MLM Blog – Network Marketing Blog

Amway Sales Grow In 2009 But No Mention Of U.S. Sales Growth

Posted on 09. Mar, 2010 by Ty Tribble.

I just unleashed 7 of my most closely guarded Internet Marketing files for the first time. Download Ty Tribble's MLM Web Secrets. It's my free gift to you for visiting.

If Amway doesn't mention U.S. numbers, you can be pretty sure that they are down.  Amway training systems like WWDB have shown declining numbers in meeting attendance and new diamonds....here is the press release from Amway:

ADA, Mich., March 9 /PRNewswire/ -- Amway's parent company, Alticor Inc., announced record sales of more than US$8.4 billion for the year ended Dec. 31, 2009, which was a 2.3 percent increase over 2008. Sales were negatively impacted by foreign currency fluctuations, which in local currency grew 5.9 percent.

"Our focus on using innovation to transform the Amway business is showing results," said chairman Steve Van Andel. "The global economy challenged every business in 2009. Our continuing investment in products, technology, and connecting with consumers helped us weather the storm."

Said president Doug DeVos: "Our distributors around the world deserve a lot of credit for persistence in a difficult economic climate. We put a lot of effort into improving our product offerings and building consumer awareness; the distributors put in the work to drive sales to our customers."

The company also made gains in another key measure. Said Van Andel: "In 2009, we increased our market share in the direct selling industry, and continued to drive improvements and adjustments to our business that will help us, and our distributors, succeed over the long term."

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Amway One by One Campaign for Children Reaches 7 Million Kids

Posted on 08. Feb, 2010 by Dan Mitchell.

Since 2003, Amway has mobilized its employees and distributors all over the world toward bringing about better lives for children in need.

Now in its seventh year of operation, the Amway One by One Campaign for Children has improved the lives of an estimated 7 million children through locally-developed charitable and service programs that align to make a global impact.

Employees and distributors alike have volunteered more than 1.3 million hours, and the company has contributed more than $112 million in donations to partner organizations aimed at children's issues.

"In every country, and indeed every community where Amway operates, we have people who act to make a difference," says Dana Boals, Amway vice president. "Thousands of employees and Amway distributors have rolled up their sleeves to bring about positive change. That is a purposeful reflection of our citizenship, brought to life."

Source: PR Newswire

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Amway Global and Miss America?

Posted on 26. Jan, 2010 by Dan Mitchell.

Amway Global is proud to announce that ARTISTRY® Skin Care and Cosmetics, beauty power brand of Amway Global, is the Official Skin Care and Cosmetics Provider of the Miss America Pageant. Artistry will hold the title for both the 2010 and 2011 Miss America Pageants. The sponsorship will also give the Miss America Organization the opportunity to work with the entire Amway Global family of brands.

“Partnering with the Miss America Organization is an incredible opportunity for us,” said Jori Hartwig, Vice President of Marketing at Amway Global. “As a leader in prestige beauty, Artistry is dedicated to helping women of all ages feel confident that they’re putting their best face forward every day. We’re excited to introduce this brand to the Miss America contestants and look forward to showing them how it can let their inner beauty shine through on their big night.”

Source: PR Newswire

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Amway Jet Evacuates Missionaries From Haiti Earthquake Zone

Posted on 18. Jan, 2010 by Dan Mitchell.

The Amway corporate jet carried a medical team and supplies to Haiti Monday on a flight of mercy. It returned with 10 Americans who were on a medical mission trip when the earthquake struck.

North Dakota nurse practitioner Sarah Kaspari Baker recalls, "I was holding the baby and grabbed the young mom. And it just rolled under our feet. It felt like being on a ship. The roar was amazing." She was working with a Haitian interpreter at the time, and says, "A young medical student whose university collapsed. And all his friends were killed. And he would have been there if he wouldn't have been on the island helping us."

