Price: $25 Quick Starter Kit, $50 Advanced Starter Kit, $100 Premium Starter Kit
Owners: Scott White, CEO (New Avon)
Overall Rank: 2.5 out of 5 ツ
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NOTE: It is critical for you to know I am not an affiliate of Avon. Rich Artist Starving Artist gives truthful, genuine reviews. My top priority is providing you with quality, entertaining, and informative reviews and I am not influenced by anyone or anything.
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You’re looking for a legitimate online business opportunity, but more often than not you wind up purchasing a scam or a low quality product which is why you find yourself here asking “Can You Make Money Selling Avon?” prior to buying into it. Let’s take a look.
Avon has been around for 130 years and has been a household standard for many generations. Launched by David McConnell back in 1886, Avon has assorted brands of personal care products and cosmetics. It actually has an up and coming variety of men’s jewelry and watches, fragrances and, of course, personal care products.
The company operates by way of a direct selling model, meaning their products are not sold by retailers, but rather by independent distributors i.e. Avon Ladies. Anybody can join Avon to become an independent distributor (Avon Representative) and receive a commission from their product sales.
Also, Avon Reps are awarded commissions for recruiting other reps into the company to sell products. Teams that achieve pre-set sales goals are awarded one-time bonuses. Moreover, reps who shine at both recruiting and selling products can further be rewarded with TVs, vacations and cars.
Getting Started With Avon
Becoming an Avon rep is easy. Simply sign up through their company website where you will need to provide some basic personal information. Next, you are presented with three starter kits, of which you will choose one, ranging in price from $25 to $100.
After you provide your payment information i.e. credit card and completed your purchase, you are registered with Avon’s program. While you await the arrival of your starter kit, you start working on your business by creating your representative web page, which is provided through the company website. Here, you can give your personal details, select the Avon products you’d like to highlight, and then announce your online store via social media such as Twitter or Facebook.
No matter the size of your Avon Starter Kit, it will contain oodles of sales materials like product samples, shopping bags and catalogs as well as full-size products which can be used for demonstrations and home parties.
For what you pay, the starter kits truly have good value. Approximately a year back, Avon even provided – for free – the Quick Starter Kit.
How You Make Money With Avon
After you receive your starter kit and your eStore is set up, it’s now time to start selling Avon products and recruiting others to become Avon reps in order to earn your commissions and bonuses. The following chart outlines the basic commissions and bonuses. Campaigns are periods of two weeks throughout which sales of products are generated either through home parties, trade show booths, door-to-door or online. Avon pays you 40% in commissions provided the goal for the campaign is reached. By the way, regardless of how much product you sell, Avon pays you 40% commissions on your first campaign.
So, in your first 14 weeks as an Avon rep, you can make over $1,000 in bonuses and commissions if you meet the set sales goals every week and recruit three Avon reps.
So, what happens when the 14-week campaign ends? While it’s not openly mentioned on their website, Avon expects its reps to advance to “Unit Leader” by recruiting a minimum of four reps to their downline. Your overall combined campaign sales are expected to reach $1,000. Therefore, every month, you and your team are anticipated to sell a minimum of $2,000 worth of products.
On top of receiving 40% in commissions, Unit Leaders further receive one to five percent commissions directly from the reps they sponsored (contingent on their sales volume) and an additional one percent on 2nd and 3rd level recruits.
Pros And Cons
Established – Both the company and their product lines have been in business well over 100 years and isn’t about to go away. Also, they have quality products at economical prices.
Startup Costs Are Low – Avon’s starter kits range from $25 to $100, which is a good price to startup a business and they include a personal website.
Wide-Ranging Market – Avon’s products are relevant to men, women and children of nearly any age and financial means.
High Commissions – most direct sales or multi-level marketing companies pay their reps 20 to 25% in commissions on the sale of products. Avon, on the other hand, pays 40% in commissions, which is rather a high rate when compared to other companies.
Saturated Market – There are an excessive amount of Avon reps out there making it hard to achieve a strong grip in this already saturated market. Even in a small community consisting of say 5,000 people, you will find 6 to 8 Avon reps ready to visit you in three winks once you choose to shop with a representative on Avon’s website. Unless you’ve got a huge social network or family, it will be tough to sell Avon’s products to new clients.
Losses In Revenue – As a whole, the company has seen decreasing revenues since 2012 and postponed its dividend in 2016. Also, it expressed that it did not achieve their desired representative growth rate of one to two percent per year. Reasons for these declining numbers are diverse, but in general do not give a healthy picture of a company. Also, last year, Avon paid a $27 million settlement for mishandling a few fiduciary matters.
Requirements For Product Sales – Based on the commission structure highlighted on Avon’s website, it seems that reps have to meet pretty high sales quotas to get their commissions. Also, they are required to monitor their downline so that they meet the team sales quotas. What this means is that you will not have much of an opportunity to take any kind of break or even a vacation if you want to assure your monthly earnings.
The Final Verdict
Avon provides good, quality products at reasonable prices. However, as a possible business opportunity, the company has some troublesome inadequacies. To start with, Avon is losing market share as a whole. Also, it’s severely saturated with reps and those reps have to really hustle like crazy just to make the necessary sales so that they can receive their bonuses and commissions.
Are you presently an Avon Representative or been one in the past? I’d love to hear about your experiences with the company. Please leave your comments below.
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