Almost every mom I know has sat at home wondering how they can make a living from home. Am I right? We want the best of both world when it comes to our career and our family. If you have been a stay at home mom long enough, you have surely contemplated selling Avon to earn extra cash. The question you really need to ask yourself before signing up is “Is selling Avon worth it.”
Before you decide, you need to know exactly how it all works. This include knowing what costs you incur, what it really takes to be successful, and how much effort it is going to take. None of the Avon reps driving their shiny pink convertibles will ever stop to tell you those things. They are more interested in showing you how successful they are to recruit you and make more money. I will give it to you straight and you can decide for yourself.
*I am no longer an Avon representative and will receive no compensation in any way if you decide to sign up to be an Avon representative.
Sign up to Sell Avon – Is Selling Avon Worth it?
The process of signing up to sell Avon is very simple. You will have Avon reps jumping all over you to get you on their team. This is because the most profitable part of Avon is recruiting new representatives. However, the easy way is to go online to Avon.com and put in your information to have someone call you. You will then meet up with them and get everything started.
During your meeting with your new Avon Leader, she (or he) will tell you all the wonderful things you can achieve with Avon. You will not hear a negative thing come out of his/her mouth.
Once you fill out the paperwork (only 1 or 2 pieces of paper) and pay your $15 sign up fee, you will be given your Avon start-up kit. This kit includes all the information you need to know about running an Avon business. The most important are the costs to you, and the potential earnings. After all, you are trying to make money right? Those specific things will be discussed more next.
Your start-up kit will also include your black Avon tote, 10 current campaign brochures and 10 of the next campaign brochures. This is because brochures are ordered when you place your Avon order and you will need to be handing out the next brochure before your new order arrives. Every campaign runs for 2 weeks with a total of 26 for the year.
Avon Representative Earnings
During your first campaign as an Avon Representative, you will earn 50% of your sales guaranteed. This does not include any fixed earnings items that are capped at 20% (clothes, shoes, jewelry, etc.). As long as you sell at least $50 worth of products for your first campaign, you are guaranteed 50% earnings on your next 3 campaigns.
After your 4th campaign, your Avon earnings are based on your total sales. You can see this in the Avon Earnings Chart to the right. So, to keep getting that 50% commission on your sales; you must sell $1,550 worth of products or more every campaign (2 weeks). This is not a simple task.
Your Avon receipt book has a pre-printed spot for a $0.75 processing fee per order placed. This is optional and the Avon representative’s choice. I highly recommend charging this due to the costs you will incur over just the product cost.
Costs Involved in Selling Avon
Selling Avon is like owning your own business. You pay Avon for the products you sell, and keep the difference between what you pay Avon and how much you sell the products for. But, like any other business; you have expenses incurred from running your operation.
You can’t just look at the commission alone to answer the question “Is selling Avon worth it?”. You have to look at the big picture of all the costs included in running your Avon business.
Those cute little booklets of Avon products actually have to be paid for. You can order them in packs of 10. The more you buy, the cheaper each pack costs. The real issue with having to buy your own brochures is that everyone wants to look at one but only about 25% (or less) are actually going to buy something. Every brochure you hand out that doesn’t result in an order is losing you money.
Avon Representative Brochure Costs
10 brochures – $5.75
20 brochures – $7.95
30 brochures – $10.20
40 brochures – $12.10
50 brochures – $13.00
60 brochures – $14.25
70 brochures – $15.45
80 brochures – $16.75
90 brochures – $17.90
100 brochures – $19.00
11 or more packs – $19.00 (for first 10 packs) + $1.30 for each additional pack
One Simple Shipping & Handling Fee
If you are going to sell perfumes, lipsticks or foundation; you will need to have samples. If you don’t, you are probably going to have a lot of returns (which you have to pay to ship back). Samples vary by what it is, but they can get costly. Also, you are going to need sponges, q-tips or something else to use with your samples if they are not one-use size.
No Avon lady looks professional just showing up to deliver with a hand full of products. It makes life a lot easier if you buy deliver bags. Fifty 10 pound bags are going to cost you $1.25. This comes to 12.5 cents each.
