Direct-sales businesses boom as economy lags

By ALLISON BOURG, Staff Writer

When Cristina Prince's husband was laid off from his IT job last fall, the Pasadena woman turned to Tupperware.

The Severna Park Elementary teacher held her own Tupperware party and was initially motivated by the promise of free merchandise for party hostesses. Then Prince started thinking that maybe she could start selling the kitchen accessories and compensate for some of her husband's lost income.
"I wanted to pick up the pieces from his not having a full-time job," she said.
She said she spent about $100 for a startup kit, which included product samples, and started booking parties with her friends and family members. Her husband landed a new job in January, but Prince kept on going with Tupperware. She sells the merchandise at about three parties each month and said the extra cash funds her daughter's tuition at the Community United Methodist Church's preschool in Pasadena.
Tupperware and businesses like it attract a lot of people who are seeing wages at their day jobs remain stagnant, Prince said.
"People aren't getting their raises anymore, but things are getting more expensive," Prince said.
As the economy remains soft, people like Prince are turning to an alternative line of work - home-based direct sales, which allows them to earn extra cash while making their own hours. There are dozens of these types of sales businesses out there, hawking everything from jewelry and beauty products to kitchenware and home accessories. Most follow a similar business model.
Sales consultants, often women, mainly sell their products through demos at home parties. They can increase their commission by recruiting others to sell the items, building a team of consultants.
It's relatively easy to start a home-based sales business, which has made them popular, said Amy Robinson, chief marketing officer for the national Direct Sales Association. About 200 companies belong to the organization.
"You don't need a lot of overhead," Robinson said. "All you need is to go out and start selling the product."
Such businesses have also fared well during the recession. In 2009, retail sales fell around 9 percent, according to DSA's statistics; direct sales fell as well, but only by 4 percent. In 2010, direct sales actually rose slightly, from $28.33 billion to $28.56 billion.
"During a recession, people are spending money, but they're spending it a little bit differently," Robinson said. "A woman who maybe buys a $200 suit every season may decide to buy a $25 necklace to accessorize what she already has."
People are also looking to stay home and socialize there, rather than going out and spending more money.
"We like to say (direct sales) is the original social network," Robinson said.
From 2008 to 2009, the number of direct sellers jumped from 15.1 million to 16.1 million, before falling slightly to 15.8 million sellers last year.
"That was still an increase right at the height of the recession," Robinson said.
Angela Nassar of Annapolis, who has been selling Tupperware for 23 years, got Prince hooked on the company.
Nassar, a legacy executive director with Tupperware - she helms a team of 140 sales consultants and sales managers - said the company "is definitely an opportunity for people in this economy."
"We are always hiring," she said.
Start-up kits for the business can range from $85 to $125, but anyone who wants to sell can purchase a kit for as little as $5 down, then make payments, Nassar said.
Nassar got into the business when she was a stay-at-home mother looking to make money, but work flexible hours. She ended up loving it, and making a good living, too.
"I put four kids through Catholic school and paid for five sets of braces," she said.
With home-based sales, you can make your business as big or as small as you want, Nassar said.
"Its's not for everyone, but it's for everyone to try," she said.
Rachel Frentsos of Annapolis became a consultant for Arbonne International, a line of all-natural skincare products, about two years ago. She and her husband are both Realtors for Long and Foster Companies, and they wanted to diversify their income, Frentsos said.
"With real estate, your business can go up and down," Frentsos said. "Our real estate business has been fine, but we wanted to be able to have two different income streams."
That's attracted a lot of people to Arbonne and other direct sales businesses, she said.
"A lot of women, their husbands work, and they want a Plan B," Frentsos said. "If you work for someone else, there's no guarantee that you'll have a job the next day."
Krystle Castro, a stay-at-home mother of two from West River, started selling Silpada jewelry a little over a year ago. Her husband travels a lot for work, and she felt her employment options were limited if she wanted to stay home with her children.
"But I wanted to do something," Castro said.
She uses her Silpada income to pay for extras for the family that they might not otherwise be able to afford, including a trip to the Great Wolf Lodge water park and a vacation to Disney World next year.
"A lot of people do it because they're stay-at-home moms, and they're husbands aren't getting raises," Castro said. "These days, it's important to have those two incomes."
Angela Brill of Severna Park became a Silpada consultant about four months ago. Like Castro, the mother of three uses her income to help buy little luxuries for the family.
"It's a huge help," Brill said. "With things being rough out there, a lot of people have to cut out the small things, like getting your hair done or your nails done or taking day trips. This enables us to do those things."

