Avon Review (MLM or Pyramid Scheme Scam?)

Anyone who hasn’t heard of Avon might be living their precious days inside a cave. They are, up until now, one of the most well-known brands in the cosmetics and personal care niche and they’re known to be one of the first major network marketing companies to be successful in the industry rivaled only by Amway and it is no joke. Let’s find out why.

NEXT: Compare This to Selling Perfumes

California Perfume Company (which was later on named Avon) was founded by David McConnell in 1886. Yes, you read it right, more than 130 years in existence and they’re still in the industry. What a strong foundation they have. David started off as a book salesman and giving away free perfume samples is a way of giving appreciation to those who buy his books. He then noticed that people are more interested in the perfume itself than the books that’s why he started to experiment on different fragrant mixes in order to create a flagship product.

Their direct selling journey starts with doing door-to-door sales pitch of their perfume and as the company grows they’ve developed more products to sell. Personal care like skin moisturizers, whitening creams, and the likes. They also now have cosmetics, makeups and lipsticks as one of their most sought-after products. They even now have their personal merchandise – female lingeries, t-shirts, umbrellas, watches, shoes etc. Anything you might need (inedible goods that is), Avon has it and it is now led by their current CEO, Angela Cretu.

Avon only started adapting the MLM business model back in 2005 with the reason being unknown. They were thriving by just making direct sales and giving opportunities to people, especially moms who can make this as a side hustle while taking care of their kids, so why adapt MLM? It is maybe because they saw another opportunity, another way to make money, and that’s by recruiting people into the company. And that’s the only reason I can think of, just for more profit, what else do you expect?

So, to become a sales representative at Avon, there is a membership fee that costs $25 and there are available starter kits that range from $25 up to $100. Basically, the more expensive kit comes with more Avon product samples for you to try. Will there be any point in selling products that you haven’t tried yet and prove it to be effective?  Nothing beats trying it first hand so that you can easily make a sales pitch for the products that you will be selling.

They did not disclose any “income opportunity” or their compensation plan after they adapted the mlm business model aside from what we already know before it all started, the retail commissions. It started with a 20% base percentage commission for every personal product sales generated by the sales representative, and now can get up to 50% based on your rank, again, not disclosed.

Since they’re already an MLM company, there wouldn’t be a point if they don’t give commissions based on recruiting. Even if it’s not available to the public, we all know that as you build your team and downline, more residual commissions can be earned as long as your recruits also perform well in this type of venture. They’re also rumored to give leadership bonuses and car and vacation incentives to successful reps.

In May 2018, they were filed a lawsuit for alleged failure to warn employees of a mass layoff to some of their sites. And within the same year, an employee of theirs sued them for firing her from an executive job after disclosing her pregnancy and asking to work remotely. There really is time freedom in this kind of setup because they will set you free from the company, LOL.

Avon is a legit direct selling company not until they’ve adapted the MLM business model in 2005. Income opportunity which is not disclosed is a red flag for me. How can you entice people to join your company if you’re not transparent on how they will earn? Direct selling is already a taxing side hustle job, so why give your representatives another type of pressure recruiting new members for more incentives?

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About the author: If you want someone who will talk straight with you, respect your time, and show you a business that might actually work for you, you should watch this short video.