Tuesday 30 August 2011

Modesto area women find direct sales a way to make ends meet


If it weren't for direct sales, Gwen Schmitt's roof would still leak. Jane Gonzales' son wouldn't go on his senior trip. And Cristina Mixon wouldn't have been able to visit family in Washington.
That's because these three women, all from the Modesto area, are making extra money selling things in their spare time. They're just a few of an increasing number of people turning to direct sales — selling products to consumers face-to-face — in today's slumping economy.
Think Mary Kay, Pampered Chef, Avon. Then consider the area's high unemployment, foreclosure rates and those who have endured pay cuts.
These folks need cash, said Carmen Ahlborn of Turlock, a Mary Kay representative who seeks out women to sell the company's products.
"We're recruiting more women because of the economy," said Ahlborn, who recently returned from a Mary Kay convention in Dallas, where company officials said their sales force is growing.
Nationwide, the number of people selling products directly to customers has increased to 16.1 million in 2009, the latest year for which statistics are available, according to the Direct Selling Association. Compare that with pre-recession times: 11 million people were in direct sales in 2000.

Covering high expenses

Some use the money they earn for basics, such as food and rent. But others, including Schmitt, use it to pay for things they can't afford in this economy. Prices are increasing for most everything, from groceries to gas to college tuition.
Schmitt, 52, knows about rising expenses. A school librarian from Oakdale, she started in direct sales a year ago, about the same time her daughter's college — California State University, Northridge — raised fees 32 percent.
"We just did not have the money," she said. "She had to take out another student loan."
Schmitt works with a company called Take Shape for Life, getting paid to guide people through a weight-loss and wellness program.
It's something she believes in — she lost 52 pounds. It's also something that brings in extra income — to the tune of $3,000 per month.
Schmitt was particularly thankful for the cash this past winter, when her roof started leaking. She also used the money to pay her daughter's tuition this semester.
"It made me cry to be able to do that," she said.
Mixon, a single mother of a 16-month-old, also wanted to do something more for her daughter. She's a medical esthetician and has seen a decline in business.
"People are not coming in to get facials and skin care like they used to," the Modesto woman said.
So Mixon, 33, turned to direct sales. She tried a few companies, but didn't make the amount of money their representatives told her she would.
Her advice to those thinking about direct sales: "You really should take a good look at the company. Do your homework. Do people actually get the money they are promised?"
Mixon finally found her calling selling "the shake that tastes like cake" as part of a healthy living program for a company called Visalus. She figures she's made about $7,500 since she started in February.
Like many people in direct sales today, Mixon still works her day job. But she feels more secure with the extra income. She uses some of the money she makes to pay for things she wouldn't otherwise have been able to afford, such as travel. She recently took her daughter to meet relatives in Washington state.
Money for child-related expenses is a big reason mothers — 77 percent of the direct sales force is married women — try direct sales.
Take Jane Gonzales, a 47-year-old married mom from Riverbank. She's a speech pathologist working for a school district. Her husband is a teacher. The couple has three children, including a son, Caleb, who just started his senior year of high school.

Extra cash goes a long way

The school district the couple works for recently cut her pay by 2.5 percent. But Caleb's senior year expenses, such as his senior trip and college applications, didn't decrease.
Gonzales got into direct sales by chance, when she was invited to a party where a friend was selling skincare products and makeup from the company BeautiControl. She soon realized she, too, could join the company to make money to buy things for her kids.
She earns $150 to $600 per month, depending on how many parties she holds.
"Every month when our salary money begins to run out, I remind my family to thank BC (BeautiControl)," she said.
Bee staff writer Kerry McCray can be reached at kmccray@modbee.com or (209) 578-2358.
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