Home buyers hit as builders demand 30-60% payment in black

By Kishore Rathod | Place: Mumbai | Agency: DNA
At least a hundred new buildings are at different stages of completion off Chembur’s Central Avenue Road. And more than the selling price quoted by the builders, it’s the demand for a high ‘black’ component that’s deterring buyers.
The going rate in the area is upwards of Rs15,000 per square foot, with the average 2BHK apartment costing almost Rs2 crore. This means a cash payment of at least Rs60 lakh for the home buyer. “The builders are demanding at least 30 per cent, and up to 60 per cent, of the payment in black,” says Chembur-based estate agent Dilip Hajwane.
“The land itself is bought with a huge amount of black money, setting off the entire chain of unaccounted transactions,” says housing expert Chandrashekhar Prabhu.
From part of the basic cost of the apartment, to the car parking charges and extra amenities, a good percentage of the deal is settled in cash. “The higher the cash component, the better is the rate you can negotiate,” says Hajwane, adding that the cost of the flat can vary by as much as 10 per cent, depending on the percentage paid in cash. It’s not only builders and brokers who prefer cash payments; even home loan companies encourage the system.
“The black component ends up being the cushion for home loan companies, who have to extend a loan only on the lower agreement value, though the flat mortgaged with them has a much higher market value,” says an industry observer. He adds that home loan companies even facilitate the black component by inflating the loan amount.
This is done by throwing in add-on costs for interior decoration, furniture, and fixtures, knowing that the customer will convert the amount into cash to meet the builder’s obligation.
While the builder manages to evade the tax man, it is the home buyer who has to bear the brunt of the parallel economy. “Not only did I have to convert my white money into black to make payments to the builder, I also had to forego the opportunity to take a higher home loan due to the lower agreement value,” says Hemant Mehta, who recently purchased a 2BHK apartment in Kharghar, and had to take a personal loan of Rs5 lakh at a higher rate of interest to meet all the expenses.
There are a handful of builders who insist on only cheque payments, but it comes at a price. “They invariably demand a price that is at least 10 per cent higher than the rate prevailing in the area. Call it a premium for quality or the price for transparency, at the end of the day, the home buyer has to foot the bill,” says Mehta.
And it just doesn’t end with buying the house. “Even at the time of resale, you invariably get a buyer who insists on a higher agreement value to qualify for a bigger home loan, leaving you saddled with capital gains tax even if you have not earned any real appreciation. And the ones who have the black money offer a lower rate for your apartment. Either ways, you are jacked,” says Thane-resident Milind Kudva.
Developers, for their part, maintain that the incidence of unaccounted transactions has declined over the years. “Given the sheer volumes that leading developers are handling, it is difficult for them to account for cash transactions and maintain the books. Unaccounted money is associated more with smaller centres and local developers who operate on a small scale,” says Boman Irani, CMD, Rustomjee Group & Secretary, MCHI.

