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Direct selling stocks, which are also known as multilevel marketing stocks and network marketing stocks, can be considered to be recession- proof, because people turn to ways of generating extra income when times get tough. Direct selling companies operate by recruiting salespeople to sell their products. The salespeople receive additional commissions from the sales of people recruited in their downline.

Here is a list of some of the major publicly traded direct selling stocks:

  • Tupperware Brands Corporation (TUP) is an Orlando, Florida-based company which markets kitchen products, cosmetics and personal care products. Its P/E is 19, and it has a PEG of 0.82. Its offers a yield of 2.4%.

  • Herbalife Ltd. (HLF) is a Los Angeles-based company which markets weight management, nutritional supplement, and personal care products in over 60 countries around the world, through its sales reps. Its price earnings ratio is 18, its PEG ratio is 1.18, and it pays a yield of 1.7%.

  • Avon Products Inc. (AVP) is a New York-based company which markets cosmetics, fragrances, skin care, and toiletry products, along with various other consumer products. It has a P/E of 31, a PEG of 1.51, and the company pays a yield of 2.1%.

  • Pre-Paid Legal Services Inc. (PPD) is an Oklahoma company which markets legal expense plan memberships throughout the United States and Canada. Its P/E is 12.

  • Nu Skin Enterprises Inc. (NUS) is a Provo, Utah-based company which markets personal care products and nutritional supplements. It has a P/E of 27, a PEG of 1.23, and a yield of 2.4%.

  • USANA Health Sciences Inc. (USNA) is a Salt Lake City-based company which markets vitamins, minerals, skin products and personal care products. It has a P/E of 11, and a PEG of 0.55.

  • Mannatech Inc. (MTEX) is a Texas-based company which markets nutritional supplements, skin care products, and weight-management products. The company's P/E is 12, and it has a fairly high yield of 4.2%.

  • Nature's Sunshine Products Inc. (NATR.PK), which trades on the Pink Sheets, is a distributor of nutritional, herbal and personal care products. The stock has a P/E of 8.

  • Disclosure: The author does not own any of the above.

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    This article has 7 comments:

    •  
      Avon is going gang busters these days. Learn more here

      yourAvon.com/michelere...
      2008 Mar 17 10:43 AM | Link | Reply
    •  
      Network Marketing company is recession-proof. If you are in Texas or New York, Network marketing company in Energy Market is your great choice. Ambit Energy offer great energy products. You don't have to buy any nutritional supplements; instead, you just recommand friends to enroll to our service. I love network marketing with no collection!
      2008 Apr 01 07:49 PM | Link | Reply
    •  
      I appreciate this article and find it interesting that Pre-Paid Legal is the only company on this list with service oriented products that cannot be bought anywhere else. This means, no competition, no inventory to carry around, no orders to take. Plus residual income for the life of the memberships.
      2008 Apr 05 02:41 AM | Link | Reply
    •  
      Learn more about Pre-Paid Legal here
      www.livingwpurpose.com
      2008 Apr 05 02:42 AM | Link | Reply
    •  
      Herbalife Rocks!! Network marketing is the way to go because the hard work and effort put forth will pay off. Network marketing is the easiest way to own your own business with minimal start-up costs and some of the highest returns and the best way to meet and help people achieve their dreams. Great Article!!
      2008 May 04 08:09 PM | Link | Reply
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      Learn more about Herbalife: tricitynutrition.net. To learn more about Nature's Sunshine: naturessunshine.com. Nature's Sunshine is one of the best companies out there for herbs in a capsulated form and Herablife is great for over weight management & health management.
      2008 May 04 08:10 PM | Link | Reply
    •  
      A company that is not listed above, is Scentsy. Scentsy is growing faster than most MLMs in the US. This company is less than five years old and has huge opportunity! Please visit my site or contact me direct for information. vanessa_0121@hotmail.c...
      Feb 23 01:12 PM | Link | Reply