Bank of America CEO Kenneth Lewis Joins Fortune Hi Tech

WEBWIRE – Thursday, May 28, 2009

Contact Information

Eric Bailey

Executive Manager

Fortune Hi-Tech

(408) 849-5222

lifestyle5825@yahoo.com

FOR IMMEDIATE RELEASE

http://www.webwire.com/ViewPressRel.asp?aId=96089

(Press Release) - Fortune Hi Tech, a consumer services marketer of Fortune 500 companies announced that Kenneth D. Lewis, chairman, chief executive officer and president of Bank of America has joined Fortune Hi Tech Marketing (FHTM).

Lewis joins Fortune Hi Tech Marketing as a business representative simply for the ability to save money on his monthly expenses and earn a residual income.

"During these tough economic times, people from all walks of life are searching for the ability to save money wherever possible and make money along the way", says Eric Bailey, a Fortune representative from California.

About Fortune Hi Tech Marketing
Fortune Hi-Tech Marketing is a team of highly motivated and dedicated individuals working together toward a common goal; achieving success with integrity. FHTM has allowed thousands of individuals, regardless of education, experience or current financial situation, to reach their financial goals by becoming FHTM business owners. Through support, encouragement and guidance, our Independent Representatives work together to become the best possible advocates of our quality, name brand products and services.

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May 9, 2009

Op-Ed Columnist

Far From Over

By BOB HERBERT

http://www.nytimes.com/2009/05/09/opinion/09herbert.html?_r=1

Bob Herbert

It’s a measure of just how terrible the economy has become that a loss of more than a half-million jobs in just one month can be widely seen as a good sign. The house is still burning down, but not quite as fast.

I can understand why people are relieved that we no longer seem to be hurtling toward a depression, but beyond that I see very little to be happy about.

The economy is in shambles. Nearly 540,000 jobs were lost in April, a horrifying number. The unemployment rate rose to 8.9 percent. Even the most optimistic observers expect the job losses to continue, although, hopefully, at a slower pace. The unemployment rate is expected to keep on climbing, like some monster from the movies, toward double digits.

We are stuck in what is — or will soon be — the worst economic downturn since the 1930s. Newspapers and the U.S. auto industry are on life support. The employment picture for even the most well-educated Americans — men and women with four-year college degrees or higher — is the worst on record.

If there is something about this economy to be cheerful about — something real — I wish someone would let me know.

Poverty and homelessness are increasing and, as Lawrence Mishel, the president of the Economic Policy Institute, said during an interview this week, “There are a whole lot of people who are going to be economically desperate for many years.”

Joblessness is like a cancer in the society. The last thing in the world that you want is for it to metastasize. And that’s what’s happening now. Don’t tell me about the stock market. Don’t tell me about the banks and their perpetual flimflammery. Tell me whether poor and middle-income families can find work. If they can’t, the country’s in trouble.

One reason the employment losses slowed somewhat in April was that the government added 72,000 jobs, most of them temporary hires as part of the preparation for the 2010 Census. The private sector dumped 611,000 jobs. Moreover, the Labor Department revised the job losses for March upward, from 663,000 to 699,000, and for February, from 651,000 to 681,000. Some 5.7 million jobs have been lost since the start of the recession in December 2007.

Mr. Mishel has been trying to call attention to the human toll caused by job losses on this vast scale. The institute estimates that the poverty rate for children is in danger of increasing from 18 percent, which is where it was in 2007, the last year for which complete statistics are available, to a scary 27.3 percent in 2010.

For black children, you don’t want to know. But I’ll tell you anyway. The poverty rate for black kids was 34.5 percent in 2007. If the national unemployment rate rises, as expected, to the vicinity of 10 percent next year, the poverty rate for black children would rise to 50 percent or higher, analysts at the institute believe.

That would be a profound tragedy.

We already know that children are being harmed in families hammered by job losses, home foreclosures and the myriad stresses that grip families trying to cope with economic reversals. Dr. Irwin Redlener, president of the Children’s Health Fund and a professor at Columbia University’s Mailman School of Public Health, has referred to these youngsters as the “recession generation,” and has described what is happening to them as “a quiet disaster.”

Much of the impact of the Obama administration’s economic stimulus efforts is still to come, but those efforts were never narrowly focused on the need for job creation and are not nearly large enough to cope with the mammoth job losses that are occurring. The official unemployment rate for men is already at 9.4 percent, and for black workers 15 percent.

To get a sense of the task ahead, consider that 7.8 million jobs would have to be created just to bring us back to where we were when the recession began. That’s because the working-age population has continued to grow since then. The economy has to create about 127,000 jobs a month just to keep up with population growth. That comes to more than 2 million jobs since the start of the recession, which you then add to the 5.7 million that have been lost.

There is no light yet at the end of this tunnel.

It may not be popular, and it certainly won’t sit well with the so-called deficit hawks in Congress, but there is a real need for additional government spending to further stimulate the economy and create jobs. (Think infrastructure, among other things.) The kind of employment distress we’re confronting is not sustainable. Help will be needed for people whose unemployment benefits run out, who are ill but not covered by medical insurance, who are homeless or otherwise in desperate economic straits.

This crisis is far from over.

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Rising unemployment could leave half of African American children in poverty

Rising unemployment could leave half of African American children in poverty
05-18-09

http://www.epi.org/analysis_and_opinion/entry/Rising_unemployment_could_leave_half_African_American_children_in_poverty/

When it comes to unemployment, total numbers tell only part of the story. Projections that the current unemployment rate of 8.9% will reach 9.8% next year may seem like a gradual leveling off, but any further rises above today’s already high levels will be devastating for certain sectors of the population, particularly minority children.

In his new presentation, Sounding the Alarm, EPI President Lawrence Mishel, projects that the poverty among African American children, which was at a staggering 34.5% even in the comparatively good times of 2007, will reach 52.3% as a result of continued job loss. The African American community has been hit especially hard by the loss of jobs, with unemployment currently at 15% and is set to rise above 18% next year, Mishel projects. Overall, his report estimates that the overall childhood poverty rate in the U.S. will rise from 18% today to more than 27%.

