Mary Kay adjusts operation mode The second batch of direct marketing licenses will be issued soon

With the approaching of the second batch of direct sales licenses, Mary Kay, one of the top five direct sales giants in the world, announced the adjustment of its business model yesterday to fully transition to the legal direct selling companies that meet the requirements of direct sales regulations. According to the adjustment plan, Mary Kay was fully transformed into an employee system, and the reward system was changed from a percentage-based commission to a "fixed commission + business service fee." This is the first time that Mary Kay has adjusted his operating model in China after the direct sales regulations were announced in September last year.

According to reports, Mary Kay's adjustment mainly focused on three aspects: one-time transfer of all authorized dealers to the company’s formal employees, employment of CIIC Corporation for labor contract management, monthly payment of fixed basic salary, and payment of three payments and related insurance In an all-round move to single-level compensation, the dealer’s compensation system will be transferred from a pro rata commission to a fixed commission plus business service fees, and the overall bonus ratio will be less than 30% of its sales. Mary Kay also completely abolishes the beauty package system.

Mary Yu, president of Mary Kay China, said that the company has invested more than 200 million yuan in operating costs for its employees. The work will be completed by December 1 this year. In the future, the company’s formal employees will no longer conduct direct sales and will be subject to labor laws.

The reporter learned that before April 16, Mary Kay will sign the contract with the first qualified distributors. After signing the contract, these dealers will formally become employees of the company. All eligible distributors can apply for a contract before the 16th of each month, and sign up once every 3 months. The Mary Kay 800 service phone told reporters that qualified distributors could sign contracts with the company if they saw an agreement to sign a “business service center” on the website.

At present, Mary Kay has successfully completed the confirmation of service outlet declarations in 29 provinces, municipalities and autonomous regions nationwide, and has officially submitted an application report on direct sales licenses to the Ministry of Commerce.

In order to enhance the confidence of the direct sellers, Mary Kay has also established a withdrawal and buy-back system, that is, if the salesperson does not want to continue to work as a salesman, the company will buy back the unsold products in his hands.