Connect with us

Multilevel Marketing

Mary Kay, the MLM that has been around forever and still going strong

Mary Kay Inc. is one of oldest and largest cosmetic MLM companies in the industry whose beauty products are sold via direct sales.

They’re one of the pioneers of the home party business model that has appealed to so many stay-at-home moms looking for an easy home based business.

So have I ever been involved?

This video explains:

 

All good? Let’s continue…

Overview

Founded in 1963 by Mary Kay Ash, Mary Kay Inc is privately held. Therefore, sales figures are self-reported by the company itself.

In 2011 the company reported $2.9 billion in revenue and a staff of around 5,000. Direct Selling News places Mary Kay at the number four position on its 2015 DSN Global 100, with 2014 revenue of $4 billion.

To put that in perspective, Avon (their chief rival) is at number two with $8.9 billion. Nu Skin at number 9 had a 2014 revenue of $2.75 billion. Traditional cosmetic companies (brick and mortar) like Sephora ($2.11 billion) come close but certainly don’t blow them away in terms of sales.

So if you were under the impression that Mary Kay was a dying brand supported by aging blue-hairs sporting frosted eye shadow and foundation made with outdated technology, think again.

Mary Kay Ash herself may have passed away, but her legacy of success (and her fortune) lives on.

Her son (Richard Rogers) now runs things out of the Dallas headquarters where they also run the primary manufacturing plant (there are also two plants in China and there used to be on in Europe but it’s closed now).

Mary Kay herself was a genius at all levels: marketing, branding, selling, and running one of the most successful direct selling companies ever created.

Everyone knows what it means when a pink Caddy rolls up: there’s a top-selling Mary Kay beauty consultant at the wheel. Today, they can be seen in the Cadillac DTS or the CTS (consultants also have the choice of choosing cash which equals $900 per month), which they lease with the option to buy.

The company gives boatloads of money to charity- this past December the Mary Kay Ash Charitable Foundation donated $100,000 to Domestic Violence shelters…and that was just their Canadian initiative. There are similar stories all over the world, where the foundation gives each year.

Products

Products are heavily researched by the company, which collaborates with independent medical professionals on safety and effectiveness.

There’s a Satisfaction Guarantee on all products, which offers exchange, replacement or full refund if customers are not satisfied. Their market research shows a 90% product satisfaction rate.

Products are not tested on animals at the Dallas facility, which manufactures products for the North American market. The Chinese plant, on the other hand, does indeed test on animals but only because it’s require by Chinese law.

Products are uniquely developed by Mary Kay Inc scientists uniquely for Mary Kay markets. The R&D wing is mammoth and prolific. This past year alone they were awarded more than 130 patents, for a grand total of over twelve hundred patents for innovative products, technologies and packaging designs.

Some of the recent patents have been in the anti-aging skin care line: Mary Kay® TimeWise Repair® Volu-Firm® Lifting Serum, Mary Kay® TimeWise Body TM Targeted-Action® Toning Lotion and Mary Kay® TimeWise Repair® Volu-Firm® Eye Renewal Cream.

There are six main categories of products:

  1. Skin care
  2. Makeup
  3. Fragrance
  4. Men’s
  5. Body & Sun
  6. Gifts

Prices are incredibly reasonable. Here’s a smattering:

  • Age-fighting moisturizer: $24 for 3 oz.
  • Ultimate Mascara: $15
  • Men’s facial wash: $16
  • Cologne spray: $50
  • Hand cream: $10
  • Broad spectrum SPF 50 sunscreen: $24

There are new products all the time, and customers may browse them on the Mary Kay website, an IBC website, an e-catalog or in person at a home beauty show. Makeup comes in trendy colors as well as a wide choice of classic combos. There are special offers to entice customers. These include things like:

  • free skin care consultation
  • free makeup consultation
  • hose a Mary Kay party and get free product

The website is also full of helpful and fun tips and advice

Compensation Plan

Becoming an independent beauty consultant is easy. The startup cost is low at $100 and retail sales will earn consultants 50% if they sell at full retail price. With those solid beginnings, it’s no wonder there are three and a half million Mary Kay consultants worldwide.