“The economy has deteriorated so much since October/November 2008 that our fears last November—that unemployment would exceed 10% in mid-2010 if there were no economic stimulus—will likely be realized even with the substantial, smart stimulus package in place,” says Mishel. “Consequently, there will be unacceptably high unemployment and poverty rates next year and beyond.”

http://www.charlesprimas.com/
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Economist: Jobless rate among African Americans to hit 27.8%

May 27, 2009

Economist: Jobless rate among African Americans to hit 27.8%

By JOHN GALLAGHER
FREE PRESS BUSINESS WRITER

http://www.freep.com/apps/pbcs.dll/article?AID=200990527031

Unemployment among African Americans in Michigan is likely to hit 27.8% by mid-2010, a Washington, D.C.-based economist predicted today.

Lawrence Mishel, president of the non-profit think tank Economic Policy Institute, said black unemployment in Michigan will be the nation’s highest, far above the predicted black jobless rate nationally of 18.1% at mid-next year.

Mishel’s report, titled “Sounding the Alarm,” can be found at www.epi.org.

Amid a host of discouraging unemployment trends, Mishel calls for greater government stimulus spending in hard-hit areas to create more jobs.

Contact JOHN GALLAGHER: 313-222-5173 or gallagher@freepress.com.

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Direct sales (like Avon, Mary Kay) offer recession-proof jobs

Direct sales (like Avon, Mary Kay) offer recession-proof jobs

By Charisse Jones, USA TODAY


http://www.usatoday.com/money/industries/retail/2009-05-13-direct-sales-jobs-recession-unemployment_N.htm

Not long ago, Craig Lapp made his living driving a truck that helped carve Southern California's soil into new developments. But then housing sales slumped, and in November 2007 Lapp's construction company let him go.

While he searched for another job, Lapp began working alongside his wife, Lynne, in a business based in their Temecula home, selling nutritional supplements made by the direct-sales company Isagenix. Nearly two years later and with no construction job in sight, Lapp says a one-time sideline has become the couple's bread and butter.

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"It's paying our mortgage, our car payments … putting food on the table," says Lapp, 55, who adds that he and his wife are earning a six-figure income. "It was our 'Plan B' that turned into our 'Plan A.' "

Direct-sales businesses that rely on home-based representatives to peddle their wares are seeing their sales forces rapidly expand as the nation's unemployment rate soars to nearly 9% and those who lost jobs and nest eggs look for new ways to make money.

"We're recession-resistant in the sense that more people come to us during economic hard times for supplemental income or replacement of a lost job," says Neil Offen, president of the Direct Selling Association, the trade group that represents the largest U.S. direct sales companies.

While 2008 industry figures aren't yet available, "Anecdotally we're hearing that recruitment is up and … unfortunately as the unemployment rate rises to 10% or higher, we'll be picking up more people who need an income-earning opportunity."

The recession has become a recruiting tool. An Avon (AVP) cosmetics representative declares in TV ads that "I can't get laid off. It's my business." Companies such as Isagenix, a marketer of weight-management and nutritional supplements and snacks, and jewelry maker Silpada Designs are coaching their representatives to spread the word that direct selling can keep you afloat in the faltering economy.

"Right now, our direct-selling opportunity is really the No. 1 product that we have to sell," says Geralyn Breig, president of Avon North America.

With that in mind, Avon this year launched its most ambitious recruitment campaign and saw its U.S. sales force grow to more than 680,000 through March, its largest ever, Breig says.

The same month, cosmetics company Mary Kay began airing its first TV ad for new representatives. In its first three days, visitors seeking information about becoming "beauty consultants" at MaryKay.com spiked 108%.

Silpada Designs, a Lenexa, Kan.-based company specializing in sterling silver jewelry, says its sales force in the U.S. and Canada was up 11.8% on May 1 from a year earlier. And Chandler, Ariz.-based Isagenix says its sales force was up 30% in March from a year before.

The hope is that larger sales forces will grow revenue, even in an economy that has shrunk sales for many companies.

"Representatives and recruiting are a leading indicator of future sales," says Jerry Kelly, Silpada's CEO, who acknowledges sales for his privately owned company were down roughly 10% in the fourth quarter of last year. "We're optimistic that we're going to fare fairly well this year as a company in a very difficult climate. … We're seeing a more determined and focused representative who might be looking to supplement lost income for their family."

There are roughly 15 million direct sellers in the U.S. — independent contractors who sell goods or services primarily through parties, demonstrations in someone's home and one-on-one interactions. In 2007, the most recent year available, the sales industry generated $30.8 billion in U.S. sales, according to the Direct Selling Association.

Sellers are recruiting

Avon aired its first infomercial last month, and rather than promoting makeup or skin products, it targets new recruits. The company kicked off its TV commercials earlier, with a 30-second spot during the Super Bowl pregame show in February. That ad, a 60-second spot and the infomercial will air all year.

The cosmetics company is also going to job fairs this year, scouting for new salespeople at more than 140 such events, Breig says. It's also beefed up its presence with online job search engines and since February has had a recruiting ad in the front of every one of its brochures.

"We're executing the boldest recruitment campaign … in our history," Breig says. "It's part of our mission to enable women to have a financial solution."

That resonated with Elizabeth Leyba, an assistant office manager for a plumbing company who lives with her family in Munster, Ind. Leyba saw her hours cut last year and needed a way to make up her lost income while maintaining her office job and busy household.

So in April 2008, after watching a TV commercial for Avon, she decided to give it a try. In the year since, she has discovered that she is an entrepreneur.

"I didn't know it, and I'm thrilled that I am," says Leyba, 39, who has sold more than $10,000 worth of Avon products and hopes to sell full time. "Even though there's a recession, even though the economy is bad, my business has continued to grow."

Leyba's Avon earnings have paid for everything from gas to her 17-year-old son's senior pictures. "I've been working since I was 16 so, you know, I like the fact … it's your own business," Leyba says. "I am in control of my future now. Not corporations."

Compensation systems vary, but representatives primarily earn money from commissions on product sales or by purchasing the products wholesale and selling them at retail prices, says the Direct Selling Association. Commissions on sales typically are 25% to 50% of retail.

