Being #1 in Direct Sales means you are doing something right. It also means you have to work harder to stay on top.
Avon is #1 in Direct Sales
According to the April, 2011 Direct Selling News, Avon was listed as #1 on the 2010 Global market. I think it all comes back to supporting your sales staff. Avon has more than six million representatives in more than one hundred countries. A happy staff means more sales as Avon representatives sell mainly to their family and friends.
Changes are Coming
Because of the economy, every business is in a slump. Now is the time to take a good hard look at where your business is, where it has been, and what it will take to make it in the coming months. Everyone needs to figure out “what is the best and the worst scenario” for their business, then act accordingly.
Avon has already done their homework and now is in the progress of fixing what is broke; or rather what will help the company whether it is broke or not. Few people like change, but change is what it is going to take for Avon to stay #1 in Direct Sales.
Some of the Changes
In Campaign 19 of 2011, (about Sep 1st) some of the changes Avon is going to make to the entire USA representative program are:
MOV or Minimum Order Value will change to $50. No discount or earnings will be given on an order of less than $50. Avon currently gives an earning discount of up to 50% on all order over $20, based on order size. Unfortunately for many reps that only order for themselves, this change will cost them. Too many reps are placing only $20 orders every other campaign. Avon must have representatives that “sell Avon” to stay in business. As I heard another rep say, “Avon is not a discount club.”
OSF or One Simple Fee will be charged to everyone depending on the size of their order. This fee will include the current charges of $2.50 order fee, .75 customer order fee for each customer, and the $7.50 eRep website fee charged each rep for their online website that is maintained by Avon. OSF will range from $5.95 to $10.95 for an on-time order. Late orders will have a $4 added charge. This change will actually save many reps money.
No Assigned Territories
There are no territories as to where a representative can sell. However, currently all representatives are assigned a “district” based on their zip code. Later in 2011, all divisions will be redesigned to allow larger, but fewer districts within the division. If a division currently has eighteen districts, it may have only ten districts after the redesigning. There will be more information about this change after October 2011.
The redistricting is being done because the job description of the current district managers is being refocused from recruiting to training. This will force most the recruiting and much of the training of team members on any representative that wants to do leadership. The redistricting will be completed sometime in the fall with actual changes to take place about January 1st.
Bonuses for those that want to do both sales and leadership will also change. No longer will bonus levels be placed only on how many representatives a leadership rep has, but it will also require each leadership representative to maintain a certain number of orders from their team. As Avon and all other Multi-Level Marketing companies know “somebody has got to sell!”
Active representatives are currently required to place an order every two weeks. Many reps do not do this. Leadership reps will be required to work with those reps that are not placing orders, instead of just recruiting and dumping their new representative to make it on their own. Avon’s policy is and has always been: Help others to help yourself. Some leadership reps have yet to embrace this principle.
Bring It On
Avon did not become a 125-year-old Fortune 500 company by being stupid. Avon has tried the above changes out in several different pilot programs and will slowly roll out the changes. From what I have seen, read, and heard, I think the changes will eventually be good for both Avon and the representatives. All I can say is “Bring it on.”