Is Avon An MLM? Is it a scam or legit?
What is Avon Cosmetics about? Is it an MLM, a scam or legit?
Avon is a multli-level marketing, MLM, company founded in 1886 by David H McConnell. It is the second largest direct selling company in the world and sells beauty, household and personal care products to more than 100 countries in the world. Its original name was California Perfume Company and later changed to Avon in 1932. Originally headquartered in New York, in 2016, moved it’s headquarters to London, United Kingdom. Avon is the fifth largest cosmetic brand in the world. It has closed it’s branches in France, Australia and New Zealand
Is Avon An MLM Company
David McConnell was first a door-to-door book salesman and in 1886 decided to sell perfumes instead. This trend of selling door-to-door followed Avon through the years with Avon representatives leaving brochures with prospective customers and picking them up another day for order placements. Most people know about Avon catalogs being put through the door by an Avon representative or going to Avon parties.
Unlike other MLM companies, Avon pays commissions up to 3 levels only. Representatives are able to sell products to people outside the distributorship network. This eases the high pressure to recruit and so Avon distributors are more laid back.
What Is Avon About?
- Someone you know or an Avon Cosmetics MLM company distributor has approached you enthusiastically and told you that they are onto the best opportunity ever, they want to recruit you but you want to check first.
- YOU ARE ABSOLUTELY RIGHT
- Take your time, learn about the Avon opportunity first and see if you like it.
- Is it really true that Avon Cosmetics is a good opportunity, pays well and is worth the investment of your time and money?
- Is Avon Cosmetics a good company?
- Is it easy to make money with the opportunity?
Most Avon distributors don’t make enough to replace a salary. There is no financial freedom from Avon. It will take much more than Avon cosmetics and their other products to have a thriving business as a distributor. Money from selling Avon products is pocket money and all you are is a sales rep on commission and not a business owner. There is no residual income as it is difficult to recruit other people into the business.
How To Start Selling Avon Products
- Pay £16 to become a distributor
- You Receive 20 brochures and order slips
- You can buy more brochures from £3 to £8
- Host parties
- Use social media
- Distribute brochures offline
- Get 20% on orders £78 to £144
- Get 25% commission on orders over £145
- Avon sells makeup, skincare, bath and body, jewelry, fashion, fragrances, wellness, scented candles and fragrance, grooming, gifts & gadgets for men.
- We are not going into depth about Avon products as products offered by any multi-level marketing company will always appeal to some but not to others.
- This article will focus on the business opportunity because this is where time or money can be truly wasted.
- All MLM companies will have slight variances to their business opportunity or compensation plan but the end result is always the same – very few distributors earn much.
The following is comprehensive information about MLM and if you decide to join Avon or are already an Avon distributor, here is information to check against and decide what to do next.
Are MLM Scams
- MLMs sell real products and so they are not called scams – with a bit of tweaking here and there they meet authority standards but…
- Giving distributors the impression that they have a business and will achieve financial freedom is deceitful because MLMs products selling rarely creates a true business for anyone. We will expand on this
- MLMs add more expenses to your already heavy budget, not to mention the waste of time when you could use that time to create a real business.
As An Avon MLM Distributor
- You pay joining fee
- Buy brochures and flyers
- Use the products
- Recruit downlines
- Sell products
If someone trying to recruit you to join Avon, look at this more closely
- The following is a comprehensive description of how MLM opportunities work.
- To fully inform you about what to expect with an MLM company
- Look at this information and see if you want to go ahead with Avon MLM company.
- There is enough information here to help you to come to a definite decision about the Avon opportunity.
Why MLM Business Appeals To People
You are with Avon or considering joining Avon because…
- You Want To Be Your Own Boss
- There is no Inventory to bother with
- No Need For Infrastructure
- No Experience Needed
- No Educational Qualifications Needed
- No Staff/Employees needed
- No Capital
- No Risk
- You Have Hope For Earning Residual Income
- You Hope To Earn A Lot With No Cap On Income – the sky is the limit picture
- The Ability To Work From Home
- Getting Step-by-step Training because you don’t know where to start in business to make money
- It’s comforting to know you will be led by someone who already knows about the business on a one-to-one basis
- Support, both from sponsor and fellow distributors, gives a sense of belonging
- Considering all the above, who would not get drawn to the MLM type of business?
Other Names For MLM
- Pyramid Selling
- Network Marketing
- Referral Marketing
MLM Product Selling Benefits
- Earn certain amount of points a month to earn commissions
- Earn certain qualifying points to maintain a status
- Have product discounts
- Retain profit on product retail sales
Some or all the information above will apply to Avon business opportunity. This is not the problem though.
What Do You Do In An MLM?
In a nutshell you…
- Use and sell products
- Sponsor people into the program
- Attend local business presentations/events and training
- Promote events to your downlines
- Work with your upline/sponsor
How Distributors Earn
- Distributors earn through retail profits,
- personal volume,
- leadership bonuses,
- car bonus etc.
- A distributor must be active each month to qualify for commissions. Being active is about purchasing products and recruiting downlines or must have a certain order amount to put an order through.
