Thorough Review On Amway and its Potential for Entrepreneurial Success
Started in 1959 by friends Jay Van Andel and Richard DeVos, Amway (short for American Way) has become one of the largest and consistently successful multi-level marketing company both in the US and worldwide, with over $9 billion in sales reported for 2010. Amway Corporation, a direct-selling company, is best known for its household products, in particular its laundry detergent SA8, but has also been successful in its sale of beauty products, water and air purifiers, dietary supplements, jewelry, electronics, cosmetics and insurance.
Van Andel and DeVos began originally as direct sales representatives for Nutrilite food supplements. When they had built their business to having well over 5,000 representatives below them, they decided to start their own company based on the same multi-level marketing principals as Nutrilite, and called it The American Way Association, which later became Amway Corporation. They eventually went on to purchase full ownership of their former employer, Nutrilite.
Best known for SA8, Amway also gained a loyal following of consumers purchasing their Dish Drops dishwashing liquid, their Artistry health and beauty products, Satinique hair products, Nutrilite health supplements, eSpring water filter and Atmosphere air purifier. Amway created a successful business model that has allowed for both its success as well as its longevity. In simplest terms, Amway combined combines direct selling to consumers with recruiting among its more than 20,000 employees. In this manner, independent business owners (IBOs)earn income both from the sale of Amway products they sell, as well as based on the sales of any of the IBOs that they have included below them (referred to by Amway as “downline”).
The importance of marketing in becoming a successful Amway distributor cannot be understated. For an IBO to experience significant success, they need to establish a viable downline. Meaning, there is more money to be made from selling the business to prospective salespeople than there is to selling only the Amway products on their own. As such, marketing is key. Most independent business owners who experience success with Amway, have learned to market their business outside of their local market. In other words, they have found a target market outside of their immediate vicinity. Knowing the needs of their expanded market is another key. The successful IBO pitches products that are relevant to the population he has targeted. Furthermore, pitching the business is a very important ingredient to an IBO’s success. Follow up is the most important part of this process. Most leads will go nowhere without putting proper follow up into the procedure as well. Marketing the Amway business and following up with any and all leads will go a long way in attaining the successful end results sought by the IBO.