As one of the long established multi-level marketing companies operating globally, Amway has five decades of solid operation behind its history and this goes to show how reliable and viable an option it is. Its success as a direct selling company has made it a popular choice worldwide for those looking for easy alternatives to income generation and Amway has shown that its brand is more than capable to provide such an opportunity especially with its high recognition in the consumer market. Since its birth in 1959, and founding by Rich DeVos and Jerry Van Andel, Amway has grown massively and expanded extensively that today, it is one of the largest private business entities in the US and its family of companies and affiliates spans across hundreds of territories worldwide posting more than nine billion dollars’ worth of sales by the end of 2010.
So What Is Amway All About?
Starting out with an organic concentrated cleaner as their main product, Amway, an abbreviation for “American Way”, has expanded on their household cleaning products and has added several product categories as well including a variety of offerings in jewelry, energy drinks, health and beauty lines, plus several other brands and companies grouped under the Amway Corporation. The original product “Frisk”, now known as Liquid Organic Cleanser or LOC, is still very much around and this is a great testament to the quality of the products that Amway offers to the market. Delivering these products to the market is a multitude of IBOs or Independent Business Owners which sells and markets the products in their areas and through the internet.
Recognized by many for their large contribution in the creation and development of the multi-level marketing approach, Amway integrated networking and direct selling into one powerful strategy. This business model and approach by Amway is one of the biggest factors which attributes to its global success. Unlike other networking or MLM opportunities, the earning capacity of an Amway IBO is not dependent on the number of recruits that they make, but on the actual sales production made by them and their recruits. Amway is not a pyramid scam where recruits are being milked for their initial purchases and left to scour for their own recruits just to recoup their investments; Amway IBOs are devoting more time to actually selling their products rather than just focus all their time on recruiting others.
What Happened To Quixtar?
Most recently, in 1999, the company went through a re-branding process in North America, temporarily renaming the North American arm of the company Quixtar. Later, after a several year stint as a re-marketed brand, they began a re-phasing process from Quixtar, back to its original company names namesake.
The Amway Compensation Plan
Amway’s compensation structure is built on retail sales profits through discounts and through performance bonuses. Like buying at wholesale prices and selling them at marked up prices, distributors produce income through these mark ups and also receive certain bonuses through percentages of their actual sales that reach at a pre-determined amount, most especially in group sales achievements. Through this, a certain IBO or group of IBO’s, will focus more on making actual sales volume rather than recruiting and aiming for a large, yet non performing, downlines. This also means that a sponsoring IBO will take care of their recruits and help them get settled and set up to ensure that they will be a good factor to the team.
As each member of the team relies on one another for their success and in realizing profits, they are required to have a good working relationship with each other. Each member should be able to perform effectively and it is the responsibility of their sponsoring member to help them achieve this. Amway has provided the means to help their IBOs and their recruits by providing training guides and materials through their Amway Global University, now called the Amway Learning Center. This training will cover all the basic essentials in starting an Amway business, selling your products, making the business grow, and more importantly, build a sustainable networking opportunity.
The company continuously emphasizes the need to sell and learn the business inside out before recruiting others, it’s easy to see their not just after getting people to join their company, but mostly developing a person as a part of the business and making them find success in it.
So Is There Really An Amway Scam?
No, there is not an Amway scam at all. Not in my book. It is and has been a cornerstone of the MLM Business industry for decades and will more than likely continue to be so for years to come.
However, the company and its distributors need to continue to get themselves into the digital age. A major portion of growth in the industry right now and in the foreseeable future is through the internet, which brings several advantages with it.
The first and biggest advantage is the immediately exponential increase in reach for any given person to people who are actively seeking the benefits of what they are offering, rather than trying to convince and coerce people into trying your product or business opportunity. The ability to use blogs, social media, search engine marketing or videos can dramatically increase the reach and effectiveness of your marketing.
If you’d like to learn more about marketing online and generating upwards of 30 leads per day using nothing but the internet, simply fill out the form below with your name and email address right now for instant access to 7 free days of cutting edge MLM training.