The Company: Avon
Founder: David McConnell
Startup Cost: $20
There's plenty of reviews floating around the web for this company but it's hard to find one that isn't from a disgruntled former associate or someone trying to get you to join through them. This is my totally unbiased Avon business opportunity review will help you make your own mind up.
The company was founded in 1886 by David McConnell as a household, cosmetics and personal care product selling organisation. They have since grown to over $8.9 billion globally with over 6.4 million sales reps.
Avon distributes it's products through door to door campaigns and a replicated 'e-store' using the multi level marketing structure. According to Avon's 2014 annual report the company's revenue has been falling steadily each year since 2012 which is not a good sign. They still have a solid amount of annual revenue but the trend is not looking very promising.
The products consist of makeup, personal and household care and are mainly targeted towards women. I'm no expert in the cosmetics department so I can't really speculate as to how good or cost effective these products are.
To learn more about their product range I recommend checking out their latest catalogue.
The Business Opportunity
The opportunity is marketed as a way for women to look beautiful, be empowered and then share this excitement with others. They primarily focus on door to door campaigns and give reps a replicated online store to sell products online.
Apparently your income potential is 'limitless' and it looks like a pretty fun way for women (or men) interested in makeup to build a business. You can make money with Avon but rest assured it will not be anywhere near as easy and 'care free' as the marketing material suggests.
The Avon Compensation Plan
Compensation plans can be pretty confusing to understand at the best of times and Avon doesn't give people a very clear explanation of this on their website, rather they just give people a very simplified overview of some of what is involved. Here's what I found...
To get started only costs $20 which is pretty low in comparison to a lot of other mlm's. All you need to do is sign up on their website and your good to go.
Becoming Commission Qualified
You can earn commissions on sales without having to reach that level as a sales rep but to earn on your downline which is cool. However, to reach the base level of 'Unit Leader' you'll need to sponsor 4 people into your downline and maintain $1000 in sales between all 5 of you.
This means that your team must be buying or selling a combined $1000 in products every 2 weeks just to maintain the basic level of Unit Leader. That is a fairly hectic requirement in my opinion.
Ways You Can Earn
There are various ways you can earn an income with this company and I'll break these down for you.
You can earn retail commissions by selling products to people anywhere from 20-50% depending on how much you sell. The more you sell, the greater your commission percentage will be.
You can also earn commissions based on what your downline is doing every 'campaign' period (2 weeks) anywhere from 1-11% depending on where you are ranked within the company. At 'Unit Leader' level (the most basic level) you can earn 1-5% on your directly sponsored rep depending on how much sales they did that campaign period and 1% on your second and third levels.
You can also earn bonuses when you reach and maintain your level within the company and when you help others to do so. This varies across the board.
This rank will be lost if you fall below that requirement in any given campaign period. Given the fact that a campaign period is typically 2 weeks, that number is INSANE.Avon Compensation plan
What I Liked
- Low cost to get your feet wet and become a sales rep
- You can go door to door and they encourage social media marketing which is good
- The commission rates are pretty good in comparison to a lot of companies
What I Didn't Like
- They do not give people access to the compensation plan on their website
- The maintenance costs to be in business at the base level seems quite high
- The global sales are dropping steadily each year which is somewhat concerning
- They teach the warm market technique
All in all it appears to be a reasonably legit mlm company. Avon certainly has a solid brand awareness and I do like how you have the option to go door to door. They also encourage online marketing to some extent which will help reps build their businesses.
There are some concerns regarding the way they teach people to leverage family and friends to build their business. This is true with all mlm companies I have reviewed. While this may work for some of the time it will not allow people to build any kind of long term success.
You'll be leaving a TON of catalogues and hustling a lot of family and friends to build any kind of profitable business this way. I'm not sure if they charge reps for the catalogues, if they do this would be potentially very costly. You can definitely make money with Avon but I personally think there are better alternatives. Either way, I hope this review has given you some useful insight to help you make a more informed decision about joining.
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