Business Glossary

*The shortened versions of the terms ‘Independent Sales Representative’ (Representative) and ‘Independent Leadership Representative’ (Leader) are used in this document for readability and conciseness purposes only.

Acronyms:
DSM = District Sales Managers
PC = President’s Club Members
PCP = President’s Club Prestige Members
HS = Honor Society Members
DHM = David H. McConnell Members
PCC = President’s Club Council Members
LOA - Length of Association with Avon (campaigns)
PD1 & PD2 = Accounts past due one or two campaigns
Activity
A Representative who submits an order in a Campaign is considered active.
Additional Orders (Add-Ons)
An order sent after a regular campaign order has been submitted.
Administration Fees
A 1.5% charge applied to the outstanding balance of an overdue account.
Advance Order Money Makers
Special offers for Representatives at discounted net pricing. Products are shipped and billed in the same campaign. Details about Money Maker offers are included in the What’s New for each campaign.
Appointment
The process used to officially turn a prospect into a Representative.
Appointment Contract (Appointment Card)
The legal document a Representative signs to indicate she/he understands Avon’s opportunities and agrees to abide by them. It contains important information that must be carefully reviewed before being agreed to.
Appointment Fee
$20 charge for the privilege of selling Avon products.
A prospect is required to pay this charge to the District Sales Manager or Leader when appointed.
Award Sales
The amount used to determine achievement levels in incentive and recognition programs as well as earnings level. They include Customer Price Sales, Money Makers, Customer Order Builders, Sales Tools, Demonstration Products, Net Items, items not available to ship this campaign and any adjustments from earlier campaigns less returns. For Leadership Representatives, this figure is used to determine the appropriate Leadership bonuses. Flame Items, Training and Event Fees and Leadership Appointment Materials are not included.
Back Ordering
A product ordered from one or two previous campaigns.
Business Boutique
Avon logo items for purchase, created to support and enhance Representative image.
Business Meeting
This is the District Sales Manager’s forum for presenting marketing and merchandising plans to Representatives. The meeting includes product and sales training, motivation and recognition.
Collection
When a Representative becomes delinquent in payment and all possible avenues have been exhausted to collect payment, Avon forwards the account to a collection agency.
Brochure
The selling catalogue issued every two weeks on a campaign basis during the year. It is numbered according to the campaign it supports.
Campaign
The two-week selling period supported by a brochure and other promotional flyers that offers Customers different products 26 times a year.
Color Chart
The official Avon Color Chart, updated annually, includes a complete color guide for all Avon Color products.
COMPanion
A free Customer Order Management Program and invoicing system designed by Avon for Avon Representatives. The software helps manage Customer information, inventory and Customer invoicing.
Cookie
A small text file stored on your computer by a Web site that you have visited. It is used to remind that site about the user the next time he or she visits it.
Cycle
The period of time between one campaign and another. For example, the National President’s Recognition Program cycle uses Campaign 12 of one year through Campaign 11 of the following year to track the annual Award Sales of each Representative.
Delinquent Account
A Representative account that has not been paid for four consecutive campaigns. The account will be removed and a spurring and collection process will begin.
Demonstration Products (Demos)
Products made available at a discount, one or two campaigns in advance for Representatives to show Customers to promote sales.
Direct Selling
The direct offering of products and personal service to a Customer without the use of a retail facility.
Direct Sellers Association (DSA)
Since 1954, the DSA has been Canada’s trade association for Direct Selling Companies that manufacture and distribute goods and services away from a fixed retail location through Independant Sales Contractors (ISCs). Avon has been a member since inception.
District Sales Manager (DSM)
An Avon Associate who is responsible for recruiting, developing and training Representatives for the sales growth within an assigned District or area.
District/Division
Sales unit in a specific geographic area. Representatives are assigned to Districts, and a specific number of Districts make up a Division.
Division Sales Manager (DVM)
An Avon Associate who is responsible for the sales growth of a Division. The District Sales Manager reports to the Division Sales Manager.
Downline Manager (DLM)
Avon software program for Leadership Representatives that allows them to track first, second and third generation Downline contact information, create a hierarchy, calculate sales totals for a defined period and generate reports.
eRepresentative
Any Representative who has access to the Internet, registers and places orders online using the services of the AVON web site.
Earnings Chart (Avon Business Opportunity)
The Avon Earnings Chart breaks down Representative earnings percentages according to order size and President’s Recognition Program status.
Earnings Level
The percent discount on product purchases to which a Representative is entitled in a campaign. The percentage is determined by order size for the campaign and status.
Duplicate Orders & Part Duplicate Orders
This is a recovery where Avon recreates and sends a missing order or boxe(s).
Fees
See explanation of individual fees.
Fundraising
An opportunity offered by Representatives to partner with an organization to sell Avon products and then shares the profits with that organization.
Held Orders
A held order means that the order is not released from the Credit Department and will not be billed or shipped until the credit issue is resolved.
Home Page
The main Web page for a business, organization, or person. It could also be simply the main page out of a collection of Web pages. The Avon home page URL is www.avon.ca
Independent and/or Leadership Representative Contract
The document that must be completed and signed at the time of Appointment by the District Sales Manager or Upline and Representative.
Incentives
Programs offering prizes and/or rewards to Representatives or District Sales Managers in addition to their usual earnings for achieving specific targets during a designated period of time.
Independent Sales Contractor
All Independent Sales Representatives are Independent Sales Contractors. They are not agents, associates, partners or franchisees with Avon, nor should they represent themselves as such. Each is responsible for her/his own business decisions and expenditures while respecting Avon policy.
Invoice
A statement that includes an account of all items ordered, messages from Avon and the amount due with the next order. Invoices may be accessed online.
Late Order Fee
Fee of $5.95 for orders that arrive at Avon later than the due date and time. Applicable to both paper and online orders.
Leadership
For full information regarding Leadership, please see the Leadership Reference Guide.
Length of Association (LOA)
The number of campaigns a person has been a Representative. LOA 0 is a newly appointed Representative who has yet to place an order.
Mail Plan
The specific date a District Sales Manager’s Campaign Reports are run. There are 10 Mail Plans. The date is found on the last column of the Order Processing Schedule (OPS) Spreadsheet under the heading “Sales Report”. Every order submitted and billed in the campaign up until the day of shipping (noon EST) will be captured on that report.
Mail Date
The date a paper Purchase Order (PO) must be received by Avon if the Representative is not online. The date is found on the Order Processing Schedule (OPS) Spreadsheet in the fourth column called “Paper PO at Avon By”. Representatives will find upcoming dates on their invoices. This date is two or more days prior to online submission. Dates vary by District.
Net Items
Items purchased by Representatives such as brochures, sales aids, samples and special offers. The Representative pays the stated price for these items that are generally business-building tools and receives no earnings or discounts.
Online Representative (eRepresentative)
Any Representative who has access to the Internet, registers and places orders online using the services of the AVON Web site.
Order Builder (or Premium)
A product offered in the brochure at a reduced price or free with purchase to encourage Customer purchases.
Past Due (PD1/PD2)
If a payment is not made in accordance with Avon’s credit policy, the account balance will be considered “past due.”
PD1 = Past Due One Campaign, PD2 = Past Due Two Campaigns.
Premium (or Order Builder)
A product offered in the brochure at a reduced price or free with purchase to encourage Customer purchases.
President’s Recognition Program
Provides recognition and rewards to Representatives for outstanding achievement in total sales, sales increase and Leadership. The levels include President’s Club Apprentice, President’s Club, Honor Society, David H. McConnell Club, President’s Council and President’s Inner Circle. Leadership Representatives who are also President’s Club members may be eligible for special recognition at annual President’s Recognition events.
Product in Hand Days
Number of days from order delivery day through next order submission day, excluding Sundays and Statutory Holidays.
Purchase Order
An order form a Representative completes and sends to Avon each campaign to order Customer products, sales/business tools, demonstration products, brochures and samples. Most Representatives choose to order directly online.
Recruiting
Actively pursuing and appointing prospects into Avon Representatives.
Regular Orders
This is the primary order that is due every campaign. It is placed on schedule and shipped on schedule. It generates all the required literature for upcoming campaigns.
Re-Instatement
A Representative who chooses to re-join Avon within 13 campaigns of removal.
Re-instatement Fees:
  1. No fee within 3 campaigns of removal.

