Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 8, 1993 TAG: 9304080355
SECTION: NEIGHBORS PAGE: S-2 EDITION: METRO
SOURCE: By RANDY WALKER SPECIAL TO THE ROANOKE TIMES & WORLD-NEWS
DATELINE: LENGTH: Long
DIRECT SALES CAN GIVE DIRECT CONTROL OVER JOB, LIFE
Vickie Fields found it hard to balance the demands of child rearing with her full-time job as an administrative assistant at a Roanoke bank.When the bank cut back her hours, first to 24, then to 16, she could have looked for another job to replace the lost income. Instead, she abandoned the traditional workplace altogether and became an independent sales representative for Contempo Fashions.
"I had a baby, and I was wanting something to do so I could be a housewife and stay with my baby," said Fields, who lives in Troutville with her husband, David, and son, Anthony.
"I wanted something where I could stay home in the day and work in the evening and hold shows."
Since quitting the bank in June 1992, Fields has taken care of 3-year-old Anthony during the day and sold Contempo at night. She has enrolled 21 new sales consultants and earned trips to Hawaii and the Bahamas.
As for the money, she said, "I tell people you can make as much or as little as you want. Me, I like to go out and hold shows and make a lot of money."
Nationwide, the number of people in direct sales rose from 4.7 million in 1990 to 5.1 million in 1991, according to the Direct Selling Association. In 1991, the industry amassed $12.96 billion in retail sales. The largest direct-sales company is Avon; others include Mary Kay, Tupperware, Contempo, Princess House, Shaklee, Encyclopaedia Brittanica and Amway.
While each company has a slightly different organizational structure, each relies on independent sales representatives, 88 percent of whom are women.
The independent sales representative is essentially a self-employed entrepreneur, running her or his own small business.
"That's the neatest thing about direct home sales," said Donna Turner, who sells Princess House glassware. "I manage my own time, do my own taxes, pay my Social Security, the whole nine yards."
Turner, who lives with her mother in Roanoke, got into direct sales as a means of supplementing the income from her job as a Kmart office manager. She began selling Princess House in January 1992 to meet a particular financial goal, then decided she liked having some extra money around.
The sales technique Turner uses is the home party. In exchange for free crystal, a woman will agree to host the party and line up guests. Turner does her presentation and takes orders from the guests. Often, one of the guests will volunteer to host Turner's next show, thus continuing the cycle.
The home party technique was first used by Stanley Home Products, now Stanhome Inc. Brownie Wise, who brought the technique to Tupperware in the early 1950s, and Mary Kay founder Mary Kay Ash both started with Stanley Home Products.
The classic direct-sales technique - door-to-door selling - is no longer in tune with the times.
"In the past most of our selling was done person-to-person in people's homes," said Carolyn Aishton, director of sales, public relations for Avon. "Now because so few women are at home, more selling is done in the workplace, which accounts for probably one-third of our sales."
Avon representatives obtain permission to sell before work hours or during lunch, Aishton said.
The fact that more women are working actually has helped the cosmetics business, said Ann Whitlock, a senior director with Mary Kay Cosmetics in Roanoke. "Cosmetics are a necessity for women, unlike 25 years ago. More women work now and have to look good. Even if they're not into a lot of makeup, everyone needs skin care."
Even men use skin-care products, said Carlotta Eaton, a personal-image consultant based in Floyd. "We find that men in the '90s, either in management or sales, are looking to us to help them be better performers on the job."
Eaton, who sells the products of Dallas-based BeautiControl, Inc., said the recession of the 1990s has actually helped her business.
"In this day and time people are looking for an upper edge on getting a job."
Most direct sellers interviewed for this article said that the recession has helped, or at least not hurt, their business.
"In our business, historically speaking, during times of recession, sales have gone up," said Larry Hall, director of media relations for the Longaberger Co., a basket manufacturer based in Dresden, Ohio. "We think it may be because people may not have the money to remodel their home or redecorate their home, but they can and do spend money for some smaller accessory pieces to spruce things up, but that's only speculation."
Working women can't do without cosmetics, said Whitlock, the Mary Kay director. "We sell a consumable product; they use it up and have to have more."
Individuals looking for new income opportunities may find that it costs much less to start a direct-sales business, compared to most other types of businesses. The average direct-selling starter kit costs $90, according to the Direct Selling Association, but costs vary depending on the company.
The $10 investment required of Avon representative includes a small number of samples, Aishton said. "Then you can decide if you want to invest in demonstration products."
The starter kit for Longaberger Baskets costs $385 and includes "a good sampling of merchandise and a multimedia training program," Larry Hall said.
Most Mary Kay representatives start with an investment of $600 in inventory, Whitlock said. "Where can you start a business for that?"
The payoff on the investment depends on how hard you work.
Tupperware consultants typically earn $7 to $12 per hour, said Lawrie Hall, director of external affairs for Tupperware. Turner, the Princess House representative, estimates that she makes $18 to $22 per hour.
In most direct sales programs, representatives can earn more money by enrolling new salespeople. Turner, for instance, will get 3 percent of all sales made by her new recruits for a period of one year. BeautiControl consultants get 4 percent to 20 percent of each recruit's sales, Eaton said.
By recruiting new representatives and meeting sales goals, independent sales consultants can move up in the organization.
According to Whitlock, the rungs on the Mary Kay ladder, and the accompanying recruiting requirements, are as follows:
Beauty consultant (entry level).
Red jacket; three recruits.
Team leader; five recruits.
Team manager; 12 to 30 recruits.
Director; 30 recruits.
Senior director; must have graduated at least one director.
As Mary Kay representatives move up the ladder, they are rewarded with prizes and company cars. Since she began selling Mary Kay in 1971, Whitlock has had seven company cars, including one of the famous pink Cadillacs. She currently drives a pink 1993 Grand Prix.
Whitlock points out that no one is pressured to meet sales or recruitment goals. "It's up to that person what she does with the business - there's no one to hold you back or push you into something you don't want."
Sales representatives are free to set their own goals, which aren't necessarily financial in nature.
"Some people have plenty of money, but they need the recreational outlet," Whitlock said. "Some people get into it because it's a positive way of life."