* These costs are just the most basic fees and cost you will incur. There are tons of other things you may want to buy to make your Avon business run smoothly. The scenarios discussed next are based on the smallest costs you will encounter as you try to make a profit from selling Avon.
The Real Profit Percentage
Avon recruits tons of women by advertising their 40 – 50 percent commission rate. While this is true in the portion of the sale sense, it is not the whole scene. Just to get to the 40% commission rate, you need to sell at least $425 worth of Avon products every campaign. Since the average person spends around $25 per order, you would need 17 customers.
The examples are going to be on the generous side. I am not going to include gas costs since everyone gets a different gas mileage. I am also going to assume that you will be delivering all of your order by yourself. This means it does not include cost to hire people to deliver orders, put up flyers, etc. This will be up to you. However, I can almost guarantee that if you are selling enough Avon products to make a decent profit, you are not going to be able to handle it all on your own. Keep that in mind as you look at the figures.
Casual Avon Representative Scenario
You order and hand out 20 brochures. You get 5 orders for an average of $25 each. This is a total order amount of $125. You deliver each order yourself in a delivery bag.20% Commission on order = $25.00 Processing Fees Collected = $3.75 One Simple Fee = ($7.95) 10 Brochures = ($5.75) Bags = ($0.63) Total = $14.42
Small Business Avon Representative Scenario
You order and hand out 40 brochures. You get 10 orders for an average of $25 each. This is a total order amount of $250. You deliver each order yourself in a delivery bag.30% Commission on order = $75.00 Processing Fees Collected = $7.50 One Simple Fee = ($6.95) 40 Brochures = ($12.10) Bags = ($1.25) Total = $62.20
Medium-Sized Business Avon Representative Scenario
You order and hand out 100 brochures. You get 25 orders for an average of $25 each. This is a total order amount of $625. You deliver each order yourself in a delivery bag.40% Commission on order = $250.00 Processing Fees Collected = $18.75 One Simple Fee = ($8.95) 100 Brochures = ($19.00) Bags = ($3.13) Total = $237.67
Hardcore Business Avon Representative Scenario
You order and hand out 300 brochures. You get 75 orders for an average of $25 each. This is a total order amount of $1875. You deliver each order yourself in a delivery bag.50% Commission on order = $937.50 Processing Fees Collected = $56.25 One Simple Fee = ($10.95) 300 Brochures = ($45.00) Bags = ($9.38) Total = $928.42
Selling Avon seems to be focused on becoming leadership and selling a lot of product. Looking at the numbers makes me think that it is just not worth it for the little man (or woman).
If you decide to start selling Avon, I highly suggest you look at it as starting your own business; not just a side job. For selling Avon to be worth it, you need to build your business up and recruit others below you. To be truly successful, you are probably going to have to hire people to make deliveries, put up flyers, or anything else to expand your customer base.
To get your customer base to expand, you are going to have to invest in your Avon business. This means flyers, business cards, promotional events, renting booths at conventions, you name it. More customers means a higher earnings percentage (commission) but it also means more hours spent, more gas used, more brochures to buy, more samples to buy, more delivery bags to buy, and more lackeys to hire.
Selling Avon is just like opening up your own store. The only difference is that you wont have a physical building as your storefront. There will still be costs of merchandise, employees, office supplies, etc. If you can’t think of selling Avon as a business, you are bound to lose money and fail in the long run.
So, Is selling Avon worth it? The answer is “It can be!”.
How to Make Money Selling Avon
If you have decided to start selling Avon after reading the review, you are probably going to be searching for how to make money selling Avon. Let me save you the hassle of trying to find that information: How to Sell Avon and Make Money. You may also be wondering how to start selling Avon, you can find that here.
If you are going to get into any kind of network marketing, I highly suggest you read Go Pro: 7 Steps to Becoming a Network Marketing Professional. It teaches you how to be successful in any network marketing or direct sales business. It was the first book I read when I decided to get really serious about this stuff!
This post is sponsored by Christina: