How to Make an Avon Business Plan

You can start a direct selling business as an Avon independent sales representative with a small initial investment. While a business plan is not required, it will give your business legitimacy. Before creating your direct sales business plan, you should consider whether Avon is the right type of business for you.

TL;DR (Too Long; Didn't Read)

While Avon has its own time-tested selling techniques, a business owner cannot underestimate the importance of a traditional business plan.

What Type of Business is Avon?

Avon is a direct sales company with a network marketing structure. Sales are made by representatives directly to the end users. You are encouraged to recruit other representatives to increase your earnings.

Can I Make Money With Avon?

Some current and former representatives state that they pay their mortgage and car payment with their Avon incomes. Although Avon doesn't publish data about exactly what their representatives earn, a breakdown of the publicly available financial data shows that most are not earning a lot of money.

How Much Can I Make in Commissions?

The sales commissions vary from 20 to 50 percent of the customer's price. This is based on sales performance, the type of merchandise and the total sales for that two-week campaign. At the lowest level of leadership, you earn 3 percent of your immediate recruits' sales. At the highest, you earn 8 percent. You can earn $20 for each qualified recruit and a bonus the first time you or your recruit makes each leadership rank.

How Do I Start an Avon Business?

You will visit startavon.com and enter the required information, including a referral code if you received one. As of 2019, the signup fee is $30. You get to choose one of three gifts, valued at $80. You get a website to share with your customers and access to Avon University's learning modules.

Avon Business Plan Sample

An Avon business plan sample contains several key elements:

  • Executive Summary

  • Beauty by Laura, LLC, is a direct sales company that will be based in Biloxi, Mississippi. The company will sell beauty, jewelry, fashion, home and health and wellness products as an Avon independent sales representative. At Beauty by Laura, we will set ourselves apart as a trustworthy beauty advisor, not just a money-hungry salesperson.
    * Company Description

  • Laura has over 10 years in retail sales and customer service experience. The biggest opportunity is in the business advice available on Avon University. The biggest threat to the business is competition from several similar companies that have recently gained more attention, such as Younique and Rodan + Fields. 
    * Market Analysis

  • Avon products appeal to a variety of customers. Women over the age of 50 remember vintage Avon products and like classic scents. They tend to love the one-on-one personal interactions with sales representatives in quieter environments. The younger ladies are looking for trendy products and enjoy seeing online videos of the products in use. We will take advantage of both marketing tactics.* Organization and Management

  • Beauty by Laura will be run by Laura Chapman as a sole proprietorship. In addition to Laura's background in customer service, she has five years of accounting experience. Her combined service focus and business experience should be a distinct advantage. * Product Line or Service

  • Products offered will include:* Marketing and Sales

  • For older audiences, we will attend vendor events and contact retirement communities to host "try it" social days. For the younger audiences, we will engage in regular social media campaigns and produce makeup and beauty product tutorials. We will use Pinterest and Instagram to share "complete look" ideas including outfit and makeup choices with product links. * Funding Request

  • Beauty by Laura is investing $1,000 to cover the initial setup fee and engage in paid promotions on social media. Beauty by Laura is seeking an additional $1,000 to obtain products to use as demonstration tools and have several on-hand stock items for on-the-spot sales at events. * Financial Projections

  • We anticipate at least $1,000 in sales each month, which will result in 40 percent commissions. This will result in monthly revenue of $400, for an initial annual revenue of $4,800.  * Appendix

By viewing several Avon business plan samples, you should be able to choose a direction for your business. You can focus your efforts on one or more goals and outline the steps you will take to achieve them.

References

About the Author

Laura Chapman holds a Bachelor of Science in accounting and has worked in accounting, bookkeeping and taxation positions since 2012. She has written content for online publication since 2007, with earlier works focusing more in education, craft/hobby, parenting, pets, and cooking. Now she focuses on careers, personal financial matters, small business concerns, accounting and taxation. Laura has worked in a wide variety of industries throughout her working life, including retail sales, logistics, merchandising, food service quick-serve and casual dining, janitorial, and more. This experience has given her a great deal of insight to pull from when writing about business topics.