- Each product carries credits and so you have to make a certain number of credits each month.
- Some MLM companies don’t use terms like sponsor and dowlines as such. They use fancy titles to impress.
- Making sales and recruiting people through good salesmanship is all part of the business.
- Good salesmanship in MLM usually means being pushy otherwise you have no business at all BUT being pushy, you also lose a lot on the social and likability side. No one likes being pushed into doing things.
To Impress you before you go out there and be pushy in your social circle, some MLMs will give you a title like
- IBO – Independent Business owner or
- Assistant supervisor
- They imply you can work hard, take control of your life, fire your boss and live large but how real is this?
- You get caught up in the promises and get blinded to what’s really going on.
- The entrepreneurial freedom promise is unattainable because of the structure of the business
- Your business in an MLM is dependent on the few people you know and meet and that is not enough to build a business, ever!
- You will eventually realize you are working tirelessly for nothing
- Some MLM companies will say they are really not an MLM and dress their opportunity with fancy descriptions but as long as your earnings largely depend on recruiting other people, selling the company products and their business opportunity and has a pyramid structure, then you are involved with multi-level marketing
- Check with what is listed below and know for yourself if what you are dealing with is an MLM and wasting your time and effort.
- If you want to stay in it because you like the products, that is fine, but know that business wise, there are no large sums of money to look forward to for 98% of distributors.
Real MLM Business Opportunity Picture
- Being your own Boss… well, from experience, you are really not your own boss. You have an upline who is constantly checking on how you are pushing the business. You will soon realize you are under pressure to recruit and to sell.
- No stock/inventory… really? Some MLM companies require that you push certain number of credits each month to earn a commission or maintain a status. There are thousands of distributors with MLM products in their garages that they did not manage to push.
- Work From Home… with the business meetings, presentations, and training that goes on, this is NOT a 100% work from home business opportunity. You are in and out and everywhere, adding up the traveling and events costs.
- Flexibility… well, sometimes. You can’t really decline meetings and presentations all the time or block those calls from your upline. The environment is usually kind of pushy and presentations and upline calls and training happens quite often at set times!
- No income cap… well, there is an income cap on MLM earnings – naturally! You will soon discover that the sky is not the limit. That due to product prices, not a lot of people outside the MLM network are interested in the products. So you can only sell so much – not much. That “the-sky-is-the-limit” hope will soon be dashed. If you are waiting to prove that this writing wrong, you are going to wait until the cows come home.
- No Staff… hilarious. Yes, you have no staff in the conventional sense but you need downlines to earn in any MLM business. You definitely can’t work alone, at home. To realize any kind of income from an MLM opportunity you have to recruit, monitor and motivate your downlines. Of-course the language used for this process is sugar coated. This is actually a burden. It is like recruiting new staff all the time and forever training new staff.
- Residual Income... Maybe we should call this one ‘dwindling income’. You start off with loads of excitement, recruit family and friends, who join just to support you or because they have been pushed into it. And then you realize that very few will want to really do the business and slowly the few sales you made before, come to naught.
- In reality, no residual income will happen.
- There is more… The hidden costs. You will be traveling to presentations, meetings, events, seminars, even conventions and the MLM company doesn’t pay for those!
- Keep your eyes peeled as you enter the MLM world and cut your loses as soon as you realize things are not going as you pictured.
The Process Of Becoming A Pest?
- Distributors are encouraged to make a list of people and start talking to them about the opportunity.
- You make phone calls, plan meet ups and arrange 3 way calls with sponsors.
- Take prospects to presentations
- No one likes a salesman be it for a product or opportunity and so you become annoying.
- Your friends start to avoid you.
- You become a nuisance at parties!
- You kind of become a parasite preying on everyone you meet including friends’ friends.
- Some distributors really get pushy!
- Word of mouth is a limited way to do business because eventually your business is only about the people you know and those you meet, looking at this picture, where do you grow a huge business from?
- Some MLM companies will not allow you to create a website to advertise their products, while others give you a page from their main website but this does not work because you need to know how to use that page to reach people.
- But the MLM company knows word of mouth is more effective as distributors are trained to be pushy and they actually don’t care about you at all. It’s all about pushing you to sell for them for very little or nothing in return and this creates HUGE profits for the company. Don’t get caught up in their promises because they are JUST THAT – promises.
- In the end distributors earn a bit of money from products recommended to other distributors in their team – it’s difficult to sell outside the network and that makes your business extremely limited.
- Guaranteed – at some point you will run out of people to recruit – end of story!
- Distributors feel trapped after investing some money – we all want to be right, right? So they stick to it longer than they should.
- If you are invested in an MLM hoping to make a living, cut your loses as soon as you realize you are not going anywhere with the opportunity, unless you want to do it as a hobby.
- MLM distributorship leaves a sour taste both socially and financially
Who Earns Well In Avon or Any MLM?
- You will have examples of one or two people from each country with large cheques from the business opportunity and these people have tens of thousands of distributors earning very little to nothing. That means the minions are just like the donkeys carrying the heavy load for nothing!