My Office: Her workplace has touches of home

Written by Chris Simschris.sims@indystar.com 

 

Walk into the office of Indiana Children's Wish Fund Executive Director Terry Ceaser-Hudson, and you feel right at home.
The welcoming feel helps her deal with families battling serious obstacles on a daily basis and makes it easy for her to enjoy her job.
While there is a desk with a computer and shelf full of books, the room also has a comfy couch and a table and chairs for meetings and light dining.
Awards and celebrity autographs from the likes of Hale Irwin, John Daly and Dick Clark grace the walls. Behind her desk are photos of her family and former Wish families, not to mention artwork created by her three grandchildren.
"It has become a very family-oriented organization," Hudson said. "We work together as a team. Everyone does their job, and everyone knows everybody. Some of us have been together for over 20 years."
Hudson left a stressful job in sales after six years, only to find eight months of staying at home was boring. In 1985, a friend helped her get a position on the board of directors for the Indiana Wish Fund. With a name change accompanied by a new logo, the Indiana Children's Wish Fund had a fresh start.
The fund grants wishes for Hoosier children, ages 3 to 18, diagnosed with a life-threatening or terminal illness. The goal is to grant more than 100 wishes each year, and the group manages to beat that figure every year.
"It was a gift to me," Hudson said. "A door was opened, and I absolutely love it. I can't imagine my life without it. These kids are so special, and I am privileged to be a part of their lives."
What are some of the events used to raise money for the program?
At the first of the year, we do an Airplane Pull with Republic Airlines, which is very popular. Robert Mathis and Roy Hibbert do our celebrity softball event at Victory Field in June, followed by the Jack Trudeau Golf Classic. Our biggest event is the upcoming Black Tie Gala on Sept. 24 at the Indiana Roof Ballroom. We'll have a British Invasion theme with a Beatles band, food, cocktails, silent and live auctions and an award presentation. The income from that event pays for our first quarter of the next year. The Christmas in the Kitchen at the Hyatt Regency Hotel is our last event.
What is the one thing in your office that best describes you?
Those pictures that my grandchildren gave me. They mean more to me than anything in the whole world. The awards and autographs are nice, but if there were a fire, I would be grabbing those little pictures and drawings off the wall.
Is it difficult to grant wishes for these children?
I have to look at them as any other child who get to do something really, really cool. Every child is special and is special in their own way. There have been some children that have touched me deeply, and you bond with their folks. I try to separate this from their reality. Otherwise, I wouldn't be able to do this job. I would be walking around depressed all day.
Is there a wish contributor that stands out over the years?
We had a boy with a brain tumor, who loved to watch "The Apprentice" with his mother. He would go around saying, "You're fired." He loved Donald Trump. We arranged a meet-and-greet in New York City, where we put them in the Hyatt Regency Hotel, and they would get to meet Mr. Trump, see his office, get an autograph and go about their day. Mr. Trump allowed them to stay with him for three hours and even let him take part in conference calls. He set them up in a suite at the Trump Plaza for the rest of their trip, gave them a limousine to tour the city and paid for the remainder of their meals and expenses. He really went above and beyond the call of duty.
Is there any one thing you would like to change or adapt going forward?
We need to change. We've got to find other ways of fundraising besides events and make a bigger impact in the community so people are more aware of who we are and not confusing us with Make-A-Wish. I can't tell you the amount of money that has probably gone to them that was meant to go to us. We have to be more than an event-driven organization.

Call Star reporter Chris Sims at (317) 444-6034.

Woman, 70, and terminally ill husband face losing their home for paying the mortgage too early

By Daily Mail Reporter
A 70-year-old woman and her terminally ill husband face losing their home because she paid her mortgage a week early.
Sharon Bullington, of New Port Richey, Florida, says that Bank of America has filed to foreclose on her and husband, James, 78.
Mrs Bullington said: 'It's like death to me. My husband is bedridden. It's almost more than I can bear.'

 The couple moved to Florida 15 years ago after Mr Bullington retired from General Motors in Flint, Michigan.
Their home is now valued at $133,464, though they owe about $177,000.
When James became ill, the couple encountered financial difficulties because of high medical bills.
The couple asked Bank of America to modify the loan.
The bank told the couple they would have to first officially default on their $1,400-a-month payment.
The Bullingtons did that and entered into the modification plan, which reduced their payment to $916.
Mrs Bullington made the January payment on December 23, and the bank accepted the money, according to court records.

