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.

http://www.charlesprimas.com/
http://www.detroitbusinesstoday.net