Cash Flow Potentials

No Matter What Business You Choose...

1. You MUST have passion for it - Get the Find Your Passion eBook FREE!
2. You MUST know the Myths & Truths of Network Marketing
3. You MUST Get Your Home Business Started Right

In Business Since: 1959

Comments: I have to state that this is one of the more difficult businesses to review. There are many people who have very strong opinions about Amway, Quixtar, Altior and their other subsidiaries. This company has such a long history that it is difficult for us and many others to determine if it is a business opportunity they should choose for themselves. Along with that, the company is continually growing and changing while the people using the opportunity are also continually growing and changing.
What was true yesterday is no longer true today.

The other challenge in reviewing this company is that Amway serves many different people, offers one of the largest catalogs of products, and is located in many different countries. The logistics and leadership to manage that are enormous.  One of the challenges the company faces, and it is not only unique to Amway, is keeping the original spirit of the company while the leadership manages ethics, integrity, quality of their products, and  quality of their leadership not only internal to the company, but their distributors as well.

We feel this is a great opportunity for the right person but YOU HAVE TO do your OWN due diligence on the company, the products, and more importantly the team you join. What you might find in one product, service, or team may not be true in the others. It is important that you find the best fit for you. Where we have seen the most success is when a person –

• Finds the right team and leadership with ethics and integrity
• Finds the right product to focus on. With Amway, there are so many it is easy to get lost, unfocused, distracted and overwhelmed.
• Know what your end goal is – a low cost incubator opportunity to learn from, sell a product you believe in to make a large profit, or to be part of the exciting growth and community they attract.

You also need to be able to know the Truth’s from the Myth’s. We won’t cover it here because  there is an entire book written about it – Myth's and Truth's… but yes, many of the leaders do make money from the tools sold. Some of them are very open about it while others guilt you into purchasing your own. But overall, it's not a bad thing as there are many outside the industry that do the same thing…it is just how it is presented and the ethics and integrity behind it.

So…lets get on with the review…..

Amway Corporation has been a global leader in the multi-level marketing industry for over 45 years.  If anything, Amway Corporation has been committed to offering people a business of their own and have helped many people create wealth along the way. Unfortunately, Amway has had to learn a great deal as well. They have had to learn how to manage many different facets of launching and running a large expanding business.

Alticor is the parent company of Amway, and the old subsidiary Quixtar. Alticor was formed in 2000 as a holding company and operates five businesses: direct-selling giant Amway, Web-based sales firm Amway Global/Quixtar, Amway Hotel Corp. (corporate development for Alticor and affiliates), upscale cosmetics company Gurwitch Products, and Access Business Group (manufacturing, logistics services)

Access Business's biggest customers are Amway and Quixtar, but Access also serves other companies. Amway, which accounts for most of Alticor's revenues, sells more than 450 different products through some 3 million independent distributors. Quixtar sells Amway and other products online. Alticor is owned by Amway founders, the DeVos and Van Andel families.

Amway offers two ways for a business owner (personal franchiser) to build their business. You can resell their products and services to customers and/or present the business model so others can build a business as well by teaching others how to shop at Quixtar....

It is difficult for many to access this opportunity as there are many negative consumer comments for many of the Amway companies. Some of the products are well received by their customers. Their launch of the company was based on superior and quality household products including nutritional supplements, household cleaning, skin care, water purification, and cosmetic products.

Many of the comments seem to revolve around over committing and under delivering, and mismanagement of growth and leadership. Even with many of their challenges and difficulties, many individuals recognize that much of the skills and education they received along the way has been valuable.

Advantages:Amway has many product lines available for distributors to be able to attract a diverse pool of people with varied skill sets.

Finding the right leadership using the Amway opportunity is critical while steering clear of the leaders and teams that have been taught to go through people unconcerned about their well being.  The best results come from focusing on a specific product line or service and guiding customers through their initial online shopping experience.

Amway also has their own branded products that have a higher profit margin.

Some leaders have better systems then others.

