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Ding-Dong, Money Calling

As the jobless rate stays high, Tupperware, Avon, Mary Kay, and other direct-sales companies are seeing continued growth.

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It's a cold February night in Manhattan and some 40 women are assembled in a sprawling and tastefully appointed apartment, many with pink martinis in hand. Their attention is focused on an unusually large woman standing at one end of the living room. Batting her fake eyelashes, she picks up a square container from the colorful stack of plastic behind her and asks, "Ladies, where do you like to put your big meat?"

The woman is actually Robert Suchan, a 42-year-old Tupperware consultant who has developed a drag persona, a.k.a. Your Aunt Barbara. It's an alter ego that Suchan created, complete with big bouffant hair, nail extensions, and not so subtle wardrobe, to help him become one of Tupperware's leading sales consultants in the U.S. Standing out, even if it requires six-inch heels, is essential these days, says Suchan.

The nation's unemployment rate is hovering at 10.6 percent, but direct-sales companies like Tupperware, Avon, and Mary Kay are thriving and continue to draw in new salespeople. Mary Kay has seen a 22 percent increase in global sales consultants between the first quarter of 2008 and the first quarter of 2009. Tupperware, thanks in large part to a strong expansion into global markets, saw a surge in sales reps internationally two years ago, from 1,851,450 in 2007 to 2,275,934 in 2008, and continued to see growth in 2009. Likewise, Avon's ranks have swelled from 5.8 million total sales reps in 2008 to 6.4 million in 2009, with a 3 percent boost in North American reps, which was a slightly greater jump than the previous year. And while individual sales may be smaller, business is booming, thanks in part to these growing international markets. The global Tupperware team helped boost fourth-quarter 2009 sales by 20 percent. Meanwhile, Avon reported a 13 percent increase in revenue between fourth-quarter sales of 2008 and 2009—a cool $269 million dollars in profit.

For some of today's direct-sales consultants, selling plastic wares, makeup, and other home accessories is not a hobby. It's a significant source of income, say direct-sales firms. "Our early consultants came from a group of women who had a pretty good life—their husbands were in construction or contracting and doing well. They did this for fun, but when things turned [economically], it became the big job of the household," says Orville Thompson, CEO of Scentsy, a wickless-candle company that began direct sales in 2005.

Tish Castenda joined Scentsy in 2008, after her husband died following the birth of their son. "I was figuring out how to be a new mom, how to make our financial ends meet," says Casteneda. "I had a four-hour commute and a full-time job, so I didn't need any extra commitment." But she did need the money, so the self-described "world's worst salesperson" signed on to sell Scentsy after she saw their product at a craft fair in October 2008. Now she's a regional manager, overseeing a team of sales consultants while continuing to sell on her own, all while holding down an administrative job (though one closer to home than her previous gig). "The money has been able to help me put a headstone on my husband's grave," says Casteneda. "It's helped me pay off some of the bills I'm left with, and is supplementing my son's college fund."

Denise Ruiz Cabrera turned to Avon when she needed to get control of her financial future. Downsized from her job in public relations a few months into her pregnancy, she was unable to find a new position for a year. "I was in survival mode," she says. Today, she heads an Avon sales team that brings in $12,000 a month. Like many, she was drawn by Avon's low start-up costs. "There are not a lot of places you can go into business for only $10."

Of course, not every company offers such low start-up costs. There are scams out there, says the Direct Selling Association, a trade group of some 200 firms that rely on direct-to-consumer sales. According to the DSA, most start-up kits shouldn't cost would-be entrepreneurs more than $100, and all legitimate direct-sales companies won't bankrupt those looking just to get started. Companies approved by the association must buy back any unused product for at least 90 percent of the initial sale price. If you're working with a reputable company, the only thing you'll really end up wasting is time.

But for those who do stick around, the rewards can be great. In November, Suchan, the creator of Your Aunt Barbara, quit his job as a resident adviser at a group home so he could focus on Tupperware full time. He sells about $1,250 dollars worth of Tupperware per party, and hosts around 20 parties a month (making his monthly take-home pay, not including the incentives he makes as a division manager, well over $8,500).

At one point the top-selling consultant in the U.S., Suchan enjoys a level of incentives and rewards often dangled in front of new recruits: Tupperware puts down $350 toward his car payment each month. "I have a gorgeous diamond ring, leather handbags, leather luggage," he says, along with very flexible hours and the freedom to set his own schedule.

But Suchan, who started selling Tupperware as a way to earn extra income three years ago, says creating a drag performance is not necessary for success. "People say, 'I can't do what you're doing,' " he says, but he argues that that's hardly the case. All you need is a willingness to take control of your circumstances and something to help you stand apart from the crowd. Heels, he says, are optional.

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