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Inside the Amway Sales Machine
Wall Street Journal ^ | FEBRUARY 15, 2012 | DENNIS K. BERMAN

Posted on 02/16/2012 12:12:40 AM PST by iowamark

Holly Chen is a former first-grade teacher, just over 5 feet tall, with a taste for sequins...

"The most powerful weapon is to move somebody emotionally," she says...

Today, Ms. Chen directs one in every 10 Amway reps—getting a cut along the way.

Her total haul is estimated by one direct-sales magazine at $8 million a year. "I don't even know how much I make," she says to the group gathered in Las Vegas, part of the U.S. branch of chao fan.

Turns out these are flush days for Michigan-based Amway, which sells its own brands of cosmetics and personal products. Across developed economies, the recession has brought in a new wave of moonlighting Amway reps. Growth is much stronger in Latin America and Asia, where emerging consumers are keen to make a few extra dollars. Today, Amway derives 90% of its sales outside the U.S.

Sales last year for the closely held company, to be released Feb. 23, are expected to top $10 billion for the first time, a person familiar with the matter says. That is up more than 10% from 2010...

Glamour makes scant appearances in the lives of most Amway reps. The average North American salesperson grosses—not nets—about $200 per month, according to the company. Amway has agreed to a $155 million class-action settlement with former U.S. reps who alleged the company used deceptive practices and misled them about profits. Amway didn't admit wrongdoing but vowed to "transform" how it does business, focusing less on recruiting new salespeople and more on actually selling products.

If there are any such doubts for Ms. Chen, she has long since erased them. "I always think Amway is a system that's designed by God, only for me," she says...

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Religion; Weird Stuff
KEYWORDS: amway
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To: Vendome; iowamark
The ultra-riche have their own Amway program.
21 posted on 02/16/2012 4:04:27 AM PST by Daffynition (Our forefathers would be shooting by now.)
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To: Pontiac

“I can say that their clothes detergent did work well for my mother who used it on my father’s heavily soiled work cloths from the foundry. After he retired she stopped using it however. That was the only Amway product that she found cost effective to use.”

That’s rare. Walmart pretty much put an end to Amway. Amway can make some inroads when the alternatives are nearly as expensive - that’s why they can often make money in the Third World, where imports are taxed like crazy. But here, forget it (thankfully).


22 posted on 02/16/2012 4:04:49 AM PST by BobL (I don't care about his past - Santorum will BRING THE FIGHT to Obama)
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To: raybbr

About 10 years ago, some people from Qixtar (sp?) approached and we went to a meeting. They told us about all the money we’d make. Apparently we wouldn’t have to do much and money would roll in.

When I asked who actually sold the the stuff I never got a straight answer. To this day I don’t know who sells anything because the main job seemed to be hiring more salespeople, whom I would have recruited by saying they wouldn’t have to sell anything either.


23 posted on 02/16/2012 4:29:34 AM PST by perez24 (Dirty deeds, done dirt cheap.)
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To: Terry Mross

The AmWay hard water filtration system is still one of the most cost effective products in that market.

Took a trip to China and a block away from my hotel in a 3rd tier city was.... AmWay’s HQ for the metroplex.

It was amazing, like something out of a 1950’s era movie about what the 2050’s would look like. Shiny brand new building, smartly dressed people hustling about, AmWay branded Chrysler cars parked in a huge line down the block, huge AmWay billboards all around.

In China they not only sell the products and the downline membership, they are selling the ‘American Dream!’, all of the advertising media and billboards were 100% pure Americana, it was a moment I’ll never forget.


24 posted on 02/16/2012 4:56:31 AM PST by JerseyHighlander
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To: this_ol_patriot
Yep, Amway has contributed millions to conservative and Republican causes.

I consider that an embarassment.

25 posted on 02/16/2012 5:09:39 AM PST by Notary Sojac (A liberal, a conservative, and a moderate walk into a bar. The bartender says, "Hi. Mitt!!".)
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To: 2ndDivisionVet

My concern with Amway isn’t as much Amway itself but rather any of the MLM’s that operate. I’ve seen it change people’s lives for both the better and the worse. You have to guard yourself when you make all these new friends through the networking that you don’t alienate your family and especially brothers and sisters in your church. I’ve seen specifically the latter happen once many years ago, and it was not good.


26 posted on 02/16/2012 5:16:39 AM PST by MachIV
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To: iowamark

I’m in Amway — not as active as I would like to be, but in it nonetheless. And I would tell my fellow Freepers what I tell anyone who asks me about it: I think it is one of the finest organizations in America today.

I like the products. I like the people. And love the spirit of unity and fellowship that pervades the company. Amway is one of the few organizations I know of today where you can look around you in meeting and know that everyone you see is actively pulling (and, yes, in many cases praying) for your success.

Does everyone succeed? No, in the real world (rather than a Marxist state or Obamaville — but, then, I repeat myself), some fail while others succeed. It all depends on how hard you want to work. I, personally, do not work Amway hard enough. But, that is my failing, not the organization’s.

In life, you make your choices, and you take your chances. And, I’d say Amway is a pretty good choice all the way around.


27 posted on 02/16/2012 5:32:06 AM PST by hampdenkid
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To: MplsSteve

Servitude works out better when the victim is willing.


28 posted on 02/16/2012 5:32:06 AM PST by meatloaf (Support House Bill 1380 to eliminate oil slavery.)
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To: hampdenkid

One of my husband’s colleagues is in an MLM that sells vitamins and various cosmetics and nutriceuticals. She approached us to buy product when we were her clients. She turned up the pressure to sell the products when we became colleagues. She ruined her primary business with all that pressure and became a joke and an outcast within the profession.