While representatives may also earn a small commission on the sales from representatives they've recruited, legitimate businesses do not use recruitment alone as a basis for compensation, the association says.

Denise Ruiz-Cabrera, 31, of Branchburg, N.J., was nearly five months pregnant in March 2008 when she lost her job as a corporate recruiter. She could not find a new job.

"I exhausted almost every single contact that I had," she says of her search. Though she'd used Avon products, she'd never thought of selling them until this year. She saw one of Avon's recruitment ads, "and I thought to myself, 'Why don't I do that?' "

Knocking on doors is history. Direct sales representatives now find new customers through such methods as referrals, gatherings and parties, spontaneous meetings on the street and the Internet. Ruiz-Cabrera is one who does it all.

"I've sort of coined the term, 'Welcome to 21st-century Avon,' " says Ruiz-Cabrera, who has a personalized website maintained by the company. She carries brochures in her purse and her baby's stroller, promotes favorite products on her Facebook page and meets new representatives she's recruited at the local Starbucks.

"I think people in these times, we're hungrier than we used to be," says Ruiz-Cabrera, who has made as much as $1,000 a month with Avon. "I had jobs lined up in the pipeline that all fell through because of the economy, and I focused all that energy on my business and in three months I've built something that looks to be pretty promising."

Retirees join in the trend

It's not only those who have lost jobs or endured pay cuts who have turned to direct selling.

"We're hearing a lot from women who've recently graduated or are about to graduate and are finding it to be quite a challenge to find a career," says Rhonda Shasteen, Mary Kay's chief marketing officer. Then there "is the other end of the age spectrum: women who are approaching retirement age, and saw a lot of their savings wiped out, and find themselves with a very short time frame and with a need to make up a lot of money."

Lawanna Lloyd, 66, and her husband, Rodney, 69, retired in 2000. But in the wake of the stock market fall, Lloyd says they are now worth about half of what they were just 18 months ago.

To make their retirement nest egg last longer, Lloyd's husband returned to work last year, teaching chemistry at a private school in their town of Boerne, Texas. Then Lloyd, who was a stay-at-home mom through most of her marriage, decided she needed something, too. "That's when I signed up with Silpada," she says.

She is rattled that there was a need for her and her husband to return to work at all.

"It doesn't feel good," Lloyd acknowledges. "It makes life very uncertain, and scary. …Who wants to go back to work?"

But she made more than $500 from her first jewelry parties in April, and she enjoyed hosting them.

"I think Silpada does provide the perfect solution for earning some money and being able to set my own schedule," she says. "We had decided that we would do something … to earn income for four or five years and see where we are then. Hopefully by then the market will have recovered and we'll feel like we can retire again."

Kim Joseph, 26, of Stewartsville, N.J., received a master's degree in public health in 2006, but has struggled ever since to find a job in her field. She worked for her sister as a nanny before getting a full-time position as an account manager with a marketing solutions company.

Last June, she decided to start selling Mary Kay cosmetics on the side, partly to earn extra cash for her upcoming wedding. She now intends to forgo a public health career and eventually sell the makeup line full time.

"I've been able to see how being a consultant gives me room to impact the lives of women," says Joseph, who added that selling Mary Kay also gives her freedom to spend more time with her husband without crimping their household income.

Direct selling is a fluid industry, with only 10% of representatives working "full time," or at least 30 hours a week. Many work only long enough to meet short-term goals, such as holiday presents.

But some who work in or watch the industry believe the severity of this recession may cause more sellers to stick with it, even when the economy rebounds, at least as a way to supplement their income.

"I truly believe this has readjusted people's thinking," says Kathy Coover, executive vice president and co-founder of Isagenix. "With this economy, people can't take their jobs for granted anymore. They have to have another alternative … so if something does happen, this is their safety valve."

Find this article at: http://www.usatoday.com/money/industries/retail/2009-05-13-direct-sales-jobs-recession-unemployment_N.htm

PICK A REPUTABLE COMPANY

What to look for in a company if you are considering direct selling: Getting started should not require a significant upfront investment. While you may need to purchase a starter kit or training materials, the cost should not put you in financial jeopardy. You should have the option to sell back unsold products if you quit. Businesses belonging to the Direct Selling Association are required to "buy back" unsold merchandise you bought in the previous year at 90% of what you paid. You should make money from your sales to consumers. Recruiting other sellers should not be the basis." The product or service should be something you would use even if you were not selling it. Source: Direct Selling Association

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Young Company Focus

April 2009

Fortune Hi-Tech Marketing: Reaching New Heights

By Amy Anderson

http://www.directsellingnews.com/index.php/site/entries_archive_display/fortune_hi_tech_marketing_reaching_new_heights

In the history of every company, there are steppingstones. In the beginning, the focus is on keeping one foot in front of the other and taking things one day at a time. As the company grows, so does its footing, becoming surer and stronger with each passing year.

Fortune Hi-Tech Marketing (FHTM) started out on the right foot. Now, eight years after its beginning, this network marketing company is on a path to even greater success, with a solid foundation of executive support, field leadership and brand-name power.

The Ladder to Success

“We created FHTM to be a way for average, ordinary people to do better in their lives financially,” Founder and President Paul Orberson says.

Paul and FHTM CEO Tom Mills first met in high school, playing baseball for rival teams. Years later, when Paul ended up working as a teacher and head coach at his alma mater, he reunited with Tom, who had recently made the move from head coach to principal. They struck up a lasting friendship that included their families, often traveling as a group and working on joint investment opportunities together.

“We knew we wanted something greater for our families and a better way to provide for them,” Tom says. Eventually, Paul and Tom joined a startup network marketing company, and Paul soon went full time. His earnings were impressive, enabling him to retire by the age of 40.

But retirement wasn’t the life for Paul. He enjoyed the sense of giving back he got from network marketing. So he and Tom discussed ideas for their own company, which was soon to become Fortune Hi-Tech Marketing.

The synergy of the executive team, which quickly grew to include Paul’s son Jeff, has a lot to do with the success of the company. “Paul and I work well together and have always wanted to surround ourselves with people who are successful in their fields,” Tom says. “We realize that we both have strengths in certain areas that mesh well, and we have capitalized on those strengths in our business relationship. And Jeff has been invaluable to FHTM since Day One. His daily input has helped us become the company we are today.”

