Higher Paid Direct Sales Companies....

[Pampered Laura]

I did a show for a MK Director today. We had a great show ($900 in sales, 3 bookings). At the end of the party when I was cleaning up, she and one of her downline started chatting with me about our companies (note, neither of us want to switch, just a casual conversation) and she was FLOORED that PC consultants only start out at 20%. She was absolutely mortified that I, as a Director, only make up to 30% commission.
I mentioned we don't keep inventory, and she said MK consultants don't have to, either. She explained that the few dollars she spends on a CC transaction is worth it when she has 50% of the sales going to her bank account the next day. They also get a HECK of a lot more "royalties" from their consultants in their downlines - like 25%!

And my Southern Living lady gets 25% starting commission, as well as more royalties...

Are PC consultants the least paid in the industry? I have no interest in leaving, of course, Im just curious now that I've seen other's pay charts!

 

[heat123]

There was a very long thread called "why PC is better than MK" it explains alot!

 

[SillyChef]

Hmm. That is something to think about...

 

[pamperedbecky]

One difference is I believe their host benefits comes out of THEIR cut. PC pays all of ours for us. That other thread does have some good comparisons if you want to search for it and read more.

 

[Pampered Laura]

I mentioned that about host benefits... she said that their host benefits are whatever they want them to be, so she can actually intice a hostess with exactly what she wants her to earn.
I took her $900 party as an example. The host will get $190 in free products. For MK, she'd be paying for $95 of that herself and getting $450 commission,(so $355 net).
Whereas I pay nothing out of pocket but "only" get $180 (as a basic consultant).
How do you argue with that when they tell you they're paid more for less work? LOL.

Please note: I'm totally playing devil's advocate.. she's a really sweet girl and both of us are completely happy with our companies!

 

[chefjeanine]

I would guess that most (75% or more?) of her shows are not $900. We have one of the highest "per show" averages of any direct sales company.

 

[nikkijo]

I know with lia sophia you start out making 30% commission, when you promote to manager you make 40%. They don't have to pay any hostess benefits at all either. On their downline they make 10% when downline promotes then they make 5% off of their sales. I'm not thinking of swtiching either but my sil sells this.

 

[ChefLisa]

I just could not imagine selling anything but Pampered Chef! I love the products and everyone I know or come across loves the products.

We have products for everyone who eats and that is everyone you know or will ever meet.

Every month we have the opportunity to earn amazing incentives, including FREE Pampered Chef products. That is worth so much to me!

To me the higher commissions at the other Direct Selling companies might mean a higher mark-up on the products. I am not saying it does, but it might!

Also, are their host benefits as generous?

Lisa

 

[mom2leelee]

It's funny you should post this because I have been thinking about this alot lately. I have a friend who sales Premier Jewerly. She makes 50% commission. She takes half of what the customers pay her and pays the company the extra half so she gets her money they day of the show. She has been making atleast $200 a show which is REALLY alot more than what I'm making. The downside is she had to pay over $1000 to get in and they don't provide her w/ nowhere near the support PC provides us. I guess it's a two sided issue.

 

[ShanaSmith]

You need to account of time also, many of the companies that you are compairing do not submit orders as shows, so the consultant has to do deliveries. I think the show average is also a big deal. MK likes to have about 5 people at a "class" and I believe the show average is in the $200-$300 range. So yeah, they might be making 50% of the sales, but they are buying samples to use at the shows, buying the host specials, paying the credit card fees and doing deliveries. So for the same amount of time, it is about the same money as we are doing.... with out all the extra footwork. I just did a $1500 show for a MK director and she is thrilled with the $300+ in products she is getting for free!

 

[sarahmarie]

Pampered chef is the kinda party where you can go and always find something you need. with MK i look through the catalogue and say, that is a nice color. and place a $20 order. jewlery, i bought a $15 item once. and that was it. With pampered chef you dont feel guilty because you are buying for your family, not just yourself. you NEED it. You don't Need jewlery. I love it! AND NO DELIVERIES!

 

[gilliandanielle]

I agree Sarah!! My SIL wants to sell Partylite and is about to have her open-house kick off show. I asked to look at a catalog and could not find ONE thing that I wanted. I love candles, but the Glade ones I get at Walmart for $2.50 are the best thing for me!! I know the original poster has no interest in leaving, she was just wondering...it is interesting to see!

 

[Shawnna]

All MK consultants I know have inventory...because they are required to make a large order often in order to stay a consultant. They also do not get any free paperwork or software. And, when they discontinue something, the consultant is stuck with it and may not be able to use it because it is not their color.

