Amway Business Review

Amway, or the American Way,as people prefer to call it needs no introduction. Amway operates in eighty plus countries and distributes more than 450 products. As many as three million reps work to promote the products of this company worldwide. This article’s aim is to explore the business opportunity offered by Amway Global and see if it’s as good as it’s made out to be.

· Amway, A Brief History

1950s’: When Jay Van Andel and Rich De Vos distributed Nutrilite, they were attracted to the system of network marketing and decided to start their own venture. Thus Amway was launched as an MLM company in 1959 with its first product LOC.

The success grew over the next two decades when Amway went on to distribute more than 200 products and extended its reach to other countries.

Since then, there was no pause in the growth of this corporation.

· Amway Products

Amway has different products catering to home needs, skin and oral care, hair and body care, nutrition and weight management. Amway’s best selling product is the Nutrilite range of health supplements. Amway’s proud of its eco-friendly image and claims to use only natural raw materials for its products.

· Amway IBO

With a working record of fifty year and strength over 3 million reps Amway may seem a sturdy venture to take up. However, the truth is, not everyone’s successful in this business and we need to evaluate the opportunity to see if it really spins income as everyone claims.

- How Do You Get Paid In Amway?

Generate income through mark ups on sale of products, get bonuses on monthly targets and earn perks and cash awards for group performance.

- The Amway Advantage

Amway promotes good quality products that have a good image among customers. The compensation plan is good and the company is well established with a good history and global reach. Amway products are needed for day to day use; so there’s good scope for marketing.

- Amway Problems?

Here’s the working procedure of a characteristic Amway rep- he or she gets sponsored by a friend, get trained about products and on selling skills, learns to accumulate his or her contacts and sell to them. Once the selling process is over, the reps get references and gets in touch with them.

Maybe this kind of marketing was successful way back, when people had time and weren’t constantly assailed with phone calls; but now, mention a meeting and you’ll find you were talking to an empty phone. Amway has even become the subject of jokes; it’s said that when someone hosts a party all of a sudden for adults, it’s very likely that the host has joined Amway and the party is to promote its products. There are other practical problems such as getting people to meet you in the midst of their busy schedules. With 3 million people in the field, it’s a highly competitive business. It’s just not enough to sell a few products to people you know if you want to reach the top and get real earnings.

- Solution

Internet is not just a trend; it has become a way of life. Launch your business on the net for best results. Use the vast reach of the internet to propel your Amway products to reach people who are interested in them. Your first step should be to learn best online marketing techniques that are guaranteed to get results yet not so popular that they are hackneyed.

Amway Business Review

In 1959, two friends Jay Van Andel and Richard Devos started a joint venture to distribute consumer durables through network marketing. The business was a success and was called Amway, short for the American Way. Their first project, a multipurpose cleaner was accepted well by customers and this led to diversification in product range as well as globalisation. In a matter of 20 years, Amway had an established global presence and as many as three million reps.

Amway Products

A few of the best selling products of Amway are -

· The Nutrilite brand has a range of supplements that help keeping the body fit and energetic.

· Artistry is Amway’s brand of beauty-care products.

· Satinique is Amway’s hair care solution. This brand offers shampoo and conditioner and is alleged to repair damaged hair and restore nourishment.

· Amway offers Oral care through its popular product Glister.

· Amway was the first to use the term “bio-degradable” when it introduced its detergent SA 8

· Amway’s water purifier, Espring is effective in controlling contaminants from polluting drinking water.

· The icook range of cookware has been carefully designed to promote a good cooking experience.

Distributing Amway Products

Being an MLM based venture, Amway offers customers an opportunity to become an IBO and distribute the company’s products. Most customers are induced by the income prospects, bonuses promised and the company’s promise to help them earn as well as the top earners in Amway. But we must also remember the fact that good quality is often combined with high prices; there’s a general opinion that Amway products are priced high.

My Honest Opinion On The Amway Business Opportunity

Your Amway product could be good, but that doesn’t mean you’ll be able to sell all your merchandise. It may seem nice to join Amway with its good income potential and fun-filled team get-togethers. But there’s one major flaw in the traditional MLM setup followed by Amway. In the traditional system, reps are taught to contact people they know, offer products demos and promote the product as well as the business opportunity. This technique is operational only till your list of contacts lasts; after this, work may seem unrewarding.

When this system is followed, network marketing companies succumb to being accused of adopting the “Pyramid structure” which is banned in several countries. After a point, however hard you work, the profits seem to go to your upline and you’ll run out of contacts soon. When their initial list of contacts is over, reps get desperate and speak to just anyone they meet; cold calling and inviting strangers to meetings with offers of free gifts etc. could irritate customers who are rushing on their busy schedules.

Amway Wrap Up

Though this may seem discouraging, the flaw is not in the products or the company. It’s only in the techniques employed by distributors. My conclusion is, if you employ the right techniques, this income opportunity could be a cash cow bringing in more money than you dreamt of.

How should you market your Amway products?

Sell your products to people who are interested in buying them. Market your business to reach these people and get them to contact you. Such people use the internet to find dealers. If you use the largest network in the world, the internet, to market your products, you don’t have to worry about finding contacts and fixing appointments. Online marketing is sure to bring in more profits than you’d ever expect. Establish a system that gets you leads to follow up on and get orders from. You just need to master tricks to advertise selectively on the net to reach your target market.

The legality of network marketing was decided in 1979 in the landmark case FTC vs. Amway. In a nutshell the Federal Trade Commission in 1975 charged that Amway imposed restrictive product pricing and marketing methods that made it unlikely for a distributor to create a viable business.  In essence, a pyramid scheme. The court ruled in 1979 that the Amway opportunity was a legitimate form of business but did have to amend their pricing and marketing processes.

So, what is network marketing really? Is it a business of hype or a business of promise?

Network marketing is the promotion of a company’s products and services through a lineal generation of personal customers. A distributor is someone who promotes the company and builds a personal network of customers. The network marketing company compensates a distributor based on total sales and leadership development of their customer network.

I believe the major objection to network marketing is the fact that most people do not make any money. Most who object to network marketing see this statistic as proof the industry is a failure and the public should be shielded from ever pursuing the opportunity. Without doubt people do fail but it is not exclusive to network marketing.

One of the biggest challenges for the network marketing industry is to dispel the perception that network marketing is a quick and easy business to build. In reality it’s as challenging as any brick and mortar business.  As the industry matures, many companies are fostering more professionalism within their distributorships and counseling their distributors away from too much irrational exuberance. Because of this professionalism, more career professionals are viewing network marketing as a viable career change opportunity.

The greatest benefit network marketing offers is the promise. Like the wagon trainers of the old west, there is the promise you can create something or reach somewhere. Some will not try, some will quit early, some will perish along the way, and some will reach their destination. Without the promise, there’s not much will or dedication to try.

Regardless of your opinion, network marketing has been accepted worldwide and will continue to flourish where people desire the opportunity to create the financial and personal lifestyle of their dreams.

David Johnson worked 19 years in corporate America before learning about network marketing. Six years later he made a midlife career change and started working full-time with his mlm opportunity.