Mary Kay, Inc. is a privately owned direct selling company that sells cosmetics products directly to consumers, usingmulti-level marketing. According to Direct Selling News, Mary Kay was the sixth largest direct selling company in the world in 2011, with net sales of USD 2.9 billion.[1]

Mary Kay is based in Addison, Texas, outside Dallas. The company was founded by Mary Kay Ash in 1963. Richard Rogers, Mary Kay's son, is the chairman, and David Holl is president and was named CEO in 2006.
 

Sales
 

In 2005, wholesale worldwide sales exceeded US$2.2 billion.[5] In 2010, worldwide wholesale figures was US$2.5 billion.[2] Neither of those figures take into account product returns.

The table below shows the company's reported sales figures in more detail.

Mary Kay Sales Figures
Year	Wholesale Volume	Consultants	Directors	National Directors	Wholesale volume / Consultants
1963	$198,154[6]	318[6]	0	0	$623.13
1973	unknown	21,069[7]	450(?)	2(?)	unknown
1983	$300,000,000[7]	195,000[7]	unknown	unknown	$1,538.46
1989	$400,000,000	200,000	unknown	unknown	$2,000.00
1991	$511,000,000[8]	220,000[8]	unknown	unknown	$2,322.73
1992	$500,000,000[9]	250,000[9]	unknown	unknown	$2,000.00
1993	$735,000,000[7]	325,000[7]	unknown	unknown	$2,261.00
1994	$850,000,000[10]	unknown	unknown	unknown	unknown
1995	$950,000,000[10]	unknown	unknown	unknown	unknown
1995 Russia	$25,000,000[11]	unknown	unknown	unknown	unknown
1996	$1,000,000,000[10]	unknown	unknown	unknown	unknown
1997 People's Republic of China	$12,000,000[12]	15,000	unknown	unknown	$800.00
1998 People's Republic of China	$7,200,000[12]	unknown	unknown	unknown	unknown
2001	$1,400,000,000	800,000	unknown	unknown	$1,750.00
2001 USA	Unknown	500,000[13]	unknown	unknown	unknown
2001 Mexico	$20,000,000[14]	unknown	unknown	unknown	unknown
2002	$1,600,000,000	850,000	19,000[15]	more than 300[15]	$1,882.35
2002 USA	unknown	unknown	13,000[15]	unknown	unknown
2002 People's Republic of China	$120,000,000[12]	120,000[12]	unknown	unknown	$100.00
2003	$1,800,000,000	1,100,000	18,500[16]	More than 100[16]	$1,636.36
2004	$1,960,000,000[17]	1,300,000[18]	27,000[5]	410[18]	$1,507.69
2004 USA	unknown	unknown	unknown	210[18]	unknown
2004 Canada	$125,000,000[19]	29,357[20]	661[20]	16[20]	$4,257.93
2004 United Kingdom	$7,700,000[21]	3,500[16]	More than 70[16]	0[16]	$2,200.00
2005	$2,200,000,000[5]	1,600,000[5]	31,000[5]	500[5]	$1,375.00
2005 People's Republic of China	$300,000,000[22]	400,000[22]	unknown	unknown	$750.00
2005 USA	$1,300,000,000[22]	715,000[22]	unknown	unknown	$1,818.18
2005 Canada	unknown	32,820[23]	673[23]	17[23]	unknown
2005 Argentina	unknown	20,000[24]	500[24]	8[24]	unknown
2005 Mexico	unknown	175,000[25]	unknown	unknown	unknown
2005 United Kingdom	unknown	5,000[26]	140[26]	2[26]	unknown
2006 Worldwide	$2,250,000,000[27]	1,700,000 +[27]	unknown	about 500[28]	$1,323.53
2006 Canada	CAD 62,000,000[29]	34,272[23]	724[23]	18[23]	CAD $1,809
2006 USA	unknown	unknown	14,000+[28]	unknown	unknown
2006 UK	unknown	5000[26]	140[26]	2[26]	unknown
2007 Canada	unknown	31891[30]	659[23]	25[23]	unknown
2007 USA	unknown	700,000	14,000[31]	215[32]	unknown
2007 Worldwide	$2,400,000,000[32][32]	1,700,000[32]	unknown	unknown	$1,411.76
2008 Canada	unknown	30,679[33]	608[33]	24[33]	unknown
2008 USA	unknown	600,000[34]	13,000[34]	unknown	unknown
2008 Worldwide	$2,600,000,000[35]	1,800,000[35]	34,000[35]	500[35]	$1,444.44
2009 Worldwide	$2,500,000,000[36]	2,000,000[36]	37,000[36]	600[36]	$1,250.00
2009 China	$600,000,000[37]	200,000[37]	unknown	unknown	$3,000
2010 Worldwide	US$2,500,000,000[2]	2,000,000[2]	unknown	600[2]	US$1,250
2010 Australia	A$25,000,000[38]	10,000	unknown	unknown	A$2,500
2010 Canada	unknown	29573[39]	unknown	24[39]	revenue / consultants
Year	Wholesale Volume	Consultants	Directors	National Directors	revenue / consultants

