This makes perfect sense from an manufacturers point. You dont pay Advertising.
In a way, Amway IBOs donate/dedicate much or most of their free time to doing advertising for Amway's products and services. They give absolutely free advertising to Amway at work, at school, in the office, at their church, at family barbeques, by trying to start a (fake) friendly conversation with a stranger at the local Barnes and Noble, or at local eateries, or the local supermarket. Some have coined the term "stalking" when refering to IBOs on the prowl for new prospects.
The first is, well yes, that's wonderful for Amway. But where in the world did you get the idea it was good for you? If Walmart or Costco could sell you products for a marked-up cost, and ALSO get you to do all their advertising for them, for free then why wouldn't they?
Most customers/consumers would notice that their time has value, and remember to tack it onto the cost of the products they're paying. Eventually, they would say: "Oh wait! I'm paying more for the product and donating free advertising to the company! In addition to free advertising, it is also the IBOs who recruit other salespeople to join the business and to advertise and push products for Amway.
In Amway's case, most people won't notice this because they have dollar-signs in their eyes. They have "dreams" of walking the beaches while cash rolls in forever. Amway and AMOs such as WWDB or Network 21 convinces people that they're actually making themselves rich by this behavior, not going into debt. They apparently convince people to ignore obvious facts such as your business taking a loss due to standing orders and functions. It will be cleverly diguised as investing in your business, or that you are becoming a better person, or that true success is right around the corner.
Amway now pays for advertising, but I believe it is mainly to give their IBOs some credibility. They can say "see, Amway advertises on national TV. how can they be a scam"? In reality, I don't believe that Amway advertising dollars have made a significant difference in most IBO's bottom lines.
Recently, Amway and some of their supporters reported that IBO retention is up in North America. But their report doesn't provide any evidence or even imply that IBOs are profitable.
Joecool, can you check out these facts for me http://www.thetruthaboutamway.com/amway-facts/ and give me your own opinions on each one of them. I've searched the internet about Amway and I'm still wondering why they call it scam? If you don't mind, can you prove to me that Amway price is overprice?
ReplyDeleteAmway UK Price Comparisons
Amway – 50 Facts
Amway Global sponsors San Jose Earthquakes
Amway reaches $8,200,000,000+ in Sales
Amway Diamonds – more than 1400 listed, thousands more to go!
Nutrilite – the World’s leading brand of Vitamin, Mineral, and Dietary Supplement
Amway Indonesia – 30% growth in 2006
Amway South Korea is #2 in Cosmetics & Toiletries
Nutrilite/Nutriway – used and endorsed by 2004 Olympic champion, Liu Xiang
Nutrilite (Nutriway) tops Consumer Survey again.
Amway Malaysia Wins The BrandLaureate 2006-2007
Quixtar.com (Amway Global) one of the top ranked sites for Consumer Satisfaction
Nutrilite film wins award for “making positive contributions towards society”
SA8 with BioQuest tops Consumer Reports comparison
Amway is a Global SuperBrand
IBO Organization Network TwentyOne receives World Vision Achievement Award
The Better Business Bureau receives just 1 complaint a year about Quixtar IBOs
Amway China Wins 2006 Corporate Social Responsibility Innovation Award
Amway awarded United Nations Environment Program Achievement Award
Nutrilite/Nutriway – used and endorsed by three time 100m world record holder, Asafa Powell
eSpring – the only home water system certified to remove more than 140 contaminants
Nutrilite – First dietary supplements to be certified by NSF International
Amway Cofounder honored with Dennis Sheehan Award
Nutrilite (Nutriway) – A Readers Digest Most Trusted Brand
Amway Australia is the Principal Sponsor of the Children’s Cancer Institute of Australia
Amway India honoured by All India Confederation of the Blind
Quixtar (Amway Global) named one of Information Week’s top innovative users of technology in 2006
Quixtar (Amway Global) wins 2006 IBM Business Resiliency Award
Nearly a third of Alticor’s (Amway) World Headquarters has been certified as a Wildlife Habitat
Alticor (Amway) a Deloitte “Global Power in Retailing”
eSpring – A Reader’s Digest “most trusted brand”
Artistry – a Top 5 Prestige Brand
Nutrilite/Nutriway tops survey in customer satisfaction
Amway Europe and UNICEF
Alticor (Amway) was awarded a 2005 Corporate Citizenship Award by the US Chamber of Commerce
Amway – No to animal testing
Amway is one of the largest private companies in the US
If i can help you. They are 1400 diamonds listed in amway wiki indeed. But look at the profiles. The majority have no pins in downlines. Hence they failed to requalify. The rest have only one or may 2 legs with downline high pins. Hence low income. A few have wide frontline and deep high pins. These make money. And most of that money fron tools. They have large groups so tools revenue is substantial. As far as products are concerned 5 % of sales are retailthe rest to ibos who think buying products helps their business. They do that for a while then quit. Amway as a company makes bif profits im sure. De vos is worth 6 billion according to Forbes. Thats because its a great model for the company. 3 million distributors working for free. A few king pins who made millions as distributors who are excellent leaders and motivators who keep recruitment higher than the quit rate. To make money you need to be like them. Thats impossible for the ordinary guy. Jim dornan's group at one point was recruiting 30000 people per month. The ordinary guy will recruit his cousin and brother in law. Holly chen has 800000 distributors in her group. Dexter yager has half of amway sales in his group. So thats what you need to do. Not likely.
Delete3 things I see very little of: USA, 2012, North America.
DeleteNutrilite being the top vitamin claim is based on 2009 or 2010, I forget which. (look at the page when you are ordering, I'm not going back on that site) Since, they have been passed by many, more readily available vitamins.
Most of these awards most haven't heard of.
The BBB receives 1 complaint a year because only 4% of goods are sold outside of IBOs (who's going to complain about themselves?)
Largest private company? Of course. If it went public, the IBOs would have to answer to shareholders, who won't be quick to agree with your AMswers.
Most of you facts are about Amway GLOBAL. GLOBAL. Where the markets aren't saturated or still haven't had their credibility soiled like the name has in the US, Canada and Great Britain. Let's face the facts here. There is nothing new, innovative, or truly exciting about it in these countries. It's the same old lame opportunity it has been for ages, unless you can quickly branch into a country where another member hasn't invaded.
None of the things you listed has anything to do with the profitability of IBO's.
ReplyDeleteAlso, the scam part is the tool companies such as WWDB or Network 21 who recruits IBO's, and then tells them that tools are vital to their success, when in reality, the tools are the reason why mist IBO's lose money.
I don't know if the other anonymous writer knows, but amway itself told distributors to not use either Asafa Powell or Liu Xiang in any type of advertising cause their contract ended...and they didn't take the paid endorsement until after they won, then never won again.
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