Most people absolutely detest being presented with over-priced products they neither need nor want and then being told how rich the salesperson is getting from the operation. Just say the phrase MLM to have your target run screaming in the opposite direction. Try to organize a home party for anything and you will discover that people today don’t have the time or patience for this sort of marketing and everyone knows how it works.


29 posted on 02/16/2012 5:49:24 AM PST by reformedliberal
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To: hampdenkid

I did Amway once, but I was only doing it because my parents asked me to, and I had no motivation. Obviously, I didn’t succeed. Recently, I started with a different company called Visalus. We market the 90 Day Body by Vi Challenge, which is a meal replacement shake plan. Ive lost 25 pounds in less than two months Great product, great company great people. Many Amway reps are joining our group. The focus is on getting customers FIRST, because we have a 3 for Free program, where if you get three customers to buy the same product you’re buying, you get yours free. Very cool, and with six customers in my group, I don’t pay to eat two meals a day now. That promotion is available even to customers, so there is no pressure to be a distributor. Also, there is no special distributor pricing, which again shows customer focus. There are some great leaders in this company. My upline is a former UPS driver who now makes more in a month than he did in a whole year with UPS. We will hit a billion in sales in the next month without leaving the North American market.

Http://www.bellymelt.com


30 posted on 02/16/2012 7:01:33 AM PST by RightFighter (It was all for nothing.)
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To: this_ol_patriot
"Businessweek correspondents Bill Vlasic and Beth Regan characterized the founding families of Amway as “fervently conservative, fervently Christian, and hugely influential in the Republican Party”, noting that “Rich DeVos charged up the troops with a message of Christian beliefs and rock-ribbed conservatism.”[54]

We can't have any of THAT, now, can we. </sarcasm>

Cordially,

31 posted on 02/16/2012 7:11:07 AM PST by Diamond (He has erected a multitude of new offices, and sent hither swarms of officers to harass our people,)
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To: Daffynition

That dude is too cool.

He just keeps swimming looking for deals.


32 posted on 02/16/2012 1:32:36 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: CalvaryJohn

Yeah?

I don’t sell Amway but would encourage anyone looking for a Plan B to consider a reputable Network Marketing company that has products which appeal to you.

I have a friend who I encouraged to pursue Amway, after he called me ask for advice.

He won’t be taking a job with anyone ever again and that conversation took place 2 years ago.

I gave him some hints on how to make a lot of today money while he builds his organization.

The best part? He doesn’t carry any inventory, which is ridiculous for almost any business and in today’s world he can take an order and if sizeable enough it can be here in the morning.

So that is what he does. He found the niches to sell their energy drinks and LOC to companies who have a regular demand which he schedules to refill.

He wanted to know how he could start a business like one of mine and I told him what it would take. LOL, that’s how we arrived at Amway.

He loves it. His wife, who just had a baby, couldn’t be more proud of him and she is a real boost of confidence and trust in his life.

They pray everyday giving thanks and asking for guidance on how to grow their business.

Bottom line:
For almost nothing invested he is in a far better place today financially than he was two years ago and .... and... wait for it.....

He and his wife couldn’t be happier and they know that if they had kept their old jobs and remained in the slave class they would not find they joy they have now.

For them, then can control their time and with the new baby they can dote on him all day long.

A healthy baby with Ten fingers, Ten Toe and all the other blessing from God, they are one happy family.


33 posted on 02/16/2012 1:46:30 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Brad's Gramma

I have 4 gallons of their LOC and love it.

Yeah, who the hell knows when I will get trough 4 gallons but my intent is to have 10 maybe 20 gallons as part of my SHTF strategy.

I have another 3 gallons of generic soap but intend to use them as last resort.(they suds up too much and I don’t care for the phosphates).

I also have 4 boxes of their steel wool and love em as they don’t leave little slivers embedded in my hand.


34 posted on 02/16/2012 1:54:15 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Terry Mross
I kept asking him what it was about and all he’d say was “You have to go to the meeting to understand how it works.”

Sounds like ObamaCare, "We have to pass the Bill to see what's in it."

35 posted on 02/16/2012 2:01:27 PM PST by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: Vendome

Yeah... I need some more LOC....

Did you ever try the oven cleaner? GREAT stuff...


36 posted on 02/16/2012 2:48:23 PM PST by Brad’s Gramma (PRAY for this country like your life depends on it....)
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To: Brad's Gramma

What would I use the oven cleaner for? Not being a smartass but both my ovens are self cleaning.

Thnx.


37 posted on 02/16/2012 2:50:43 PM PST by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Vendome

Well, ya know. In theory. ;)


38 posted on 02/16/2012 3:13:52 PM PST by Brad’s Gramma (PRAY for this country like your life depends on it....)
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To: BobL

Well my father retired in 1987 so it was pre-Walmart.

She used standard Tide on everything else.

Amway just did a good job getting that heavy grime out of his work close.


39 posted on 02/16/2012 5:06:22 PM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: RightFighter

Congratulations! Sounds like you are in to a good thing. Stay with it, and I believe you’ll be successful. In every area of my life, I apply what has become one of my favorite concepts to spur me on: “You don’t quit because you fail; you fail because you quit.”

In my opinion, there is no surer, quicker way to achieve financial success in the US today than multi-level marketing. It just takes work!


40 posted on 02/17/2012 4:07:15 AM PST by hampdenkid
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