The Strategies that made Mary Kay Successful - 8
Offering superior compensation
At the time when Mary Kay launched her company, sales compensation was usually around 35% to 40% for people in sales. She set her compensation at a high 50%.
Before we get into why this is so important, we have to realize that all the strategies we've been talking about that Mary Kay implemented within the company were valuable as a whole; not any one made the difference, but how they were integrated was what made them work so well.
Just like any business today, money alone is no longer the key differentiator in attracting and keeping good people. It's only one piece of the puzzle, and not the key one at that.
The direct sales business field that Mary Kay chose to ply her trade, even back them, was notorious for high turnover. But Mary Kay had a certain type of women that she was trying to attract, and offering a 50% compensation rate was a key to reaching these types of consultants.
Other than making more money, what was attractive to people about the rate offered by Mary Kay? It showed that she backed up and was serious about what she said. Her overall goal was to help empower women to success. The 50% rate was a step to show she believed and followed through on what she asserted.
Another big benefit of it was it would attract those types of women that wanted to establish a long-term career with the company.
Everything she did was to reach people like this and help them to succeed in their businesses. It's like the old adage that if you give people what they want, they'll give you what you want. Mary Kay knew how to give people what they wanted.
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