Women Surviving the Economy with Makeup--AVON

Recently, Good Morning America featured a bright star in this dark economy. Avon sales, revenue and profit all increased this third quarter!! In this economy? Yes indeed! Third quarter revenue increased 13% and profits soared by 60%.

The main highlight was that women around the world were turning to Avon to supplement their income. For a mere $10, anyone can join the independent sales force of Avon and earn a few dollars a week, to hundreds of dollars a month. The story is inspiring as Diane Sawyer interviews the CEO of Avon, a woman, Andrea Jeung.

After watching the interview and drawing from our own experience in selling cosmetics, health products and other items, here's our summary:

Can anyone do it? Sure. Diane Sawyer very directly asks Andrea the most important question: how does one get the nerve to knock on neighbors' doors or ask friends to try or buy Avon? Andrea's answer is right on--just tell your own story.

a- How you discovered Avon

b- What it has done for you

c- It's affordability (this is a biggie)

Is it easy? From our experience working in the same industry, No. It does take work. For extra pocket money, we compare it to, a brisk walk in the park--everyday. The more time you dedicate AND the more consistent you are in your efforts, the more money you will earn.

Before anyone embarks on an entreprenurial venture, we strongly recommend you spend time analyzing the different MLM's and their compensation program. In other words, do lots of homework! Read respectable newspapers or business magazines, talk to friends, send emails asking your contacts for their thoughts and experience. You will be surprised how many people have tried selling Avon, Amway, Mary Kay, travel clubs, and also financial planning. This one video alone on GMA, should not cause you to rush and sign up. Here's what else we do know:

1. Avon is a multi-level marketing company. Yes an MLM. It's not a deceptive or illegal practice. It's quite legal and the advantage is that an independent sales person does not need a storefront or have to invest an initial $100K for a franchise like McDonalds. Two things: first, if you want to earn the $60K plus a year--it takes years to reach that income level and second, you will invest a windfall in buying new products and training materials etc. And yes, your home because an inventory warehouse to a degree.

2. Does one have to get involved in the whole recruiting part right away? NO! We suggest if you are considering an MLM like Avon, start just by retailing the products. Don't let anyone pressure you into investing more to get to that first "tier" where income potential is higher. You can make that extra pocketful of cash just by starting at step one, retailing, and getting to know the products, and becoming comfortable in sharing your story. But remember, in retailing, you're only making a pocketful of cash. Stories like Dawn in the GMA video, are not common.

3. MLMs are good for individuals with some extra time that they can really devote to a part-time job, minimum 15 hours a week and are not at the brink of financial disaster. MLMs are suitable for individuals who are financially stable and looking to make some extra cash.

4. With that said, while most MLMs have disappeared or declined in sales, Avon is a stalwart in independent or MLM sales. Avon is a pioneer and has successfully introduced innovative and unique products. For example, AVON announced in May of this year the deal to carry and market the new Bond Girl perfume. The product launched this past month--see Christine's fashion blog. Despite a dim economy, we know that cosmetics and personal care are the last cutbacks women and men make. Blog Sisters also believes (no qualitative research was performed, this is our own observation) that Avon's "smart value" is a major draw and women are cutting back on more expensive cosmetic brands.

So if you are considering an MLM, Avon is probably the better and safer choice given its years in business (since early 1900's) and reputable brand and products. Very important--it helps to be a product of the product. If the makeup enhances your beauty, like Dawn Parrino in the video, then customers will want to look like you! Good Luck!

Note: Christine used to sell IDN, a nutritional line of NuSkin company for almost two years (1994-1996). She broke even in the end. Alicia sold Mary Kay and profited a small sum after a year (minus ALL expenses)--the equivalent to an $8/hour part-time job. The only difference, is that she worked her own hours.