 The next month, she made the February payment over the phone.
Weeks later, the money had not been withdrawn from her bank account.
After Bullington asked the bank about it, a representative told her she had punched in the wrong routing number.
In March, the bank kicked the couple out of the modification plan.
Mrs Bullington pleaded for help in a June letter to Bank of America president Brian Moynihan and U.S. Rep. Gus Bilirakis.
One of Mr Moynihan's aides, Ana Olivera, told Mrs Bullington the foreclosure could not be stopped, Tampabay.com reports.
She wrote in a two-page letter that the payment due on Jan. 1, 2011, had been made in December.
'In accordance with the Trial Payment Letter dated December 15, 2010, it indicates that if you are not able to make each payment in the month in which it is due, you will not be eligible for a modification under the Home Affordable Modification Program,' the letter said.
Miss Olivera told Bullington she could avoid a foreclosure by selling the home in a short sale or by signing it over to the bank.
The letter said the bank values Bullington's business and strives to provide exceptional customer service.
'I understand that you may be disappointed with our final resolution and appreciate the opportunity to clarify this matter,' Miss Olivera wrote.
'While this may not be the response you were hoping for, I trust I have addressed your concerns.'
The Bullingtons' lawyer, Shawn Yesner, said the case makes no sense because his clients did what the bank told them to do.
In ten years as a lawyer, he said, he has never seen such an outrageous letter.
'I couldn't believe they would put that in writing,' he said.
'I had to read the letter three or four times. Bank of America is putting her in a depressed state. She has never been behind on anything.'
The bank says it is now going to review the Bullingtons' case.
As thousands of property owners across the U.S. battle foreclosure, defense attorneys have accused lenders of bogging down the courts with an unwillingness to negotiate with people on their mortgages, often by simply refusing to make decisions.
Mrs Bullington, who has no children or siblings, said she is the sole caregiver for her ill husband, who cannot move from the home in his condition.
She said she has repeatedly contacted the bank, but nobody will talk to her.
Mrs Bullington said: 'I just don't understand why they're doing this. It looks like they're out to get us.'

Michael Vick's infamous former home now a haven for dogs

By Allison T. Williams, atwilliams@dailypress.com

 The living space inside the former home owned by Michael Vick has become a home for rescued dogs. It has been transformed into Good Newz Rehab Center for Chained and Penned Dogs. (Adrin Snider, Daily Press / August 31, 2011)

