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Amway: Cult, or Original Business Model?

Amway: Cult, or Original Business Model?

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Published by Mark H. Pepper
Did Amway do their homework right all those years ago and does it still remain as the flagship in today's marketing models? Should one consider improving upon this concept or merely follow the crowd of people before them?
Did Amway do their homework right all those years ago and does it still remain as the flagship in today's marketing models? Should one consider improving upon this concept or merely follow the crowd of people before them?

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Published by: Mark H. Pepper on Nov 12, 2009
Copyright:Attribution Non-commercial


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Amway: Cult, or Original Business Model?

Ranked by Forbes magazine as one of the largest private companies in the United States, Amway is one of the original MLM organizations. Today, Amway’s global sales are over $8 billion, they employ 13,000 people, have over 3 million distributors (or Independent Business Operators), 450 products, and operate in over 90 countries. Not bad for a couple of guys who started out by selling one box of Nutrilite food supplement! Amway was officially started in 1959. The founders, Rich deVos and Jay Van Andel, had been school friends, and even business partners. In 1949 they became distributors for Nutrilite food supplements, and sold their one box almost immediately. They went on to become very successful at Nutrilite, with an organization of 5,000 of their own distributors. But they didn’t stop there. Van Andel and deVos searched for new products to market, eventually forming their own corporation, buying shares in their product’s manufacturers, and finally purchasing control of Nutrilite in 1972 and, in 1994, full ownership. As with any huge organization, Amway breeds its own culture, its own environment, and its own rules. What could be wrong with that picture? On the plus side: Amway is a giant corporation, with a long history, loyal IBOs and customers, and a very entrenched distributorship. Its strongest areas of growth are international (most recently China), with excellent opportunities as those countries develop. They are also perfectly positioned to take advantage of the current interest in green, globally conscious products. Product lines: Amway’s brands are largely focused on health and beauty, cleaning products, food supplements, and filtration systems. Compensation: Amway combines the revenue streams of both direct selling and multilevel marketing. IBOs can earn income from the mark-up (retail profit) on the products that they sell (they can also purchase product at a discount to sell later), and from a monthly performance bonus, which is awarded at various levels. What’s the bottom line? When it started, Amway was the leader of network marketing. Their “warm market” approach brought in the IBO’s friends and family. Marketing techniques such as house parties, samples, flyers, and social team building events worked well in the 1950s and 1960s. But now those marketing strategies are hopelessly outdated in today’s hyper-connected internet and social media world. The short-term gains of the “warm market” are offset by a 97% longterm failure rate. A lack of modern, continually updated marketing skills leads directly to a lack of continuous growth and profits. Without the right marketing training, mentoring, and skill building, marketing Amway to today’s sophisticated customers is too difficult. But what could make this picture better? If you are great at selling, believe in your products, and are serious about building your business, Amway could hold a future for you. Let’s face it, 3 million people must be doing something right! But to be successful, you must pursue appropriate and current marketing training. You must find a mentor who can lead you through the winding paths of the internet and social media. You must build and hone your marketing skills to be competitive, and use those skills to set you and your business up above the rest.

Mark is deeply involved in solution based marketing and takes great pleasure in helping network marketers make the best possible decisions for future growth of their business. Utilizing tested and proven methods and a no nonsense approach, plus instruction in prospecting, internet traffic and copy writing, Mark has personally been able to witness success in his business in as little as 6 months. By sharing this information with others its his hope to see them succeed as well and insure a healthy and robust growth in their network marketing campaigns. If you have any questions about the information in this article feel free to contact Mark @ (928)239-5070 or visit the following website for addition help.http://www.linkedin.com/in/markhenrypepper http://www.mlm-growthdynamics.com/av/ The links above will give you information on the author of this article "Mark H. Pepper."

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