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Network marketing and Amway, is it safe?

I know this is not chess related but i have done my research and wanted to share some facts and destroy some common myths about the industry in general.

Amway's back
http://video.au.msn.com/watch/video/amway-s-back/xsr6pp6

This is a recent newscast in Australia just to give u a heads up on the latest.

The web site below will clear up other common attacks against this company and are factual and not opinions.

http://www.thetruthaboutamway.com/amway-facts/

Amway – 50 Facts

January 19th, 2009 by ibofightback | Posted in Amway Facts, Amway's Awards & Recognitions, Artistry, Endorsements, Nutrilite, eSpring

Amway 50 Facts (PDF)

1. Amway is a global leader in the $114-billion direct selling industry. More than three million Amway Business Owners operate independent businesses in more than 80 countries and territories around the world. Amway made US.$8.4 billion in 2009 in sales.
2. Amway and its subsidiaries employ more than 13,000 people worldwide.
3. Amway and its subsidiaries reported record sales of more than $7.1 billion for the year ending December 31,
4. Amway operates 65 Research and Development laboratories worldwide, staffed by more than 500 scientists, engineers, and technical professionals.
5. Amway Research and Development professionals have been awarded more than 500 patents and have had more than 400 papers published in top industry journals.
6. Amway is a leader in the U.S. Direct Selling Association, the World Federation of Direct Selling Associations, the National Association of Manufacturers, and the U.S. Chamber of Commerce.
7. Amway was ranked #43 on the Forbes Magazine 2007 list of “America’s Largest Private Companies.”2007. 39th in 2008
8. Our eco-friendly home care products help maintain a cleaner environment and a cleaner home.

Our Subsidiaries

9. Amway owns the Amway Grand Plaza Hotel and the JW Marriott Hotel in downtown Grand Rapids, Michigan, as well as Peter Island Resort in the British Virgin Islands.
10. Amway owns the Laura Mercier™ line of cosmetics, which is sold in fine boutiques and department stores.
11. Amway manufacturing facilities are located in Ada, Michigan, USA; Dongnai Province, Vietnam.
12. Each year, 75 million units of soap, detergents, and cleansers; 150 million units of cosmetics; and 6 billion vitamin and mineral tablets are produced by Amway.
13. Amway operates six distribution centers across North America, totaling more than 1.5 million square feet of warehouse space.

Nutrilite Products

14. Nutrilite™ is the world’s leading brand of vitamin, mineral, and dietary supplements, according to 2007 sales figures.
15. In 2008, sales of Nutrilite™ products worldwide reached a record $3 billion.
16. More than 75 years ago, Nutrilite founder Carl Rehnborg created the first multivitamin/multimineral supplement sold in North America.
17. Nutrilite™ is the only global vitamin and mineral brand to grow, harvest, and process plants on its own certified organic farms.
18. Nutrilite operates 6,400 acres of farmland in the U.S., Mexico, and Brazil, where plants are grown and harvested in accordance with nature using sustainable, chemical-free methods.
19. Nutrilite scientists are at the forefront of a new scientific discipline called nutrigenomics, the study of how our genes interact with nutrients.
20. The Nutrilite Health Institute Scientific Advisory Board, a worldwide group of leading nutrition, health, and genetics scientists, helps guide the future of the Nutrilite™ brand.
21. The Nutrilite Health Institute Center for Optimal Health is a world-class teaching and training facility offering visitors a personal,
interactive path to optimal health.

Artistry Products

22. Since its 1968 launch, the Artistry™ brand has become the only direct sell brand in the prestige skin care and cosmetics category with more than $1 billion in annual sales.
23. The Artistry™ brand is one of the world’s top five largest-selling prestige brands of facial skin care and color cosmetics.
24. More than 250 Artistry™ products are sold in more than 50 markets worldwide.
25. In 2007, the Artistry Scientific Advisory Board was established to lead Artistry researchers and scientists in the study of skin and skin care.
26. Artistry™ Creme L/X is the most luxurious, technologically-advanced product ever developed by Artistry scientists.
27. The Artistry Beauty Institute in Grand Rapids, Michigan, USA, is an in-depth, comprehensive training destination for Business Owners.

