Source: 8/12/2009

Silpada Designs on ABC7

Between the economy and unemployment, more people are taking the direct approach. Direct sales translate into selling products to customers without having a retail store and the large inventory that goes with it. And while the potential for big profits are there, so are some pitfalls if you don't do your homework.

When Shannon Bambara was laid off earlier this year, she polished her silver and her sales pitch. She became a direct seller with a jewelry company called Silpada Designs, selling their products at house parties, then taking a cut of the proceeds.

"An average Silpada party retails about $950, which means I take home 30 percent of that, which would be around $285. And typically, that's only in a two-hour period," Bambara said. History has shown that in bad economic times, more and more turn to home parties as a way to fill in the income void.

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