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Mary Kay Cosmetics is a direct marketing company that depends on the sales force to sell their trademarked skin care and cosmetics to the public. The Independent Beauty Consultant is not an employee but an independent contractor. Consultants do not receive paychecks from the company but take their pay from their sales to the consumer. All Mary Kay sales members begin their MK career as an Independent Beauty Consultant. Depending on her desire, sales and recruiting ability, the consultant can earn part-time or full-time pay.
All consultants at every level earn 50 percent of their retail sales less the retail tax. Consultants buy their inventory from Mary Kay at the wholesale cost, which is 50 percent of the suggested retail price. For example, if a consultant has weekly sales of $200 she earns $100 less the retail sales tax. Consultants may choose to pay themselves after each sale or once a week. Mary Kay does not issue pay to the consultant; instead, the consultant handles all her own finances.
Mary Kay consultants earn more when they recruit new sales members. After adding one recruit to her roster, the Independent Beauty Consultant receives a new title, Independent Senior Consultant. With the new title, the consultant receives an additional perk---recruiting commission bonuses. This bonus is awarded to the recruiter whenever her recruit places a product order. Senior Consultants can expect to earn a four percent commission. Senior Consultants continue to make the 50 percent profit from direct product sales.
Consultants that have three to four recruits receive the title "Star Recruiter." The Star Recruiter earns a $50 bonus after the third team member is added and has placed an inventory order. In addition, these consultants earn a higher commission percentage of their team's wholesale production. This percentage is nine percent of the team's monthly production. Star Recruiters also earn 50 percent profit from their sales. Star Recruiters are permitted to wear the coveted red Mary Kay jacket.
Consultants that have five to seven active team members receive a new title, "Team Leader." These consultants earn nine to 13 percent of their team's commission. Team Leader consultants earn the higher commission on months when they place an order of $600 or more. Team Leaders also qualify to earn the 50 percent sales profits from personal sales to clients. If a Team Leader's recruits do not place an order in a month, the Team Leader does not earn a commission.
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