Tuesday, July 4, 2017

How do I get paid as an Avon Representative?

How do I get paid as an Avon Representative?




One of the most common questions asked by representatives is “how do I get paid?” or “what will I earn?”. In the simplest terms you purchase products from Avon at your representative cost, like a brick and mortar store purchases products at wholesale. Then, you sell those products to your customer at the brochure price, like the retail price you see in a store. You collect the brochure price from your customers then pay Avon a discounted price for the items. The difference between those amounts is your gross profit. You pay your business expenses such as brochures, samples, office supplies and postage from that and what remains is your net profit, or the amount you get to keep, or spend on your own personal order.

When your customers order on your estore for direct delivery, your earnings for those orders will be credited to your Avon account when the order ships.  That credit will either be applied to your next representative order, or direct deposited into your checking account twice a month.

I’ll have some examples of how that works in a few moments, but first let’s look at what percentage you will be earning.

If you are in the Kickstart program the discount you get on all products is 40% when they hit your Kickstart sales goal in your first 7 campaigns. 
If you have completed the Kickstart program, or miss your sales goal during Kickstart you earn 20% on fixed earnings items, generally apparel, accessories and home, and 20-40% on core products, which includes all beauty and jewelry. Your earnings on core products are determined by the size of your order, the bigger your order, the higher your earnings level. You can see the earnings chart on youravon.com on the Earning Opportunities tab.
If you are a member of President’s Club or one of the higher levels in the President’s Recognition Program, you can earn up to 50% on  your core products.

Here’s an example of how the earnings works, I’m using round numbers to make things easier to follow. Of course you will also be charging the order processing charge and sales tax but we will also leave those out for simplicity:
If you have $250 in orders for the campaign, $200 in core items and $50 in fashion and home items.
You will be at the 30% earnings level on the core items and 20% for the fashion and home items.
          You will pay $140 for the core items and $40 on the fixed earnings
          So you will pay $180 for the products
          You will collect $250 from your customers, making your gross profit $70
          You also order $20 in business tools like brochures and samples which leaves you $50 in pocket or to pay for your personal order.

It works a little differently if part of those orders were placed by customers on your estore who choose direct delivery.  Since they pay the full amount for the order to Avon, Avon credits your earnings to your account.  
For example, take that same $250 order, $150 in core products and $50 in fashion in home for your face to face customers and you have a $50 order of all core products placed through your estore. 
Your cost for the face to face orders will be $105 for the core products and $40 for the fixed items.  So your total cost for the face to face order will be $145.  Your earnings of $15 for the direct delivery order is credited to your account, so you only pay $130 for your representative order and collect $200 from your face to face customers so your gross earnings are still $70, before you pay for your business supplies and personal order.




Chris Arnold
Avon Independent Sales Leader
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