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Avon Products Inc. Q4 2008 Earnings Call Transcript

Avon is a pyramid scheme with a product now.

Why do I say this? Because they are all recruiting, recruiting, recruiting now, and set no limits on the number of reps recruited in anyone town.

They use terms like Upline and Downline and give big cash bonuses to reps who can pressure their Downline into ordering more, more, more. A Downline, the grubs at the bottom trying to do the actual sales, are expected to place $500 in orders per month in order to be a "team player."

This is a crock!

Avon also is now putting recruiting ads in every single brochure we pay for!

What does this mean? It means that Avon is literally forcing us to advertise for competion. They used to tell us we had a choice of participating in the Pyramid Scheme they call "Network Marketing" -- but they no longer give us a choice!

I do not understand why the media has not caught onto this story yet? Avon wants us to be All Reps, NO Customers now.

When I told my district manager that there were too many reps to develop a customer base, she told me to get into RECRUITING, that is, let's hire even MORE REPS! Because you can only earn money with Avon through recruiting now. Why? Because they do not limit the number of reps hired in any one area.

I was instructed to target LOW INCOME women because they could come up with $50 for their first couple of orders. I guess my DM figures they are as stoopid as I was to sign up.

Avon gets more and more clever as they go on. At first, they added an extra recruiting ad cover to our brochures. Then they added a full-page ad on the interiorr of our front covers. We could still rip them off.

Now they've put them in the interior of our brochures! So much for being able to CHOOSE whether or not we participate in their Pyramid Schemes.

There is no money to be made from sales only because there are too many reps out here trying to get a slice of the same pie

Avon, SHAME ON YOU.

eBay Showing Sellers the Door?

I've bought and sold on eBay since 2000. In the beginning, the eBay cheerleaders said, "Follow a business plan; you will succeed." But business plans are a thing of the past. What company on earth could run a business where they have to revise their entire business plan TOP TO BOTTOM on a monthly basis. eBay, get a clue -- too many changes too fast.

I'm still successful. I'm rather stubborn. I won't be extorted. I sell only items I would be proud to own myself. I ship timely. I communicate. Through all the ups and downs, I continue to profit at eBay.

But... if they create an environment where small sellers wlll get suspended -- no matter how perfect -- I will have to go too.

My hubby and I just may open a local record collectors/vintage clothing shop. More fun than eBay at this point. And suddenly, wow, people are enjoying shopping face-to-face again ... instead of shopping in the antagonistic, tremor-ridden atmosphere of eBay.