Is Avon a pyramid scheme? On paper, the company isn’t. However, it is a multi-level marketing company that comes quite close to being one.
This make-up and body care company refers to its recruitment-centric direct sales model as “social-selling”. It has successfully roped in millions of members with discounts and by offering a route to become an “influencer”.
The company sells many “Award-Winning Products”. This might lead you to believe they’re a trustworthy company with a good business model that lives up to the hype. However, you might be disappointed by low-commission payouts and the heavy focus on recruiting. I’d go as far as to say you probably won’t make a livable wage as an Avon representative.
With this guide, I aim to deconstruct Avon’s business model and show you how much you can really earn. I will also discuss the core pros and cons of working as an Avon Representative based on my personal experience with the company.
I hope to offer a realistic picture of what to expect when you sign up with Avon. This includes critical information I didn’t know when I signed up with them two years ago.
We worked with a former Avon Consultant to produce this article.
Table of Contents
My Personal Experience
My story with Avon started two years ago. I had heard the company’s name mentioned in the news a few times before actually learning who they were and what they sold. My first direct exposure to the brand occurred in my final year of college.
It was the start of the semester, and I was getting to know the different people in my row in the lecture hall. One of these was a girl named Krystal.
Krystal stood out from the other girls in my classroom because she always came to lectures with a full face of make-up. I’m sure many girls gave her the evil eye for drawing attention to herself while the rest of them still looked half-asleep. However, Krystal seemed genuinely passionate about make-up.
She’d spend the short break we got between classes watching beauty and style videos on Youtube. I’d also catch her scrolling through product listings on a beauty retailer website whenever our professor left the classroom to take a call.
I befriended Krystal and asked her about her make-up routine. She immediately responded with something that resembled a well-rehearsed pitch. In hindsight, it probably was one.
She mentioned the different foundations, concealers, eyeshadows, and lip glosses she used each morning. However, one brand name kept coming up over and over again: Avon.
I asked Krystal about the company and why she liked their products so much. She talked about how Avon’s make-up and skincare products were developed using “cruelty-free” practices. She also mentioned she gets a special discount on products as an Avon representative.
I was intrigued by this information and asked Krystal what an Avon representative was. She explained the company’s direct-sales model and commission schemes. She also believed the company was helping her become a famous influencer.
I was amazed that someone would be able to find the time to sell make-up and beauty products while attending school as a full-time student. Krystal assured me that Avon allowed her to sell products at her own pace. This flexibility allowed her to promote items whenever she found some extra free time during the week.
The Avon sales model did sound appealing, but I wasn’t really interested in it at the time. However, I reconsidered it after I graduated later that year.
I received my degree just before the pandemic started, and I was having trouble finding a job in my field. Three months of unemployment is no joke when you have to cover rent and other living expenses. But I didn’t want to slow down my job-hunting momentum by waiting tables for minimum wage at a restaurant. So I decided to sign up as an Avon representative.
The sign-up process was relatively quick and straightforward. I went to the website, filled out some details, spoke with a representative over the phone, and paid a sign-up free. I then purchased a product starter kit and took a few free training courses with the company.
I spent the following few months purchasing Avon inventory and attempting to sell them to people. I started with close friends and family members before cold-approaching people in different places. I did this for around eight months before quitting.
The truth is that I had been frustrated with the company’s business model from the very start. I was making very little in commissions and wasn’t skilled at recruiting new representatives. I spent dozens of hours each week promoting products for the company but wasn’t earning a livable wage.
I persisted because I believed business would pick up at some point. I would have possibly ended up staying with the company for even longer if I hadn’t received a job offer. The day I quit as an Avon representative, I felt a huge weight being lifted from my shoulders.
My experience with Avon was poor. The commissions were abysmal, and I didn’t get very far with recruiting new members. I would have never signed up with the company if I had known what the reality was actually like.
So I’d like to help you become more informed by going over the company’s business model, how much you can really earn as an Avon representative, and the various pros and cons of choosing this company.
What is Avon
Avon Products, Inc., or Avon, is a British multi-level marketing company that has expanded to numerous countries. It offers make-up, skincare, hair care, fragrance, and fashion products for women and men.
Avon currently stands as the fourteenth-largest beauty company in the world. It is also the second-largest direct-selling company after Amway. The multi-level marketing company has over six million representatives worldwide.