Not For Profits:
We like this company for the Not-For-Profit business model supporting 501c3 charitable organizations and schools.  Wouldn’t you like your purchases to benefit either of them? NFP organizations have the ability to use their communities to promote online purchase of the products and services.  A NFP can be setup as a business at low cost, thus benefiting from the sales volume of their community as well as other businesses and team sales volume.

Disadvantages:  The concept was sound in the beginning. Amway used the new distribution model to sell their products through word-of-mouth and outside sales teams allowing both parties to profit. However, over time the focus changed, and instead of supporting their distributors profiting through sale of their goods they earned their profits from the sales of people registered as a distributor instead. Then came the ability for many of the teams to be able to sell and make more money on training materials rather than product sales.

Just like any established and old company, they also have to focus on share holders, financial growth, jobs to protect, and personal ambitions …. This makes it difficult to change quickly and implement what’s required in a timely manner in the new economy. Not unique to Amway, this put the company in a position to protect what they have rather than do what is needed at the time. That is why the newest guy on the block can grow so fast and take over a goliath like Polaroid or  Motorola. They have no one they have to convince. A familiar example to me is when a high tech company went to Kodak and worked with part of their team to make “Kodak Digital” a brand name. It was quickly stopped because certain management in the company were concerned it would affect traditional film sales and the profits might take a hit and the share holders wouldn’t be happy. They still are trying to get into the market and they are too late.

Same holds true with Amway. They require any new distributor to sign an agreement that they cannot represent another product, service or company while with Amway nor 6 months after they resign formally. They also will not allow distributors to contact any of their other business associates for a year.  Their goal – try to protect what they have and make it difficult for you so you don’t move to a competing company that might be able to move faster, has a better product, or better compensation. Amway can’t change any of that quickly. Their time might be better spent setting up the company to be more competitive so you don’t want to go anywhere else or sell any other product other then with them.

There are many complaints about Amway and some of the leaders. Although there is no doubting that the company’s products are excellent, and that in general many of the distributors are all ethical, honest, hard-working people. But there also have been instances where Amway and some of the leaders have been found guilty of breaking various rules and regulations.

Amway  has built a reputation of having and allowing the more aggressive-minded sales people into their organizations leaving a bad image in many people’s minds -  both for the company and the industry. If you are considering this as your opportunity of choice, you need to be prepared for both.

Many Amway representatives also promoted “build a business by purchasing your own products”. There is some truth in the statement – but you can’t build a viable business in our opinion by solely purchasing product from yourself and teaching others to do the same. You need to be able to sell product to others for a profit – and do so.

Entities:
Transferable    Saleable            Willable           Structure as Corporation Entity
Yes                 Yes                  Yes                 Yes

Financial Strength:

Strong

Management:

• Doug DeVos, President and CEO
• Steve Van Andel, Chairman

Field Training & Support: Depends on the team. Although Amway has made great strides in doing their own training and certifying other leaders systems to improve in this area.

Motivational Support: Depends on team.

Products/Services:Amway distributes many products and services as well the ability to get commissions with their partner stores.

Anti-aging & Skin Care
Other Personal Care products
Auto Care
Health & Nutrition
Pet Care
Custom nutrition
Gene Testing
Business/Commercial Products and Services
Home Technology
Homecare

Compensation Plan: Amway compensation plan dates back to their roots, the stairstep breakaway. Because of some of the things I explained earlier in the review, Amway had to modify the existing plan as they went along. Note that their original was one of the original network marketing plans ever designed. Because of that it is more complicated and less distributor friendly then many of the newer companies provided. However, those who truly build the business have had fantastic results. But note, it may take a long time to build a substantial downline that results in a substantial residual income.

The distributor earns income from a retail markup on product sales to customers as well as earning additional income from monthly performance bonuses ranging from 3% to 25% depending on business volume and monthly productivity.

Health Insurance Plan Available: None

Territories: Amway Corporation operates in more than 80 countries and territories are always looking into new markets.

Research:

• Add New

Comments (0)

Write comment

Your Contact Details:

Name:

Email: do not notifynotify

Comment:

Title:

Message:

Security

Please input the anti-spam code that you can read in the image.

Joomla components by Compojoom