The startup kit comes with retail-sized products to demonstrate with, samplers to hand out, and brochures and DVDs. There are often limited-time special offers for new IBCs like the one at present:

  • free business announcement eCard
  • free custom color look
  • 50% discount on a Mary Kay website
  • 40% savings on a business kit with business cards

If it turns out selling Mary Kay cosmetics isn’t for you, they company will buy back the starter kit at 90% of cost, provided the products are unused. That offer is good for a year from purchase.

There is extensive training available, something you don’t see in all MLMs (hint: Zukul, Divvee, or MRW Life). Team commission starts when an IBC reaches senior consultant level, at which point she earns 4% commission on all downline sales. That figure goes up as she rises in the ranks, up to an impressive 13%.

In case you were wondering: yes there’s still a pink car incentive program. Top sellers are offered a two-year lease on a pink Cadillac. There are other levels of car incentive now too: a white Chevy Cruze, which comes in an exclusive color Lipstick Red (limited edition) too. This is offered to qualifying IBCs, who may choose the cash option at $375 per month.

Move up the ranks to Independent Sales Director and you can choose a Camry, a Chevy Equinox or the cash equivalent ($500 per month).

For all the car incentives, failing to meet the quota for the month will result in having to pay part of the lease fee yourself. To get the pink Cadillac, an IBC must sell more than $100,000 in one year.

Recap

Brand recognition, unique products, and a strong support network for IBCs are the main attraction for women who want to join Mary Kay Inc. Company revenue continues to climb, the company keeps on churning out patents at an alarming rate, and they’ve done everything right as far as company vision, corporate social responsibility and backing their products. Any woman would feel confident about becoming a Mary Kay IBC.

It’s only a matter of neighborhood saturation, and that’s up to you. One tip before you order your Mary Kay starter kit: please do your due diligence and find out how many women are already cruising your neighborhood selling Mary Kay.

As I’ve shown throughout this piece, definitely not a MK hater. But, it’s still the sad story of selling hype and chasing the hot opportunity.

There is a better way. You can build a real value-driven business…and feel good about it.

Check this out. This will help wreck your money-chasing habits.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Multilevel Marketing

Zija review: Nutritional supplements from moringa

Zija is a nutritional products network marketing company capitalizing on the healthful properties of moringa.

In May 2017 they acquired Xango, making them a bigger force in the health MLM space.

Run by a pioneer inventor in the herbal supplement industry and propelled by a top Harvard scientist, Zija is setup to do big things.

Overview

We’ll take a look at exactly what Zija is celebrating. You’ll find out whether the science is there to support the claims made about moringa. You’ll also discover how well their International compensation plan stacks up in a sea that’s brimming with nutritional energy drinks (hint: Tru Vision, Isagenix, and Visi).

First let’s find out about moringa.

Moringa Oleifera is a tree found in the foothills of the Himalayas known for its drought-resistant properties (1). The seedpods are eaten in Africa and Asia. The leaves are the most nutritious part and are eaten in Southeast Asia. The flowers are said to taste like mushrooms.

There seems to be no question as to the high nutritional value of moringa. It’s a good source of protein as well as vitamins, amino acids, minerals, and phenolics (2).

But delve a little deeper and the clinical studies aren’t there yet for many of the claims made by Zija Interntional. More on that below.

Who is Zija International? The founder of Zija is Ken Brailsford. He is credited with inventing herbal encapsulation, and with helping to bring moringa to the supplement industry after watching a documentary about the health benefits of consuming parts of the moringa tree.

Mr.Brailsford is actually something of a “star” in the herbal supplement world. He started Nature’s Sunshine in the 1970s, to capitalize on his new herbal encapsulation methodology. He ran that until 1979 when he left to become a stockbroker because of a noncompete clause with Nature’s Sunshine (3). He later went back but fully retired in 1997 until he founded Zija years later.