 

[AJPratt]

I learned from Belinda: The three things to look for when choosing a direct sales company: 1) Product 2) Marketability 3) Program for you and the hosts. While I feel that MK is a great product (ok on #1)), I also feel that its marketed to a specific group of people (so-so on #2), whereas with PC everyone eats and even if you don't cook, you still need to reheat takeout/leftovers. And if you pay for the host benefits, that is a program "you" offer, not the company (hmmm on #3). And forget the delivery and inventory aspect, with the cost of gas, I'll stick with my commission. (another hmmm on #3)

50% doesn't mean anything if you can't sell it. And, what's the average show? Keep that in mind. My PL rep said the average is like $300.

 

[heat123]

Original Mk thread...http://www.chefsuccess.com/showthread.php?t=5695&highlight=mary+kay


to read more about this topic!

 

[SillyChef]

Yeah. After this thread was posted my husband and I started talking about the pros and cons of home based businesses. With all those other home based businesses, not everyone is willing to spend a lot of money on some make-up and some jewerly. I know I hardly wear any make-up and majority of the time only my wedding ring... But I am ALWAYS in the kitchen, baking, cooking and all that great stuff. I would rather pay tons of money on stuff I am going to use everyday, than a lot of money on something I am going to put on for a night on the town (which isn't that often. )

 

[PamperChefCarol]

I can't speak for other companies... but was talking to one of several Silpada reps I have run into over the past few weeks. The start up costs are somewhere around $300-400. Yikes!!! And when the economy turns down.. stuff like jewelry, skin care are the first to go. I can attest to this. In the past, when I was making $$$ I would buy only dept store cosmetics and skincare. Now that money is non-existent, I am off to Meijer's to buy facial cleanser & eyeshadow. It's the economy.

Plus, being a skin care/cosmetic junkie, MK never stuck me as high quality. Don't mean to offend any Mk fans here, but it didn't

I chose PC because, it's cliche, but everyone eats! Plus, my director is awesome and genuinely cares about me and the other consultants.

Plus.. the products.... you can't beat them!!!!

 

[gilliandanielle]

My SIL is about to sign with PartyLite and she has to hold a $350 show (for her recruiter) to get her kit. If she doesn't get to $350 then she has to pay the difference to purchase her kit.

I love spending money and I couldn't find ONE thing in the PL catalog that I wanted. Talk about marketable!!

 

[ChefBeckyD]

My SIL is about to sign with PartyLite and she has to hold a $350 show (for her recruiter) to get her kit. If she doesn't get to $350 then she has to pay the difference to purchase her kit.

I love spending money and I couldn't find ONE thing in the PL catalog that I wanted. Talk about marketable!!

I just had the same experience....I have a friend who has just started selling Beauticontrol - I offered to have a show for her, because she has been supportive of my business.....could not get even one person to come....and don't really want any of it myself.....I look at the prices - and can't imagine spending that amount of money on moisturizer etc.....I guess I could afford the lip balm - but I'm partial to Burt's Bee's colored lip balm (wear it instead of lipstick). I feel bad - but it really doesn't interest me! (I don't like body products that smell like food either!)

 

[jenniferlynne]

I sold Mary Kay for years (and I am still a personal use only consultant) and my highest show ever was $500 and that only happened one time!!! It was so hard to get shows too. I think the prodcuts are great, but not a lot of people want to pay that kind of money for something they are going to wash down the drain. They really are supposed to keep inventory. That is what they push you to do, and thousands of dollars worth of it at that. You also can't just place an order for a cleanser if someone calls you and tells you they ran out. You have to place a minimum of $400 retail to get it at half price. YOU also have to pay the shipping. So unless you are really successful and are always sending in orders, then you need to have inventory, and just pray that you have on hand what someone wants. If not, then you either have to turn them down or find another consultant to trade with, which is a huge pain!! Their consultant incentives are a joke. They don't offer Sell-A-Thons to earn the new products like we do. You know, if we work hard with our PC business, we really don't have to spend a thing! I haven't had to pay for any of my supplies this season. I earned enough PC bucks to cover everything, and I just earned level 2 of the Nov Sell-A-Thon. Also, Mary Kay ships to the consultant. That means if you send orders in only as you have shows, you have to bag everything and deliver it (by the way, you also have to buy all the bags. They don't come free like ours do). And yes, the hostess gifts come out of the consultants pocket. When I sold it, we offered 10% which may be why I hardly got any shows! I heard that they are now offering a 4% bonus or something like that on your recruits sales, starting with the first recruit. This must have just started, because it used to be you didn't get anything until your 5th recruit. However, the turnaround in MK is huge compared to PC. I saw tons of consultants sign up and then quit right away with MK because it was just to hard to build up a good customer base.

