As the economy shrinks and more Americans lose their jobs, some people are turning to direct selling to bring in a little extra cash. And, in this case, what’s good for the consumer is very good for the seller.
“For most people, direct selling is a part-time endeavor, a supplement to an already existing income,” says Amy Robinson, vice president of communications and media relations at the Direct Selling Association, a national trade group representing more than 200 companies. “It’s a couple hours per month, and in a tough economy, it offers a little extra padding to their bank account.”
Those couple of hours can add up. In fact, direct-selling revenue tends to reflect the economy, except during recessions. According to the Direct Selling Association, the direct-sales industry operates at 5% higher growth than gross domestic product when the economy contracts.
One direct-sales company that has more than doubled revenue and the number of its consultants during 2008 is LMS Fragrances. The 4 1/2-year-old company is adding 100 to 150 consultants a month, bringing the number to about 2,500. LMS Fragrances aims to triple its consultant base in the next year.
Logo from Direct Selling Association.