It is a name you have heard for decades.
It is one of the most familiar brand names out there today. Once you hear the name Amway you know exactly who the other person is talking about. You get the picture of door to door salesmen carrying their little kits and selling the Amway products through a variety of sales techniques.
In fact, the name Amway, which stands for American Way, is as familiar as Coke, Pepsi, Chevrolet and other brands that have been around for a long time. But what is Amway? You may have heard the name but may not know much about the company.
To find out the information you need to know about this giant corporation just continue to read our article. It is filled with the details you may not have heard even though you know the name Amway quite well.
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Amway was first started in 1959. The founders Jay Van Andel and Rich DeVos started with one product, a liquid organic cleaner that was biodegradable, concentrated and an all-purpose cleaner.
From its start in small town Ada, Michigan the two owners who just wanted to own their own company took Amway from those humble beginnings and helped it get a international following.
Another one of their motivating influences was the idea that they wanted to help others work for themselves. This was achieved as Amway does use independent dealers to market and sell their products.
As of this writing, Amway has been in business now for 60 years building on the legacy left behind by their late founders.
Amway was built on 4 principals created by their founders. These principals are summarized in 4 separate words - Freedom, Family, Hope and Reward. The freedom principle is seen in the amount of freedom you get by owning your own Amway business.
Then the founders created a family like atmosphere to help provide the support these independent dealers needed to be successful. Then they created hope, where they help you dream big and influence you to achieve great success as you worked hard.
Finally, you received your reward once you began to make sales and reap the benefits of your hard work.
The vision that helps Amway members strive for success is the idea that they are trying to make the lives of people a lot better. Not only through successful sales and business opportunities but for the people they sell their products to.
The owners of Amway in general have succeed in reaching this vision through another 6 keywords or phrases - partnership, integrity, personal worth, achievement, personal responsibility and freedom.
Amway says it strives to do what is best for their partners putting an emphasis on doing what is right, not what works the best to help them drive sales and foster a great family atmosphere.
To sign up at Amway, you need to go to their website and click on the start a business button. From there you are given the information you need to initially register. Once you pay the $62 signup fee, you get access to about 80 training videos and a lot of experienced guidance.
But that is not the only money you have to pay up front. In order to market the Amway products and earn money, you have to purchase their $99.00 starter kit. Amway says it is full of products that total about $245.00 in value.
In that kit, you get numerous samples to demonstrate, 10 catalogues to hand out and great tips on how to demonstrate those products to your potential customers. So, before you get started on your new business venture, you are already out of pocket $161.99.
The key to Amway’s business strategy is that you are an independent business owner.
According to the Amway website you have 3 ways to make any profit off your new business venture. The first way is through the retail profit margin. What that means is you are buying the product at a special dealers’ rate while selling it to your customers at a higher price.
Part of your revenue comes through this system of making money. The second way you earn some extra money is through monthly performance bonuses. How much you make through this system depends on your success rate.
If you happen to find a community that has never heard of Amway and there are no independent Amway owners living there, you may make a ton of money through these bonuses.
The third way is through growth incentives. How you receive money through this option is not known. To find out what Amway does here, you have to sign up and find out. Also, you should be aware that on the Amway website is a page that states their rules of conduct.
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You know what is expected of you before you take the plunge and become an independent business owner. Oh, there is a catch. Amway charges a yearly registration fee to cover the costs it says it spends helping its independent business owners become a success.
From the original cleaner the founders sold in the beginning has spawned a wide variety of products that reach into almost every facet of life. To start, there are a wide range of cleaning products including laundry soap, dish soaps, disinfectants, and other cleaners.
Also, you can get vitamins, energy drinks and weight loss help through a couple of Amway brands. Then there are beauty products and bath items that help you look your best while being clean.
If you want to learn is affiliate marketing still profitable you might want to check this article.
In other words, you get to represent quite a few different products and meet your customer’s needs. The only catch is you have to buy those products first, and you can only represent Amway products.
The company comes up with new products throughout the years to help you be a marketing success. At this writing they have about 450 products you can sell.
