By Dan Mitchell, MLM Blog Correspondent
The last time we saw such a boom in Direct Sales it was 1990. Does that mean we can expect a new hit from Roxette soon? Listen to your heart indeed!
Check this out from Blogging Stocks:
In order to keep income trickling in, companies the likes of Avon, Mary Kay, and Tupperware are seeing a flux of salespeople — including professionals forced to take a second job thanks to the recession.
Becke Alexander, the sales manager for Avon, noted that she hears from laid-off bankers and stay-at-home moms every week, but the company is seeing a recent boon from "gainfully employed people worried how long they'll stay that way." In fact, Alexander said, "There are no hobby seekers coming in here. It's people with a legitimate need." This pop in makeup peddlers stems directly from the current economic crisis, but not just from unemployment. A common complaint is that bonuses have disappeared, as have hours, which have forced people to turn to direct sales to make up some cash.
This increase in direct sales representatives has happened before, with the 1990 recession leading to an 8% increase in Americans participating in such sales to 5.1 million. During the next major recession (2001), the direct sales work force increased to 12.2 million. In 2007, the estimated number of Americans involved in direct sales increased to 15 million — figures for 2008 are not available yet.