No! Not Another Article About How Great Direct Sales is, Especially in This Economy

I’ve mentioned before (See this previous article) there have been numerous stories in magazines, newspapers, and on the television talking about how lots of women are flocking to the direct sales companies given the downturn in the economy.

Yesterday, I picked up my newspaper only to find yet another article about companies like Mary Kay and AVON seeing an increase in their sales forces.

Mary Kay rolled out a new ad campaign in March to try to recruit new consultants. According to this latest AP article, Rhonda Shasteen claims that the traffic on the Mary Kay website increased by 108 percent during the month of March.

Every story I’ve read or seen is always the same. So-and-so was laid off and then decided to sign up with XYZ “direct sales” company and at her first party made $2000. Something like that.

And what a great option direct sales is, they point out. An extra fun job where you can make some extra money.

But here’s what I want to know: Who is going to buy all these products? All these women are signing up to peddle these products, to make some extra money in this lackluster economy, but who is going to be their customer?  You need CUSTOMERS to make any money selling. As more people sign up to sell these products, there are now even more consultants competing for the same customer.

Another thing these articles never mention: These products aren’t cheap. As people are being more frugal, I doubt that they are inclined to pay $13 for a lipstick or $15 for mascara when they can find comparable or better products at the drugstore or Wal-Mart for half that or less. Besides price, the selection at the stores is phenomenal…and you don’t have to deal with a sales person calling you every other week to try to get you to hold a party or invite you to a “girls’ night out” recruiting event.

What burns me is that these stories never mention the expenses, or if they do, they gloss over them. I’ve never seen any mention of the pressure that Mary Kay recruiters exert on new consultants, trying to convince them to shell out thousands of dollars on initial inventory. Never.

The problem is that the people writing these stories know NOTHING about what they’re writing about. And thus, the picture they paint is distorted and incomplete.

Beware: Stories Recommending MLM Companies Are Everywhere Given This Economy

In just the past few weeks I’ve come across more and more stories in the media regarding starting your “own home business.”

First NPR glorified Mary Kay.

Then just recently, All You magazine did a several-page spread about it.

Apparently people are considering joining these companies because of the tough economy in hopes of making some extra money. Unfortunately, the likelihood is greater that they will add to their debt rather than aleviate it.

And I wonder…had anyone stopped to think about who might be buying these frequently overpriced products from these new “consultants?”  With most everyone being cautious with their spending and many losing their jobs, just who is buying all this Mary Kay and candles and jewelry and superduper juices that these companies hawk?

Another Message from Someone Who Thinks We’re MK Inc.

It’s always entertaining when we receive messages from visitors who think they’ve reached the official Mary Kay site.  I thought this one was particularly fun.

For 28+ years I have been a faithful Mary Kay consumer. Placing my last order a couple of months ago enlightened me to the fact that I can longer purchase your products. I realize that the economy has affected us all and most products have taken on a “they won’t really notice” agenda.

Well, I’m not in that “stupid” category of consumers, after all the years of using your products, that I could not see that you have drastically reduced the size of most/some products (eye shadow pallets while also changing the compact so the old ones do not fit). I realize we all have to downsize but, come on, this is a little too much to bear. It’s a shame as I really did enjoy being able to order a product I liked and not having to go into a store, but… your prices/sizes in today’s market outweighs my option to stay at home and shop! Thanks for the good years.

I hate to tell this person, but I doubt MK Inc. cares.

Mary Kay Lipstick Sales Up In Tough Economy

See? Just like your Mary Kay director told you.

Even when the economy is iffy, women buy lipstick.

Mary Kay Inc. reports that lipstick sales for the first six months of 2008 is up 60% over the same period in 2007.

“That tells me that more women are buying lipstick during these tough economic times,” said Rhonda Shasteen, Mary Kay’s senior vice president of corporate brand strategy.

“A woman needs something positive to brighten her day, and a $10 or $15 lipstick will do that,” she said.