Chicago Sun-Times sister paper: Networking Works!

America is proving that Networking works in these gloomy economic times!
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(Post-Tribune is a sister company of the Chicago Sun-Times.)

Networking works for bright, brave
Published March 22, 2009
Original article is here.
By Carrie Napoleon

Post-Tribune correspondent
When the plumbing company Elizabeth L. works for reduced her hours last year, the Munster homemaker knew she'd need a part-time job to supplement her income.

Finding a job that fit around her regular job and her family obligations, however, was more than a notion.

That's when she found a little inspiration.

"I was sitting on my couch one day watching Lifetime, one of my favorite girly channels, and of course the Avon commercial came on. It really intrigued me," said Elizabeth, a wife and mother of two who helps care for her own mother.

"This sounds like something I can do," Elizabeth said, and "the next day I hopped on the Internet and found where to submit an application."

It's a story that's all-too-familiar to network marketing executives.

As increasing numbers of people lose their jobs or see their incomes reduced, the appeal of network marketing grows, executives say.

While precise numbers are not available, Doris Wood, chairman of the Multi-level Marketing International Association in San Diego, Calif., said her office has fielded an increased number of queries about network marketing since the economy soured.

"Anytime there's a downturn in the economy," she said, "network marketing is there."

The world's 4,000 or so multilevel marketing companies -- 1,000 or so in the United States -- sell everything from cosmetics and cookware to nutritional and financial products, Wood said, ringing up $100 billion a year in sales and providing career and financial opportunities for thousands of independent agents.

Cosmetic giants Avon and Mary Kay have amped up their television recruiting, executives say, hoping to draw from a larger pool of job seekers.

Avon started its recruitment campaign in April 2007, according to Lindsay Blaker, public relations manager for Avon Products Inc. in New York.

"We really wanted to show our earning opportunity. It definitely has been a positive for us," Blaker said of the campaign. The company, founded in 1886, saw a 4 percent increase in representatives in North America by the fourth quarter of 2008, she said.

Blaker said network marketing companies like Avon are attractive to people, especially now, because they offer flexibility and little start-up costs for people looking to find work or supplement their income.

Bruce MacLean, director of the graduate programs in management at Valparaiso University, said network marketing also can be a lucrative enterprise because consumers still like individual service and attention -- something that's tougher to find in the traditional retail market.

"People like personal selling. They like to have someone they can trust to talk to," MacLean said.

That's why it is important, MacLean said, for interested sellers to find a product they believe in and can feel comfortable promoting to other people.

Equally important is thoroughly researching the company to protect yourself against pyramid schemes or other shady enterprises, MacLean said.

And be wary of companies that promise big and immediate returns for a small investment of time and money, he said.

Remember the time-honored adage, experts warn: If it sounds too good to be true, it probably is.

Wood agreed, saying it takes time to build a client base and to recruit and train other representatives, which improves earning opportunities.

"Multilevel marketing is a job in the beginning until you have built it up," she said. But once you've laid a strong foundation, she said, "you can turn it into a career. You could make more money than you could at any ordinary job."

That is just what Elizabeth, the Munster homemaker, hopes to do some day. In her eight months with Avon, she already has earned President's Club status, selling more than $10,000 in product in 2008. She plans to grow her business and her network of representatives slowly.

Things have been going so well, Elizabeth said, she's convinced she can make a career of it and leave her job at the plumbing company behind.

"I told my boss, 'You better watch out, in five to 10 years, I'm retiring,'" she said.

While many of the 1,000 or so multilevel marketing companies in the U.S. are legitimate and profitable, experts say some are nothing but pyramid schemes.

- Multi-level Marketing International Association
- About the Sun-Times News Group
Sun-Times News Group (“STNG”) is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties include the Chicago Sun-Times and suntimes.com as well as newspapers and Web sites serving more than 200 communities across Chicago. STNG’s parent company is Sun-Times Media Group, Inc. (SUTM.PK)

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