Durable Products

28. iCook™ Cookware offers the most advanced technology in stainless steel cookware, enabling busy families to eat healthier meals at home.
29. The eSpring™ Water Purifier was the first point-of-use system to combine carbon filtration with UV light technology, removing 99.99% of bacteria and viruses.
30. In Europe, Amway sells more point-of-use water filtration systems—our eSpring Water Purifier—than any other competitor, according to a study by the business research and consulting firm Frost & Sullivan.
31. The Atmosphere™ Air Purifier removes 99.99% of indoor airborne pollutants that pass through the system.
32. It would take 16 of the leading competitor’s air purifiers to do the job of one Atmosphere™ Air Purifier.

Corporate Citizenship

33. Since its 2003 launch, the Amway One by One Campaign for Children has given more than $52 million to make a difference in the lives of children around the world.
34. Since 2003, Amway employees and Business Owners have volunteered a combined 606,000 hours in support of One by One Campaign for Children projects.

Environmental Leadership

35. The first product launched by Amway in 1959 was L.O.C.™ Liquid Organic Cleaner—one of the first-ever biodegradable cleaning products.
36. Amway recycles up to 95% of recyclable waste produced at our manufacturing facility in Ada, Michigan, USA.
37. Amway was an early innovator in the use of biodegradable surfactants in its SA8™ Laundry Detergents and its cleaning products.
38. No synthetic chemical pesticides, herbicides, or fertilizers are used on the organic acreage where the plants used in Nutrilite™ concentrates are grown.

Endorsements and Sponsorships

39. Volleyball champion Gabrielle Reese and championship runner Sanya Richards are spokespeople
for Nutrilite™ products
40. International soccer star Ronaldinho (born Ronaldo de Assís Moreira), a two-time Fédération Internationale de Football Association (FIFA) World Player of the Year, is a celebrity spokesperson for the Nutrilite™ brand.
41. International celebrity chef Jason Roberts serves as the Global Ambassador and Culinary Expert for iCook™ cookware.
42. The Artistry™ brand is the official skin care and cosmetics sponsor of Skate Canada events, and the Skate Canada national team.

Amway Business Owners

43. Globally, Amway has paid its Business Owners more in performance-driven bonuses than any other direct selling company in history.
44. The top health and beauty brand in China is Amway.
45. Amway Business Owners follow Rules of Conduct and a Code of Ethics designed to protect themselves, their customers, and the Company.

Overall Brand—Creating Change With a Caring Touch

46. Through Amway’s One by One Campaign for Children, we’re creating change with a caring touch by volunteering in communities where we live and work.
47. The Amway business opportunity enables people all over the globe to create meaningful change in their lives and to leave something of value to their children.
48. We care about our Business Owners’ success, so we equip them with well-made products, proven sales tools and a strong support system.
49. At Amway, we infuse a caring touch into everything, from our innovative products, to our business opportunity to our eco-friendly farming practices.
50. This year, Amway celebrates 50 years of creating change through leadership, innovation, caring and vision.

Comments

  • 3 years ago

    Ian_Sinclair

    Today multi-level marketing has also been proven and has passed the test of time. It works. The method is well documented. Many companies are publicly traded on major stock exchanges. Millions of people around the world earn substantial sums of money by being involved in MLM type companies.

    In fact it has been said that more people in the world make over $100,000 per year in Multi-level marketing than any other industry. With the exception of real estate, the highest percentage of millionaires come from the worldwide MLM industry.

    In the last few years some of the most successful main stream businessmen have now gotten involved in multi-level companies. In America, Bill Farley, the billionaire past founder of Fruit of the Loom underwear is now leading an MLM company. And most recently Donald Trump, the successful controversial New York real estate tycoon and TV celebrity has launched his own nutrition product based MLM Company.

    Other billionaire businessmen around the world have now launched MLM companies in Japan, Germany, China, Russia, and dozens of other countries. In fact MLM is extremely popular and growing in over 80 countries around the world.

    MLM has shown worldwide growth each and every year for the past 50 years! There is no industry that can claim that kind of growth. It is estimated that within 10 years over 90% of all goods and services will be marketed using both the internet and MLM marketing platforms. The MLM concept is soon to be a household phrase.

