In-Home Product Parties Generating More Sales Than Ever

L.A. LorekExpress-News Business Writer

Mary Kay, Avon and Tupperware still do big business, but the in-home parties they helped pioneer have evolved to target professional women as well as stay-at-home moms.

A lot more products are also available, but one thing hasn't changed through the years: Primarily women still host today's parties in their living rooms while serving cocktails and snacks as their friends socialize and shop from catalogs or displays artfully arranged on dining-room tables.

In-home parties are generating more sales than ever. They also provide extra cash and offer flexible schedules for women like Lynn Riddick, who runs her own marketing and public relations firm out of her Alamo Heights house. She works part time for Silpada Designs, a Lenexa, Kan.-based jewelry company with 16,000 representatives nationwide.

"I never would have imagined myself doing this kind of thing," Riddick said. "I really have found it to be very fun."

Riddick makes up to $1,500 a month, from three to four parties, selling such jewelry as rose quartz sterling silver necklaces, turquoise stone bracelets and black onyx earrings. In 18 months, Riddick and her team sold $45,000 worth of jewelry — enough to win an all-expenses-paid trip for two to Aruba.

Selling Tupperware, Rachel Hernandez often makes more than $100,000 a year and has won more than 20 trips, including a 10-day safari to Africa. She quit her job at the Bexar County tax assessor's office 26 years ago after her fourth child was born. Now she's a top executive in Tupperware's San Antonio region, with 250 sales associates working under her direction.

"It's incredible what I've gotten out of this business," Hernandez said. "I've been able to see my children grow and I haven't missed a thing."

Riddick and Hernandez are part of a growing work force. An estimated 13.6 million people nationwide — 71.9 percent women — sell products directly to consumers, including cookware, cosmetics, toys and even pet accessories. They racked up $29.7 billion in revenue in 2004, the latest figure available from the Direct Selling Association.

"One of the trends we've noticed over the past five years is an expansion in the number of products available," said Amy Robinson with the Washington, D.C., trade group.

Even many traditional retailers have launched direct-sales lines.

Binney & Smith Inc.'s Crayola brand sells "The Big Yellow Box" filled with craft projects. Body Shop International sells lotions and cosmetics though its Body Shop at Home. Jockey International Inc. offers in-home underwear parties.

"Because we are literally doing parties in the living room of our customers, we are really close to our customers," said Kim Gentile, sales vice president for Jockey Person to Person Inc., based in Kenosha, Wis. The 130-year-old privately held company launched Person to Person 16 months ago, and already it has 500 representatives in 35 states.

During a casual 90-minute party, the Jockey Person to Person representative displays a rack of products including bras, panties, sleepwear, active wear, scarves, blankets and pillows, ranging from $12 to $130.

Crayola rolled out its Big Yellow Box in a test market two years ago. Today it has more than 1,000 representatives nationwide selling products from $12.95 to $59.95.

"Why would a brand as powerful as Crayola want to explore this market?" said Sue Rusch, general manager of the Big Yellow Box by Crayola, based in Easton, Pa. "It's a powerful way for a brand to come alive in a home."

During an in-home party, Big Yellow Box representatives do a craft activity with the guests and talk about creating memories with family members through craft projects.

For part-time sales associates, direct-sales jobs afford the chance to work as much or as little as they desire. Many also make money through multilevel marketing by recruiting new sales representatives. Silpada's Riddick sponsors 11 women and gets a percentage of their sales.

Natalie Silva, a public relations manager at Tesoro Corp. and a mom with two young sons, is on Riddick's team. She began selling Silpada two months ago during her spare time at night and on weekends because she loves the product and it's a way to earn extra cash.

"It's perfect for me because I love jewelry," Silva said. Last month she earned $750.

Hostesses also earn products based on party sales.

Three weeks ago, Lamar Chicoine hosted a Silpada party and earned $350 worth of jewelry. A few of her friends signed up to host their own parties.

"The jewelry party kind of gives you a reason to get together," Chicoine said.

Silpada's co-founders, Bonnie Kelly and Teresa Walsh, are the equivalent of rock stars in the direct-sales industry. Ten years ago, the women invested $25 each to buy costume jewelry and created Silpada. Now, they're multimillionaires.

One big change Hernandez has seen during nearly three decades of selling Tupperware is the increase in competition from other home parties.

"Back then there were parties being held, but nothing like today's industry," she said. "Whatever you see, there is a home party for it."

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