Want to net some extra cash?

Historically, a bad direct-sales companies, such as Mary Kay, Avon, Fuller Brush, Tupperware, The Pampered Chef and others, that rely on independent, work-from-home salespeople to sell their products and services. In troubled times, more people work for these companies because of job layoffs or because they want to earn extra income.

The current downturn is no exception, with many direct-sales companies reporting sharp increases in new recruits, people who are eager to become their own bosses and / or bonuses based on recruiting others into their ranks.

However, although recruiting numbers may be up, the Direct Selling Association (DSA) reports a downturn in overall sales to consumers in recent years - $29 billion in 2008 from a 2006 peak of $32 billion. Result: A greater number of salespeople competing for a smaller chunk of business.

While making a go at direct selling could be harder than ever, it still is a good opportunity for certain people - could it be for you?

Reality check

At any given time, some 15 million Americans work in direct sales.

Product sales commissions usually range between 25% and 50% of the retail price. In some companies, you can earn an additional 3% to 5% commission on sales made by others you recruit.

Yet most people who try direct sales soon give up. After expenses - including the cost of buying inventory and transportation to make sales calls - most people wind up earning $10 to $15 an hour, typically working fewer than 20 hours a week. These people earn a median wage of $2,400 annually, according to the DSA.

In rare cases, those who are very good at selling can make $30,000 annually by working a 40-hour week. Only about 10% manage to make direct sales a full-time job.

Who can succeed?

Ultimately, these jobs are all about selling - and you will make real money only if you are an effective salesperson. Companies do not provide a list of potential sales contacts, so most people who succeed in direct sales already have a large social network.

Those who do well also tend to have the "right" personality. If they are not outgoing, they are at least comfortable knocking on doors or calling people they may not know...have a "thick skin" that can handle frequent rejection...and are self-motivated and disciplined.

Making it work

Before you choose a direct-selling company to represent, consider the following...

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