- This is not isolated to one MLM company, you will witness this across the whole MLM industry
- Year after year you see the same high earners paraded, what’s happening to the rest of the distributors? They are working hard for nothing!
- Your success in an MLM is directly dependent on how many distributors you recruit and how active they become! Buying and selling products only, does not create residual income.
- This is the reason why your upline or sponsor is on your back all the time. An annoying sequence! Isn’t this what you are trying to get away from a job when you decide to have your own business! Even the boss at your regular 9 – 5 job is not as pushy as an upline!
Your Efforts With Avon Are Barely Rewarded
- You spend time looking to recruit others
- you spend time taking people to venues to hear the opportunity!
- you spend money to buy the expensive products!
- YOU SPEND TIME AND EFFORT FOR LITTLE TO NO RETURN!
- As ex distributors, we have walked that road. Most distributors walk away worse off financially.
- You get brainwashed into telling a success story that is non-existent in your life or the rest of the distributors around you.
- You are running on hoping to be like one successful upline in a whole region.
What is Avon Cosmetics and Is Avon an MLM? Yes it is and if you like Avon regardless, don’t focus on one stream of income. Avon income is not going to be anywhere near enough for your needs. Look at other opportunities or combine them.
There Is A Better Way To Earn Much More For The Same MLM Effort You Will Put In Avon Business Opportunity.
- With MLM business, as soon as you stop selling, your past efforts don’t pay anymore.
- You can learn to set up a real solid business where your effort will pay for years
- Replace recruiting distributors by working smart to create real residual income and truly from your home
- Have a look at the true cash cow that will reward your efforts, not once but it can be for years
- A process that will reward your efforts and earn you money while you sleep.
- Residual income with an MLM is impossible because the failure rate is too high, not many downlines will stay the course.
- Not many customers and downlines will keep buying those expensive products. A few will, but that is not enough to make residual income
Before You Sign Up For Avon or Any Multi-Level Marketing Company.
- Ask your sponsor for the terms and conditions of the plan, including:
- the compensation structure
- your potential expenses and see if you can afford it before you fork out money on products and events.
- Support for claims about how much money you can make, talk to a lot of distributors and gather your own true picture.
- the name and contact information of someone at the company who can answer your questions
- Find out about refunds
FTC guidelines to help you to get the full Avon picture, ask your recruiter questions like,
- How many people have you recruited?
- How long have you been in the business?
- How much time did you spend last year on the business?
- How much money did you make last year — that is, your income and bonuses, less your expenses?
- What were your expenses last year, including money you spent on training and buying products?
- What percentage of your sales were made to distributors?
- How much product did you sell to distributors?
- What are your annual sales of the product?
- What percentage of the money you’ve made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?
Who Is Avon Company For?
I would say the business opportunity creates an illusion for
- Anyone who wants to have their own business,
- no staff,
- no stock,
- no shipping
- Being shown how to do business.
- Multi-level marketing seems like a great idea because it takes care of showing distributors how to do the business but you actually don’t have your own business eventually. You become the customer for the MLM company, who recruits other customers in the name of business and nothing more.
- 98% of people involved with MLM companies never really make any money.! The idea is an illusion!
Have You Got Enough Of Avon or MLM Business Opportunities?
- There comes a time when enough is enough
- really want to consider another income stream
- want to make real residual income
- want to have your own solid business where you don’t handle any products, truly work from home with no boss or upline, no downlines to recruit and everything else taken care of for you but don’t know where to start…
… consider affiliate marketing.
- This is an idea that is twenty times or even a hundred times better than multi-level marketing!
- You have an opportunity to build your own empire for real
- no uplines and the annoying pushy business
- working from home for real
- No Capital
Affiliate Marketing Advantages…
- Its global and you work with as many companies or products as you like
- Passive income
- You join affiliate programs for free
- You truly work from home – no seminars, events and uplines breathing down your neck
- No customer support
- Don’t need employees
- No production costs
- Don’t need premises
- No packaging and shipping
- The biggest plus is that affiliate marketing is a business model that is future bust proof, if one company drops out of business you pick the next successful one or you can work with as many as you like at the same time.
- It is recession proof. When the economy is in recession all you do is switch and work with products good to recommend during a recession!
- You don’t bother your friends and family, instead you get a stream of visitors from people interested in what you offer.
- No upline to push you around to go and bother people – you truly work at your own pace
- You build your own business that is not dependent on recruiting other people – I’m sure by now you realize recruiting people is not easy! Get onto something easier and more fun!
- Get to know what real business, using other people’s products means
How To Come To A Decision About Avon
- Do you want to be the person that family and friends avoid because you are always trying to sell them something?
- Do you want to waste your effort over a business opportunity that will NEVER make you enough money?
- Do you want to waste time and incur more expenses for very little to no return?
- Do you like selling?
- Do you want the real business model that gives you a real business to work from home with no boss and no inventory, where you get proper guidance, no upline and no need to push anyone and instead those interested find you – consider affiliate marketing.
Is Avon an MLM? Yes it is. And from the above, you now know what is Avon.