Paul definitely enjoys having his son onboard. “Jeff is able to bring another point of view to the table. We may not always agree, but his view is always valuable,” he says.

Stepping Up to a Challenge

Today, Paul says there are three main things that set FHTM apart from the competition: lack of shareholders, zero debt and a diversified product/service mix. “We are kind of like a mutual fund in that you can select from multiple products and services to offer your customers,” Paul says.

“My father wanted to access multiple industries to offer products from,” Jeff says. “And since we are a marketing company, we can move in and out of industries as necessary. We don’t require heavy capital investment into a product or service, so we are a little more nimble than some companies when it comes to dealing with market changes.”

This flexibility means FHTM representatives find it easy to move with the roller-coaster economy, offering products and services that meet people’s changing needs. “As consumer shifts occur, we are able to adjust accordingly in a relatively quick time frame,” Jeff says.

That’s because most of the products and services offered by FHTM are those already being used by a majority of consumers. From cell phone service to home security systems to travel Web sites, the product line allows representatives to receive a commission on existing services.

“In many instances, you see the same brand names people are already using and are advertised on television,” Jeff says. “So there isn’t a lot of convincing that needs to take place when our representatives discuss our services with potential customers.”

The Wireless Shop, powered by Simplexity, is a recent FHTM advance in product marketing. It allows representatives and their customers to purchase cell phone plans and extensions online from well-known brands like Alltel, AT&T, Sprint, T-Mobile and Verizon Wireless. They can also buy phones from Motorola, Samsung and Sony Ericsson.

Home security products are available to FHTM reps and customers from InGrid Home Security and GE Home Security, and satellite TV service is offered from Dish Network. New services include Internet access through FHTM VISP, exercise programs at FABS Cyberfitness, vacations through Travel FHTM and more.

These new products join the established product lines of True Essentials and Lamas Beauty. Paul’s personal health challenges with cancer in his mid-40s led him to spearhead the development of True Essentials, a line of nutritional supplements. As he learned about lifestyle changes that could make a difference in his own health, Paul was determined to provide the same opportunity to others.

“You’re not a helpless bystander to your own health. You are your own best doctor,” he says. “Right in the middle of the worst part of my life, the best thing was born, and that’s True Essentials.”

In keeping with the flexibility of the product lines offered by FHTM, the team is always on the lookout for ways to improve their variety. “We’re always looking to add to or upgrade the product and service offerings we have,” Jeff says. “We always have a few possible options on the horizon.”

Breaking New Ground One thing that says a lot about how people feel about working with FHTM is the retention of the original staff. “Anytime a new company starts out, there are hurdles that must be conquered,” Tom says. “Probably our biggest challenge was putting our staff together. What is amazing is that the administrative team we put together that very first summer before we opened our doors is still intact except for one person, who unfortunately has passed away.”

However, as the company has grown, the staff has grown to continue meeting its increasing needs. “We continue to add to our staff in order to service the larger number of representatives entering the business,” Jeff says.

Two specific areas of growth on the home-office team have been in information technology and marketing. Today, full-time staff members have taken over duties once outsourced to other companies.

“The infrastructure is an integral part of any company and is especially important for one that is growing like ours,” Tom says. “We have always felt that a strong technology team is of utmost importance. We have always tried to stay ahead of our growth, and the only way to do that is with top-notch people who have the freedom to think out of the box.”

A Helping Hand

In addition to growth at the home office, tools and training for representatives has continued to increase with the growing number of reps in the field. According to Laura McDonald, Director of Marketing and Promotions, the number of reps who joined FHTM each month in 2009 has doubled over the reps who join during the same months in 2008.

In the field, new representatives are guided by more experienced leaders. “Our representative leadership base is the largest it has been. They are very team-oriented and willing to assist outside of their own organizational lines,” Jeff says.

Supporting the field reps is the main goal of the executive team. “Our sole existence is to be a support for the reps in the field. We have the attitude that we are here to help them grow their businesses, and that’s why we come to work,” Paul says.

To help them succeed, FHTM supplies reps with tools and training specifically created to offer them the best in technology and support systems. “We provide a variety of tools, such as the representative Back Office, that allow reps to manage virtually every facet of their businesses from their computers in real time,” Jeff says. “There is also a daily assistance line provided by the company, where a live person answers calls from representatives.”

The founders still get out into the field to help representatives succeed. “We have a very active executive staff,” Jeff says. “My dad frequently gets out to representative meetings and trainings to provide a corporate presence and present the corporate story. Tom and I get out to rep meetings, as well, on occasion.”

This hands-on philosophy combined with expanding product lines has spurred rapid growth in FHTM Canada, which has been posting phenomenal numbers. The market opened in November 2005 and has been progressing steadily ever since. “Every month, we’re breaking new records. It seems we’re doubling what we did in the same month the previous year,” says Shannon Hewitson, Director of Canadian Affairs for FHTM Canada.

Reaching for the Top

While the recent growth in FHTM has certainly been beneficial to reps financially, the rewards go way beyond money.

“FHTM has given me a mission and a purpose,” Paul says. “I am doing what I feel called to do. When I had cancer, I felt like FHTM gave me something to look forward to and something to get better for. I feel like I am only alive because of FHTM and the prayers of our representatives.”

This kind of loyalty to the company is not limited to the executive team. FHTM offers hope and support to people looking for an opportunity to make significant changes in their lives and are willing to put in the work to see their goals to fruition. The company’s consistent growth over the last seven years is evidence that their vision for the future is shared.

http://www.charlesprimas.com/
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Contact: Laura Gardner
gardner@brandeis.edu
781-736-4204
Brandeis University

84 percent of African American and 88 percent of Latino middle class households not financially secure

Millions of families experienced economic decline since 2000; households of color hardest hit

http://www.eurekalert.org/pub_releases/2009-05/bu-8oa052009.php

New York, NY--As the economic downturn continues, a new report finds that millions of African Americans and Latinos lost economic security between 2000 and 2006, and that more than four out of five are either borderline or at high risk of falling out of the middle class altogether. The new report, "The Downslide Before The Downturn: Declining Economic Security Among Middle Class African Americans and Latinos, 2000-2006" was published today by the policy center Demos and the Institute for Assets and Social Policy (IASP) at Brandeis University.