The team worked on an island ten miles off the Haitian coast called La Gonave. The damage on the island was not as bad as the capitol. They still saw collapsed buildings and felt the fear that comes with a major quake. Team leader Bruce Blumer of Mitchell, South Dakota says, "Just beyond where the clinic was, there was a big open area. And it looked like it had snowed. There were probably 500 people lying on sheets because they were afraid to be in their homes that night." 

Source: WZZM

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Network Marketing Compensation Plans Part 1: The Stair-step Breakaway

Posted on 18. Jan, 2010 by Ty Tribble.

Stair-step Breakaway Plan

Company examples: Amway, Arbonne, Nuskin, Avon, Pre-paid Legal, Herbalife.

History and definitions:

The stair-step breakaway is the oldest of the compensation plans and was created by Amway in the 50's. Most early Network Marketing companies copied the plan and based on the fact that these companies have been around for a very long time, the largest companies in the industry typically have a stair-step breakaway plan.

The stair-step breakaway allows for an unlimited number of people to be personally enrolled on your front line and pays in a volume based stair-step manner. For example if you enroll 3 people who do $100 of volume, those 3 people might qualify for a 3% bonus on the the $100, where you would have a total of $300 on your team, you would qualify for 6%. The company would pay you the difference between 6% and 3%. This % "stair-steps" up so as your volume grows your % gets higher and you make a larger % difference.

The breakaway part of the plan is that when a person gets to a certain level, they will "break away" from you, causing you to earn less money on the volume that person creates.

Commentary: Problems with the breakaway plan are numerous. Most of the time the issue starts with the company and what % they pay back to the distributors. Amway has averaged a payout of roughly 30% back to it's distributors which is about 40 to 50% less than the fastest growing companies in the industry today which pay 40 to 45%. In other words to get paid the same in Amway vs. many other companies today, you would have to create 150% more volume.

The other major issue with the breakaway plan is the actual breakaway. You could put your blood, sweat, tears, hundreds of hours and money into one of your teams and then if they match your level ( in other words you help them succeed), your income will drop significantly once they "breakaway".

Stair-step breakaway plans are also back end weighted but it usually takes some additional maneuvering to make a large income. You will hear about tools and training system income, distributor pools where distributors have multiple positions and share the revenues and other shenanigans that offer the appearance of large incomes even though the largest producers are making a fraction of what they portray.

The Bottom Line: Stair-step Breakaway plans are like a used car:  Folks can get attached to them but new cars outperform them in every category. The fundamentals of this plan were developed in the 1950's and there is a reason why you rarely see a new company using a breakaway.

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Amway Donates $1 million To Today Show Toy Drive

Posted on 21. Dec, 2009 by Dan Mitchell.

As part of its One by One Campaign for Children, Amway Global donated $1.0 million in product to NBC's TODAY Show Toy Drive via a direct selling industry effort to provide holiday gifts for thousands of children nationwide. Amway Global's gift includes cosmetics, skin care, personal care, fragrances and jewelry, items aimed at teen and pre-teen girls - one of the groups often forgotten during holiday giving drives. Amway Global's donation is being shipped to 20 non-profit organizations across the country for delivery to disadvantaged children and families, providing in many cases the only gifts some children and teens may receive this holiday season.

Additionally, above the $1.0 million, Amway Global has promised for every person that visits the Amway Global Facebook page to learn more about how Amway Global shares with local communities and becomes a Fan between December 18 and Christmas Day, they will donate an additional gift, up to $100,000 worth, to the TODAY Show Toy Drive.

Source: PR Newswire

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Amway China Signs Deal With China Telecom

Posted on 07. Dec, 2009 by Dan Mitchell.

Amway China signed a new agreement with China Telecom on Friday to provide its salespeople with 3G phones with special online product and sales functions.

The agreement, which was signed at Amway China's headquarters in Guangzhou, south China's Guangdong Province, will let eligible Amway salespeople obtain custom-made 3G smart phones with several functions especially designed for them. The functions include online shopping, sales queries, customer management and makeup simulation.

