Avon Company shakes up earnings with new commission structure for ambassadors

On December 11, 2024, in North America, The Avon Company announced significant changes to its commission structure for Avon Ambassadors. This transformation aims to modernize the way commissions are earned and distributed, providing a more transparent and performance-oriented system. With the updated plan set to take effect on January 1, 2025, Avon is shifting from a fixed commission structure based on annual sales volume to a variable system linked to total campaign sales. Each campaign operates on two-week selling cycles, meaning that as ambassadors increase their sales volume during these campaigns, their commissions will also rise. In addition to the revamped commission structure, Avon will introduce new recognition titles to celebrate the accomplishments of its Ambassadors. These titles will come with various incentives, including annual milestones that provide further motivation for Ambassadors to strive for excellence in their sales efforts. Liza Maldonado, Head of Sales at Avon North America, emphasized the company's long-standing mission to empower its Ambassadors financially. She expressed that the changes reaffirm Avon's commitment to supporting its direct selling model, helping Ambassadors maximize their success. Avon has also prioritized innovation in its product offerings and plans to continue expanding its lineup in 2025. After experiencing positive reception with recent K-beauty product launches, such as the Beyond Glow Snail Mucin Complex Cream and Serum, Avon's strategy includes introducing fun, multifunctional color products characterized by unique formulas and textures in January. The company's focus on adaptation and growth, both in its commission structure and product development, reflects its dedication to staying relevant in the beauty industry while supporting the community of Avon Ambassadors. This innovative approach signals Avon's anticipation of future growth opportunities for its representatives. In conclusion, the changes made to the commission structure represent a critical transition for Avon. By placing a larger emphasis on performance and recognition, Avon aims to create an environment where Ambassadors can thrive. This new framework not only enhances the potential for earnings but also emphasizes Avon's commitment to the success and empowerment of its sales force as they navigate an increasingly competitive market. As Avon implements these changes starting in early 2025, it will be vital to monitor how the Ambassadors respond and adjust to this new commission model and product strategies in the evolving landscape.