"The Downslide Before The Downturn" is based on the Middle Class Security Index, co-developed by Demos and IASP/Brandeis, which uses government data and measures the financial security of the middle class by rating household stability across five core economic factors: assets, educational achievement, housing costs, budget and healthcare. Based on how a family ranked in each of these factors, they were defined as financially "secure," "borderline" or "at risk".

"The Downslide Before the Downturn" shows some worrying trends in America's households, including:

• In 2006, before the recession, most US middle class families (76%) were already economically insecure, with only 24 percent experiencing stability across the core Index factors. However, when the numbers are broken down demographically, only 16% of African Americans and 12% of Latinos experienced such security. This is a dramatic decline from 2000, when the national average was 29%, 26% for African Americans and 23% for Latinos.
• In 2006, 88% of Latino and 94% of African-American households lacked sufficient assets to weather a financial emergency, up from 82% and 89% in 2000, respectively.
• The median value of financial assets held by African Americans declined by 33% in the six year period, while those held by Latinos declined by 60% during the same time.
• From 2000 to 2006, median housing costs increased 9% for African American households and 7.5% for Latino households.
• During the same period, the number of families in which at least one member lacked health insurance increased--from 18% to 30% for African Americans and from 26% to 39% for Latinos.

"These results show the precarious position of families who struggle to make it into the middle class amidst policies that do not support broad economic opportunities. Even before things started to slip, African-American and Latino middle-class families were already on weaker footing, a position that sets them up to lose more ground than they can afford in the current economy," said Jennifer Wheary, one the report's co-authors and a Senior Fellow at Demos.

"The decline in assets experienced by these families is particularly alarming," said Tom Shapiro, Professor and Director of the Institute on Assets and Social Policy at Brandeis University. "Most of these families had few assets to start with. With the value of these assets declining just as families need them most, they will not only find it difficult to weather uncertain times. They'll also experience setbacks that will be felt by future generations. All this points to a need for policies that support asset building even in hard times."

###

"The Downslide before the Downturn" is the fifth report in a series based on the Middle Class Security Index. Recent reports in this series examined the economic security of America's seniors and the overall position of the middle class heading into the recession. In addition to these reports, Demos and IASP/Brandeis have published a Middle Class Security Factsheet that provides information about the broad economic state of the middle class at a glance and a Scorecard that individual families can use to measure their economic stability. To download reports, the Security Scorecard or the Factsheet, visit www.demos.org. To order hard copies or to arrange an interview with one of the authors, please see contact information.

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Saturday, May 16, 2009

Advice on career transitions

Martha Stewart tells Detroit businesswomen to use ingenuity, technology

Jaclyn Trop / The Detroit News

Detroit

After seven years of oh-so-respectfully rebuffing requests, Martha Stewart came to Detroit -- and gave Michigan businesswomen advice about the power of technology, using passion as a guide, and expecting the unexpected.

The New Jersey-bred domestic doyenne and formerly incarcerated icon spoke Friday at the Renaissance Center before more than 800 members of Inforum, Michigan's largest women's business network, about how she transformed herself from hobbyist to household name,

"I honed my skills. I cooked like crazy. I entertained all the time," said Stewart, 67, about the years after she quit her job as a stockbroker to take care of her newborn daughter.

The "billionaire lifestyle expert," whose multimedia empire, Martha Stewart Living Omnimedia, includes books, magazines, a radio show and an Emmy Award-winning television series, "The Martha Stewart Show," described her journey with self-deprecation and surprising candor, using the No. 2 debut of "Martha Stewart's Encyclopedia of Crafts" on the New York Times bestseller list to show that success often comes after bucking conventional wisdom.

"When was the last time you saw an encyclopedia on the bestseller list?" she asked.

When asked in whom she confides, Stewart replied tongue in cheek, "I had a best friend, and she testified against me at my trial."

Stewart served five months in prison four years ago on charges of obstructing justice and lying to the government in connection with the 2001 sale of almost 4,000 shares of the biotech company ImClone Systems Inc.

Stewart had solid advice for aspiring moguls. Persevere, only sell products you truly believe in and you'll be poised to benefit when "those green shoots of economic recovery blossom."

The media queen also discussed the importance of understanding and mastering technology.

Ten weeks after joining the micro-blogging service Twitter, Stewart amassed a following of more than 615,000 people, a base that she said would have taken at least 10 years for a traditional magazine to attract. Stewart cautioned successful businesspeople must remember to look up from their BlackBerries every now and then and use their time on the Web constructively.

"It's really important to stay off Facebook," Stewart said. "You can use it, but it isn't the end-all."

Inforum CEO Terry Barclay called Stewart the "penultimate entrepreneur" and said that her experience starting her company in the midst of the 1981 recession would resonate with the audience.

"The 'You're crazy, don't do it' reaction she got has strong parallels to today," Barclay said. "She is a case study of how you take an idea and get a business plan together and striking out and making it happen."

Stewart, who spoke at the group's 47th annual convention, drew a crowd on par with other high-profile speakers, including journalist George Stephanopoulos; Cheri Blair, wife of former British prime minister Tony Blair; and Enron whistleblower Sherron Watkins, whose speech marked her first public appearance after testifying against the disgraced accounting giant in 2001. Inforum, which has more than 1,800 members with affiliates in Grand Rapids and Lansing, focused its programming this year on women making career transitions during tough economic times.

YuSun Morren, a manager for a food manufacturer in Allendale, said she was inspired by Stewart's emphasis on mastering cutting-edge technology and making the most of the opportunities available in any economy.

"When she talks about breaking the glass ceiling and making a name for herself," Morren said, "those are still the same struggles I deal with."

jtrop@detnews.com (313) 222-2300

Find this article at: http://www.detnews.com/article/20090516/BIZ/905160348/Martha-Stewart-tells-Detroit-businesswomen-to-use-ingenuity--technology

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Business

GROSSE ILE TWP: Economy causing people to key into networking opportunities

Thursday, May 14, 2009

By Lisa Vidaurri-Bowling

GROSSE ILE TWP. — In a soft economy, more people are turning to network marketing, according to Kim LaChapelle.