  2. $10.00 if reinstated between 4th to 13th campaign.

  3. Full $20 Appointment Fee applies after the 13th campaign.

Reject Order
An order that the system rejects; therefore does not get processed. Reject orders usually happen if there is a current order on hold or if there are invalid line numbers.
Removal
  1. The closing of a business relationship with a Representative and Avon due to inactivity, past-due balance, inappropriate actions or management decision.

  2. Representatives are automatically removed after the fourth campaign of inactivity.

  3. A Representative account that has not beed paid for four consecutive campaigns will be automatically removed and a spurring and collection process will begin.

Sales Tools
Items offered to Representatives to help them build their business. Some are free, and others are nominally priced. They include items such as color charts, forms, bags, ring sizers, etc.
Selling Days
Every day except Sundays and Statutory Holidays.
Ship Separate Order
This is an additional order that is placed off schedule to be shipped immediately. There is a minimum order value required of $100 customer-priced sales if placed online or $125 if placed with a live agent. This order usually ships via UPS or Canada Post the following business day. However, depending on when it is placed in the campaign cycle or where the delivery is, the order could be held to go with the district’s scheduled delivery which might be faster.
Shorts
Unavailable product that will ship out as soon as available, within one to two campaigns. All shorts are noted on the Representative’s invoice.
Simplaz 1-2-3
An Avon software program that simplifies bookkeeping and tax preparation. Available for purchase in Sales Aids.
Site Map
This provides a skeleton view of the entire web site and can assist with site navigation.
Shipping and Handling Fee
  1. $3 for Regular Orders $25 or less.

  2. $2 for Regular Orders over $25

  3. No fees for Add-on Orders.

Stop-Bills (or Take Off Sales)
Products that are no longer available and are removed from sale. They will not be relisted in the brochure or elsewhere.