someone in Mary Kay culture does mean help them move or pick off the rabid squirrel that’s set up shop under your grill with a BB gun.
“Helping” someone in Mary Kay = “Recruit the hell out of them NOW.”
Here’s a thought. If someone chooses to leave Mary Kay because the business financially sucked them dry, does one count them among the women one “helped,” or are they written off as negative heretics, accused of “not having worked their business” and never spoken of again?
Theoretical question, really, as I already know the answer.
$ December 14, 2009
Rosenblum: “The vast majority of the 1.8 million women who identify themselves as Mary Kay consultants – and who purchased the sales kit, in the end sold almost nothing. Sales is not easy. Once they had sold to their friends and family, they were done.”
Hmmmmm.
Sounds like the experience the majority of VJ students have after paying for a short four day course!
LOL
Still, if Mary Kay didn’t have that original cosmetic sales kit to sell, something tangible the person could put their hands on, she’d have nothing.
Their love of community means nothing if they don’t receive something in return for their money.
Michael Rosenblum December 14, 2009
The vast majority of the 1.8 million women who identify themselves as Mary Kay consultants – and who purchased the sales kit, in the end sold almost nothing. Sales is not easy. Once they had sold to their friends and family, they were done. A tiny tiny percentage actually sold cosmetics. But people loved and continue to love and identify with (and pay for kits)…. and it’s not because they love the cosmetics so much… what they love so much is the community to which they became members and what it gave them. And I am not making this up. I got this straight from the VC guys who gave them the money to succeed.
$ December 13, 2009
Rosenblum “Mary Kay does not really sell cosmetics. What she sold was a sense of belonging.”
So if Mary Kay doesn’t sell cosmetics, what would she have if she didn’t have the cosmetics to sell?
Nothing.
Comparing what she did to Facebook is apples and oranges.
Without the cosmetics to sell, Mary Kay would have no business, no pink Cadillac or money.
Michael Rosenblum December 13, 2009
Same phenom, different product.
JS de Kuyper December 13, 2009
Great stuff Michael. I’m working on all this evolution from a spiritual angle as well.
“What Mary Kay built, without realizing it, I think, was the world’s first social network. And she did it without the Internet.”
AA 1938 100 members
AA 2010 2.5 million members