Colli Real Estate

Direct sales (like FHTM, Avon and Mary Kay) provide proof jobs recession

Not long ago, Craig Lapp earned his living by driving a truck that helped shape the soil of Southern California in the new developments. But then, home sales fell, and in November 2007 Company Construction Lapp let him go.

While looking for another job, Lapp began working with his wife, Lynne, a company based in his Temecula home by selling nutritional supplements made by the direct selling company Isagenix. Almost two years later, and no construction work in sight Lapp said a margin of time, became the couple's bread and butter.

Michigan real estate developer, Sherri Russell has seen its real estate agencies Development evaporate in a few months when the economy soured in Michigan and the unemployment rate skyrocket to 14% keeping prospect of reinstating the housing market anytime soon.

Sherri looked at a company Fortune Hi Tech Marketing (FHTM) offered by an estate agent and mortgage lender who had worked in the past. FHTM offers over 25 products for companies Fortune 500 such as Dish Network, Sprint, AT & T to name a few. FHTM has supported this single mother of 13-year-old son Kyle, "said Sherri.

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"It pays our mortgages, our car payments … put food on the table, "said Lapp, 55, adding that he and his wife earn a six figure income. "It was our" Plan B ", which became Our "Plan A"

Direct sellers home that rely on representatives to sell their products are seeing their sales force in growing with the increasing national unemployment rate at around 9% and those who lost their jobs and eggs to seek new ways to make money.

"We're recession-proof in the sense that more people come to us during the periods difficult economic extra income or replace a lost work, "said Neil Offen, president of the Association of Sales direct trade group that represents the largest direct selling companies in the USA.

Although the 2008 figures in the industry are not yet available, we hear stories that recruitment is ongoing and … Unfortunately, as the unemployment rate is 10% or more we meet more people who need to earn an income. "

Recession has become a recruiting tool. An Avon   cosmetics representative says in TV commercials "I can not superfluous. It is my business. Companies like Isagenix, a Seller weight management and nutritional supplements, and sandwiches, Manufacturer designs jewelry and Silpa as its representatives to the voice of the live auction can keep afloat the struggling economy.

"Currently, our direct sales opportunity is really the No. 1 products that we sell" said Geralyn Breig, president of Avon North America. In this spirit, Avon has this year launched its recruitment campaign the most ambitious and saw its sales force U.S. grow to more than 680,000 by March, its highest ever, Breig said.

The same month, Mary Kay Cosmetics company began broadcast its first television ad of the new representatives. In its first three days, visitors seeking information about becoming "consultants beauty "Mary Kay jumped 108%.

Drawings Silpa, a Lenexa, Kansas, the company specializes in silver jewelry Sterling said its sales force in the United States and Canada was 11.8% May 1 last year. And Chandler, Arizona based on Isagenix says its sales force was 30% in March from a year earlier.

The hope is that the large sales force to increase revenue, even in an economy that has slowed sales of many companies.

"Representatives and recruitment is an important indicator of future sales "Said Jerry Kelly, CEO Silpa, which recognizes sales for the private company has declined about 10% in the fourth quarter last year. "We are optimistic that our rates are very good this year as a company in a very difficult climate. … We see a more determined and focused representative who may be looking to supplement lost income for your family. "

There are about 15 million sellers direct the United States – independent contractors who sell goods or services primarily through games, demonstrations in someone's house and one-on-one interactions. In 2007, the latest year available, the industry generated sales of 30.8 billion dollars in U.S. sales, according to the Direct Selling Association.

Vendors are recruiting

Avon has made its first month last infomercial, and instead of promoting products for cosmetic or skin, go to new recruits. The company opened its TV ads before, with 30 seconds SPOT during pre-game show Super Bowl in February. This ad, 60 seconds and the infomercial will be aired throughout the year.

The cosmetics company is also going to job fairs this year, the exploration of new resellers in more than 140 events such Breig said. It has also strengthened their presence with the job search engines online, and since February has been a recruiting ad in front of each of their brochures.

"We are the most aggressive campaign of recruitment in our history …" Breig said. "It's part of our mission enable women to have a financial solution. "

That resonated with Elizabeth Leyba, a deputy director of office of a plumbing business who lives with his family in Munster, Indiana saw Leyba hours last year and needed a way to compensate for lost revenue, keeping your office work at home and busy.

In April 2008, after seeing an ad for Avon, decided to give it a try. In the years since then, she has found to be an entrepreneur.

"I do not know, and I am very happy that I am" said Leyba, 39, who has sold more than $ 10,000 in Avon products and expects to sell full time. "Although there is a recession, even if the economy going badly, my business has been growing.

