One of the first questions many new Avon Representatives have is, "How do I get paid? Of course, that's a very good question, one that I've answered for my new team members many times over.
It can certainly be confusing, with all the different levels and percentages. But it's really not that bad! Avon has recently changed its pay structure, and it's now easier to understand than before.
The first thing you need to know is that you are not an employee of Avon - rather, you are self-employed, an Entrepreneur! You are the business owner, selling as an Independent Sales Representative for Avon. This means that you do NOT get a "paycheck" from Avon. You may get checks from Avon, but you are an independent contractor, not an employee. YOU are the boss!
With Avon, you can make money on your own sales, and on your leadership earnings once you start building a team. For now, we will talk about getting paid for your sales. I'll do a separate post on leadership at a later date.
Breaking the sales end down a bit further, you can have two types of sales on which to earn money - face-to-face sales and online sales - and each of these is paid using the same criteria, but you receive the payments differently.
We'll start with the general Compensation Plan, and then break it down .
As a new Representative, you are starting out at the Contender level, which is up to $4,999 in annual sales. As your sales increase, you will reach higher levels, and with them, higher commissions. Here is a chart showing commission levels for each of the sales levels:
| Sales Level | Campaign Sales | Annual Sales | Beauty/ Jewelry | Fashion/ Home |
| Contender | $0-$39.99 | $0-$4,999 | 0% | 0% |
| Contender | $40+ | $0-$4,999 | 25% | 20% |
| Premier | No min. | $5,000 | 30% | 20% |
| President's Club | No min. | $10,000 | 40% | 25% |
| Honor Society | No min. | $20,000 | 40% | 25% |
| Rose Circle | No min. | $35,000 | 45% | 25% |
As a Contender, you must sell at least $40 in a given campaign to make 25% commission on Beauty & Jewelry and 20% on Fashion & Home. For example, if you sell $100 of beauty products in a campaign, you earn $25.
How You Get Paid for Face-to-Face Sales
When you sell products to customers in person, you will want to collect their payment at the time that they order. The reason for this is that you will have to pay for your order when you place it with Avon. This saves you from having to put your order on your own credit or debit card and waiting for your customers to pay you back later. Avon does not give new Representatives a credit limit, so this is important! Honestly, I don't know of any company today that provides a credit limit to its representatives. That has gone the way of 8-tracks and cassettes. Time marches on.
Once you have your customers' money, keep it in a safe place separate from your personal funds, so that you can pay Avon when your order is placed. You may even want to open a separate checking account for your Avon business, if you have a bank that offers free checking.
Another option is to take out a special credit card just for your Avon business. Use that card to pay your Avon bill, and you will have a few weeks until the statement comes to pay the balance off. In the meantime, you can deliver your customers' orders and collect their payments. Just be sure to keep that money separate from your money so you can pay the entire balance when the bill comes, and never use that card for your own personal expenses. That will help you keep all of your Avon finances separate.
Now that I got that out of the way, here's how you get paid: you will be collecting the brochure price of the products from your customers, plus the service fee* if you choose to charge one (usually between 75 cents and $2.00 per order) and applicable state sales tax.** Avon charges you your discounted price. The difference between what you collect and what you pay Avon is your earnings.
For example, if you sell $100 in skin care and makeup, and $50 in clothing, you earn $25 on the skin care and makeup and $10 on the clothing for a total of $35. Your shipping charge will be deducted from that, and if you order brochures and sales tools, that will also come out of your profit. So, to make a higher profit, you will need to sell enough to pay for your business tools and shipping, and still have some left over for yourself.
* The optional service fee helps you cover some of your cost of doing business, i.e., bags, brochures, gas for your car, etc.
** Avon bills you for your state's sales tax on the products you order through AvonNow, and pays the tax to the state for you. You charge the tax to your customers to reimburse yourself, so it's an in-and-out wash. You do not need to register with your state's sales tax agency.
How You Get Paid for Online (Direct Delivery) Sales
Now for the easy part! When your customers place their orders online through your estore, you automatically earn money without lifting a finger!
When a customer places an order, you will get an email from Avon the next morning. You can also see your direct delivery orders on the AvonNow Web Office page in real time. You earn your regular commission amount on those orders and are paid two days after the order ships. The commission is added to your Avon account. If you owe any money, it will first be applied to that balance, but if you don't, it will be sent to you.
Be sure to sign up for Direct Deposit! It's the fastest and safest way to receive your commissions (and, later, your leadership earnings). To do this, go to My Account > Get Paid by Avon and enter your banking information.
If you don't have Direct Deposit, Avon will send you a prepaid debit card and future earnings will be added to that card.
So that's basically it. As long as your campaign sales are $40 or more, you will earn money! Keep growing that customer base by spreading the word about your business, sharing your estore link on social media, and passing out brochures. Consistency is key!
Not an Avon Representative Yet?
Learn more and sign up at www.joyoflipstick.com - click on Become a Representative.
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