Amway is another multi-level marketing company that specializes in distributing products for direct sales. Their products range from personal care products, cosmetic products to home care products, electronics, jewelry, dietary supplements, and even purifiers. Amway has been around since 1959 when Jay Van Andel and DeVos established the company.
Being around for a long time gives Amway a positive stance in the marketplace. Consumers generally feel that a product or service or a company that has been in the market for a long time can be trusted. That is the explanation for why “since 1959” putting under a brand is attractive.
Amway is indeed a household name because its products are what a person or household can use on a daily basis. Amway is not only a household name, but it is also famous among other companies because they have products that these companies will use in their operations.
At first, the design of the marketing plan is to make a profit simply by selling Amway products. Here you see an Amway affiliate selling products to his family and friends. The profits simply accrue through the sale of the products.
However, as their marketing tool became network marketing, the profits are now not as easily made as they used to be. The “real” profit is generated when an Amway distributor creates a downline of distributors. This distributor will then have a “percentage” or “commission” per distributor who is below his line.
This is primarily why Amway members become so persistent in “recruiting” their family and friends to join the Amway network. Where in the past selling your products was what a member would do, now a member is selling the parent marketing strategy.
Additionally, Amway has a policy for an affiliate to sell at least 70% of their monthly purchases before they can purchase any bonus payments. In addition to this, these products with a value of 70% should be sold to ten different people. This gives the distributor pressure to put pressure on his downline as well.
Another pressure placed on the shoulders of the distributor is the fact that products must be well cared for to maintain their highest quality. Most affiliates don’t have enough space for these products other than their homes. Its products are always in grave danger and risk. Of course, no consumer would want to buy worn or spoiled products.
These are some of the reasons that Amway selling is not for the faint-hearted or the forgiving marketer. It requires devotion, passion, faith and commitment on the part of the member. Otherwise, if one’s downline is lenient, the distributor will have to pay for the products to reach their quota; this is another pressure.
Although there are no questions about its products, which consumers generally say are quality products, there have been complaints about Amway’s practices. Some claim that Amway has broken some MLM rules (if they are called rules). Among them are complaints that some of the distributor’s commissions or percentages are maintained and not disclosed to the member.
However, the good news is that Amway has no registration fee. Someone just signs up and gets evaluated by the folks at Amway. So if anyone wants to join Amway, it must be tough, huh?
