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Direct sales, or network marketing as it's known today, offers promising career and financial opportunities. That's why more women are entering the field, especially in these trying economic times.
Direct sales has evolved over the years, moving well beyond stay-at-home moms earning a few extra bucks via home parties. The current business model, now usually referred to as network marketing, offers serious careers and equally serious income possibilities.
One thing hasn't changed, though. As with the Tupperware parties and door-to-door Avon offerings of past generations, today's sales opportunities are being embraced primarily by women.
Of the more than 15 million people in direct sales, most are women. The format allows a flexibility and control that especially appeals to mothers, whether married or single parents, who still have primary care responsibilities for their children.
The latest economic downturn also has made the direct selling model more attractive. Some sales representatives have joined the industry after leaving or losing a job. Those who are still employed see the businesses as a way to add to their income.
Making Their Own Way
Natalie Gauci has been a national vice president for Arbonne (natalie.myarbonne.com) for four years. It is now her primary, and very successful, career.
But when she started with the Swiss skin care company 15 years ago, Gauci said it was "more as a Plan B for my life." As with many women, and many who join the direct sale ranks, she shifted career gears because of divorce.
She had been selling Arbonne for years, but with the change in her life decided "this is what I was going to do and I mapped out a plan to support my son and pay my bills."
As her position with the company indicates, Gauci has flourished. In fact, it only took her nine months from the time she focused on Arbonne as a career to reach the regional vice president level (and earn the company car, a white Mercedes-Benz). Two years later, Gauci was named to her current national post.
Meanwhile, Gauci remarried, and her husband is now part of the business, too. "I built the business to a certain place and when it started growing, one person couldn't do all of it; I would have had to outsource certain things," Gauci said. "My husband found that he had skill sets that benefit the company."
"I don't want people to think that
it doesn't take work, it does," she
added. But unlike a traditional job, Gauci can work her business around her family, which now includes two children.
Leslie Roan's route to direct selling success was similar. As a sales director with the legendary Texas cosmetics company Mary Kay (marykay.com/leslieroan), Roan got into the beauty business because of a life change.
She had held lucrative jobs in the telecommunications field, but the shakeout in that industry, and an approaching "big 0 birthday," prompted her to seek "something I can do for the rest of my life and whatever that is, I want to love it." The freedom and flexibility of a direct sales representative was the initial attraction, said Roan. Now, however, she most appreciates the transformative power of her career.
She's talking about the physical changes a Mary Kay makeover provides, of course; one sign in her office proclaims that "lipstick fixes everything." But Roan also has seen many of her clients, with whom she spends as much time talking as applying makeup, change their lives once they achieve a new confidence thanks to their new looks.
That transformative power also worked for Roan personally. "I used to be very shy," she said. Now, as a director, she embraces the leadership opportunity and delights in offering direction and advice to other Mary Kay representatives as they build their own businesses.
"This is about relationships," said Roan. "Network marketing gets a bad name from those who go into it just to make money."
A Satisfying Sideline
That said, money is there to be made. Roan echoed Gauci's assessment that when you treat direct sales as any other business – set goals, map a business plan, be focused and disciplined – you can succeed at a very high level.
Or, if you prefer, your direct sales experience can be lower key.
Donna Daugherty is the owner of Redzia Consulting, a strategic planning firm that works primarily with nonprofits. She also sells Silpada jewelry (silpada.com).
"The great thing about Silpada and any kind of direct sales is that it's your business," said Daugherty. "You can take it to any place you want to. You can fit it into your lifestyle."
Right now, the jewelry business is secondary. "I just have fun with it. I love it. I love the jewelry and meet a lot of people through it," said Daugherty. "It's a good networking opportunity."
A newer entrant in the direct sales jewelry sector is Stella & Dot, for which Lauren Halpern (stelladot.com/laurenhalpern) is an independent stylist. Like many women in the industry, mom Halpern appreciates the business model's flexibility.
She also likes the way she can integrate her other professional training into the business. "It uses both my public relations and event planning skill sets and I'm having so much fun with it that right now it's my main focus,"
said Halpern.
What drew Halpern to Stella & Dot is its decidedly independent approach. "The company is still small enough and entrepreneurial enough that they're really letting women make the most of their businesses," said Halpern. "You can really develop the company as you see fit. If I see opportunity, I can chase after it."
The More
Things Change
The way to sell is as different as each product and company representative. While cosmetic and skin care consultants tend to meet clients one-on-one, traditional parties are still popular.
Nowadays, though, instead of afternoon get-togethers while the kids are at school, evening events with wine and snacks are de rigueur, thanks to changing times and dads who are willing to watch the children for a few hours.
At a recent trunk show for CAbi apparel (cabionline.com), 10 women gathered in a northwest Austin home to become Austin's Top Model for the night. The hostess' master bedroom became the fitting room and the hall transformed into a runway for the clothing line's fall collection.
Amid the "dressing by committee," wine and laughter flowed. It definitely was a much more relaxed, and entertaining, experience than shopping at the local galleria.
Pros and Cons of Independent Sales
The pros of network marketing are plenty.
You are in charge of your schedule and how much effort you want to put into the business. It takes a minimal investment to get started. Most companies require a $200 or less start-up fee, though you might also incur product purchase costs. You have little overhead. You get guidance and training from the corporate home office.
However, remember that it a business and that means work. If you aren't committed or don't have the time, you likely will not make much money. Also beware of the "employee discounts." If you're not careful, you can easily spend any profits on products for yourself (unless, of course, your primary motivation is to get those discounts!)
Do your homework. Learn about start-up fees, costs of doing business, average earnings, return policies and anything else that may concern you.
Choose to sell a product or service that you use, enjoy and believe in. More importantly, choose a reputable company. Check the Direct Selling Association website (dsa.org) to see if the company you are considering is a member. If it's not, it still may be a legitimate opportunity, but you'll have to do a bit more research to make sure the company has policies in place to protect you and your customers.
S. Kay Bell's book, The Truth About Paying Fewer Taxes, is now in bookstores, just in time for filing season. In it, Bell offers readers 52 truths about how they can find tax savings in our complex tax code.