Sales figures: Economy hasn’t touched profits of Lawrence’s direct sellers

Angela Jacobson, far left, is a regional Mary Kay Cosmetics leader. New Mary Kay consultants were recognized for their sales and consultations by Jacobson last month in Lawrence.

Erin Mayer sells jewelry through Silpida. Originally hooked by her love of the merchandise, she became a sales representative to reap the benefits of a discount. Nine years later, the hobby has turned into a nice source of supplemental income.

Erin Mayer, of Lawrence, sells jewelry through Silpida, a catalog business for fine jewelry.

Angela Jacobson is undaunted by recent talk of high unemployment figures, credit failures and recession. In fact, her business is thriving.

The mother of four and full-time sales director for Mary Kay Cosmetics posted March as her most profitable month ever.

Jacobson, who joined the company 10 years ago as an independent beauty consultant, is one of about 15 million Americans working in direct sales, an industry that has remained robust despite tough economic times.

According to the 2008 National Sales Force Survey conducted by the Direct Selling Association (DSA), direct sales have more than doubled in the last decade, with $30.8 billion in sales reported in 2007. About 90 percent of direct sales professionals are women, who spend their evenings and weekends peddling products that range from jewelry to kitchen gadgets, from make-up to home accessories, and more.

Jacobson credits her success to offering cutting-edge products from a company with staying power.

“Mary Kay’s skin care products made the company famous,” she says. “But the merchandise is constantly evolving to include make-up, anti-aging products and whatever the newest technology has to offer.”

The company, founded in 1963, is listed as the top mass merchandiser of cosmetics in the 2009 Customer Loyalty Index, a ranking system devised by the nationally recognized market research firm Brand Keys.

Jacobson adds that another facet of her success with Mary Kay is sharing the business with others; a tiered hierarchy of consultants results in monetary rewards for recruiting others who are passionate about selling the product. She says if anything, the nation’s recent economic woes may have helped her in that effort.

“I think the recession is causing women to see the need for a backup plan,” she says. “The bulk of my team members are women who use their Mary Kay earnings as a supplemental income.”

DSA’s statistics support that claim, recently reporting that 88 percent of the nation’s direct sales professionals work less than 20 hours per week.

Erin Mayer, sales representative for Silpada Jewelry, is one such agent. Originally hooked by her love of the merchandise — exclusive designs made of primarily silver and gemstones — she became a sales representative to earn discounts on her personal jewelry purchases. What began as a hobby about nine years ago evolved into a nice supplemental income that has since taken her full circle, back to selling jewelry as a hobby.

“I don’t work hard at sales for Silpada,” the full-time administrative assistant for Treanor Architects says. “But I do love sharing the product with friends and family, and I have filled more individual orders in the last year than ever before.”

Like many modern-day direct sales ventures, Silpada’s sales strategy goes beyond the traditional in-home parties of decades past. It also relies on individual sales, as well as “book shows,” in which catalogs are distributed and orders are taken by phone or e-mail and “online parties,” where a sales representative presents merchandise and takes orders via the Internet.

Mayer says that in addition to hosting an annual open house in the fall, she only hosts a few traditional parties per year.

“But I do know some women who have full-time careers with Silpada,” she says. “There are some really rich women out there making scads of money.”