Amway is one of the oldest operating direct selling companies in the US. When they started in 1959, they only had one product and a local presence; fast forward to the present and they now have several product lines and a recognizable global presence.
There are more than three million people in over 80 different countries that have started their own businesses and have taken advantage of the Amway business opportunity. They’ve consistently reported over $10 billion in annual sales in the past 2 years. This is exclusively generated by their international network of distributors.
They have a wide range of offerings in their catalog. A few of their popular product categories include; Nutrition and Wellness, Household Cleaning Products, and Beauty. They also have a line of healthy cookers, water purifiers and air purifiers.
Their products are geared towards consumers who want to live a healthier lifestyle. Pricing is comparable to premium quality equivalents at regular retail outlets. However, the allure of buying an exclusive product also gives an impression of quality and luxury providing and excellent selling point for dealers.
Amway regularly adds new products to their catalogs. They are constantly researching for new and better products to sell. They run their own R&D Labs which helps them stay ahead of the competition.
Taking advantage of the Amway business opportunity
Interested individuals start out by registering as an Independent Business Owner (IBO). This gives them access to the Compensation Plan. It’s recommended that they contact an IBO in their area to help them get acquainted with the details of the marketing and compensation plan. They have very detailed business reference manual that is better explained by someone who has experience being an IBO.
Amway products dealer have the advantage support from an established corporation that has over fifty years of experience in direct and referral marketing. The training resources they offer help dealers get established much quicker.
How an Independent Business Owner Earns
Immediate income is earned from the mark up applied to the Amway products sold. Since products are sold at a discount to an IBO, they are able to get a profit from the mark-up. There are suggested prices for each of the products to guarantee the amount earned and avoid unhealthy competition between dealers.
Keeping to the suggested price also acts as an incentive for a buyer to sign up an IBO if they want to get higher discounts.
The second income channel in the Amway business opportunity is created by building a network of downline IBOs. These are people you’ve recruited to become independent dealers for Amway products. You get a bonus based on the sales they generate.
Sales are tracked using a point system where each product has a Business Value and Point Value. BV determines how much you can potentially earn while PV is the basis for the actual percentage of the earnings you will receive. This is computed on a monthly basis.
There are several ranks mentioned like diamond and platinum; attaining these ranks depend on the sales volume generated by you and your team and the ability to consistently hit targets over a given time period.
Without going into specific details, in an ideal situation, a determined IBO will be able to build a business that can easily earn him a respectable income well into the hundreds of thousands per year. It will require a significant amount of time and effort to build and establish an organization large enough to reach this level.
There are also awards and corresponding monetary bonuses given to IBOs with exemplary performance. An IBO must also be in compliance with all prescribed rules of conduct to qualify. All of these are discussed in the comprehensive compensation plan documentation.
Training and Support
Amway regularly reaches out to their IBOs. They offer useful information that can be used for sales and recruitment. A quick google search will yield a lot of useful information. Most of these are from Amway IBOs who are recruiting via online channels. For more detailed resources, the official website is recommended.
You might want to check the online strategies of IBOs. They can help you get a better feel for the business and possibly avoid expensive mistakes.
The training materials aren’t enough by themselves, getting the support of an experienced mentor will also improve the odds in your favor. Being part of a supportive team will help you build your business faster.
One potential challenge facing Amway IBOs is saturation. Since they’ve been around for several decades now, there’s a high probability that someone in a prospective IBO’s area is already offering Amway products. This won’t be a problem in the smaller cities and towns. However, there are other challenges present in less urbanized locales such as the untested purchasing capacity of the target market.
There are a lot of negative impressions regarding the tiered compensation plan that Amway implements. Since it’s basically the same concept being exploited by scam companies, Amway and other direct selling companies who use this type of incentive program are grouped together unfairly.
However, there have been instances of unprofessional IBOs who leave their recruits out to dry, so be careful who you choose to sponsor you. The same goes for the people you choose to recruit. Build your team from trustworthy and driven people to reach the goals you set out to achieve.
A summary of the Amway business opportunity
- Amway is an established company with decades of experience marketing their products via network marketing
- They focus mainly on “healthy living” products like Nutrition and Wellness, Household Cleaning Products, and Beauty.
- They sell products that are available exclusively through their network.
- Products are developed in-house at their own R & D labs
- They have a global presence with dealers and partners in over 80 countries.
- They are one of the largest global retailers; just below the top 100.
- They offer direct income opportunities and extensive performance based incentives to their sales agents. The incentives are understandably, based heavily on sales generated by the individual and the team he’s built.
- Amway is pretty strict about compliance with local laws and requires partners to review their Guide for Independent Business Owners. Failure to comply disqualifies an agent from performance incentives.