    Even in this worldwide financial and economic climate, the MLM industry continues to grow each and every year. More specifically, because of the economic downturn, MLMs are growing at a record pace. More people are getting involved in MLMs now than ever before in history. Timing has never been better.

    The major money players from around the world now know that MLMs are for real, legitimate, and hugely profitable. MLMs have gained worldwide acceptance and credibility.

  • 3 years ago

    Ian_Sinclair

    http://moneywatch.bnet.com/career-advice/blog/other-8-hours/why-you-should-join-amway/919/

  • 3 years ago

    Ian_Sinclair

    Yes i heard the same things when i was looking into it and i found that in 1979 the US federal trade commision;

    (See link for details;- http://www.ftc.gov/speeches/other/dvimf16.shtm)

    tried to out law Amway and MLM"s in court for 4yrs and all this proved was that it is not Pyramid schemes and that their is a great difference in why MLM works and pyramid schemes don't. it is just a matter of research is all. I found the system to be solid if done ethically. In fact the best system for average people like us to make good money and even become rich.

     

    By the way only 2% of people in Martial Arts achieve black belt but that dont mean it's a scam so why is it so easy for people to label network marketing as such? Because of ignorance mostly and of course real scams that masquare as legit MLM's didn't help either.

  • 3 years ago

    kco

    Well that what I heard is a pyramid scheme to me. Can't remember if I had a friend in there one time, quit it very soon, for the reason not sure maybe wasn't very comfortable in there.  

  • 3 years ago

    Ian_Sinclair

    For extra worth.

    Some of the richest most respected companies and people endorse this style of industry. Such as Robert Kiyosaki best selling author, investor and financial expert. Donald Trump who also now owns a MLM company himself. Warren Buffett who owns 3 direct selling companies and Richard Brandson who owns one or 2 i believe.

    Having said all of this, not all are legal or ethical so please do your due diligence and research properly before investing in any as you would any serious investment.

  • 3 years ago

    Ian_Sinclair

    This comes from the DSA website.

    http://www.directselling411.com/

    Glossary and FAQ

    Direct Selling FAQs
    Shopping FAQs
    Selling FAQs 

    Multilevel marketing, which is commonly referred to as MLM, is a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives based on the individual’s product sales as well as that of their “downline,” which refers to a group of people that consultants bring into a company to generate sales, their recruits, and so on.

    Single level compensation plan is a structure in which a representative is compensated based solely on his or her individual product sales.

    Independent contractors perform work or services for an entity on a non-employee basis. Direct sellers are statutory non-employees, and are treated as self-employed for all Federal tax purposes, including income and employment taxes, if: 1) substantially all payments for their services as direct sellers are directly related to sales or other output, rather than to the number of hours worked; and 2) their services are performed under a written contract providing that they will not be treated as employees for Federal tax purposes.

    Network Marketing is a term sometimes used to describe direct selling, and often used interchangeably to describe the sales model or a compensation plan. Using the term “direct selling” for the sales model or “multilevel/single level marketing” for the type of compensation plan is more clearly conveys each term.

    Direct marketing is a method used to distribute advertising and marketing materials such as catalogs, brochures or other items to consumers through mail, e-mail, telemarketing or other methods. Direct selling is NOT direct marketing.

    Downline refers to a group of people that consultants bring into a company to generate sales, their recruits, and so on.

    Upline refers to a consultant’s sponsor, along with his/her sponsor, etc.

    Compensation Plan is a system that compensates consultants for their efforts and must be based primarily on the sales of products by the consultant and his/her downline. The level of earnings is often based on an achieved title or rank and is usually a percentage commission of sales. There are various types of compensation plans so it is important to fully understand how one will be compensated before joining a company.

    Quiz

    What is the primary reason you became a direct seller?

    • To earn supplemental income (48%, 1,354 Votes)
    • To earn full-time income (35%, 970 Votes)
    • To buy the products at a discount (10%, 289 Votes)
    • I like to be recognized for my accomplishments (4%, 102 Votes)
    • I like to meet other people (3%, 79 Votes)

    Total Voters: 2,794

    Loading ... Loading ...

