There are a few unlikely ways to become a millionaire — you could win the lottery, inherit money from a wealthy relative, or in the case of Stormy Wellington, you could sell hope.
“My ultimate goal is to be a millionaire before the end of the year and to help others do the same,” said Wellington, 29. In October, the single mother of two from the Camp Creek area was on the verge of losing her house and “everything except my mind,” when she discovered Ardyss International. The Mexican direct sales company, which began operating in the U.S. two years ago, is best known for Body Magic, a $170 girdle-like garment that promises the wearer an immediate reduction of two dress sizes.
In just a few months, Wellington, formerly a corporate account representative, was making $7,500 a month and building a team to help push her closer to her goal. Today she is a platinum president — the highest level in the organization — ranking over 17,000 distributors nationally (she personally recruited 70). Her income has reached as high as $100,000 a month.
She has ads on television, radio and a MARTA bus; a Web site and her own training materials called “Stormy’s Way.” She saved her house from foreclosure, put her kids in a private school and became a model for direct sellers across the country hoping to reach the American Dream one garment or cleaning product at a time.
Of course, many of the estimated 140,000 Ardyss distributors in the U.S. will not reach Wellington’s level. Wellington is one of the exceptions, having earned an “extraordinary income in a short amount of time,” said Mike Potillo, director of the American market for Ardyss.
Though direct sellers in the state generated nearly a billion dollars in revenue in 2007, sales have declined over the past two years. But Amy M. Robinson, spokeswoman for the Direct Selling Association, said in past recessions, growth of direct sales has exceeded that of retail sales.
The trend seems to play out among some Atlantans who have turned to direct sales to generate additional income in this tough economy. They hope to improve their chances of earning good money by jumping on new products before company ranks grow too thick and by working hard enough and fast enough to secure a space near the top.
Historically, multilevel marketing (MLM), the standard compensation structure for most direct sales businesses, has been the subject of debate. Companies such as Amway and Nu Skin have had legal run-ins with the Federal Trade Commission, the nation’s consumer protection agency, for outrageous product claims or exaggerated profit potential. No official registration is required for MLMs, other than a general business license, said Shawn Conroy, spokesman for the Governor’s Office of Consumer Affairs, but state law stipulates that income generated by MLM participants must come primarily from product sales rather than recruitment of other participants. The state also requires certain disclosures for any company with startup fees over $500, he said.
But the information most people seek remains the most elusive — How do you make a lot of money?
Jon M. Taylor, president of the Consumer Awareness Institute in Utah, spent a year in direct sales only to turn up a loser. He has since studied the industry in depth and concluded that only company founders and people at the very top come out ahead.
Which is why several Atlantans are betting on new MLMs — some less than a year old — hoping get in as close to ground level as possible.
Retirees Larry and Linda Biles were already involved in several MLMs when Wowgreen International crossed their radar early this year. The Lilburn couple figured Wowgreen’s eco-friendly, nontoxic cleaning products, which debuted in February, presented a fresh opportunity. “If you start with a brand new company, guess what? All those people who sign up are going to be under you,” Linda Biles said.
Sales commissions for the company can reach up to 20 percent, which is substantially more than the other MLMs they have joined, Larry Biles said. With the number of local distributors growing, Linda Biles now spends eight hours a day making cold calls, follow-ups or holding meetings with potential clients in order to reach her goals. “It’s a numbers game,” she said. “I promise you, I will be one of the top people in Wowgreen the first year.”
Hillery Douglas also has high hopes for hitting the top.
Douglas, 49, a health consultant from Roswell, signed up last month with Donald Trump’s Trump Network, distributors of health and wellness products including customized vitamins. The company’s “public” launch is scheduled for November, so Douglas figured he had a shot at being an early entrant. “I have done other direct marketing companies in the past,” Douglas said, “but this one ... no matter how people feel about Donald Trump, the guy knows how to make money.”
Wellington is no Donald Trump, but her rapid rise in the Ardyss ranks has given her a similar aura of money-making mystery. Cheryl Vinson, 52, of Mableton has heard all about Wellington since signing up with Ardyss in May. Vinson had sworn off direct sales last year after the company she worked with went out of business, she said. After road testing Body Magic, she sent e-mails to a few friends with before and after pictures. When three friends expressed interest in three days, Vinson upgraded her distributor status. As a newbie, she’s not at Wellington’s level (she averages about $300 a month), but said she thinks business cards, a newsletter and a blog will give her a boost.
While attending the Ardyss awards dinner a few weeks ago at the Georgia World Congress Center with company founders and hundreds of other distributors, Vinson set a goal. “I said to myself, I don’t know at what level [I’ll be], but I plan to be walking across that stage next year.”
Understanding multilevel marketing
Multilevel marketing is a compensation plan used by most direct sales companies. When a distributor sells products, he or she gets a commission. If that person then recruits another distributor, he or she also gets a commission of the recruit’s sales, and so on. The operative word is sales. Under state law companies that reward recruiting without product sales are illegal.
Commission percentages vary by company. Some organizations limit the number of generations of recruits on which a distributor can earn a commission. Commission rates may also differ based on the distributor’s rank.
Source: Amy M. Robinson, vice president of communications and media relations for the Direct Selling Association
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