 

Notes:
 

 Unless otherwise stated, dollar amounts are in United States Currency;

 Dollar amounts have not been adjusted for inflation;

 Official Mary Kay, Inc. policy is to round up their gross Wholesale volume.;

 Official Mary Kay, Inc. policy is to round down the number of consultants;
 

Manufacturing plants
 

The primary manufacturing plant is in Dallas, Texas.
 

A second plant was opened in Hangzhou, China to manufacture and package products for that market. A third plant was opened in 1997, in La Chaux-de-Fonds, Switzerland, for the European market. The Swiss plant closed in 2003.
 

Cars
 

In 1968, Mary Kay Ash purchased the first Pink Cadillac, where it was repainted on site, by the dealership owner, to match the Mountain Laurel Blush in the compact.[40] It was such a good rolling advertisement that Mary Kay Ash decided to reward her top five producers, by providing them with a Pink Cadillac paid for by the company in 1969. Pink was an obvious color choice, matching the company's eye and lip color palettes. Since 1980, the shade used by the Mary Kay fleet has been exclusive to Mary Kay. Every two years, a Director or National Director (often referred to simply as a "National") can requalify for a new Cadillac. When the two year lease has expired, the cars are repainted, prior to being auctioned off. The shade of pink has changed over the years. In 1998, the color was changed to "pearlized pink". In honor of its 35th anniversary, the Mary Kay edition, white GMC Jimmy sport utility vehicle was offered in the United States. In 2007, top Independent Sales Directors can still earn the coveted pink Cadillac.
 

In the United States, the 2006 vehicle choice consisted of a Pontiac Vibe, Pontiac Grand Prix or a Cadillac. A Mary Kay director that qualifies for a car may choose from a Cadillac DTS, a Cadillac CTS, or a Cadillac SRX. In 2007 the offered cars were Saturn Vue, Pontiac G6, Pontiac Vibe, Cadillac CTS, and Saturn Aura.[41]
 

In 2009 GM announced it would be discontinuing the Saturn and Pontiac lines, forcing Mary Kay to choose new choices for Directors and Consultants to earn. Independent Beauty Consultants can earn the use of a Smokey Platinum Chevy Malibu or cash compensation of $375 a month. Independent Sales Directors can choose a Silver Toyota Camry, Chevy Equinox, or $500 a month. Top Independent Sales Directors can choose between the Pink Cadillac DTS, Cadillac CTS, or cash option of $900 a month.[42]
 

In 2005 the GM (USA) fleet size was 9,870.[43]
 

In the United Kingdom, Germany, The Netherlands, Spain and Ukraine, the car is a pink Mercedes-Benz. In Argentina, one receives a pink Ford, while in Taiwan, it is a pink Toyota.[44] In Australia, one gets to choose between a Ford Falcon, or Volkswagen Beetle.[45] In China, the vehicle is a pink Volkswagen Santana. In the Nordic countries you receive a pink Volvo V50.[46]

The specific qualifications for earning the car depend upon the country, and vehicle that is desired. If those qualifications are not met, then the Car Driver has to pay for a portion of the lease of the car for that month. Meeting the qualifications entitles the Car Driver to pay no monthly lease and 85% of the car insurance, or a pre-determined cash compensation award.[47]

Since the program's inception, more than 100,000 Independent sales force members have qualified for the use of a Career Car or elected the cash compensation option.[4] It is not known how many Directors select the cash option in lieu of the car, but GM estimates that it has built 100,000 pink Cadillacs for Mary Kay.[40]
 

For 2012 the cars available are the Chevrolet Malibu, Chevrolet Equinox, Toyota Camry, and the Cadillac CTS, SRX & Escalade Hybrid as well as a newcomer. At the annual Mary Kay convention in Dallas in July 2011, executives announced that new, 2012 model-year Ford Mustang painted in black will become available as an incentive to keep the company’s salespeople productive.[48]
 

Earnings for salespeople
 

As a private company, Mary Kay Inc. does not make all of its financial information available to the public[4]. There is very little reliable information about actual earnings by consultants.

