OP,
I've been a Pampered Chef consultant for over 10 years. I'd like to throw in my opinion of some of what you've heard so far.
1. There will be people who won't come or who will slam your business because they hate home parties. You posted this on the DIS and there seems to be quite the anti-home-party sentiment here in general. I don't think you'll get the most objective information here. So please don't make decisions based solely on this thread.
2. Network marketing has been around for over 60 years. If it wasn't an accepted and successful business model, for both the consultant and the customers, it would have fizzled.
3. Saturation. Not really an issue. In the 10 years I've been a consultant, I haven't done a show on any of the streets within about a 4 block radius. It's been elsewhere in my community. Pampered Chef reaches about 12 million customers a year. The US has nearly 300 million people.
There may be a perception by some people that there are a lot of consultants, but you have to realize that people come and go into this business. Some people come in for a short-term goal and then quit. One gal I knew came in to earn money just to get Lasic surgery. Some people will enjoy it long-term. Some people will make it a career.
4. You can make money without recruiting. Of course you can build a team and make more money. But your numbers of $500-$1000 in extra income as a consultant is right on. The average Cooking Show across the nation is just under $500. At a minimum, new consultants probably are making around $100 per show. However, that doesn't take into account the commission scale that increases the more sales you have each month. Doing 8 shows a month, I usually do make $1000+ each month in commission just as a Consultant.
5. "A lot of people in direct sales". It's subjective. Some people may feel that "everyone" is going into direct sales, but it's not everyone. It ebbs and flows.
6. "I have to know a lot of people to get started." You already know a lot of people. You don't have to have 100 best friends. Anyone that eats is potentially a host. You have to look at the big picture. Don't put a mountain in your way that doesn't exist.
7. Pampered Chef does have good name recognition. It's not the "expensive" brand everyone makes it out to be. I just did the analysis on our new spring catalog. 66% of our product line is under $20 - by the way, that's more than 250 products. Sure, there are higher end options for the people who want to spend that kind of money. But it's not that there aren't options for people who are on a budget.
8. As several people have commented here, Pampered Chef is a show they would choose to go to. Whether they like to cook or not, everyone has to eat. And there have been multiple studies out by many industry groups that when people are watching their pennies, the first thing they do is stop going out to eat. For people who haven't cooked at home for a while, or who don't know how to make a meal plan to save money on groceries because they've never done it, learning how to use great tools that stand up for a long time is a great option for them.
9. You'd be surprised at how many people will support your business because you a local business owner. I've heard that comment many times. There are more people who are getting behind keeping the money in the community.
Bottom line...you can't base your decision on opinions from a discussion board. These people are your online friends, but most likely, are not going to be the ones in your community supporting your business. This is not a flame, it's just a fact.
Please talk to your friends, neighbors and people you usually interact with in your daily life. You will probably be surprised at the amount of support you will gather locally.
Best of luck.