SURRY – Michael Vick wouldn't recognize the inside of his house now.
Sprawled across the floor of the living room once owned by the Philadelphia Eagles quarterback, Hunter, a mastiff, opens an eye and thumps his tail when Tamira Ci Thayne scratches his ear.
Obnoxiously loud snores come from Cocoa, a chocolate lab crashed on a dog bed. A black lab mix, Clicky, curls in her crate while Polly, a nervous black-and-tan coon hound keeps a quiet, watchful eye on Thayne.It's nap time – 2 to 4 p.m. daily – at the newly opened Good Newz Rehab Center for Chained and Penned Dogs in rural Surry County. Ninedogs live there and five more expected in the weeks ahead, said Thayne, founder and chief executive officer of Dogs Deserve Better Inc., which runs the center.
The Pennsylvania-based animal rights group bought the 4,600-square-foot white-brick house where the Newport News native bankrolled and operated a dog-fighting operation, Bad Newz Kennels. Vick was at the peak of his career with the Atlanta Falcons in August 2007 when he pleaded guilty to federal felony conspiracy charges related to the dog-fighting ring. He served 20 months in federal prison, followed by two months of in-home confinement, before he began rebuilding his football career.
Carrollton developer Wilbur Todd bought Vick's 15-acre property at auction in November 2007 and attempted to sell it. Last January, after learning Vick's house was still on the market, Thayne launched an online fundraising campaign to buy Vick's house for the organization's new headquarters. Thayne previously ran the organization from her home in Tipton, Penn.
Within weeks, donors chipped in $180,000, almost enough for the down payment of the house. One anonymous donor contributed $10,000 and a business kicked in $18,000, but most of the donations were small: $5 or $10, whatever people had to spare, Thayne said.
One contributor, Monica Severy of Virginia Beach has pledged to donate $5,000 a month for the next decade. That $600,000 contribution covers the organization's $3,000 monthly mortgage payments and a good part of their monthly operating expenses, Thayne said.
"This is important to me because I grew up around chained dogs … and I saw the loyalty the animals had for their owners even after they were left suffering in the elements," Severy said. "She (Thayne) is trying to educate people and make a difference in how we treat man's best friend and I wanted to help."
Dogs Deserve Better received a $10,000 grant to make the house more dog-friendly. Thayne installed the rubber flooring, added a dog door, bought tarps and fencing for yard areas so some dogs could stay outside during the day. All the yards have shaded areas and plastic, bone-shaped swimming pools to keep the dogs cool on hot days; all of the dogs sleep inside at night, Thayne said.
One of the organization's goals, once revenue starts coming in, is to install a metal fence around the perimeter of the property so the dogs that tend to flee without a leash can have the freedom to run loose on the property. Some of the fencing has already been built near the front of the property.
Inside, Thayne has ripped up the plush, cream-colored carpet from the living room and master bedroom floors, replacing it with rubber, sealed flooring frequently used in vet offices and doggie day care centers. The rooms are bare, save for the dozen or so dog crates lining the walls. The oversized tiled shower off the master bathroom holds a super-sized jug of dog shampoo.
The living room will be a place where dogs receive individual obedience training and learn how to play, Thayne said.
"It takes most dogs that have spent their lives in pens or on chains about three months to learn to play, to learn to chase a ball, because they are so traumatized," Thayne said.
Dogs, on average, spend three to six months in rehabilitation before they are put up for adoption on the Internet website, Petfinder.com Adoption fees range from $75 to $150, depending on the pet's age and size.
Thayne said Vick's fame and the public anger about his dog-fights probably generated donations she might not have received otherwise. But she said she doesn't want to play off Vick's celebrity to make money for Good Newz.
Although changes have rocked the main house, few changes have been made in the four buildings where Vick's pit bulls trained to fight and kill other dogs.
The buildings are painted black, inside and out, even the windows. The dog fights were held on the second floor on a barn-like building accessible only by ladder. Downstairs, chains of varying thickness, each about seven feet long, hang on one wall. A 2002 calendar with images of puppies on every page sits on a counter.
Another building has eight kennel runs, some still filled with decaying hay. On the counters are more than two dozen unused syringes, which once were used to inject dogs with steroids, or with antibiotics if they survived the fight, Thayne said.

