The Strategies that made Mary Kay Successful - 6
Consultants couldn't buy on credit.
When Mary Kay set up her company, she drew upon her vast amount of experience with other direct selling companies that helped her to weed out the things that could destroy a good consultant.
In the case of offering credit to the consultants, she has seen that policy destroy good professional relationships when a heavy debt load created bad feelings between a company and their sales consultants.
While this obviously would have caused a slower rate of growth in the beginning of a consultant's tenure with the company, in the end it would have them on solid footing as they reinvested their profits to build their business.
Most the time with offering credit, it only creates bad feeling and experiences ... rather than the help it was created for.
The other very positive impact on the company side of it was it eliminated a huge accounting nightmare that not only had to track it all, but also police those that would fall behind in payments.
So she may have lost some potential good candidates in the beginning, overall she attracted a certain type of consultant that helped bring the company to such widespread success.
It was another way a smart entrepreneur went against the conventional wisdom of the time and through it was able to build not only a solid company, but help others to build their business debt free. It was a great strategy for this type of business.
Other Mary Kay Resources:
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