The 48-year-old holds the title of independent consultant and national vice president with Arbonne International.

Six years ago, LaChapelle began selling skin care products for Arbonne.

Founded nearly three decades ago and based in Irvine, Calif., Arbonne is best known for its anti-aging Swiss skin-care products, but also has products for weight loss, personal care, aroma therapy, nutrition, baby care and hormone balancing.

The company relies on a network of sales consultants who recruit other people to sell the product, as well.

LaChapelle said the more people a sales consultant recruits, the bigger the potential earnings are.

It’s called “network marketing” or “multilevel marketing.”

Companies such as Amway, Avon and Herbalife work under similar arrangements for most of their sales.

“There’s a world change going on,” LaChapelle said. “A lot of people like to refer to it as the economy, but in my opinion it is not a recession, but we call it that. We see a world shift going on. We see companies downsizing and outsourcing. From the automotive industry to corporate banking, jobs are being condensed. Network marketing has become the darling. It’s a way people can take back their lives. They can get time freedom and financial freedom.”

LaChapelle recalled her 16-year employment as a banking analyst.

“It wouldn’t have mattered how much schooling I had,” she said. “I was never going to be the president of the bank. There was a glass ceiling, and I could only earn so much.”

She said now that she has partnered with a network marketing company, her potential for income and growth is unlimited.

“Here’s the bottom line — no matter what is going on in the world, people have hair and people have skin,” LaChapelle said. “I don’t care how bad things get, women are always going to wear their lipstick.

“You can see it anywhere you go. Women are wearing their mascara, their lipstick and foundation. They are still looking for anti-aging skin care.”

LaChapelle said the responsibility of a consultant is to book parties and one-on-one appointments.

“They need to share these amazing products with family and friends,” she said. “As a consultant, you can sell at both retail and wholesale. At some point, your retail clients will want wholesale, and when you flip them over to a wholesale status, every time they order, you will get a 15 percent commission off their sales, plus at consultant level, you’ll get 4 percent and that keeps bumping up as you move up the management level.”

She said district managers receive 8 percent commission, and compensation builds as they climb the ladder.

“The compensation plan is really vast,” LaChapelle said. “It can sound a little complicated at first, but it’s only because it’s so generous.

LaChapelle said the company gave consultants a 15 percent raise this year.

Something else that’s new is consultants need to sponsor two people in two out of three months after joining the company.

“As of Feb. 1, Arbonne enhanced our success plan,” LaChapelle said. “It’s putting more money on the table for people working the business.”

She said active consultants can be enthusiastic without being annoying.

“Arbonne products sell themselves, so all we want to do is share them,” she said.

LaChapelle suggested that consultants give out product samples and ask potential clients for a commitment to try the product.

“That’s it, just getting the product into their hands,” LaChapelle said. “Once they have the product, they fall in love. The product literally sells itself.”

Anyone booking a home party receives free products.

“Very successful people who understand the concept of creating residual income typically are the ones that make it in this business,” LaChapelle said. “Whether it’s a woman who scrubbed toilets in a day-care center or a doctor, teacher or lawyer, they get it. They want their life back. They’re tired of trading hours for dollars. They want to spend time with their families.”

Since joining Arbonne in 2003, LaChapelle said she has become a national vice president and earned a Mercedes-Benz.

To maintain that level of management status, LaChapelle and her nation of consultants and managers must maintain a minimum group volume of $160,000 in monthly sales.

LaChapelle said an income of $50,000 to $100,000 a month is not unusual for those at the national vice president level.

She estimated that there are 15 national vice presidents in the Detroit area.

According to www.arbonne.com, the average compensation for a national vice president is more than $23,000 per month.

Consultants’ monthly compensation averages about $70, district managers average $242, area managers average $1,214 and regional managers average about $5,030, she said.

Carrie Reaume of Brownstown Township joined Arbonne nearly three years ago.

Reaume, director of behavioral health at The Guidance Center in Southgate, found out about the network marketing opportunity at a fund-raiser.

“I researched the company, the compensation plan and what they were doing in terms of global expansion, and I got really excited about the company,” she said. “This is a way you can make some substantial money.”

Reaume said the company’s compensation plan and quality products helped make her decision to become a consultant.

She spends 15 hours a week outside of her full-time job promoting the products, and schedules four home parties a month. In about eight months, Reaume reached the level of district manager. She has close to 50 consultants on her team and said the income she receives each month helps to pay bills.

Her income as a district manager averages $400 to $500 monthly.

“Arbonne is a great company for people looking to replace income or pay a few bills,” Reaume said.

LaChapelle said anyone can achieve the same success she has with Arbonne.

“There’s nothing special about me,” she said. “I knew nothing about network marketing. I only knew I was dissatisfied and tired of trading hours for dollars, and I wanted my life back. When you have hope like that, when you want something and you have a strong ‘why,’ you can do anything.”

For more information, contact LaChapelle at kim_lachapelle @hotmail.com.

URL: http://www.thenewsherald.com/articles/2009/05/14/business/doc4a0cd3d0a0c41974262908.prt

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How the Recession Affects Network Marketing Should you be spending time on network marketing when the economy is in a downturn?

How the Recession Affects Network Marketing Should you be spending time on network marketing when the economy is in a downturn?
By Michael L. Sheffield October 21, 2002

http://www.entrepreneur.com/bizopportunities/networkmarketing/networkmarketingcolumnistrodnichols/article56404.html

Q: I've been working with a network marketing company and am concerned about what others are saying about us being in a recession. How will this affect my business? Should I be spending my efforts on this part-time business right now in these uncertain times? Should I focus on retail customers or on building my sales organization?

A: Whether or not we are in a recession is a topic I'll leave to the economic wizards. However, having worked full time in direct sales and network marketing through several times of faltering economic indicators, inflation, unemployment, layoffs, etc., I have some thoughts on this matter.
In today's news, you get mixed messages. But if we are in a recession, what does it mean to you, the distributor? If you're not doing anything and looking for an excuse not to do anything, a recession is about as good a reason as any.

