MLM Directory

Why do brands like Avon and Mary Kay sell their products through multi-level marketing?

Why can't they sell their products through normal retail like most other cosmetic brands? like, selling them in Sephora and in department stores or having their own boutiques like the Body Shop and MAC? And what happens if some one wants to buy Avon or Mary Kay's products? Where can people buy these products other than ordering online?

Public Comments

1. Good question see my answer helped you get answers.
2. Through MLM the company has but a few employee's mainly in the shipping department and if they make any of their own products. As a consultant you get the income that several companies spend on advertising and employee benefits. Personally I feel the company also builds a more loyal following to there products. Mary Kay and Avon reps typically don't buy make-up anywhere else nor do the ones they have built relationships with. Most companies allow you to buy products directly through there website or have a consultant search for your area.
3. Multilevel marketing (MLM), or network marketing, is a system of direct selling that relies on networks of independent distributors, usually private individuals, to reach customers by word-of-mouth. Besides eliminating costs associated with middlemen, network marketing reduces advertising and promotion expenses and, in theory, passes savings to the independent distributors and customers. Not sure about Mary Kay but there are Avon Independent Sales Reps around the US who have kiosks in malls or stand-alone stores. You can locate a local representative online by going to avon.com or purchase from any Avon Independent Sales Rep online.
4. I don't know about Avon, but that market is so saturated with Mary Kay that if they allowed their consultants to open up kiosks, there wouldn't be enough room in all the malls in America to hold them all. It's also easier to get consultants to order hundreds of dollars in product and count that as their selling statistics then to actually see if an costumer actually buys those products at suggested retail prices.