Avon faces a growing anger for his legion of vendors after reducing commission rates in a movement that, according to some workers, has eliminated more than two thirds of their income.
Changes have been introduced to pay the structures, which affect thousands of representatives throughout the United Kingdom, along with changing objectives and reduced incentives, leaving many representatives feeling deceived and causing some to move away from the company completely.
The Cosmetics and Homeware brand, known for its historical door model, has long depended on a network of representatives to sell products throughout the United Kingdom. But many of those repetitions now say they are forced to leave, unable to make the numbers work.
Independent He has seen internal emails of the company that seem to minimize the impact of the changes. A message claimed that profits in a particular category would fall from “two to three percent”, but in fact this referred to a drop of up to three percentage points, which in some cases equals a loss of real triumphs of 33 percent.
For example, team leaders previously obtained between 7.5 and 9 percent of the sales commission of their team. That has been cut between 5 and 6.5 percent. The coordinators saw similar reductions, with profits in some cases falling by up to 40 percent.
Corted commissions
One of the most controversial changes is related to the fashion and home category of Avon, which represents about 15 percent of its United Kingdom sales. The commissions in this area have been limited to 10 percent, below the previous maximum of 32 percent, a cut of more than two thirds (68.75 percent) for the upper level winners. The company said the change was due to “continuous manufacturing and supply costs.”
In other places, it is estimated that most vendors will win between 20 and 25 percent of the Commission for the Sale of Products, with the 10 percent start rate.
But not only commission rates have changed. Sellers say that the entire profit structure is becoming more difficult to navigate, particularly under the company's multilevel marketing model (MLM), which rewards both direct sales and the recruitment of the equipment.
More sellers, less money
Under the stepped Avon system, from bronze to VIP, representatives can rise from rank based on monthly yield and sales. Some also obtain a sales cut from those who recruit up to three levels down. There are more bonuses available for “leaders”, although these depend on achieving personal sales goals and maintaining a team of at least five active sellers.
A shared estimate with this publication suggests that, under the new structure, a silver level leader would need to recruit around 60 new repetitions only to match their income from the previous year.
Several Avon workers, who spoke under anonymity, said they felt in the dark about the changes, with little clear communication of management and frequent changes in expectations. Some said they had built teams and invested time training others, just to see their profits.
One added that vendors are now forced to choose between working significantly more to stay still, or get away completely.
That loss, in turn, affects the income of those who recruited them, which aggravates the pressure throughout the network.
Hidden costs and unpaid roles
The new headlines must sell at least £ 100 in products in their first quarter to qualify for the commission. Independent He has heard new workers reports and that they return to be denied payments, sometimes without explanation.
Meanwhile, some representatives tell them to be asked to assume roles such as “training ambassadors”, training new recruits, sometimes without realizing that the work is not paid.
Avon's public messaging also seems inconsistent. On its website, the company promises possible representatives: “If you sell £ 400 per month you will win around £ 100”. But a discharge of responsibility below on the page warns: “It is illegal to promote or participate in a negotiation scheme to persuade anyone to make a payment promising benefits of getting others to join … They are not deceived that high profits are easily achieved.” The note adds that the profits are based on 2023 reais and depend on the “achievement of criteria.”
In social networks, dissatisfaction is spilling. According to reports, Avon moderated a Facebook group for representatives, with vendors who claim that the company's critical publications are blocked. A separate public group paints a more marked image, with publications ranging from deflated to furious.
A seller described the latest cuts as “another kick in the teeth”, since it already renounced a higher paper. Another said that his team had been reduced by half during the last year despite regular recruitment. Multiple posters cited the reduced payment, exhaustion and the decision to move away completely.
Others detailed the cumulative impact of smaller changes. A source said that for only six months, Avon had eliminated rewards, the prices of the brochure increased, increased the increase in minimum expenditure thresholds for free delivery, the handling rate increased, changed the return credit process of return and reduced commissions, all without proper support. That seller has left the business.
Together with the earning cuts, some vendors say they were beaten with unexpected invoices due to technical problems during the New Year period. In at least one case, it is believed that the legal actions are underway, with the seller claiming that they had already paid for the assets that Avon tried to invoice.
Avon, which was bought by the Brazilian parent company Natura in 2019 for around 1.6 billion, said: “Avon has a proud history of 138 years of providing flexible income opportunities for all.
“We have recently changed our commission structure so that sales leaders reward those who are proactively growing their independent Avon businesses. Representatives are commissions paid on the volume of sales of products and are rewarded fairly and transparently.”