Avon reported an annual revenue of $3.4 billion in 2021. The company was pulling in over $10 billion per year during the height of its popularity.
History
Avon’s history goes back over one hundred years. Its founder, David H. McConnell, was a traveling bookseller who gave customers beauty product gifts along with their purchases.
McConnell quickly realized that many of his customers were more interested in the perfumes he gave than the books he sold. This inspired him to start mixing his own perfume and selling them in 1886.
The perfumer recruited a team of women to help him with sales activities. The people in this team could be considered Avon’s first sales representatives.
McConnell found success with his sales model and grew his team quickly. He believed it would empower women and give them more economic freedom.
The company entered the Canadian market in 1914 and adopted the Avon brand name in 1929. Avon expanded to Venezuela in 1954, marking its entry into South America.
By 1957, the company had over 100,000 recruits and hit an annual revenue of $100 million. Avon launched its first line of skincare products in 1961 before adding jewelry to its lineup in 1971.
In 2020, Avon was acquired by Natura & Co. It now sits alongside other beauty and cosmetics brands such as Natura, The Body Shop, and Aesop. The company has over six million representatives worldwide and sells products in over one hundred countries.
You can learn more about Avon’s history in the following Youtube video:
CEO and Staff
Avon’s current CEO is Angela Cretu. She was appointed to this top position in January 2020.
Cretu previously served as Avon Central Europe’s General Manager. She helped manage the company’s presence in nineteen countries and grew its presence in Central Europe.
Avon officially has approximately 73,000 employees, according to its LinkedIn. This excludes the millions of Avon representatives located around the world.
The company has officially stated that it currently has over six million representatives. However, its annual revenue has been shrinking since 2011, so the company may have had a much higher number of representatives in the past.
Is Avon a Pyramid Scheme?
So is Avon a pyramid scheme? I no longer like the company’s business model, but it isn’t a pyramid scheme. To see why not, we have to examine the Securities and Exchange Commission’s definition of a pyramid scheme.
SEC states that a pyramid scheme is “an investment fraud in which new participants’ fees are typically used to pay money to existing participants for recruiting new members.”
The SEC also mentions that pyramid schemes typically have each of the following qualities:
- No genuine products or services are sold;
- Members are promised high returns in a short period of time
- Members are told the business model allows them to make easy money or passive income
- There is no demonstrable revenue generated from retail sales
- Members must make a purchase to sign-up
- The business has a complex commission structure
- The business model places a high emphasis on recruiting
Why Avon Isn’t a Pyramid Scheme
Avon doesn’t count as a pyramid scheme because it doesn’t meet each of the criteria mentioned above. This includes
#1. No Genuine Products or Services are Sold.
Avon got its start selling perfume products and has expanded to sell make-up, skincare, and fashion accessories in recent years. I have used and sold many of these items.
This means the multi-level company’s products are genuine.
#2. Members are Promised High Returns in a Short Period of Time.
Avon doesn’t guarantee you will make high returns in a short amount of time. Their recruitment page includes the tagline “Think Big, Earn Big”. This implies you might be able to earn lots of money if you’re able to come up with a good plan. This is different from “promising” high returns quickly.
#3. Members are Told the Business Model Allows Them to Make Easy Money or Passive Income
Avon never explicitly states that their business model allows you to make easy money. Instead, the company talks about the flexibility the business model offers.
They also attempt to sweeten the deal by offering discounts, professional development courses, and access to telemedicine.
#4. There is No Demonstrable Revenue Generated from Retail Sales.
Avon announced it had earned $3.4 billion in revenue at the end of 2021. While some of this revenue may have come from recruiting new members, it is unlikely that all of it came from this source.
For example, it costs between $0 and $30 to become an Avon representative depending on the method you choose. Let’s assume all 6 million Avon representatives signed up for $30 in 2021. That would generate a revenue of only $180 million, which is far less than the $3.4 billion they reported.
Therefore, we can assume Avon is definitely making revenue from selling products.
#5. Members must make a purchase to sign-up
Avon gives you the option of signing up for $0 or $30. Once you do this, you’re not under any obligation to purchase products.
Why Do People Think Avon is a Pyramid Scheme?
People believe Avon is a pyramid scheme for a few reasons.
Avon Has a Complex Commission Structure
Avon has a relatively complex commission structure depending on your rank. You earn different commission percentages based on the type of products you sell. For example, representatives at the Premier rank get a 30% commission on beauty/jewelry sales and 20% on fashion/home product sales.
