Are you looking for an Avon MLM review? Is Avon a pyramid scheme? If you want to make money online, you might have heard of this program. But you may wonder if it is a scam.
There is a good chance that you heard about Avon MLM through someone – a friend or family member.
Many people these days are looking for additional income, and you are most likely one of them. There was then an opportunity to work from home through Avon MLM.
I have a passion to help people explore the best money-making opportunities online, so over the years, I have reviewed hundreds of similar online programs like Avon MLM.
To help you make a more informed decision, I have thoroughly researched the Avon MLM so I can tell you more about it.
As a disclaimer, I’m not affiliated with Avon MLM. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.
At the end of this review, I’ll also tell you the best alternative to Avon MLM that has enabled me to make a full-time passive income online.
What is Avon MLM?
Avon is a personal care Multi-Level-Marketing company that specialises in beauty and makeup products. It was founded in 1886 and is one of the most well-known MLM companies.
However, it was bought by Cerebus in 2015, who pretty much ran the company into the ground. Cerebus is a company that is all about the bottom line and made some changes that really did not help Avons representatives.
Then LG bought Avon, in 2019. This has again caused a lot of changes and instability for the company, but many representatives seem more hopeful.
What Products Does Avon Offer?
If you are serious about joining any MLM company then you absolutely need to understand their product range.
They have a range of products in categories such as:
- Skin care
- Bath and body
There are far too many to go into detail about them all here but you can find all of them in the Avon shop.
Avon doesn’t really have a “flagship” or stand out product because they offer so much. However, the one that seems to grab a lot of attention in their marketing is the lipsticks.
Some of the benefits of the lipsticks are:
- Formulated with Shea Butter, Omega-6, Sunflower Seed Oil and vitamin E
- Conditions and moisturizes lips
- Designed for every skin tone
- Full coverage with True Color Technology
- Paraben-free, sulfate-free, talc-free
What is MLM?
Before we get into Avon MLM, I’d like to explain what MLM is and how it differs from traditional business models.
An MLM company does not pay you a salary.
You make money by recruiting others to join your business rather than selling products. If you hire someone and they start making money, you get paid a commission on the sales and recruits they bring in.
There are several levels to this (hence multi-level).
Think about a triangle. If the person at the top of the triangle recruits ten people, and each of these ten recruits ten more, and each of these ten recruits ten more, you will receive commissions from everyone in the triangle because they are all in your direct downline (in an MLM, the people beneath you are known as your ‘downline,’ and you are their ‘upline’).
You can earn $1100 by recruiting 10 people.
Even if your MLM company offers a wide range of products, most people prefer to recruit others because they can earn a lifetime passive income from them, whereas if they sold a product, they would only receive a one-time commission.
People at the top make a lot of money because money trickles up to the top of the triangle, while people at the bottom make the least.
The ultimate goal of someone who works for a company like Avon MLM is to have as many people in their ‘downline’ as possible, allowing them to earn large amounts of passive income.
How Does Avon MLM Work?
Avon makes a range of makeup and personal care products. They also offer everyday people the chance to make money by selling these products for them to earn a commission.
These “representatives” have used all kinds of selling techniques such as knocking on peoples doors or “hosting parties” or sharing products with Moms while drinking coffee. Now the use of social media is dominant for MLMs.
Avon saves marketing costs and everyday people can make money from home.
Is Avon A Pyramid Scheme?
A pyramid scheme recruits members by promising them money or services in exchange for enrolling others.
A pyramid scheme is unsustainable and frequently a scam because members lose money as the number of recruits increases.
Those who want to join must pay a fee to an organization that runs a pyramid scheme. The organization will share a portion of the funds raised from each additional member they recruit as a reward.
The directors of the organization receive a portion of these payments (those at the top of the pyramid).
The scam is profitable for the directors whether or not they do any work. It is in the membership’s best interests to recruit and funnel money to the top of the pyramid.
Such organizations almost never sell valuable goods or services. The scam’s only source of revenue is from recruiting new members and soliciting more money from current members because it does not produce any goods or services.
Pyramid schemes are very similar to exponential growth mathematics. The size of a pyramid grows dramatically with each level. A pyramid scheme would have to grow indefinitely in order to make money for everyone who joins. This is impossible due to the planet’s finite population.
The scam will fail in the absence of new recruits and other income sources. Because the largest terms are at the bottom of this geometric sequence, the majority of people live in the pyramid’s bottom layer.
Workers in pyramid schemes typically promote the company rather than the product they are selling. At some point, no one at the bottom of the pyramid will make any money, while only those at the top will profit.
