Natural Nutrition Business

I stumbled across this interesting article on Twitter yesterday ... although it is based on US figures, Europe does tend to follow trends started in the US and makes for some interesting reading.

Direct-sales businesses that rely on home-based representatives to peddle their wares are seeing their sales forces rapidly expand as the nation's unemployment rate soars to nearly 9% and those who lost jobs and nest eggs look for new ways to make money.

"We're recession-resistant in the sense thatmore people come to us during economic hard times for supplemental income or replacement of a lost job," says Neil Offen, president of the Direct Selling Association, the trade group that represents the largest U.S. direct sales companies.

While 2008 industry figures aren't yet available, "Anecdotally we're hearing that recruitment is up and unfortunately as the unemployment rate rises to 10% or higher, we'll be picking up more people who need an income-earning opportunity."

The recession has become a recruiting tool. An Avon (AVP) cosmetics representative declares in TV ads that "I can't get laid off. It's my business." Companies such as Isagenix, a marketer of weight-management and nutritional supplements and snacks, and jewelry maker Silpada Designs are coaching their representatives to spread the word that direct selling can keep you afloat in the faltering economy.

"Right now, our direct-selling opportunity is really the No. 1 product that we have to sell," says Geralyn Breig, president of Avon North America.

With that in mind, Avon this year launched its most ambitious recruitment campaign and saw its U.S. sales force growto more than 680,000 through March, its largest ever, Breig says.

The same month, cosmetics company Mary Kay began airing its first TV ad for new representatives. In its first three days, visitors seeking information about becoming "beauty consultants" at MaryKay.com spiked 108%.

The full article can be read on USA Today

Direct Selling Association UK