Avon Looking Closely at Compensation Plan

Avon Products Inc. (AVP), the direct seller of beauty products such as Anew moisturizer, is looking more closely at the way it compensates its U.S., Brazilian and Russian representatives.During a conference call Monday, Avon Chairman and Chief Executive Andrea Jung said the review will focus on all aspects of compensation and incentives, as well as on other factors that impact representative economics and perceived satisfaction."This analytical work on the representative value proposition is a very high priority for us during the upcoming quarters, and we will have more to say on it later this year," Jung said.In the latest quarter, sales representative activity in the U.S. weakened from the first quarter.According to Jung, there is a relationship between lower levels of activity and higher fuel prices, particularly among its sales representatives in the U.S. at lower income levels."While we certainly cannot control the price of gas, we're looking at a range of other factors that we can control - brochure economics, relooking at fee structures, etcetera," Jung said.

Avon mulls plan for representative compensation - MarketWatch

Comments

[Karla]

Take a look

[Jerry]

That only seems fair. Every country is different and more incentives and a better plan will benefit everyone involved. Representatives need some insurance that they're getting a fair deal. This will only lead to bigger profits for Avon.

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[Azmi]

Most people start direct selling via catalogues like Avon's on a part-time basis and many reps expect to earn reasonable money for just a few hours of work a week. Avon agents with a large ‘family and friends’ customer base may find that this is so, but those relying just on delivering catalogues could find it more time consuming. How much time you take to get round your territory will depend on the type of houses: some have long paths, others are close together. If you find you have to walk further than expected, don’t worry; the exercise is very good for you! Be positive!

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[MLM Home Business]

i think it's good for network marketing companies to review and improve their compensation plans... after all... the great effort distributors put in should be fairly rewarded

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[Join Avon]

This is good to hear but I hope they are not missing us UK reps out...the cost of petrol is huge over here.