Skip to Content

Is direct selling your ticket out of the recession?

More
Text SizeAAA

Filed under: Entrepreneurship, Career

The New York Times reports that interest in the direct selling business is booming: "In February of last year, 24 new sales consultants joined Stella & Dot; this February that number is 160. The number of new sellers at Lia Sophia, another jewelry company, is up 26% from January-February 2008 to 2009; the number of sales consultants at the Cutco Corporation, a manufacturer and direct seller of high-end kitchen cutlery, was up 20% this January over last."

It's easy to understand why. With unemployment soaring and portfolios in the toilet, people are looking for extra sources of cash. And because direct sales companies generally pay entirely on commission, you will always be able to find a job in these industries. Whether you can make any money is a different question, but it does at least offer a chance to get out there and try to kill your dinner instead of heading to the soup kitchen.

There are a few things to keep in mind: To avoid pyramid-like multi-level marketing schemes, try to find a company where the emphasis is on the retailing of product to end users rather than on the recruitment of additional people who are looking to make money.

Also, try to find a company that offers a product that is recession resistant: Most products offered by direct selling companies are highly discretionary. If you're in an area that's been hit hard by tough times, consumer demand for products like costume jewelry and high-end cutlery might be too weak to make it a viable business.

One idea: With more people cutting back on maid services and spending more time in their homes without spending lavishly on remodeling projects, the well-respected Fuller Brush Company might be a good option.
Subscribe to Walletpop

Reader Comments (Page 1 of 1)

Vote Now For the Readers' Choice Best in Food Awards
Nominations have been received and vetted for the best-of-breed in gourmet grocers, online gourmet ...
Zingerman's Bakehouse: Artisan Bread and Pastry from Ann Arbor
Zingerman's Bakehouse of Ann Arbor, Michigan, is nominated for a Luxist Award in the best bread ...

Jason Cochran
Jason Cochran Filed under: Bargains, Extracurriculars, Transportation, Travel, Celebs & Money

On board the new Oasis of the Seas: Is it worth the money?

So here I am, writing this from off the coast of Florida as part of the first two-day preview cruise of the magnificent Oasis of the Seas. Royal Caribbean has launched the largest cruise ship in the ...
Geoff Williams
Geoff Williams Filed under: Credit cards

Citigroup holds its customers hostage

Across the nation, Citibank credit card holders are receiving what pretty much amounts to a ransom note: We're going to raise your rates, says the letter, in so many words, but if you spend more ...
Bonnie McCarthy
Bonnie McCarthy Filed under: Budgets, Kids and Money, Saving Money, Technology

Family budgets: Make movie night safe again with family-friendly review sites

Around my house, we don't make the decision to pile into the car and head over to our local Cineplex as easily as we once did. It costs a lot of money these days to see talking animals, wild things ...
Madhusmita Bora
Madhusmita Bora Filed under: Transportation

Shop the friendly skies? The airlines are hoping you'll buy while in the sky

Along with sandwiches and soda, you may one day be able to buy tickets to Lion King and Animal Kingdom while cruising 35,000 feet above ground. A New York Times story reported that the airline ...

Headlines from WalletPop Partners