The company is based in Lehi, Utah and boasts an executive team of “experienced MLM professionals.”  That would include CEO Rodney Larsen who was hired to promote the growth goals of Zija. Mr.Larsen has been with ZI since 2006 and his LinkedIn profile shows no other data before that year. Some Zija affiliate websites do mention that he worked for NEXX and a branch of NuSkin Entrprises before joining Zija.

President Brad Stewart’s profile mentions that he has managed his career “through vision and faith”. He has been involved in network marketing his whole life.

Executive Vice President Darrell Eyre started as an Amway distributor and has been in network marketing for 25 years.

COO Michael Hershberger has over 15 years experience in management and IT and an MBA.

The takeaway: apart from the Chief Operating Officer, Zija International is run by people who have pretty much always worked in network marketing. The founder is recognized as an important figure in herbal supplement history and founded one of the oldest and most successful herbal supplement companies in the world.

Zija International is a BBB accredited business with a rating of A+.

Products

The ZI products can be divided into three categories: moringa, ameo, and ripstix. Headed by  Harvard Medical School valedictorian Joshua Plant, the scientific wing of Zija International is actively engaged in formulating new products based on moringa and other botanicals.

Moringa is believed to support a wide range of health benefits, including anti-inflammatory support, improved digestion, improved mental clarity, increased energy, anti-aging, immune system support, and blood glucose level regulation. All of these benefits are listed on the Zija International website.

Scientific evidence and clinical trials, however, are hard to find.

There is one agricultural study  where mice and ruminants were given moringa tea. It was found that the white cell count in the mice who drank the tea was significantly higher. Mice also experienced reduced inflammatory responses.

In that same study, Moringa also improved cell viability in sheep and goats, and reduced oxidative stress from internal parasites. No effect on the gut health of pigs was observed, however (4). The results of this study have only been published informally to date.

The same Ag & Tech school that’s conducting that study is also looking into the use of moringa to promote animal health. Specifically, they’re researching moringa’s effects on the immune system (on B and T cells). In addition, they’re studying moringa’s effects on growth rate and performance of pigs. However, at this time it’s merely stated that more research is needed (5).

There is also a World Health Report citing the use of moringa in the use of water treatment in developing countries (6). But so far, not much has made it into the National Institutes of Health’s PubMed system.

The takeaway: moringa is incredibly nutritionally dense, but clinical studies are needed to support many of the health benefit claims made by Zija Interntaional.

Essential oils produced with clinical-grade standards and Zija’s exclusive patent-pending certification system.

Ripstix Hydration and Fitness Line – these are energy drinks in powdered form. Fitness supplements containing L-arginine (8) and electrolytes, they also contain fructose which some people try and stay away from.

Compensation Plan

There are tens of thousands of independent distributors working for Zija International. They have access to an extensive network of Zija training modules, including videos, an app, audio training, all of which is measured by a series of exams.

It’s the only MLM known to have a certification process for its distributors. Not only that, but every 90 days, distributors must re-certify. Passing exams means higher pay, too (7).

This is similar to how non-MLM companies handle their training. For example, public school teachers get pay raises when they pass graduate-level courses from accredited institutions of higher learning.

So what if Zija operates its own training, testing, and certification program in-house: it’s far above and beyond what you’ll see in other MLM companies.

Details:

1) IBOs profit by purchasing products at wholesale prices and selling them at retail (up to 25% profit).

2) Qualify to earn commission by being on autoship for at least 75 PV per month.

3) Get 10% of sales made by your personally enrolled recruits.

4) Team commissions and further bonuses as you advance in rank.

Recap

Zija appears to offer a good product. They have done a lot of things right and have a unique niche in the competitive nutritional supplement industry. But the income potential isn’t worth my time.

I’m not saying Zija International is a bad company – they’re not.

With any MLM, peddling products to your family members and friends at church might work for a couple months…maybe over a year if you’re lucky.

In the end, it’s still the sad story of selling hype and chasing the hot opportunity.

There is a better way.

Check this out. This will help wreck your money-chasing habits.

Continue Reading