Even though it is a very legitimate business, it makes most of its money through MLM style revenue. What that means is that the money made by normal independent business owners makes its way up to the top of the pyramid chain.
The way that the independent business owner makes money is one, through their retail sales, described earlier. The other way, on top of the 3 described earlier, is for you to recruit new independent business owners. As those recruits sell, then you get a cut of their action.
Unlike MLM, affiliate marketing business opportunities are much more easier and very affordable.
If they do not make any sales, then guess what. You do not get any extra revenue. There is some good news, though. When your recruits recruit new people, you get a cut of the action from those new independent business owners.
The potential to make money is there but you may be competing with the recruits of the recruits of your recruits.
The owners and top distributers of Amway will keep telling you that you can make a lot of money. They will hold themselves up as prime examples. But getting to that top position is not only difficult but maybe next to impossible.
The reality is that you may not make much more than the monthly average of active business owners. That monthly average comes in at $207 and that comes from attending a lot of meetings, listening to videos, while trying to sell your Amway products.
The majority of Amway independent business owners do not even come close to that figure and have incurred huge losses instead of making it rich. In addition to that, Amway has set up a very complicated revenue sharing plan that makes it very hard for you to earn the points needed to reach bonus revenues and other rewards.
That is only the tip of the iceberg.
Amway makes it sound that coming to work for them as an independent business owner is your ticket to success. Actually, it is their ticket to continue to get roughly the 10.8 billion dollars in revenues they get from time to time.
Amway has loaded the dealer format with a lot of hidden costs. These hidden costs include shipping charges the dealer has to pay to get their products. On top of that are the ‘optional’ programs that cost each dealer some more of their hard-earned cash.
The inaugural package costs roughly $338 to purchase, and this package includes marketing material you need to market Amway products correctly. Also, there is a PV point system that helps you earn rewards. Unfortunately, 1 PV point does not equal $1.
The more you spend to earn your personal 100 PV points, the less you get to put in the bank. Yu also need to get 50 PV points from your customers. Sometimes the rate for 1 PV point is $10 in sales.
Seminars, tapes and books can cost you about $250 and $40 respectively. Yet, you are convinced that you can’t succeed without spending this money and reading those books and attending those seminars.
While Amway proclaims that they are making over $10 billion a year, approx., from their over 3 million independent business owners, all has not been well at the company. In 2010, the company was forced to pay $56 million fine for faulty business practices.
There is a reason that this Ada, Michigan based corporation does 90% of its business overseas. Those countries do not identify Amway as a scam like America does. Another reason for this disparity is that it is easier to sue the company in America for its unethical business practices.
That is the impression some former Amway independent business owners have come away with when they have left the company. Once you sign up, you are told that you cannot have success without the system.
That system is built from expensive seminars to attend, motivation materials to purchase and so on. If you are not successful, Amway will then try to bully you by saying you are not using the system properly.
Your success is through their teaching and your failure is through your own ineptness. Even their promotional YouTube videos bring a cult-like atmosphere to Amway and its independent dealers.
Of course, Amway is not above lying to its perspective independent dealers. They will not give you an exact amount of how much you will earn. Instead they use key MLM buzz words to make sure you get hooked on the idea that the world is your oyster.
Also, they try to convince you that obvious red flags are their way of thinking outside the box. It is possible to consider Amway a cult due to its business practices and over all atmosphere.
You may find similar statements made in both Amway and other MLM companies that you hear in Affiliate Marketing platforms. But that is just the former trying to sound legitimate and trying to disguise themselves as a legitimate business opportunity.
With affiliate marketing, you get a legitimate business opportunity. There are no start up fees for signing up and you do not have to spend your hard-earned money on a starter kit filled with over-priced products.
Wealthy Affiliate is one such platform and they make sure you get the education you need to be a success without having to spend huge amounts of money. You also do not have to buy the products you represent.
Instead, you are given all the support you need to build your website, write your content and use the right strategies to make it big. All you are doing is acting like a salesman talking about how good the product is.
If you want to learn more about Wealthy Affiliate and affiliate marketing, create free account and contact us. We will be glad to help you find the answers you need.
Thank you for reading.
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