People at the top of the pyramid usually make money, while those at the bottom usually lose money. Because they are at the bottom of a pyramid scheme, the majority of participants lose money.
Members at the scheme’s bottom will have no chance of profiting if the scheme fails, but they will have already paid.
Is Avon, then, a pyramid scheme?
No. Avon does not operate as a pyramid scheme. It’s possible for members of the company to make money by selling their products.
They don’t have to make money solely through recruitment.
Watch the short video below to learn more:
What is the Avon MLM’s Compensation Plan?
First of all, let’s clarify the 2 ways you can make money as an Avon rep:
- Sell the products and earn a commission
- Recruit people into your “downline” and earn bonuses from sales they make
You do not get paid to recruit someone. You only earn bonuses from purchases they make or sales they make.
This is how Avon makes sure they are technically not a pyramid scheme and avoids being shut down by the FTC.
For some reason MLMs like to make their compensation plan harder to understand than solving a Rubik’s cube blindfolded.
There are 7 ways you can make money with Avon:
- Retail commission (20%-50%)
- Qualified new recruit ($20 bonus if they spend $150 in their first 2 months)
- Sponsoring (3% bonus on new recruit sales)
- Promotion (as you go up the ranks)
- Mentor (as you go up the ranks)
- Generation bonus (you get a bonus on 70% of your teams sales)
- Leader bonus (bonus on the “leaders” sales in your downline)
10 Reasons Why I Don’t Recommend Avon MLM
1. The Good Reviews are Written by Avon MLM’s Affiliates
You probably have found some other reviews of Avon MLM and all of them are saying good words.
But all of them are actually paid to write, meaning they will receive a commission if you join Avon MLM via their links. Therefore, their words are often biased and not trustworthy.
Those reviews are simply sales pages and do not tell you the hidden costs and the difficulties of really making money.
By common sense, should you trust someone who has a conflict of interest that receives huge compensation by “reviewing” the program? Probably not. They are not reviewing, but selling!
Therefore, I recommend reading the reviews of those written by the non-affiliates of Avon MLM.
2. Very Few People Can Make Money With Avon
Success is difficult to achieve with an MLM company like Avon.
You can look at the statistic that says 72.5 percent to 99.9 percent of MLM members lose money.
The reason for this is that MLMs have sales quotas that require members to continue selling products in order to remain active and eligible for commissions.
They will not be paid if they do not meet the quota.
As a result, many MLM members lose a significant amount of money before even recruiting one person into the company.
3. Losses From Avon MLM Are Reframed As Investments
Avon MLM uplines often reframe their financial losses as ‘investments’ in their business so as to keep their reps in an MLM scheme, dangling the carrot of future financial freedom.
But the reality is that these are not investments. You are unlikely to get the money back. And the return on “investment” is negative in most cases. So saying that it’s an investment is cheating.
4. Avon MLM is a Cult
Why do people continue to work for Avon if it appears to be so bad? Our investigation of MLMs revealed that they all have cult-like company cultures.
Critical thinking is actively discouraged among MLM representatives. They are chastised and even isolated when they ask questions that deviate from the ‘this company is a-mazing’ mindset.
MLMs, like abusive partners, encourage you to isolate yourself from anyone who questions your involvement.
Those who leave an MLM are labeled as failures or bad people/influences, and reps are not allowed to contact them.
Rejection from people they once considered practically family is one of the most devastating losses experienced by former MLM representatives.
MLMs frequently expect their representatives to prioritize their events and business over their personal lives in order to further embed them in the business while separating them from their family and friends.
5. You May Need to Purchase Avon Products Yourself
If you don’t have a large network of friends, family, neighbors, and so on, you may have to buy products yourself each month. It’s a losing proposition all around.
I think it’s quite ridiculous when you have to buy the products you are trying to sell. But this is very common for people who join MLMs like Avon. That’s why in the long term, you are going to lose a lot of money, not to mention making money.
6. Avon Products are Overpriced
As with other MLMs, Avon offers overpriced products. There are many other brands that offer similar products but at lower prices.
Therefore, you may find it difficult to sell Avon products because your prospects can buy the same product elsewhere at a much cheaper price. This explains why most people who join MLMs only focus on recruitment instead of selling actual products.
7. Avon’s MLM Business Model Has a Bad Reputation
Some people have benefited financially by joining a network marketing/MLM company. Unfortunately, most people who join MLMs are left with nothing but regret and a lot of useless products that they were unable to sell.
MLM like Avon is fundamentally flawed. The distribution of commissions is skewed toward the top.
