Is Avon a pyramid scheme?

Avon what kind of company is it

[quote_box_center]Selling your used Mercedes-Benz is also a business but officially you are not a Mercedes-Benz dealer but a mere customer who bought a Mercedes from Mercedes-Benz. To be an official dealer for many companies you need to meet certain requirements to officially represent the company. At Avon, you just meet the minimum order, as a good consumer.[/quote_box_center].

If there is one thing we really liked about Avon, it is that a vast majority of distributors didn’t even know who Robert Kiyosaki was, and that meant they were more concerned with selling lipstick and continuing to meet their minimum orders than selling theories and charts drawn on paper to become millionaires. That is what we would point to as the main difference between Avon and all other multilevel and pyramid schemes: the illusion of making money selling cosmetics versus the illusion of becoming a millionaire selling plots in paradise.

Avon competitors

This time I’m going to talk about how I was scammed by Avon. Yes, Avon, the well-known brand that sells perfumes, make-up and various household items by catalog. What I am going to tell is my experience and with it I would like to help mainly those women who Avon is trying to entangle in its business system or those who have recently fallen into the system with the title of “candidate” or “leader”. In the next few days I will be making a second part of this article and a YouTube video.

* That no reseller is owing products from the previous order. The leader sometimes has to risk her life to collect a debt that the resellers acquire with the company. She must harass the debtor all the time by going to her home, calling her by phone at all hours or chasing her through social networks, anything goes because there are only twenty days for her to pay.

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It all starts with being a “candidate”. The mission is to incorporate as many women as possible into the system and try to have ten resellers. In the meantime, a bonus of a few pesos is earned. The next objective is to add ten more women to “graduate” as a leader and have candidates in charge. And so it goes on growing and making the work more and more demanding, more and more demanding of time and effort. What started as extra money for free time ends up being a consumer of all the time, including rest and time shared with the family in exchange for a few pesos that you do not see in hand and that do not compensate for so much effort. There comes a time when your house is filled with boxes of products, you have to attend to women who go to pick them up, and the leader also has to pick up boxes of deposits and carry them from one place to another. If she does not have a car or her own mobility, she has to carry them on her shoulder or pay for a cab (out of her own pocket). And these so-called “depots” are simply the leaders’ own homes, who run the risk of being robbed in their homes since each box has an average of $2000 worth of products inside and sometimes there are also household appliances in the packages. This puts even the leader’s own family at risk.

Natura

The local legislator for the National Regeneration Movement (MORENA) party, Noemi Zitle Rivas, presented a series of amendments to the criminal code of the state of Hidalgo so that pyramid schemes such as the “flower of abundance” or “circles of prosperity” are punished as fraud.

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This could even be extended to other pyramid schemes such as Nice, Avon, Chantal, Omnilife, etc., where they force the “salesmen” to sell their products, where they force the “sellers” to buy the merchandise to be marketed, without any benefits, where consumers are subsequently defrauded by acquiring miracle products, of poor quality or even fantasy; they are like the “little mirrors” sold by the Spaniards to the indigenous peoples during the colony.

The deputy from Hidalgo asserted during the exposition of her decree initiative that the people behind the scheme have been benefited, taking advantage of the people who resort to it, offering unsustainable financial systems asking citizens to recruit more people.

Herbalife business model

First, the one who understands what he/she is doing. I, for example, who am an economist, if I start distributing a nutritional product, I won’t have much to do. I have no idea about nutrition, nor do I have any idea how to enter the social circles where this product might be of interest.

That is the difference. In a pyramid you win mostly by recruiting. In fact, the American economist Van der Nat says that the main characteristic of a pyramid scheme is that the money you make is mainly from the entry of new people. So, of course, if we continue with that logic that in order to make money we have to bring in more people, we will reach a saturation point where there are no more individuals on the face of the earth who can come to our business and who can provide us with income.

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It doesn’t have to. That is to say, the buying and selling of precious metals is something that has always existed and that is going to continue to exist. Because gold first has an industrial demand. It is used for industry and for jewelry, and then it is a reserve of value in the face of very, very, very, very, extreme possibilities of world catastrophe. But from there to being able to simply deposit money in something that they tell you is gold and constantly earn and bring in more friends and they keep on earning. Now that’s a scam.

Is Avon a pyramid scheme?
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