Jun 23, 2009 11:50 pm US/Eastern
Direct Marketing Industry Thrives In Recession
Many Women Turn To At-Home Sales For Extra Money; Silpada And Mary Kay Among Manufacturers Booming
NEW YORK (CBS) ―
With the economy in a slump and unemployment at an all-time high, many women are trying to make extra money at home.
Enter Shannon Bambara.
Bambara was laid off earlier this year and found herself in dire need of money. She then turned to the time-tested business of selling goods from home, becoming inspired by the old concept of a Tupperware party to begin selling jewelry for the Silpada Company.
"An average Silpada party retails about $950," Bambara said. "I take home 30 percent of that, which would be around $285, and typically, that's only in a one-hour period."
The Direct Marketing Association said Bambara's job is not a new one, with women since the 1950s often looking to home parties in hopes of filling the income void brought about by an economic depression.
But Amy Robinson, a representative with the Direct Selling Association, believes more product manufacturers than ever are currently jumping on the direct sales bandwagon.
"Some of the things that are sold through direct selling that you might not initially think of include pet supplies, scrapbooking supplies and organic gardening," Robinson said.
The average part-time seller typically earns $200 per month, but Robinson added that those looking to sell full-time can make up to six figures. She also believes some sellers are motivated by more than just money.
"You have people who are interested just in the social aspect of it," Robinson said.
Another successful manufacturer in the direct marketing industry is Mary Kay Cosmetics. Employee Rhonda Shasteen said the company's sales have not taken a hit, in spite of the recession.
"A woman may not be able to go out and spend $100 on a new dress or new leather handbag, but she can certainly afford – and will spend – $13 or $14 on a lipstick," Shasteen said.
New Yorker Nicole Robinson cited Mary Kay's success, as well as a need for extra income, when explaining why she decided to join its team.
"I decide when I'm going to hold appointments, when I'm going to make my extra money, how much I want to make," she said.
But Nicole Robinson cautioned that potential sellers should thoroughly investigate any manufacturers before agreeing to sell.
"(Ask questions) including, 'what does it cost to get started?' (and) 'Is there a buyback policy if you decide the business isn't for you?'" Robinson said.
In addition to the pay, many companies also offer their representatives free merchandise, employee discounts and even compensations for recruiting new members.
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