This commission structure gets even more complicated when you start recruiting members. You can then earn a cut of your recruits’ earnings as commission. When combined, these factors make calculating commissions really complicated.
Avon Places a High Emphasis on Recruitment
Avon doesn’t force its representatives to recruit new members. However, they do make it clear that recruitment is one of the best ways to earn income.
You can earn bonuses for bringing in new members. You can also earn extra money if one of your recruits places an order over a certain value.
How Much Money Can You Really Earn from Avon?
Avon hasn’t specified how much its representatives earn. This is common for multi-level marketing companies that want to obscure the truth about how little they will actually earn. To get a better idea of these earnings, we can consult salary postings on Glassdoor.
As you can see, the average salary for an Avon rep is $19,609. The salary range specified is $2,848 to $38,103 per year. This implies that new or part-time members are likely pulling in way less than $19,609 per year with Avon North America.
The most disturbing part about this range is that it indicates high-ranking Avon reps aren’t earning more than $38,000 per year.
So if you’re new to Avon, you’re definitely not making a livable wage. If you’ve been with the company for many years and have worked your way up the ranks, you’re still earning less than a typical salesperson employed at a beauty retailer.
How to Earn Income Through Avon?
Avon lets you make money in two ways. These are:
- Earnings from personal sales
- Bonuses from recruitment and recruits’ sales
Method #1. Earnings from Personal Sales.
The most basic way to make money with Avon is by selling products directly to customers. You can do this in many ways. This includes:
- Purchasing Avon products at a discounted rate and selling them for a higher price.
- Directing customers to purchase products from your Avon website.
- Collecting a customer purchase request and submitting it to Avon.
The first method might be good if you’re skilled at selling products to people face-to-face. You can get up to a 50% discount if your purchase volume is high enough. This means you can make a 50% profit by selling the product for its regular retail price.
The second and third methods help you earn commissions from sales. In this method, Avon delivers products to the customer directly. So you don’t need to purchase or hold inventory. The commission percentages for different ranks are shown below.
| Rank | Annual Sales Volume | Commission from Beauty/Jewelry | Commission from Fashion/Home |
| Contender | – | 0% – 25% (depending on campaign sales) | 0% – 20% (depending on campaign sales) |
| Premier | $5,000 | 30% | 20% |
| President’s Club | $10,000 | 40% | 25% |
| Honor Society | $20,000 | 40% | 25% |
| Rose Circle | $35,000 | 40% | 25% |
| David H. McConnell Club | $65,000 | 40% | 25% |
| President’s Council | $110,000 | 40% | 25% |
| Inner Circle | $220,000 | 50% | 25% |
Method #2. Bonuses from Recruitment and Recruits’ Sales
Avon encourages you to recruit new representatives by offering you bonuses. This includes a commission cut of 3% to 8% on the sales your recruits have made. You also get bonuses when your recruits place an order over a certain amount.
These bonuses vary depending on your leader title. You should note that this “leader title” is different from your representative ranking.
Avon reps at higher leader titles earn a greater commission percentage from the people they recruit. They also have a chance to earn commissions from the people these recruits go on to recruit. If you reach a high enough leader title, you will also start earning bonus payments for maintaining your team.
You can learn more about Avon representative earnings in the following Youtube video:
3 Key Advantages of Becoming an Avon Representative.
Pro #1. Business Model Flexibility
Avon offers a flexible selling model. As mentioned above, you can choose between purchasing products, taking orders from clients, or getting direct commissions from website sales.
You can also choose to focus on personal sales or recruitment. However, you will likely end up doing a combination of both to maximize your earnings.
Pro #2. Free Training and Resources
Avon offers free training and resources to help you get started and grow your team. This includes videos and a mentorship program. This is in contrast to other MLM companies like Mary Kay, which charge for training.
I’ve used some of these training resources and believe they would be helpful for most people who are just getting started.
Pro #3. Wide Product Range
Avon offers a much wider range of products than most other direct-selling companies. They sell make-up products, skincare products, perfumes, and fashion accessories.
You’re under no obligation to sell each kind. So you can focus on products you’re familiar with.
3 Key Disadvantages of Becoming an Avon Representative.
Con #1. You Won’t Get Rich
Your actual commission earnings through Avon will be lower than you expect. On top of that, the commission earnings for people at low ranks is abysmal.
