|
Independent Sales Director*
Avenues
of Income
Compensation
Sales
Director Personal Team-Building Bonus
-
A
Sales Director is entitled to a $100 Sales Director
Personal Team-Building Bonus for each qualified new
personal team member added to her Sales Unit. A
qualified new personal team member is one whose
initial order with the Company is $600 or more in
wholesale Section 1 products, and it is received and
accepted by the Company in the same or following
calendar month that her Independent Beauty
Consultant Agreement is received and accepted by the
Company. The Sales Director Personal Team-Building
Bonus is earned in the month in which the qualified
team member’s initial $600 wholesale Section 1 order
is received and accepted by the Company.
-
The
Sales Director Personal Team-Building Bonus will be
paid on the basis of wholesale orders and
Independent Beauty Consultant Agreements received
and accepted by the Company by the close of business
each month.
Sales
Director Unit Volume Commission Schedule
|
MONTHLY WHOLESALE
PRODUCTION |
COMMISSION |
|
$4,000 or more |
13% |
| $0
to $3,999 |
9% |
Sales Director Unit
Volume Bonus
- A Sales Director
is entitled to a Sales Director Unit Volume Bonus of
10 percent (10%) of the monthly Wholesale Purchase
Volume of Sales Director’s Sales Unit, calculated
based on the starting point of the applicable $1,000
tier, beginning at the $5,000 tier. For example:
|
MONTHLY UNIT
WHOLESALE PURCHASE VOLUME |
BONUS |
|
$5,000 to
$5,999.99 |
$500 |
|
$6,000 to
$6,999.99 |
$600 |
|
$7,000 to
$7,999.99 |
$700 |
|
$8,000 to
$8,999.99 |
$800 |
|
$9,000 to
$9,999.99 |
$900 |
|
$10,000 to
$10,999.99 |
$1,000 |
|
$11,000 to
$11,999.99 |
$1,100 |
|
$12,000 to
$12,999.99 |
$1,200 |
|
$13,000 to
$13,999.99 |
$1,300 |
|
$14,000 to
$14,999.99 |
$1,400 |
|
$15,000 to
$15,999.99 |
$1,500 |
|
$16,000 to
$16,999.99 |
$1,600 |
|
$17,000 to
$17,999.99 |
$1,700 |
|
$18,000 to
$18,999.99 |
$1,800 |
|
$19,000 to
$19,999.99 |
$1,900 |
|
$20,000 to
$20,999.99 |
$2,000 |
|
$21,000 to
$21,999.99 |
$2,100 |
|
$22,000 to
$22,999.99 |
$2,200 |
|
$23,000 to
$23,999.99 |
$2,300 |
|
$24,000 to
$24,999.99 |
$2,400 |
|
$25,000 to
$25,999.99 |
$2,500 |
- For each $1,000
increase in monthly Unit Wholesale Purchase Volume,
the bonus increases by $100.
- Please note, this
bonus schedule is theoretically infinite beyond the
initial $5,000 to $5,999.99 tier. That is, although
the $50,000 to $50,999.99 tier is not reflected in
the example, you would still receive a $5,000 Unit
Volume Bonus if your monthly Unit Wholesale Purchase
Volume fell between $50,000 and $50,999.99.
Sales Director Unit
Development Bonus
- A Sales Director
is entitled to a Sales Director Unit Development
Bonus of $300 for each month three or four
qualified** new unit members are added to her Sales
Unit OR
- A Sales Director
is entitled to a Sales Director Unit Development
Bonus of $500 for each month five or more
qualified** new unit members are added to her Sales
Unit.
- The Sales Director
Unit Development Bonus is earned in the month in
which the appropriate number of new qualified unit
members’ initial minimum $600 wholesale Section 1
orders are received and accepted by the Company.
Star Consultant
Bonus
A Sales Director is
entitled to a Star Consultant Bonus based on the number
of Star Consultants** in their Sales Unit in a contest
quarter:
|
Number of Star
Consultants† |
Bonus |
|
5 - 9 |
$300 |
|
10 - 14 |
$400 |
|
15+ |
$500 |
- In the case of an
Offspring Unit, Star Consultants in the Offspring
Unit will count for both the Senior Sales Director
and the new Sales Director during the Star
Consultant contest quarter that the debut takes
place.
Contest Bonus
(effective through June 30, 2010)
A Sales Director is
entitled to a contest bonus of $1,000 when she achieves:
- Cadillac
qualification or requalification;
- Higher Circle of
Achievement or Circle of Excellence than the
previous year (payable with July commissions
received in August). For example, if your 2010 unit
circle level is higher than your 2009 unit circle
level, you’ll earn the bonus.
