Some admit they’re in multi-level marketing. Others prefer to call it direct selling, network marketing or community commerce. Either way, it’s really starting to impact consumer purchasing decisions. And dare I say it, our friendships. Companies like Isagenix, Tupperware, Body Shop, Mary Kay, Intimo, Nutrimetics, Herbalife and the dozens of others out there sell the belief that you can ditch the 9-5, build your own business and make lots of money selling products you believe in. Many companies offer low barriers to entry, support, training and the opportunity to work from home, and incentives vary between companies. But bear in mind that not only do you have to contend with trying to your convert friends into customers. And even try and convince them to join your ‘business’ so that you can grow your team. How much are they earning? Well, no one seems to want to say. There’s no point getting into direct selling if you don’t want to put the products on your face.

Surprisingly, Direct Selling Australia doesn’t collect average earnings per person, saying the earning discrepancies between full-timers and hobbyists wouldn’t paint an accurate reflection of the industry. “Due to the diversity of our members, their models and the way independent salespeople choose to engage with members, we have found (the collection of earnings data) to be of little value,” executive director Gillian Stapleton says. Commissions too low A Thermomix consultant confided she’s leaving the business due to low earnings and the constant message from the company that she’s not selling enough machines, despite only wanting to work part-time in the business to be home with her youngest. Grace Mazur holds the franchise for Thermomix in Australia. Credit:Tony McDonough

Consultants are paid $220 commission on each Thermomix sale, which increases to $290 if they sell four or more machines at a demonstration, she explains on the condition of anonymity. Thermomix hasn’t increased its consultant commissions in seven years. “Preparation takes a couple of hours, you have to provide ingredients and there’s petrol costs to come out of that. Unless you work in the business full-time, I don’t think there’s enough money to make it worthwhile, so I’m leaving,” she says. Thermomix declined to comment. The high achiever Of course, there are some high profile industry success stories, if you look hard enough.

Melbourne woman Karalee Lawson has reached the highest promotion in Rodan + Fields, a skin care business new to Australian shores. Lawson drives a company Lexus and tells me she has more than 1000 people in her ‘network’. She quit speech pathology to join Rodan + Fields, and hasn’t looked back. Karalee Lawson quit speech pathology to join Rodan + Fields. Lawson wouldn’t confirm her earnings, instead sending through the company’s product disclosure statement, which claims the average income for someone who has reached her level within the company is $837,975, not including expenses or bonuses and incentives.

But don’t give up your day job just yet. It’s probably fair to say that product disclosure statement isn’t an entirely accurate reflection of what Lawson’s actually earning, given these company documents often purposefully omit data from distributors who earn next to nothing to beef up their averages. Lawson claims to work just 20 hours a week, saying she mostly hosts ‘bubbles and skincare events’. She denies that she’s part of a pyramid scheme. “It has the organisational structure more of a tree. I prefer to call it community commerce,” Lawson says. “I know there’s an icky feeling with direct selling. People are naturally sceptical. I invite that scepticism. I was that person.” Avon leaves Australia

And in perhaps the best example that not all survive in this industry, direct selling stalwart Avon recently announced it will pull out of Australia by the end of this year. Industry newcomer InnerOrigin swooped in days later, inviting Avon representatives to join their health and wellness online marketplace. InnerOrigin co-founder David Nomchong says: “The old direct selling models, like Avon, Isagenix and Tupperware are all struggling because they lack the ability to adapt rapidly in our digital world. “Our business model is technologically enabled, meaning business interactions are primarily happening in the virtual world, through various social media channels and in-house pantry previews,” Nomchong says. An ethical approach

If you’re thinking about getting into the industry, you need to apply some ethics to your approach, asserts Melbourne’s Tracey Hall. She spent years in direct selling, and now works as an ethical mentor for the direct selling industry. “People working in this space who are trying to recruit friends and appeal to family to buy your products need to stop. They’re being held back by a scarcity mindset, and they’re going nothing for the industry’s reputation,” the Melbourne founder of the Ethical Direct Selling Group says. Tracey Hall is the Melbourne founder of the Ethical Direct Selling Group. “I always used out-of-the-box thinking when it comes to sales. I would approach people who gave me good service, like staff at the shopping centre, or someone helping me purchase shoes.” A genuine love for products you’re selling is important, too, she says. “There’s no point getting into direct selling if you don’t want to put the products on your face.”

Which reminds me. I must message that friend of mine I’ve only seen twice in the past 20 years and order that great whitening toothpaste she wants me to purchase from her. Follow MySmallBusiness on Twitter, Facebook and LinkedIn.