Is Avon a MLM?
If you live in Europe or North America, chances are that you?ve purchased at least one Avon product. You probably even have close friends or relatives who at one point were Avon partners. While you can still become a partner to Avon and you can start your own home-based business, the question to ask is if it?s still worth becoming an Avon affiliate.
In this article, we?ll take a deeper look at how affiliates are making money with Avon and we?ll try to determine if Avon is the best option for you or you should go for something else. Let?s start by taking a quick glance at what Avon actually is and how it started out.[wp-review id=”5595″]
What is Avon?
Avon is a large multi-level marketing company that focuses on adding value to the lives of people using cosmetic, household and personal care products. Is Avon a MLM? Yes, and one of the first ones. This multi-billion dollar company has millions of affiliates all across the globe, enabling them to enjoy a consistent stream of revenue.
Their position on the marketplace is quite impressive, especially as they do not own beauty shops. They only sell their products through their affiliates. Avon is competing with stronger brands such as Estee Lauder, Mary Kay or L?Oreal, Pruvit and are able to outpace their competitors in many key markets of the world.
At the moment, Avon has around 6 million direct sales representatives, which is quite impressive. They have hundreds of train centers all across the globe, enabling their 6 million strong ?army? to become better at selling their products. However, a few Avon affiliates have managed to open up their small boutique stores in malls, but only after getting the approval of the company.
However, as the competition is getting fiercer, Avon is slowly sinking. Their affiliates are complaining about the low fees they receive per sale and by the decreasing number of customers they have. This is triggered by the global economic crisis. As people have less money for cosmetics, they choose to purchase cheaper cosmetics manufactured by big retailers and are giving up Avon cosmetics and their range of household products.
A Short History of Avon
Avon is the oldest MLM Company in the history of humankind. They have been founded over 130 years ago in New York by David H. Connell. They grew from being a new player in the cosmetic industry to one of the top cosmetics manufacturers in the globe. This multi-level marketing company is based on sales and uses a door to door approach.
The secret to Avon?s success was due to the fact that the company promoted equality between men and women. In an age where women didn?t enjoy the same rights as men did, Avon came like the sun shines brighter after the rain. They even offered women the possibility to become CEOs and to be in the director?s board.
This company was founded with the sole purpose to help women enjoy exotic fragrances and to help them earn an income. Even if most of the distributors of Avon products are women, you can also find a lot of men who are making a lot of money as Avon independent contractors.
Today, Avon has around 50,000 employees all over the globe, works with 6 million distributors, is publicly traded on the markets across the globe and listed on the Stock Exchange in New York, and has annual sales of over $5.5 billion a year.
Over the years, Avon has contributed to helping women through different causes. They have donated hundreds of millions of dollars to spread breast cancer awareness, put a stop to domestic violence and promote women’s emancipation. Avon even has its own foundation, the Avon Foundation for Women.
Not Only that Avon encourages women to join with them as a distributor. They call it “Boss Life”
The success of Avon?s business model lies in its high-quality and fair priced products. Compared to other cosmetic companies like Amway or Estee Lauder, Avon prides itself with very affordable prices to its wide range of products.
Avon uses catalogs to spread awareness of their products and to easily make sales. Catalogs are released every new month and contain hundreds, even thousands of products for women and some for men. Usually, you can find anything from makeup and shampoos to shower gels, face creams, mascara, nail polish, and perfumes.
Inside their catalogs, you can also find purses, home cleaning products, personal care items like toothbrushes and even clothing or footwear. As an Avon rep, you will never run out of products to sell. That?s a certainty, and one of the strongest selling points of this North American MLM company.
Is Avon a Good Business Opportunity?
Is Avon a MLM that offers you a good compensation plan? You will receive various answers from different people to this question. Making money with Avon might prove to be a tedious task if you do not understand what women actually want. Moreover, not all products are natural and high quality, so you cannot base your marketing approach on the quality of the products.
While you can only start with a small investment of $25, you cannot get rich in a short amount of time. You?ll need to constantly buy new brochures and get new products so you can share them with your friends for test purposes.
Do not expect to enjoy professional training as an Avon rep. It all depends on who is in your upline. Most of the time, you might need to find a way to grow by yourself and to recruit people using your own methods.
Avon Success Rate
Unfortunately, recent data says that the success rate with Avon is very slim. The average earning a year is lower than $500, with the max pay at around $1,026. However, just like any other MLM, most people who join Avon actually lose money.
The success rate with Avon is under 0.3%. Over 99.7% of Avon reps are unable to make an income after a few months and quit. This means that hundreds of millions of people have tried to become Avon representatives, but only 6 million have succeeded. Out of them, around 95% make around $500 a year in profit.
Even if the products are good quality and extremely affordable when compared to the competition, the average Avon rep is unable to make ends meet. The problem is that building a team is a difficult affair, especially as most people are not trustworthy. Another problem is that people prefer to shop online, on Amazon and eBay, instead of ordering from an Avon rep and waiting for a few weeks until their products arrive.
Avon Compensation Plan
You can see the compensation plan of Avon here😕 You can earn several bonuses as a rep, including sale bonuses, target bonuses, and new rep bonuses.
You can usually get between 20% and 40% commission for a sale, depending on the product, campaign, and bonuses.
Most of the MLM Compensation plans are very difficult to understand and misleading. Watch the below video and try to understand how the bonuses work.
Is Avon a Pyramid Scheme?
Is Avon a MLM or a pyramid scheme? The simple answer is yes. The complex answer involves more variables. You can make money on this business opportunity without investing in recruiting people. However, if you recruit people, do not expect to make a fortune. The bonuses are very slim, starting from just $25 for a new recruit.
It Avon a Scam?
Avon is definitely not a scam, but a legit MLM opportunity. However, given the fact that you can barely make a few hundred dollars a year, it?s totally not worth spending your time or money on it. The only reason to become an Avon rep is if you have a lot of friends who like Avon products and need a distributor.
How to Join Avon?
You can either contact an Avon rep or simply go on the official site and sign up.
Why I don?t Like Avon?
– The commissions are very low: you cannot get rich with Avon unless you invest many years, have hundreds of recruits in your downline or start your own boutique
– You need to buy brochures on a weekly basis, which keeps you with constant worry
– Not all products are natural
– The competition is fierce, and most people have started to buy online instead of choosing Avon or a similar MLM company
Why do I like Avon?
– They offer very valuable and inexpensive starter kits
– The company has a rich history
– They have thousands of unique products, and some of them come at a great value for money
– Avon has very good marketing and they constantly release special offers and deals for Christmas, Easter or Black Friday
Avon is a great company with a rich history and numerous high-quality, affordable products. However, becoming an Avon rep is definitely not a lucrative business opportunity. You can barely make ends meet, and your profit margins will be slim, in case you manage to survive in the first few months. But still, there are hundreds of women who sign in for Avon business every day.
Personally, I recommend you to try a much better alternative to Avon. I?ll explain it below.
Better Money Making Opportunity
I?ve found out on my own skin that MLM does not compare with affiliate marketing. Since I?ve got into Wealthy Affiliate, I?ve managed to make a fortune working from the comfort of my home. Affiliate marketing is way better than MLM in our digital era.
Learn more about how you can round up your revenues or even replace your 9 to 5 job with Wealthy Affiliates.
Is Avon a MLM That provides you better income? I hope that clear to you now. Thank you for reading and see you again!