If you're desperate for a job, beware of the siren call of the likes of Mary Kay, Avon and Amway
Filed under: Entrepreneurship
Multi-level marketers like Mary Kay, Avon and Amway have been recruiting new associates from the ranks of the laid-off with promises of "unlimited income" and a job that can't be outsourced. The Dallas Morning News recently reported that "Mary Kay is reporting a significant increase in the number of independent beauty consultants joining its sales ranks. Avon, another at-home makeup sales heavyweight, is also seeing a jump – as are other direct sales companies, which rely on independent workers to sell their products."Puff pieces about the opportunities offered by direct selling are everywhere right now, but just how good is the opportunity? The financial results of direct selling companies tell a very different story:
- This morning, Avon Products reported that "First-quarter revenue in North America declined 11% (10% in local currency). . . Although Active Representatives were flat with the prior-year quarter, the company's recruiting efforts gained traction through the quarter leading to 51% growth in Representative additions in March." More recruits chasing fewer sales can only mean one thing: fewer sales per representative.
- Usana Health Sciences, which sells vitamins and other health-related products through a multi-level marketing structure, reported that "During the first quarter of 2009, net sales in North America decreased by 10.2% to $55.9 million, compared with the first quarter of the prior year"
- PinkTruth.com reported that the ranks of Mary Kay distributors fell by 14% in 2008.
Reader Comments (Page 1 of 1)
5-05-2009 @ 2:58PM
justin said...
everyone should just give up right now!
dont try anything new.
do not even attempt to succeed at selling anything.
just sit at home-wring your hands and watch the news while the world burns.
you will never make a success out of your worthless existence
so why try to change the inevitible?
give up now!
just collect your unemployment checks and when that runs out
get on some kind of welfare program.
nobody likes you.
we all feel sorry for you- poor loser.
good luck out there but hey- why try?
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5-15-2009 @ 4:26AM
jz said...
Got the Entrepreneurial Spirit and Prosperity Mindset? Want the lifestyle without having to reinvent the wheel? Donald Trump & Robert Kiyosaki say they'd join a Network Marketing Company to build wealth quickly. Well this one's got a 7 yr proven track record and still hasn't even tapped the hugely expanding market. If you're looking for a FUN business, with an already in place product/system/marketing program, high profits, low start up, that requires no selling, no shipping and minimal hours of your time, Call 800-934-3473 Ext. 6831 Not an MLM.
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6-03-2009 @ 7:19PM
Cori said...
"...remember that the problem is that the products sold by so many of these companies -- cosmetics, vitamins and supplements, high-end cooking gadgets, etc. -- are highly discretionary and therefore hurt by the same downtrend in consumer confidence that effects traditional retailers." Actually, this isn't true, at least as far as cosmetics are concerned. Let's face it; women generally pay the bills in the household, whether with money they earn or the money their partners earn. Cosmetics are something that women will always find a way to buy. We may not be able to afford a new dress or a vacation, but makeup is something that makes us feel good, and we can afford it on even the tightest budget. So when the economy takes a turn for the worst, cosmetic sales actually jump, as the Mary Kay business records can prove.
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7-16-2009 @ 1:23PM
Jennifer Camara said...
It's true that cosmetic, vitamin, and cooking companies may be seeing a decline in sales during the recession, but that's not the case with adult home novelties! I'm a Goddess with Athena's Home Novelties and we've actually seen an increase in sales during these tough times! People are looking for a way to stay home and have fun when their budget is low. So many people are looking to spice up things in the bedroom! I absolutely love working for Athena's and I've only just started!
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