But if you're serious about your network marketing business, then, believe it or not, a recession could be the best thing that's happened to you in a while. Shaky economic times have historically produced a renewed awareness of the need to make more money. You'll find people who were previously uninterested in your business are suddenly looking for new financial opportunities. They want a business that doesn't require a lot of capital, allows them to establish their own hours and offers rewards that can grow faster than capital or labor requirements.
Sound good to you? It's the business you're in right now!

While other businesses offer one or more of these benefits, only a true network marketing plan can offer all three. The reality is that leveraging your time through the multiplication process of network marketing is the hardest principle to teach others, yet it's the easiest to attain if you're involved with the right company and right product at the right time. It's such a simple concept, people sometimes refuse to accept it as being something that could actually work for them. They suffer from "analysis paralysis," trying to figure out why it won't work rather than why it will, making the whole process more difficult than it really is. But when people are motivated by concern for their financial future, the sponsoring process becomes much easier. Spouses are more supportive of their partner spending extra hours working to create more financial security for the family.

If you're pre-planning for uncertain times, consider that customers scrutinize your product or service more when dollars are tight. Is your product or service a "need to have" or a "nice to have"? Products that are necessities rather than luxuries do better during times of uncertainty.
Do you focus on retail or recruiting? In network marketing, these are never exclusive. Building a strong retail customer base is critical, but you must recruit others to duplicate your efforts. Learn the success formulas for yourself, then teach others to achieve that same success. There is no other way in network marketing. You can't achieve significant success on your own--you only have so many hours each day. Nor can you sponsor that one hotshot person who'll make you a success while you sit back and watch the dollar bill sprout wings and fly into your mailbox. You need a plan to duplicate your efforts through many others. It's a vivid example of the biblical admonishment, "as ye sow, so shall ye reap."

Network marketing is and always has been a person-to-person business, so nothing happens until two people talk. During recessions, talk to people about protecting themselves against an uncertain future via network marketing. As Ralph Waldo Emerson said, "It is one of the most beautiful compensations of this life that no one can sincerely try to help another, without helping themselves."

Michael L. Sheffield is the CEO of Sheffield Resource Network, a full-service direct sales and network marketing consulting firm. He is also the co-founder and chairman of the Multi Level Marketing International Association (MLMIA). He can be contacted through http://www.sheffieldnet.com.

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Direct sales approaching gaining traction

Direct sales approaching gaining traction

By Leader-Telegram staff and McClatchy-Tribune http://www.leadertelegram.com/story-ros.asp?id=BJV84TM2JQN

Source: Direct Selling Association andy Sorensen has seen firsthand the growth of direct selling in today's economy. Sorensen, who has four children and lives in Eau Claire, is an independent consultant and executive regional vice president for Arbonne International, which provides skin care and other health products through a direct-selling business model. Sorensen signed on with the company four years ago. "My personal organization and Arbonne as a whole are experiencing an explosion of people seeking an opportunity to add additional income, replace a full-time income, have job security, have more choices with flexibility and freedom, and time to focus on things most important to them," she said. "Historically during economic downturns, two industries that hold steady are health and wellness/beauty and alcohol and tobacco. "I encourage people to educate themselves on the growing direct selling/network marketing industry. There are many misinformed perceptions in our society about the industry." Mary Kay is reporting a significant increase in the number of independent beauty consultants joining its sales ranks. Avon, another at-home makeup sales heavyweight, also is seeing a jump, as are other direct-sales companies that rely on independent workers to sell their products. Many in the new sales force are looking for solutions during these troubling times - such as Mary Dawson of Mesquite, Texas. She has a full-time job as an office manager but wants to earn extra cash. Plus, she likes the makeup. "Everybody is looking for ways to make ends meet," said Dawson, 32. "The economy has gone down, and I don't know what's going to happen in the future. It's a perfect time to start." Sorensen initially got involved with Arbonne because of its products. "(It was) the healthy results our family saw with the products and the opportunity to grow a business from home with no limits that could make significant differences for others and empower others to do the same," she said. "Also, Arbonne offers incredible support, excellent training and a very generous compensation plan with unlimited income potential. "I have built lifetime friendships and relationships while growing my business." The $30 billion direct-sales industry offers a variety of products, including goods in home decor, jewelry, cookware and nutritional supplements. And direct sales usually hold steady even when retail numbers drop. Rhonda Shasteen, Mary Kay's chief marketing officer, said more people are turning to direct sales for the "self-control factor." "When you're in a job and how you've been supporting your family is in question and you're not sure whether you walk in the next day and you'll be laid off or have your pay cut ... people feel out of control," she said. "They look for, 'How can I gain some control over my situation?' " Mary Kay saw a high double-digit percentage increase in the number of beauty consultants this March compared with a year ago, Shasteen said. Avon reported a 1 percent increase of North American sales representatives during the fourth quarter last year, said Lindsay Blaker, an Avon spokeswoman. Mary Kay and Avon have even launched advertising campaigns specifically targeting women looking to earn extra money. "It's been a way to reach out to people that Avon can ... help you during this downturn," Blaker said. The section of the Mary Kay Web site that promotes beauty consultants saw more than a 100 percent increase in traffic in March compared with numbers from January and February. And other companies offering direct sales have reported an uptick in recruiting over the past several months, said Amy Robinson, vice president of communications for the Direct Selling Association, which represents companies involved with direct sales. Denise Bender of Eau Claire, who has been selling Tastefully Simple for five years, agreed that interest in the industry has grown. Tastefully Simple specializes in easy-to-prepare gourmet foods. Bender said job flexibility and security are two reasons she sells for the company. She said it's also rewarding when your efforts translate directly into earnings. "(And) with Tastefully Simple we have a recession-proof product," she said. "We only sell to people who eat!" Workers say they enjoy direct selling because they can work their sales around family life. Last summer Michelle Mikulas was laid off as a corporate recruiter. Instead of looking for another job, the Flower Mound, Texas, resident decided to focus on selling Mary Kay, partly to spend more time with her three young children. "I can be my own boss and set my own hours and spend time with my kids," said Mikulas, 34. "I was going to make (Mary Kay) more of a full-time effort on my part and be a full-time mom at the same time." At Mary Kay, some are happy earning $50 a week while top directors can earn $1 million a year, Shasteen said. Median annual earnings for a direct-sales worker is about $2,400, and 10 percent of direct sellers work at least 30 hours a week, Robinson said. Direct sellers typically earn between 25 and 50 percent of a sale. For most it is a job where they can earn some money on the side. To earn lots more, sellers typically need to recruit new workers in addition to selling the product. Direct sales of all products tend to fare better during recessions. The average annual growth for direct sales is 3.6 percent during nonrecession years, but rose to 4.5 percent during the recession years of 1990, 1991 and 2001, according to the Direct Selling Association. Mary Kay sellers hope they benefit. Dawson sold $280 worth of Mary Kay products during a recent sales event - her profit is $140. "Pretty good for two hours of work," she said. Dawson has gone around her neighborhood, handing out bags of makeup samples. "I can go as far as I can with it," she said. "The possibilities are endless." Sorensen agreed. "Direct selling allows someone of any background, whether formally educated or not, the opportunity to grow a successful business providing a few hundred dollars of additional income per month to several thousand dollars of income per month," she said. "We're not a get-rich-quick scheme but do offer something unique that many jobs and careers can't." Liam Marlaire, business editor, can be reached at 833-9215, 800-236-7077 or liam.marlaire@ecpc.com.