Branstad has met his nursing home inspection promises

The people of Iowa elected Gov. Terry Branstad. He appointed Rod Roberts to head the Iowa Department of Inspections and Appeals. A few weeks into the job, Roberts eliminated 13 jobs. Ten were nursing home inspectors. Two were part-time lawyers who investigated complaints of abuse in nursing homes.
During this year’s session of the Legislature, lawmakers restored money for some of the jobs, but Roberts isn’t going to use it to fill those positions. Inspectors were needed, according to DIA staff and the federal government.
But the Department of Inspections and Appeals now says the inspectors are not needed and the department is able to carry out its responsibilities without them, thank you. It’s almost impossible to evaluate that assertion because the department recently blocked access to statistical information about its inspections and trends from those inspections.
This means the owners of Iowa nursing homes have fewer regulators to deal with. Vulnerable Iowans have fewer regulators to protect them. And the people of this state are entitled to think that they’ve been wronged by their government.
An editorial would usually provide guidance about what should happen next. We could do that. There is plenty to recommend. But we think it is unlikely at this point in Iowa’s history that hiring more nursing home inspectors would make any difference in the lives of Iowa’s seniors and the relatives who entrust their care to nursing homes.
We aren’t defeatist — just realistic.
Branstad made clear in his campaign that he thought the state was too tough on the businesses that care for seniors in nursing homes and assisted living centers. He accused inspectors of having a “gotcha” attitude. He said he wanted to have more of a collaborative relationship with these businesses — even though its job is to regulate their operations.
And then he appointed Roberts to head the agency responsible for oversight of hundreds of homes that care for thousands of elderly or disabled people. Roberts, a former candidate for governor and minister, had described himself as being intent on creating a business-friendly climate in this state.
One of the truisms of politics is that elections have consequences. And the consequence of the 2010 election isn’t just smaller government in Iowa. It is a philosophy. With the Branstad administration, that philosophy is painfully clear: less government regulation of business. It doesn’t matter if that business has been riddled with complaints of abuse and neglect for years. It doesn’t matter if people’s lives and federal compliance requirements and money are at risk.
Adding more nursing home inspectors wouldn’t necessarily better protect nursing home residents — not if the message being sent to regulators by the Branstad administration and its actions is to befriend nursing homes, rather than regulate them.
What happens next is up to Iowans. They can put pressure on the governor they elected to adopt a different approach when it comes to nursing homes — one that not only restores inspectors but encourages them to fairly but rigorously oversee nursing homes and punish the owners when wrongdoing occurs. They can vote Branstad out of office in three years.
Or Iowans can accept that this is how it’s going to be — that we are going to live in a state where the desires of industry are favored over the needs of our most vulnerable people, that it doesn’t matter if there is money provided to oversee nursing homes, because the will to act simply isn’t there.
It’s up to the people of Iowa to let the governor know this is not the Iowa we want.
Source http://www.desmoinesregister.com/

Music Hall of Fame Gets Home of Its Own

By TAMMY LA GORCE

THE Long Island Music Hall of Fame was organized seven years ago “to start trumpeting the fact that all these amazing people come from Long Island,” according to the chairman of its board of directors, James Faith, of Miller Place.

Until recently, however, the nonprofit group — whose more than 70 inductees so far have included Louis Armstrong, Pat Benatar and Billy Joel — had no home of its own. With three gala induction ceremonies under its belt and a collection of donated memorabilia that has mostly been locked in storage in Garden City, the hall of fame has been “pretty much virtual,” Mr. Faith, 58, said.
That changed this month, when the town of Brookhaven approved an agreement to allow the group to move into the historic First National Bank building in the village of Port Jefferson. The town-owned building, which had been vacant for about five years, according to Councilman Steve Fiore-Rosenfeld, will be the hall’s first headquarters.
Mr. Faith said he expected the 6,000-square-foot space to be open to the public as a museum in about a year, after renovations.
“It’s been a long time coming,” Mr. Faith said. Negotiations between the town and the group, whose mission is mostly educational — “we do scholarships and try to nurture the future of music from Long Island,” he said — have been taking place since 2007.
Mr. Fiore-Rosenfeld, 42, of East Setauket, led the push to offer the space, for which the group is paying a token rent of $10. The agreement allows the hall of fame to operate for 15 years in the building with a five-year option to renew, said Beth Krakower, a spokeswoman for the group.
“Long Island didn’t have the respect of the world in terms of the number and depth of musicians that have worked here,” Mr. Fiore-Rosenfeld said. “I looked at this as a wonderful piece of parchment on which they could write a whole new composition.”
Not everyone in town was gung-ho about the project.
“The taxpayers didn’t want to spend a whole lot of money,” Mr. Fiore-Rosenfeld said. “We needed to make sure it wasn’t going to be a constant drain. And the town council needed to make sure the hall of fame was capable of operating as they articulated,” meaning that the hall would not rely on the town to pay salaries, utility bills or other costs.
Ultimately, Mr. Fiore-Rosenfeld said, “we saw their business plan, and that they would be self-sufficient.”
Now, Mr. Faith and the other hall-of-fame representatives can start working toward their vision. “We want to have an exhibit area, a performance space, a classroom that will serve as a resource area,” he said. “We want to see school buses pulling up every day.”
“It’s a great relief” to be in Port Jefferson, he added. TAMMY LA GORCE