When I was a kid, my mom sold Avon and Amway. If scrapbooking had been popular in the 1970s, I'm sure she would have been a Stampin' Up! associate, too.

Being somewhat soft-spoken, she didn't earn much money and, in the case of Amway, got stuck with a lot of cleaning supplies. Luckily, like most home marketers, my mom was a fan of the products she sold, especially Avon. So were her kids.

There were scented lockets, lotions and soaps on a rope, but the baby lipsticks were the best. The demo tray of 100 or so tiny samples proved irresistible to curious little girls.

Growing up, I thought my mom went door-to-door because she was starved for adult conversation. In reality, she was just trying to put food on the table.

It's a big crowd.

When a downturn hits, women often turn to multilevel marketing to boost their household income. The average annual growth in direct sales is 3.6 percent in non-recessionary years; during the last three recessionary years - 1990, 1991 and 2001 - it was 4.5 percent, says Amy Robinson, spokeswoman for the Direct Selling Association.

While the median income from direct selling - $2,400 annually, according to Robinson - may not seem like much, in hard times every cent counts. And, of course, there's the "lipstick index."

The theory is that when circumstances are tight and consumer confidence is low, women spurn expensive clothes and purses for more modest retail therapy, like lipstick. The phrase was coined by Leonard Lauder, chairman of the Estée Lauder makeup group, when lipstick sales increased 11 percent after Sept. 11, 2001. During the Great Depression, cosmetic sales leapt by 25 percent, according to the Economist.

That would help explain why products sold through direct sales - jewelry, cosmetics, cooking gear, cleaning supplies, wellness products, home-décor items and craft supplies - are sometimes considered recession-proof, because most are priced under $50.

So what does that mean for companies like Stampin' Up!, Close to My Heart and Creative Memories, the tens of thousands of people who peddle their products, or scrappers who are just looking for a way to make their hobby more affordable in hard times?

Robinson says anecdotal evidence from member companies suggests many are seeing an uptick in recruiting and sales. Jewelry companies seem to be doing quite well and companies in other product areas are also reporting strong numbers.

But there are other signs that, in this recession at least, the lipstick factor may be more lip service than fact.

In November, Minnesota-based Creative Memories filed for Chapter 11 bankruptcy and had to restructure its debt.

According to bankruptcy court documents, revenue declined by an average of $16 million a month from 2007 and 2008 due to a downturn in the scrapbooking industry, competition from digital scrapbooking and high employee turnover. Closer to home, sales are down 10 percent at Bluffdale-based Stampin' Up!, causing the decorative stamp business to announce major layoffs this month - a first at the 20-year-old company.

"Making this decision is one of the most difficult things I've ever done," said CEO and co-founder Shelli Gardner in a news release. "But we have a responsibility to preserve and protect the businesses of over 40,000 [independent consultants] by allocating company resources responsibly now."

Even direct-sales juggernauts like XanGo and Avon are making major cutbacks. XanGo is eliminating 50 jobs, or a little less than 10 percent of its workforce. And Avon plans to cut 2,500 to 3,000 jobs in the next four years, and introduce more products under $5 to cater to budget-conscious consumers.

During the scrapbooking boom that began in 2001, there seemed to be no ceiling to what scrapbookers would spend on pretty paper, rubber stamps and junk-drawer items like paper clips and key tags that could be found at office supply stores for much less.

When My Minds Eye launched its Wild Asparagus and Kaleidoscope lines of premier paper at $1 a pop, scrappers barely blinked.

For many of us, those days are gone. We're using up our stash and saving our cash.

Even Michaels has shifted its marketing strategy to take advantage of the spendthrift trend. During the holidays, the company launched an advertising campaign called "Endless Creativity, Endless Savings" to market craft supplies for handmade gifts. The accompanying Web site, Where Creativity Happens, is now replete with videos on how to make foam duck baskets, flower arrangements and faux jewelry.

My advice to Stampin' Up! and other home-based craft suppliers would be to follow the lead of Avon and Michaels and produce more products for the budget-savvy scrapper.

Otherwise, direct sales may prove to be less of a safety net and merely a recession-driven financial trap.

E-mail Linda Fantin at scrapbooking@sltrib.com.