Stripped Down to the bare Essentials – Avon Compensation Plan Review

Avon Compensation Plan Review

Stripped Down to the bare Essentials:Avon Compensation Plan Review

Anything that triggers the “cha-ching!” sound in our head calls our attention.  Business opportunities are taken seriously nowadays, especially since people around the globe encountered the term “financial freedom”.  When you go to job interviews, you also become the interviewee.  You would most certainly want to know your responsibilities, benefits, most of all, the company’s compensation plan.

125 year-old Avon is, to date, the leading direct selling company in the world.  Offering both single and multi-level compensation plan and being a 10 billion dollar company, it is no surprise they have 5 million representatives and counting.

 

The Compensation Plan

I’ve compiled some figures on the Avon compensation plan from various resources.  Please note that there may be additional bonuses or incentives for each of the levels of leadership.

Personal                Sales of                 Commission
Sales                       Group

Representative      $25-$144             N/A                       20%
$145-$284           N/A                       30%
$285-$424           N/A                       35%
$425-$899           N/A                       40%
$900-$1,549        N/A                       45%
$1,550 and up      N/A                       50%

Unit Leader           $225                     $1,200                  3-7%
(5 recruits)

Advance                $300                     $4,000                  3-8%
Unit Leader
(12 recruits)

Executive              $350                     $17,500                3-12%
Leader
(20 recruits)

Senior Executive   $400                     $40,000                3-12%
leader                                                                                       car allowance
(20 recruits)

 

As a representative, if you wish to earn a 50% commission, you’ll have to sell at least 78 Avon products.  That gives you $775.  How many friends in social networking sites do you have?  Statistics say that Facebook users have an average of 130 friends in their account.

Almost needless to say, advancing yourself to the other levels of Avon leaders is the smart move to make if you want take advantage of this business opportunity.  The $1,550 sales you made as a representative qualifies you to the other top positions.

But let’s say you can only get 5 friends to work in your team.  You become a Unit Leader.  They each only need to make $240 sales (that’s selling only 12 Avon products) to reach your group sales target.  With the minimum group sales and minimum commission plus the sales you reached as a representative, you earn almost $900.

 

Is there a place for another representative?

Monthly, there are over 40,000 google global searches and more than 18,000 local searches every month for Avon products.  That’s about 92% more compared to the other competitors. Personal care, clothing, and accessories make up over 54% of the direct selling and MLM industry sales – products which Avon exactly offers.

On the other hand, if you are thinking about making it to the top levels of Avon, you need to recruit members for your unit.  Every month, there are 300,000 searches for business opportunity and great compensation plans in the country and more than 550,000 in the world.

In North America alone, over 260,000,000 people are internet users.  Subtract the 5 million Avon representatives if you wish, but you still got millions of internet users.  Oh, and remember to add the non-internet users.  If you could connect to even just a tiny fraction of that population, you can already see that business opportunity growing and that compensation plan working out well.

So yes, there’s an enormous room for more representatives.

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