Money Making Ideas

Avon Reps Going Out of Business

There are many Avon reps going out of business and needing to sell Avon products for cheap. Why are there so many Avon reps going out of business? Below are key reasons why Avon reps are going out of business faster than any other network marketing, direct sale or MLM companies.

Avon startup cost is very low

With only $10 to start selling Avon products, people who need jobs or to make money at home are fast to sign up with Avon. Since the startup cost for Avon is so low, most people don't think it through carefully. Most of them don't have any real plans of how to sell Avon when they sign up.

Few things about the drawbacks of joining Avon are explained upfront

Like other network marketing companies, Avon representatives get 'points' and make more money when they sign up new Avon consultants. Since, it costs so low to join Avon, there are so many reps and it is difficult to monitor what each Avon rep says to potential Avon consultant. There are a lot of misrepresentations, false information and omitted information when an Avon consultant is trying to recruit a new Avon consultant. So, many new Avon consultants sign up under false impression of how Avon actually works. Even Avon website is not so forthcoming with negative information and warnings. Avon consultants have to find out the hard way when they have real problems with Avon.

50% discount incentives for the first 4 campaigns only (2 months)

A new Avon consultant gets 50% off their first 4 campaign orders (lasting 2 months) when they spend $50 or more at Avon. After the first 4 campaigns, their discounts decrease to 25% unless they order more. With this discount, new Avon consultants are encouraged to stock up on their Avon orders by their Avon upline or the Avon consultant who signs them up. That's one of the biggest reasons why when Avon reps quit the Avon business, they often have going out of business sale of massive amount of Avon products.

No upfront payment and no shipping costs

Avon is unique in the fact that when you place an order for each campaign, if you do it on time, then you don't have to pay the shipping cost (but there is a handling fee) and you don't have to pay for the Avon products either. You have two weeks to pay Avon. That gives you enough time to collect money from your customers and pay Avon. With no money upfront, a lot of Avon representatives buy too many Avon products hoping to sell. When they sign up, they were told that it is easy to return items to Avon but in reality it is a hassle and Avon customer support or lack there of adds to the problem. So, many Avon representatives end up keeping the products still hoping to sell later. This problem is the same as the big credit problem in the US - when you are not spending real money, you spend easily.

Your Avon account is inactive after 2 months of inactivity

To top it up, if you don't order any Avon products for 2 months in a row (4 campaigns) then your Avon account is inactive and if you owe money, then your Avon account is inactive and delinquent and you will be contacted and harassed by Avon Collection Agency. If you go on vacation and come back, you may find that your Avon account is already inactive. To re- activate your Avon account, you have to pay the $10 fee activation fee again unless your district manager is kind enough to waive the fee which is not often because there are so many Avon representative in your area that most of the time the district manager don't have the personal relationship with most of them.

With the reactivation fee and having to place an order every 2 months to remain an Avon representative, and tons of Avon products already on hand from the previous campaigns, if you are not selling Avon products regularly, you will end up with too many Avon products to keep your Avon rep status active. Most people who sign up with Avon because they want to start a business that is low cost end up with tons of Avon products that they cannot sell so they are going out of business and having an Avon going out of business sale instead.