PC is the only one for me!!!

 

[lisacb77]

I imagine that has to be hard. I have a friend that sells Arbonne and seems to do OK with it, but their deal seems to be getting ppl to "sign" as wholesale consultants. Basically it's like Sam's or Costco in a way where you pay $29 a year for the "membership" and you get your products wholesale at 65% of retail...but then you are registered as a seller too. You don't have to sell but I can't imagine them not pushing you. I told her no thanks in case I ever make director, I wouldn't want to have to go back and quit lol.

I just don't buy their stuff that often for it to be worth it. Ppl think PC is pricey but they are pricer I think!

 

[heat123]

When ever someone says "PC is too expensive" I tell them the best way to get a great deal for FREE or discounted product is by hosting a show!

 

[pamperedgirl3]

When ever someone says "PC is too expensive" I tell them the best way to get a great deal for FREE or discounted product is by hosting a show!

I just had a potential host tell me she wasn't interested in having a show b/c she couldn't ask her friends to buy something she couldn't afford to--she said our products were great but too expensive. I guess it's each person's interpretation of expensive. I see our catalog as having MANY inexpensive things-isn't like 66% of the catalog under $20? Also, I am really particular about make up & don't like face make up that is heavy or greasy or eye make up that comes off by noon, so I'll pay more for the higher quality (I get a lot of my make up from Arbonne). But I don't wear jewelry besides my wedding ring & a sapphire ring my husband gave me (& occasionally a necklace he gave me), so I would never buy anything but gifts from jewelry party plans. To each his own, I guess. Must be why there are so many direct sales companies out there!

 

[gilliandanielle]

I do have the Beauticontrol hand scrubby crap that makes my hands really soft, but it was over $40!! I don't wear makeup very often, and like I said, the candles at Walmart work great for me, so PC is the one for me!!

 

[heat123]

I guess I am biased too, I rarely wear makeup so my refills are like 1x a year or longer so who needs MK when there's Loreal at the nearest Drugstore. Hee-hee and I just love to cook so I am all about TPC!

 

[lacychef]

I agree with all you guys! One thing, in my small town, there's like about 15 people at least that sell MK. I can't imagine any of them really making any money. PC makes sense to me; and when people say things are expensive, I always tell them you get what you pay for. When I use my whisk, I always point out that it was in my starter kit...5 years ago! And it still resembles a whisk! Unlike the dollar store ones, that after a month are all bent up.
I also love the training & support that we get. I don't think it compares with other companies.

 

[jwpamp]

OK, time for my 2 cents, girls! I did a lot of research before I became a PC consultant. Let me tell you that the company is absolutely MILES above the rest!

I had never been to a show, never owned any PC, didn't really matter to me wether I was selling this or something else....but....let's see, PC has been in business for 26 years, it is owned by the 2nd RICHEST MAN IN THE WORLD, and yes, EVERYONE EATS AND HAS A KITCHEN! Oh, and the kit is only $90 (hey, when my upline director started 17 years ago it was $100!).

I must admit that I thought in the beginning "if I got stuck with anything, what would I rather it be...100 tubes of lipstick that I can't wear, or some great stoneware that I could give as gifts?".

Now that I am involved in the company, I am absolutley exstatic! I can't tell you how AMAZING it is to be involved with such a fantastic group of women.

I did a few Open Houses the last few weeks with consultants in other companies (HI, MK, LS, TS), and they were all AMAZED that my sales were so high (like to the point where having 1 $1000 show in a year was a lot, let alone as many as I have and a $2000+ show, too). I can't tell you the looks on their faces when I told them that I was completing my 3rd month of $6000+ sales!

I have to tell you that I would never contemplate any other business. I have found what I was looking for on my first try...

 

[AJPratt]

I just had a PL show. It was a $1300 show with three bookings! I am still trying to figure out where to put everything!

Does anyone know how PL reps are compensated? I'm curious to know how much my rep made.

I love PL! I would love to sell it, but I don't want to spread myself too thin, either. I'll stick with PC, and just be a good PL customer.

 

[pamela]

At the partylite website it says 25% commission on sales or $85 on the average show. Their average shows must be a low amount. If your starter show is $350. your kit is free.

 

[cmdtrgd]

Anne - when you become a director, you can only be involved with PC, so think hard about what you want!