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Avon Representative Compensation Review
Avon representative compensation review technically could start back as far as 1886. That is when this company was started. Yes, 1886. The company started as a perfume company. The founder decided that going to the customer worked better
Avon representative compensation review technically could start back as far as 1886. That is when this company was started. Yes, 1886. The company started as a perfume company. The founder decided that going to the customer worked better than having a stationary storefront back then, so he sent a representative out to sell products to people and recruit more representatives. They are now the largest direct selling company with millions of distributors.
The company focuses on skin care, anti-aging skin care products, perfumes and cosmetics. They do a lot of sales and are traded on the stock exchange. They have certain proven themselves in longevity and many people use their products. They also make donations to various women causes.
Avon’s Compensation Plan Appears To Work Like This…
During my compensation review of an Avon representative, it appears that one makes a wholesale profit by getting 50% commission on your first 4 orders than it is 20% after that unless you order over $1,550 in a month, then you would get a 50% discount. Average order is $20-25, so if one sells $100 over the 4 orders, that is a profit of $50. After that, the amount you order determines your percentage discount and in turn, your profit. The scale starts at $25-144 at a 20% discount. It goes up to $1,550 with a 50% discount. So let’s say you order that much each month to get the highest profit range. Let’s break that down. So, 50% profit on $1550 is $775 (assuming your customers chipped in for their own shipping, handling and taxes in order to ship the order to you and you moved your full order). With the average order being $20-25, you would need to have 62-78 customers every month. Obviously, some of these can be return customers.
To build residual income, you would need to become a unit leader. To become a unit leader, you would need to recruit 5 people into the business. You yourself would need to have at least $225 each month in personal orders and your group, $1,200 (equivalent to $240 per recruit or approx 12 customers for each of them at $20/order). If this is accomplished, then you would earn 3-7% of that volume in sales, so $36-84. If your recruits are doing well, making more than $240, than obviously, your commission will go up as well as the more recruits you have in your group. If you gather a lot of recruits, then you can move up to the highest level, an executive leader. To get your commission, you would have to have $350 in personal orders and your group, $17,500. You would earn 3-12% of your group volume or $525- 2100. I believe if your personal orders are more, than your commission percentage goes up on its way to 12, so this may take a while. So, for example, to have $17,500 in your group based on $20-25 average order would mean you would need 700-875 orders within your group. If we continue following the first example and say that each representative has 12 customer each, then that would mean having 59-73 representatives in your group. That’s a lot of people, but with a tenacious attitude and a lot of effort over time, it can be done. Of course, there are leadership positions on the way up to that as well.
There are also bonuses available when you and your team reach certain levels. These may range from $200-6,000. If you reach executive leadership, then you may also get a car allowance. They don’t actually buy you a car.
In summary, Avon has got to be respected for its longevity alone. In this day and age, keeping a business running at all is not an easy task. For the company to be around since the 1800′s is amazing and obviously, they have to be doing a lot of things right. Review of Avon’s compensation plan does seem to reward their higher producing representatives, but like most network marketing companies that I’ve looked into, it takes perseverance and a definite passion for what you are doing to ride out the bumps to success.