Avon Products, Inc. products go directly to the customer, either shipped directly when ordered online, or personally via one of Avon's Independent Sales Representatives.
Sales Channels
Direct sellers make sales face to face or online. Personal face to face can be made through a representatives existing social networks (friends, family, coworkers, neighbors, groups, businesses) or by prospecting in their geographic area. Online sales can be made through networks online, which expands a representative's prospecting base considerably. Many representatives choose to sell products using both face to face and online channels.
SLM versus MLM
Single level marketing (SLM) direct selling is where a representative buys product from a direct selling company and sells the product directly to customers, gaining a profit on the sale. Multi level marketing (MLM) direct selling is where a representative participates in SLM and also participates in leadership of new representatives, generally with a commission or an incentive.
Avon's 2014 revenue was $8.9 billion.
Why Direct Selling Appeals to Home Entrepreneurs
- Direct selling is a good choice for:
- Stay at home moms
- People with full time employment who want to supplement their income
- Individuals on disability or are retired and may have limited mobility
- Retired veterans
Why? Because direct selling has flexibility - you are not confined to specific work hours, driving to a specific location or required to have specific resume skills. It is this flexible alternative to traditional employment options that is probably the most appealing.
In direct selling, there is unlimited opportunity. Direct sales representatives do not have to worry about the product supply chain. In traditional entrepreneurship, the new business has to focus on developing a product or service and identifying the market for that product or service. Product development and manufacturing takes significant time and financial resources. Even a simple at home craft business would have to invest $5000 to $10000 to launch. Direct selling companies typically have a $100 or less investment to launch.
Avon's products include a large, diverse catalog of makeup, skincare, fragrance, bath & body, jewelry, fashion and home, with products for women, men, kids and millenials.
Advantages of Direct Selling
The advantages of a direct selling business model for a sales representative:
- Create your own work schedule and hours of effort.
- Ability to enter entrepreneurship with little formal training or education
- Empowering, especially for women, by creating transferable social and business skills
- Low start up costs, low risk to maintain, easy to grow, plus profits are tied directly to effort
- Product catalog available with no development and manufacturing investment
The advantages of a direct selling business model for a customer:
- Individual human representatives to guide product choices and answer questions
- Innovative product choices not always available in retail stores
- Convenience and reliability of service (home delivery by representatives or online shipping)
Freedom of Entrepreneurship
Starting a direct selling business opportunity does not require diplomas, certificates or college degrees. However, direct selling often develops those marketable skills!
- Communication
- Time management
- Organization
- Innovation and problem solving
- Customer service
- Technology literacy
- Soft skills (creativity, process management, work ethic & social skills)
There are over 18 million people in direct selling. The average cost to start is $100. The risk of loss is incredibly low if you decide to quit. Reasons people are direct selling reps - long term supplemental income, products at a discount, independent entrepreneur flexibility. (DSA 2015 Growth and Outlook survey and 2014 National Salesforce Study).
