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Direct sales (like Avon, Mary Kay) offer recession-proof jobs
Updated 5/15/2009 1:30 PM |
By Charisse Jones, USA TODAY

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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.

“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.”
— Neil Offen, president of the Direct Selling Association.

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,”
— 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.

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.

The entire article is here: Direct sales (like Avon, Mary Kay) offer recession-proof jobs
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• Number of direct sales representatives rises by 1 million to a record 16.1 million
• Sales at $28.33 billion under pressure from the weakest economy in 70 years
• Direct selling outperforms the overall retail sector

Washington, D.C. (July 22, 2010) – The results of DSA’s annual Growth and Outlook Survey indicate 16.1 million Americans were direct sales representatives in the United States in 2009, and they sold $28.33 billion in products and services.

The number of direct selling representatives was up 6.6 percent over the prior year, marking an all-time high. Sales fell by 4.3 percent as the state of the overall economy continued to take a toll on consumer spending.

“The record number of Americans engaged in direct selling highlights the opportunity that direct selling affords people looking to earn extra money on their own terms and at their own pace,” said Neil Offen, DSA’s President and CEO. “Though the struggling economy and reduced consumer spending affected overall sales, we’re pleased that 16.1 million people discovered the potential of direct selling as a way to supplement their family’s income.”

Direct selling fared better than the overall retail sector in 2009. While direct selling sales were down 4.3 percent last year, overall retail sales were down 7.3 percent. In contrast to the dramatic rise in the number of direct sellers, employment in the retail sector fell 4.9 percent in 2009, according to the Bureau of Labor Statistics Current Employment Statistics.

According to Offen, many of the 1 million new direct sellers have only been involved in the business for a few months and haven’t yet reached their full selling potential.

“As the economy improves their businesses will grow, and we’re optimistic about the future,” Offen said. “The growth in the number of direct sellers portends a solid recovery year in 2010, helping to lead the retail sector of the economy out of this recession.”

DSA launched a year-long celebration of its 100th anniversary this year at its 2010 Annual Meeting in San Francisco. The celebration will conclude at the 2011 Annual Meeting at the Fountainbleu Hotel in Miami. For more information, follow us on twitter @DSA411 and visit our fan page on Facebook.

About DSA’s Growth & Outlook Survey

The purpose of DSA’s Annual Growth & Outlook Survey is to determine the current size and scope of the direct selling industry in the US. It also provides direct selling companies important operating benchmarks to help them measure their effectiveness in the marketplace.

The DSA Industry Statistics Web Page details Direct Selling by the Numbers for Calendar Year 2009 and includes downloadlinks for the following DSA Fact Sheets:

Industry Statistics
(Calendar year 2009 unless otherwise noted)
Estimated 2009 U.S. Retail Sales
Estimated 2009 U.S. Salespeople
Growth Rate – Sales
Growth Rate – Salesforce
Retail Growth Rate Comparison
Percent of Sales by Major Product Groups
Location of Sales
Percent of Sales by Census Region
Types of Direct Sellers
Sales Strategy
Compensation Structure

Salesforce Demographics
(* indicates data from DSA’s 2008 National Salesforce Survey)
Gender
Age*
Marital Status*
Education*
Time Spent on Direct Selling

And data from prior years from 2008 to 2000.

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