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Local entrepreneurs hope to add jobs, income streams

Local entrepreneurs hope to add jobs, income streams
By Blythe Terrell (Contact)

http://www.steamboatpilot.com/news/2009/may/03/local_entrepreneurs_hope_add_jobs_income_streams/

Steamboat Springs — Several at-home workers are looking at ways to bring jobs or wealth into
the Yampa Valley.

They use different methods. One is a manufacturer of kayaking accessories who’s considering expanding. Two others are in network marketing, a sales industry through which people sell products and build a network of others to do the same.

Rick Franken has been designing kayaking gear since he was 18 — half his life. He started the original Bomber Gear company in 1995, and it expanded before collapsing in 2003. Franken was left with merchandise and the trade name.

He started up again in 2007, selling to customers online, limiting store sales to shops that completely agree to his terms. Franken designs the gear, selling items such as spray skirts, wetsuits and gaskets.

He has a small warehouse and works from his townhome.

“I restructured the business with absolutely no overhead except my cost of living,” Franken said.

He and his wife are considering creating some production jobs in the Steamboat Springs area.
“I’m working toward trying to get a shop and start some light manufacturing here on a product I already make overseas,” Franken said.

He’s thinking about starting a small production plant that employs four to six people.
“My wife is looking at getting some grants in order to create some jobs here because we know there’s some opportunity there,” he said.

Franken said he appreciated the smaller structure of Bomber Gear. It allows him to design products and sell them for lower prices. It also allows him to get on the river.
“I live and breathe boating,” Franken said. “I started kayaking at 15, and it’s been my main focus in life besides climbing.”

Network marketing

That flexibility to enjoy life also attracts Rebecca Hanson and Judy Strnad, who work part time in network marketing.

Hanson works with Send Out Cards, a Web site that allows people to personalize greeting cards online, which the company creates and mails. Users can add photos to the cards and add gifts or gift cards. A basic card costs about $1, including postage.

“When someone gets a greeting card in the mail, it means something,” Hanson said.
Businesses use the cards to thank customers and build relationships, she said. Personal greeting cards also are available.

Hanson has worked with Send Out Cards for a couple of years, after a friend referred her. That’s how the company works. People can use the site just to send cards, or they can build it into a business. There is a startup fee, which Hanson said people could make back through commissions and referrals.

“Why it works is, it’s very duplicatable,” Hanson said. “You show it to somebody and then somebody can show it to someone else, and it makes it very, very easy.”
Send Out Cards has grown since its inception in about 2004. That year, the company made $875,000 and sold 145,000 cards. In 2008, it made $41 million on 13 million cards, according to a company video. The Better Business Bureau gives the company an “A-” rating and shows no complaints against it.

Hanson, who lives in Oak Creek, also works part time as volunteer coordinator at Horizons. She said she’s sent about 2,300 cards through the site and enjoys that the company allows her to provide a service.

“I help other people become more successful in their current existing business,” Hanson said. “Or, if they want to grow Send Out Cards, I am helping them. It’s all about giving; it’s a very, very supportive company.”

Strnad also works in network marketing. She left a job in the construction industry in October, hoping to find more time to spend with her family.

“You get married to be together; you have children to be together,” she said. “And we weren’t able to be together.”

Strnad considered starting her own business or franchise, but saw those as expensive or high-risk ventures. She searched online for location-neutral and nontraditional companies because the corporate world wasn’t working for her.

“I kept trying to climb Mount McKinley in a Volkswagen, and it wasn’t going to work,” Strnad said. “I needed a different vehicle.”

She has an online shopping site called Simple Solutions. She makes money mostly by commission — when people buy products through her site. It’s a private franchise through Amway Global, Strnad said.

Some people are wary of Amway, she said. But Strnad said she doesn’t pressure anyone into buying. Simple Solutions’ site includes four sectors of Amway products, but it also offers retailers such as Barnes & Noble, Dell, Bass Pro and Ace.

“You buy what you want,” Strnad said. “You buy what you were going to buy anyway.”
She’d like to get 10 or so families in the Steamboat area who are interested in making money on the side. It’s not meant to be a full-time job, Strnad said. She does consulting, marketing and accounting work.

“It’s not a pyramid (scheme). Those are illegal,” she said. “You make money by expanding.”

The Better Business Bureau gives Amway Global an “A+” rating.

People who want to start a franchise must pay a fee, but shopping is free, Strnad said. She’s her own best customer. But it’s a job, Strnad said. You have to work.

“It’s not pie in the sky, get rich quick,” she said.

It does allow her to be at home with her family, and that’s what Strnad wants to share.

“I hope people pick up that our life is going to be what you want it to be, and you can design it whatever way you want,” she said.

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