In 1886, Mr. David McConnell founded the “California Perfume Company”. (Ironically, though, it wasn’t begun in California, but in New York.) Mr. McConnell was a door-to-door book salesman who gave away bottles of perfume to encourage ladies to buy his books. But, when he found that the perfume had become more popular than his books, he left the book business and set up the new company to sell his perfume. The company changed its name to Avon in 1939.
Avon markets a wide selection of fragrances, cosmetics, skin care products and jewelry for women, men, and children. More recently, they’ve begun to sell children’s toys. A lot of the products are novelty items, which they only sell on a seasonal basis. Avon has endorsed some celebrities including Reese Witherspoon and Courtney Cox.
Avon representatives who sell greater than $10,100 worth of products a year will be inducted into the Presidents Club. Those who sell more than $20,200 worth a year will belong to the Honor Society. The Rose Circle is for those who sell more than $38,000 worth a year. Next, is the McConnell Club, for those with more than $66,500 in annual sales. Sales of more than $112,000 a year will put a person into the Presidents Council, and top-selling reps with more than $280,000 in annual sales be inducted into the Inner Circle.
New Avon reps earn a 50% commission on their first four sales campaigns. After that, the commission rate will vary with the size of the order, anywhere from 20% to 50%. For orders over $1550, the commission is 50%. Members of the Presidents Club will earn a minimum of 40% commission for each order during the next year. Members of the Rose Circle will earn a minimum of 45% commission for the next year.
Avon originally used a normal, single-level direct-marketing model. It only recently started using the Multi-Level-Marketing approach.