"No matter whether it is 3G smart phones or the web, they are just tools or vehicles that can assist our salesmen with selling the company's products," said Gan Chee Eng, President of Amway Greater China. "Quite unlike e-shops, our model is that our salesmen will still look for customers, although they can access information through tools like 3G phones or the internet, rather than have customers look for products on the internet on their own initiative."

Amway China has considered introducing e-commerce services in recent years. But Gan said that even if the company launched its own online shops, they would serve as yet another tool for its salespeople.

"We have promised that Amway China will not leave its salesmen," Gan said.

Source: CRI

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Orrin Woodward and The Team (MonaVie Reps) Lose $25 Million Arbitration Suit

Posted on 06. Dec, 2009 by Ty Tribble.

In what is called "the final award", Orrin and Laurie Woodward are liable for $12,736,659 for soliciting other IBO's to resign from Quixtar and compete with it's business (in MonaVie).

Chris and Terri Brandy are liable for $9,578,756 and Tim and Amy Makes are liable for $3,533,230.

Check out the PDF here.

Update with some comments from Orrin Woodward:

The arbitration award is far from final and with the recent ruling by a Federal judge in Utah that former IBO’s should not go through Amway’s arbitration, we will see what happens. There are several major pieces of evidence that were denied us in our defense that is now coming to light. In either case, if the judicial system rules that we must pay after hearing the facts, we will bond and continue to fight for justice. I will never surrender to tyranny and if Amway can point to even one person that I solicited to leave Amway then I ask them to name them? I haven’t nor ever would solicit anyone as I believe that someone convinced against their will is of the same opinion still.

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MLM Energy Drinks Comparison

Posted on 03. Dec, 2009 by Ty Tribble.

EIRO Energy

Calories: 25
Artificial Flavor: No
Preservatives: No
Carbonated: No
Carbs: 10g
Sugar: 0g
Energy Blend: Green Tea, Guarana, Gingko Biloba, Ginseng and Vitamins

MonaVie EMV

Calories: 170
Artificial Flavor: No
Preservatives: No (?) pectin (stabilizer) and xantham gum
Carbonated: Yes
Carbs: 40g
Sugar: 22g
Energy Blend: Guarana, Green tea, Maca, Yerba mate, Ginseng

Vemma Verve

Calories: 72
Artificial Flavor: No
Preservatives: Yes
Carbonated: Yes
Carbs: 18g
Sugar: 18g
Energy Blend: Guarana, Green Tea, Vitamins and Minerals

Efusjon (Edge)*

Calories: 80
Artificial Flavor: No
Preservatives: No
Carbonated: yes
Carbs: 20g
Sugar: 20g
Energy Blend: Synthetic Caffeine and Vitamins

Amway XS Energy Drink (Citrus Blast) 

Calories: 8
Artificial Flavor: Yes 
Preservatives: Yes
Carbonated: Yes
Carbs: 0g
Sugar: 0g
Energy Blend: Synthetic Caffeine and Vitamins
Other: Artificial Colors

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Amway Launches iPhone Application

Posted on 03. Dec, 2009 by Dan Mitchell.

Ada, MI (PRWEB) December 2, 2009 -- Direct selling giant Amway has launched the most robust and innovative application for the Apple iPhone and iPod Touch in the direct selling industry. Through the expertise of leading mobile application developer, Übermind, Inc., Amway is ushering in a new era of commerce for its distributors and consumers.

Amway this month is deploying its iPhone app to distributors in its U.S. and Canadian affiliate, giving them crucial business functionality on the iPhone or iPod Touch product. Key features include customer relationship management tools, product and marketing information, safe point-of-sale order processing, and personal business performance tracking and reporting. Version 1.0 of iPhone app is Amway's first step in a major initiative to help its distributors do business any time, anywhere through a powerful, easy to use tool that is always at their fingertips.

Source: PR Web

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