Leyba Avon earnings have paid for everything from gas to 17 years, son images of high level. "I worked since I was 16 years and, you know, I like the fact … it is their own business," said Leyva. "I am master of my future now. Not the corporations."

Systems pay ranges, but especially the representatives to make money from commissions on sales or buying wholesale products and sell at retail prices, says the Direct Selling Association. Commissions on sales are typically 25% to 50% retail.

While representatives can also earn a small commission on sales representatives who have been hired, legitimate businesses do not use only as a basis for recruitment of compensation, the association said.

Denise Ruiz-Cabrera, 31, of Branchburg, New Jersey, has been almost five months pregnant, in March 2008, when lost his job as a recruiter for the company. I could not find a new job. "I spent almost every contact I had," he says of his research. Although he used Avon products, I never thought about selling until this year. She saw one of recruitment advertisements of Avon, and thought, "Why can not I do that?"

Knocking on doors of history. Sale direct representatives and find new customers through such methods as references, conferences and festivals, meetings spontaneous in the street and online. Ruiz-Cabrera is one that does everything.

"I kind of invented the term," Welcome to the 21st century-Avon "" says Ruiz-Cabrera, who has a personal website maintained by the company. She has brochures in the bag and baby stroller, product promotion Favorite in your Facebook page, and meets the new representatives who are employees in the Local Starbucks.

"I think people in these times, we are hungry as was the case, "says Ruiz-Cabrera, who both made $ 1,000 per month with Avon. "I had aligned in the pipeline that we've done because of the economy, and I focused all that energy into my business and I built something three months that seems very promising. "

Pensioners join the trend

It is not only those who have lost their jobs or suffered pay cuts that have turned to direct selling.

"We hear a lot of women who have recently graduated or are about to graduate and is proving a challenge to find a career, "said Rhonda Shasta, Director Marketing by Mary Kay. Then "is the other end of the age spectrum: women who are nearing retirement age, and I saw many their savings disappear, and they meet a very short term and the need to make lots of money. "

Lawanna Lloyd, 66, and her husband, Rodney, 69, retired in 2000. But after the fall of the stock market, Lloyd said he is now about half what they were only 18 months.

To make your retirement savings last longer, the husband of Lloyd's has returned to work chemistry last year of teaching in a private school in their town of Boerne, Texas. Then Lloyd, who was a housewife living through the most their marriage, decided he needed something, too. "Then I registered with Silpa" she said.

She is shocked that there was a need for her and her husband back to work. "It feels good," Lloyd acknowledged. "It makes life very uncertain and fear. … Who wants to go back to work? "But he did more than 500 pieces of jewelry in his early April, and he loved receiving them.

"I Silpa think not provide the ideal solution to save money and be able to set my own agenda, "she said. "We decided we were going to do something … to earn income by four or five years and see where we're here. Hopefully by then, the market recovery and we want it can still retire. "

Joseph Kim, 26 Stewartsville, New Jersey and received his Master of Public Health in 2006, but he struggled from finding employment in their field. He worked for his sister as a babysitter before getting a full time position as an account manager with business marketing solutions.

Last June, decided to begin selling Mary Kay Cosmetics in the side, partly to earn extra money for Upcoming marriage. It now intends to abandon a career in public health and, ultimately, selling line of makeup full time.

"I saw how being a consultant gives me space to improve women's lives, "said Joseph, adding that the sale of Mary Kay also offers the freedom to spend more time with her husband, without crimping their family income.

Area of direct selling is a fluid, with only 10% of representatives working "full time or at least 30 hours per week. Many work long enough to achieve short term goals, such as Christmas gifts.

However, some who work in or watch industry believe that the severity of the recession may cause more vendors to follow, even when the economy recovers, at least as a means of complementing their income.

"I truly believe that this thinking has adjusted people," says Kathy Coover, Executive Vice President and co-founder Isagenix. "With this economy, people can not make their jobs safer. They must be another alternative … So if something happens, it their safety valve.

Sherri Russell, Michigan real estate development has seen his business FHTM rising rapidly in recent months has effectively used the media to social networking sites like Facebook and Twitter to build teams in FHTM across the United States and Canada. I teams as far away as Hawaii, Canada and Pennsylvania and Texas, Sherri said.

About the Author

Brent Vanderstelt is owner of Hess Lake Vacation Rentals in Newaygo Michigan, visit http://www.hesslakerentals.com. Brent has also started a free vacation rental listing service, http://www.ytbvacationrentals.com and also has a popular vacation blog at http://myytbtravel.blogspot.com

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