There are several ways for consultants to earn money in Mary Kay:
 

 Recruiting;

 Retail Sales;
 

Recruiting commission earnings
 

"Recruiting commission earnings" reflects the commission and bonuses that one earns from the wholesale purchases of their downline. It does not include income from retail sales nor does it include income from the Mary Kay tools business.

In February 2010 Mary Kay (Canada) claimed the following incomes for its salesforce:[49]

 29,675 people were consultants during the year;

 1,878 consultants earned more than CAD 100 in commission;

 276 of the 553 sales directors earned more than CAD 17,471 in commission;

 15 of the 23 national directors earned more than CAD 100,000 in commission;

For Mary Kay (USA) National Directors, the 2006 median gross income (prior to business expenses) was $75,443.[50]
 

Retail Sales Earnings
 

There is no reliable data for earnings from retail sales. The quoted figure of US$1,250 per year (2010) for the average consultant was derived by dividing the annual wholesale sales by Mary Kay Corporate, by the number of consultants in Mary Kay. This figure is obviously incorrect, as it does not take into account product returns, eBay, auctions, sales at a discount, and purchases by "personal use consultants" --- all of which would lower this figure.
 

Consultant turnover rate
 

A 68.6% per annum turnover figure has been calculated based upon information supplied by Mary Kay (USA) to the FTC.[51]
 

A 85% per annum turnover figure has been calculated, based upon the data supplied by Mary Kay (Canada).[52] That document excludes individuals who earn a commission and are in the company for less than one year. It also excludes individuals who are in the company for more than one year, but do not earn a commission check.
 

Court cases
 

Woolf v Mary Kay Cosmetics

The 2004 case Woolf v. Mary Kay Cosmetics, was originally decided in favor of the plaintiff, Claudine Woolf. In doing so it marked the first time[53] thatworkplace rights could be applied to independent contractors who worked from their home. This decision was stayed and then reversed after an appeal. The Supreme Court USA ruled Certiorari Denied 31 May 2005.[54]

In this case, Woolf was terminated from her position as director because her unit failed to make production for three consecutive months. Woolf contended that her firing was illegal, because of her medical condition — she was suffering from cancer.
 

Liquidator court cases

In May 2008, Mary Kay Inc sued Touch of the Pink Cosmetics, a website that sells product from former Mary Kay consultants at heavily reduced prices. The company claims that Touch of Pink interferes with their business by offering to purchase inventory from discontinued consultants, and that their use of the Mary Kay trademark in reference to Mary Kay products they sell is deceiving.

On 20 July 2009, Mary Kay Inc sued Pink Face Cosmetics for violation of 15:1051 Trademark Infringement.[57] The specific issue appears to be the use of the Mary Kay name, in selling Mary Kay products on eBay, and other Internet venues, for less than the wholesale cost of the products.
 

Animal testing
 

In 1989 the company announced a moratorium on animal testing of its products, after pressure from animal rights groups. They were among the first in their industry to do so and to sign the PETA pledge.
 

However, in 2012 Mary Kay returned to animal testing, because it is required by law in China for all health and beauty products. Thus Mary Kay has been removed from PETA's "Don't Test on Animals" list to the "Do Test" list.[58]
 

“We do not conduct animal testing on our products or ingredients, nor ask others to do so on our behalf, except when absolutely required by law,” says Crayton Webb, director of corporate communications for Mary Kay, in a statement. “There is only one country where we operate where that is the case—China.” [59]
 

Mary Kay Ash Charitable Foundation
 

Established in 1996, the mission of the Mary Kay Ash Charitable Foundation is two-fold:
 

• Committed to eliminating cancers affecting women by supporting top medical scientists who are searching for a cure for breast, uterine, cervical and ovarian cancers.

• Committed to ending the epidemic of violence against women by providing grants to women’s shelters and supporting community outreach programs.

In May, 2006 The Foundation awarded 13 cancer research grants of $100,000 each to esteemed doctors and medical scientists in the United States. In October 2006, the Foundation awarded $20,000 grants to 150 women’s shelters across the United States for a total of $3 million. Celebrities who support this organization areJennifer Hanson, Miranda Lambert, Naomi Judd, Jewel etc.