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TBC | Avon: Multi-level Marketing Review

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Avon Products, Inc. is reviewed by TheBestCompanys.com (TBC) in the multi-level marketing industry. TBC breaks down general facts about Avon, information about a starting representative, what to know before joining, their support system, and how to sign-up. For more information visit the actual review on http://thebestcompanys.com/mlm/companies/avon

Published in: Marketing
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TBC | Avon: Multi-level Marketing Review

  1. 1. Avon Multi-Level Marketing
  2. 2. GENERAL FACTS AVON Products, Inc. has been in business for over a 125+ years • A multi-level marketing company that has been around for a long time means that they must be doing something right. AVON generates almost $9 billion dollars in annual revenue • A multi-level marketing company that still generates billions of dollars after many years gives them credibility and shows that they can be counted on to produce good income for their representatives. AVON has over 400+ products offered • MLM companies that provide high levels of product count usually means there is more money to be made because there is more to offer. A good MLM company provides their customers and representatives with not only a good product, but a variety of options.
  3. 3. BUSINESS FOCUS When it comes to business Avon abides by the code of ethics that is established by the World Federation of Direct Sellers. In a letter to U.S. direct selling colleagues, Avon Products Senior Vice President mentions 3 major points of their business model: 1. The core of Avon’s model is directed towards representatives being able to sell the product to the consumer 2. Avon has a belief in a good return policy that means they do not force their representatives to hold on to products. 3. Avon limits earnings to three generations or levels.
  4. 4. STARTING REPS $15 Sign up Cost • A basic kit to sign up is $15 and has 20 brochures, 1 sample product box, a quick start guide, and a few other helpful materials Advancing Levels • Avon doesn’t necessarily have levels of advancement. When you start it is like starting your own business. Reps need to start by making purchases from Avon like brochures, samples, and other materials. Then begin distribution and sales. Income • Income comes because customers will pay the full price, and reps pay a discounted price. • The income is the difference of what the rep pays verses what the customer pays. Costs vs Earnings • Currently, the average order size for customers is right around $25 • An example of a potential order: • Rep buys 100 brochures ($21.49). If sold to 25 customers at an average order of $25, that would equal: • $25 avg. x 25 customers = $625 in sales • If you sold between $440-$924 like in the example that would be 40% commission • $625 x 40% = $250 profit • Finally, subtract the $21.49 it originally cost to buy the brochures and income = $228.51
  5. 5. BEFORE JOINING Not Every Company is Perfect. Here are things to be aware of before signing up. • Avon has had legal issues in the past: • 2010 – 4 Avon executives were fired because of a bribery investigation • 2011 – Avon began animal testing in order to take their business into China • 2014 – Switched from the Direct Selling Association and added a new multi- level marketing model • Avon’s global revenue is decreasing: • In the last 5 years Avon’s global sales has been decreasing • 2014 – Revenue in North America fell 18% • Avon’s target market is woman: • Avon is in the beauty and skin care industry. The focus of their sales is directed towards woman. Hence, Avon’s slogan, “a company for woman” Despite Avon’s move to switch to MLM practices it remains only a partial part of their business. Much of the direct selling practices are still the head of their sales.
  6. 6. SUPPORT SYSTEM Avon has strong support systems such as: • Sales & Marketing Training • Annual Performance Reviews • Workshop & Webinars • Training Courses • Mentoring • Leadership Seminars • Monthly Meetings • Instructional videos for helpful tips
  7. 7. HOW TO SIGN UP Step 1 - Sign up for information from Avon • Avon provides people the option to sign up as a representative at http://www.avonjoinus.com/en/index.php Step 2 - Fill out the basic information in the form and Avon will get in contact • Avon’s guarantee at the bottom of this link (above) states that they will only use the information you provide to contact you and nothing else without consent. Step 3 - Wait to hear back • There may be a lot of variables that factor in to being contacted within a timely manner concerning your request. The best way to get started is to find a representative in your local area.
  8. 8. Review Summary The Good • Avon products have been around for years • Representatives on average earn 35% commission and up to 50% • Avon’s business model allows their reps to be their own boss • Avon is currently the industry leader in beauty and skin care products The Bad • Avon has had legal issues in the past • Global revenue has had a big decrease in the last 5 years • Avon only reports income earnings on their reps that have achieved leadership rankings The Bottom Line • Avon has been in business a long time and have proven to provide continued business success for women around the world by selling their beauty products

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