The majority of those in the top tier and pioneers make the most money, while those at the bottom will not even break even after a few months.
As a result, many people do not consider Avon to be a legitimate business opportunity.
8. Exaggerated Claims Of Income
Avon, like any other MLM company, makes exaggerated income claims, but in reality, very few people make a good living by promoting Avon.
Avon’s low retention rate can also be discouraging, as less than 41% of its distributors are active.
According to Avon’s payouts to distributors, over 99 percent of Avon distributors never make a profit.
9. Avon Is Like A Pyramid Scheme In Disguise
If you want to avoid losing money every month, the MLM will actually encourage you to recruit people.
Every system that requires you to recruit people in order to make money eventually looks like this.
Avon is not a pyramid scheme in the traditional sense because you can earn money by selling their products.
However, in order to make a living, you will need to hire others in reality.
10. Recruiting is Required to Succeed
I don’t recommend MLMs to people for this reason. MLMs like Avon put a lot of effort into recruiting. Eight out of ten ways to earn money with Avon require recruiting. If you don’t recruit, you are destined to lose money at the end of the day.
My #1 recommended platform is different. You can make a 4-figure, 5-figure or even 6-figure passive income by promoting and selling products you truly like. You don’t have to recruit people but recommend useful and great products. I will tell you more at the end of this Avon review.
How Much Does It Cost To Join Avon MLM?
It used to cost $10 to join. But currently their website claims that it’s free.
But if you’re serious about making money from Avon, you absolutely will need to actually buy some products.
The starter kits come with products for you to personally try, some samples and other marketing goodies to try to help you to sell things on. This will set you back either $25, $50 or $100.
You will need to make sure you hit the monthly sales quota to “remain active” and be eligible to earn any commissions for sales you do make.
This starts at $50 a month and goes up to $200 a month for certain “ranks”.
If you cannot sell $50 of Avon products in a month, you will need to buy $50 of Avon products yourself or your account will be suspended. Any future sales you make won’t be credited to you.
If you do sell $50 of product each month then you aren’t required to buy anything yourself, but many people are not aware of this when they join.
Avon MLM Positive and Negative Feedbacks By Real Users
- Well-established company, the oldest direct-selling company in the world
- Operates in more than 100 countries
- Easy to join ($25 sign-up fee)
- Low Income Potential (unless you recruit others and “build” your team)
- Controversies (Bribery, PETA)
Is Avon MLM a Scam?
I cannot say Avon MLM is a scam for legal reasons. A scam is defined as “a dishonest scheme; a fraud” by the Oxford Living Dictionary.
Can you make money selling Avon products? We already know that a majority of Avon reps did not earn any money. A few people do make money but only if you put in a lot of effort. And usually, the way they make a lot of money from Avon is by recruiting aggressively.
Also, Avon blatantly makes disingenuous and irresponsible marketing claims to recruit members. Therefore, some people do consider Avon MLM a scam.
My #1 recommended platform, however, has seen a lot of beginners earn four figures a month after joining it for a year.
I will tell more about my #1 recommended platform at the end of this review.
Final Verdict: Avon MLM Review
Here comes the conclusion of my Avon MLM review. Overall, I don’t recommend joining Avon MLM to make money.
You will have a tough time at the beginning when you are prospecting and trying to find recruiters to add to your Avon commission.
The worst part is that you practically have to ask your family and friends to join your Avon business opportunity. It’s not fun.
Your upline is constantly following up with you to encourage you to buy more Business Support Material even as you struggle to get people to join your downline.
The reality is that you’re likely to lose more money. Statistics confirm this as well. 99% of people who join an MLM break even or lose money, according to a case study on the FTC’s website.
People who join these MLM-type businesses often feel under pressure to succeed, and that is one of the main reasons they leave.
Why not consider starting your own online business if you want to earn money and have a flexible schedule?
Thus, you can choose what you want to promote rather than having someone tell you what you must promote.
Let me tell you how to build an online business in a legit way to make passive income online in the next section. This has allowed me to make a full-time income in a year. Most importantly, unlike MLM models, It’s 100% legit and sustainable.
The Best Alternative of Avon MLM To Make Passive Income Online
If you’re beginning your online business journey, you deserve a programme much better than Avon MLM.
My #1 recommended platform is called Wealthy Affiliate.
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But How Much Can You Earn with Wealthy Affiliate?
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Compared with Authority Hacker, Wealthy Affiliate has a much longer history, which has been established for 15 years and there are many success stories in the past decade. Actually, Wealthy Affiliate has more than a million members so far, so you can see how popular this platform is.
To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.
Where to Join Wealthy Affiliate?
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