Recession's new best friend

Reporter: James Thomas
Broadcast Date: May 23, 2009

Direct selling is one industry that booms when the economy goes bust, and according to its devotees, the recession is its new best friend.

John Holloway from the Direct Sellers Association represents the 500,000 Australians who're turning over more than $1.2 billion dollars using the technique.

He explains why a downturn in the economy is beneficial to the industry: "During recessions, we see an increase in the number of people joining our companies."

That's because, when you lose your job, selling makeup sounds like fun.

Victor Grant was a truck diver, but now he's selling Avon.

He said, "The construction job I was on finished the development, we were on, but then we got put off work."

The company's traditional selling model is door-to-door. It's a technique that's been around forever, but it can be a hard slog.

Tim Shaw spent the 90s in our lounge rooms as TV's greatest seller of steak knives.

It's a decade on but 'Mr. Demtel' is still at home with housewives. We took him along to a home shopping party as a surprise, and to talk up the party plan model.

"How lucky am I?" he said. "Yummy mummies everywhere."

Party host Rebecca Davies gets a friend to supply the cakes and coffee and importantly, the people; she supplies the product. "On average, I earn about $600 or $700 a week," said Rebecca.

Party plans are dominated by women and around the country the gatherings sell products ranging from linen, to botox and of course, cosmetics.

Hillary Finch claims to make $100,000 dollars a year selling Nutrimetics. Sonya is one of the guests at the party, is smiling. She left full time work and says she now supplements her income with Nutrimetics.

But she seemed reluctant to talk about her new-found freedom and wealth when asked if she was earning as much as in a full-time job.

And Hillary Finch added, "What Sonya is doing is building her business to a stage where it will replace her income. If you get anyone telling you that you are going to make hundreds of thousands, then walk away, as you simply will not."

John Holloway is first to recommend direct selling as a legitimate business, but admits sections of the industry are responsible for a cult like image, which is now the stuff of satire.

The mockumentary 'Believe' makes a joke out of direct selling, but it should be said in the real world, people are making real money, and enjoying real products.