The company promises better commissions if you work your way up the ladder. However, that can make the process frustrating for people who want to earn money in the present.
Con #2. Lots of Competition
Depending on where you are, you could very well face significant competition from other Avon reps. This is especially common in large cosmopolitan cities where beauty and make-up are important commodities.
You might also face competition in smaller towns and cities if an existing rep has already “claimed” her territory.
Con #3. The Company is Losing Popularity
Avon’s annual revenue has been gradually shrinking each year. As mentioned earlier, the company was pulling in $10 billion at the height of its popularity. By comparison, they earned only $3.4 billion in 2022.
This indicates that the company is losing popularity. Much of this could be attributed to the company’s age and reputation. Many people think Avon is a brand for “old people” because it is over a century old.
Few people want to use products from a brand their grandparents used. For this reason, being an Avon rep in 2022 isn’t as lucrative as it once was.
Major Avon Controversy.
Avon has plenty of dirty laundries tucked away in its long history. Some of the MLM company’s most significant controversies include:
#1. Violating the Foreign Corrupt Practices Act
In 2014, Avon pleaded guilty to violating the Foreign Practices Act in China. This was following the revelation the company had “bribed” Chinese government officials with gifts for many years.
Avon China had used this strategy to curry favor with the government and obtain a direct-selling license. The company was forced to pay a $135 million fine when this scandal was uncovered.
#2. Misleading “Cruelty-Free” Claims
Avon was hit with a lawsuit in 2012 after it was alleged they had been conducting animal testing in China. This revelation went against the company’s “cruelty-free” products label.
Avon attempted to deflect blame for their deceit by stating, “Chinese local laws require animal testing,”. The company officially ended all of its animal testing practices in December 2019.
Final Thoughts
As you can see, working as an Avon rep might not be what you expect. You’re not going to earn a lot of money, and you might have trouble selling products to younger generations.
As I mentioned earlier, your average salary as an Avon rep will be less than $19,609 when you first start with the company. If you make it to the company’s higher ranks, you still won’t be making more than $38,000 per year.
At this rate, you’re much better off working as a salesperson for a beauty retailer.
Who Would Avon Be a Good Fit For?
You might find success as an Avon rep in two separate instances.
The first is if you are good at recruiting people. Avon rewards people who are efficient at bringing in new members in different ways. If your team grows large enough, you can kick back and collect money from the company without worrying about personal sales.
The second way you might find success is if you are already an influencer. More specifically, an influencer with a niche. Avon offers a wide range of products, and you could focus on selling the kind you are familiar with.
So if you’re an influencer who reviews perfume brands on social media, you might find success in promoting Avon perfumes to your audience.
I personally did not enjoy working as an Avon rep. My earnings were scarce, and I spent far too much time promoting products instead of recruiting new members.
Avon isn’t a pyramid scheme, but it’s also not an MLM company I would recommend to everyone. I hope this guide on Avon helped you learn more about the company and whether it is actually right for you.
Frequently Asked Questions
Is Avon the oldest Multi-Level Marketing company?
Avon holds the title of being the very first multi-level marketing company in history. It is also the second-largest one after Amway.
Does Avon offer refunds for representatives?
Avon offers you a full refund on unsold products as long as you make the return request within 60 days.
Are Avon’s product actually cruelty-free?
Avon’s products have been cruelty-free since 2019. The company experienced controversy for allowing animal testing in certain countries in the past.
Sources
- Avon Products: Our Brands
- Avon Annual Revenue: Total revenue of Avon Products Inc. worldwide from 2011 to 2021
- Avon Founding: Our History
- Avon CEO: Angela Cretu, CEO
- Avon Number of Employees: Avon LinkedIn Profile
- Number of Avon Representatives Worldwide: The Facts
- Avon Recruitment Page: Become a Rep
- Avon Independent Sales Representative Earnings: Glassdoor Avon Independent Sales Representative Salaries
- Avon Earning Methods: 2022 Compensation Guide
- Avon’s Corrupt Practices Controversy in China: Avon pleads guilty to violating Foreign Corrupt Practices Act in China
- Avon Animal Testing Controversy: Avon in hot water again as law firm files suit over misleading China animal testing claims
- Avon Ends Animal Testing: Avon Products, Inc., Earns ‘Working for Regulatory Change’ Listing From PETA