- On the Move
- Fabulous 50s Club
- Honors Society
New Independent
Sales Director Program Bonus
A new Sales Director is
entitled to a $1,000 New Sales Director Program bonus
when she achieves each New Sales Director Program
challenge.
Wellness Award Bonus
Program
A special cash award
designed to help offset expenses associated with the
needs or activities that contribute to physical wellness
although it can be used in any way you choose.
- Qualification for
the Wellness Award Bonus is based on the previous
calendar year’s Total Annual Net adjusted Section 1
unit wholesale production. One check will be paid in
January of each year. Sales Directors must qualify
each year for this award.
|
Sales
Director’s Total Annual Net Adjusted Unit
Wholesale Production |
Wellness Award Bonus |
|
$60,000 -
$124,999 |
$750 |
|
$125,000 –
$186,999 |
$1,200 |
|
$187,000 and
above |
$1,800 |
Note: Mary Kay Inc.
does not provide health insurance coverage for
independent sales force members. The Company recognizes,
however, that rising costs associated with health care
and other wellness activities is a concern for all.
While the bonus can be used to offset costs associated
with maintaining physical wellness, it is a cash award,
payable in January of the year following the
qualification year, for use in Sales Director’s
discretion. In order to receive the bonus, a Sales
Director must be in good standing with the Company on
Dec. 31 of the qualification year.
Rewards
- Eligible to wear
Sales Director suit
- Directors Memo
- Eligible to order
Sales Director Unit Support Package
- Eligible to wear
Sales Director pin and enhancer
- Eligible to earn
the use of a Sales Director Career Car or Cash
Compensation option
- Eligible to
qualify for quarterly Star Sales Director
recognition and yearlong consistency prizes
- Eligible for
Wellness Award Bonus Program
- Eligible for Term
Life Insurance Award and Disability Award Programs
- Eligible to attend
Leadership Conference
- Eligible to
qualify for Top Sales Director Trip
- Opportunity to
personally recruit in designated international
markets
Business Guidelines
- Sales Director
commissions and Sales Director bonuses are based on
wholesale orders and Independent Beauty Consultant
Agreements received and accepted by the Company by
the close of business each month.
- It is expected
that a Sales Director maintain minimum unit
production of $4,000 wholesale per month.
Independent Sales
Director Term Life Insurance Award Program
- Paid life
insurance is awarded to qualified Sales Directors on
Jan. 1 of each year based upon the previous calendar
year’s annual net adjusted unit wholesale
production. Sales Directors must qualify each year
for this award.
- As an award, the
fair market value of Sales Director Term Life
Insurance is included on IRS Form 1099 as income.
SALES
DIRECTOR’S TOTAL ANNUAL NET ADJUSTED
UNIT WHOLESALE PRODUCTION |
LIFE
INSURANCE COVERAGE |
|
$187,000 and
over |
$100,000 |
|
$137,000 to
$186,999 |
$75,000 |
|
$112,000 to
$136,999 |
$50,000 |
|
$60,000 to
$111,999 |
$25,000 |
|
$48,000 to
$59,999 |
$10,000 |
- Independent
National Sales Directors receive $200,000 term life
insurance coverage with $100,000 accidental death
and dismemberment coverage.
Sales Director
Disability Award Program
- Under certain
circumstances, the Company provides a one-year
short-term disability award for totally and
permanently disabled Sales Directors based on the
Sales Director’s average monthly tax-reportable
commissions for the 12 months preceding the date of
total and permanent disability. As part of
eligibility for the Disability Award Program, the
Sales Director must terminate her Independent Sales
Director and Independent Beauty Consultant
Agreements.
Note: This is a
brief description of the Sales Director Term Life
Insurance Award and Disability Award Programs. All Sales
Directors eligible for the Term Life Insurance Award
will receive a notification of coverage and certificate
providing the provisions of coverage each calendar year
upon qualification. For complete details and guidelines,
please refer to the Term Life Insurance Award and
Disability Award Program brochure.
*A qualified unit
member is one whose initial order with the Company is
$600 or more in wholesale Section 1 products, and it is
received and accepted by the Company in the same or
following calendar month that her Independent Beauty
Consultant Agreement is received and accepted by the
Company.
** A “Star
Consultant” is one who places with the Company a minimum
of $1,800 in wholesale Section 1 orders postmarked
during the applicable Star Consultant Contest Quarter.
“Star Consultant Contest Quarter” is 1) Dec. 16 – March
15; 2) March 16 – June 15; 3) June 16 – Sept. 15; and 4)
Sept. 16 – Dec. 15. |