    Fast Facts

    • 77% of sellers have been with their company 1+ years
    • 80% of sellers say direct selling meets or exceeds their expectations
    • 85% of sellers report a good, very good or excellent experience with direct selling
    • 74% of US adults have purchased products from a direct seller
    • 15.1 million people in the U.S. are involved in direct selling
    • $29.6 billion in total US sales
    • $114 billion sales worldwide

    MYTH #1:99.9% of direct sellers lose money; people are afraid to drop out for fear of looking like a failure FACT More than half of direct sellers report that their net income from direct selling, after taxes and expenses, is positive. In addition, a positive net income is reported by nearly half of new direct sellers — those representing their current company for less than a year — and by nearly half of direct sellers who say that they are not very likely or not at all likely to continue in direct selling in the future.In addition, research shows the following:
    • four in five (82%) direct sellers have been with their current direct selling company for one year or more, and 47% for five years or more.
    • 89% of direct sellers rate their personal experience in direct selling as excellent, very good, or good.
    • 84% of direct sellers say that direct selling meets or exceeds their expectations as a good way to supplement their income or as a way to make a little extra money for themselves.
    • 91% of direct sellers say that direct selling meets or exceeds their expectations as a business where the harder they work the more money they can make. 
    (Source: 2002 National Salesforce Survey, Research International, Inc.)
    This myth is also quite interesting because it essentially asserts that 15.2 million people in the US and 60 million people around the world continue as direct sellers despite losing money. Are we to believe the 5% of the US population would continue in a business where they are losing money? Simply put, most people do not lose money in direct selling. Neither the facts nor common sense supports that theory. Further, anyone who gets involved with a legitimate direct selling company should not risk financial loss by doing so. The Direct Selling Association’s Code of Ethics, for example, is designed to protect direct sellers and their customers. Inventory buybacks (which include sales aids) and other provisions allow sellers recourse if there’s an issue with the company – no one should lose money in direct selling, nor should anyone feel like a failure if it doesn’t work out for them.

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    MYTH #2:Most direct selling companies are pyramid schemes that are doomed to fail.FACT There’s a big difference between legitimate direct selling companies and pyramid schemes. Pyramid schemes seek to make money from you (and quickly). Legitimate direct selling companies seek to make money with you as you build your business (and theirs) by selling real products and services.In fact, legitimate direct selling companies work hard to protect consumers from pyramid schemes. Before you sign up with a company, investigate carefully. A good way to begin is to ask yourself these three questions: 
    1. How much are you required to pay to become an independent consultant? If the startup cost is substantial, be careful! The start-up fee in direct selling companies should generally be low and cover the cost of your start-up kit (usually sold at or below company cost) which can include training materials, sample products and other items to get your business going. These companies want to make it easy and inexpensive for you to start selling. Pyramid schemes, on the other hand, make nearly all of their profit on signing up new recruits. Therefore, the cost to become a distributor is usually high.
    2. Will the company buy back unsold inventory? If not, beware! Legitimate companies that require inventory purchases will usually “buy back” unsold products if you decide to quit the business. Some state laws and the DSA Code of Ethics require buy-backs for at least 90% of your original cost.
    3. Are the company’s products sold to consumers? If the answer is no (or not many), stay away! This is a key element. Direct selling (like other methods of retailing) depends on selling to consumers and establishing a market. This requires quality products, competitively priced. Pyramid schemes, on the other hand, are not concerned with sales to end users of the product. Profits are made on volume sales to new recruits, who buy the products, not because they are useful or attractively priced, but because they must buy them to participate. Inventory purchases should never be more than you can realistically expect to sell or use yourself.

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    MYTH #3:Recruiting is the key to success in direct selling; sales to end-users of the products and services are minimalFACT There’s no doubt – recruiting is an important element of direct selling – just as expansion is important to any business that wants to grow. For direct sellers looking to build a business, recruiting others and mentoring them so they, too, can achieve their goals is important. But, recruiting is not a requirement for individual success in direct selling, and compensation must always based on the sale of products and services – whether your own sales or the sales made by your recruits.Consider the following: Thirty-four percent of direct sellers do not earn money from the sales of others, but just from their own personal sales. (Source: 1999 National Salesforce Survey, MORPACE International, Inc.)And what about those customers? It is true that most direct sellers are also consumers of the products and services they sell – for many they got involved after having already used the products, and some get involved just to buy those products at a discount.But, half (50%) of U.S. adults purchase products or services using the direct-selling retail channel during any given year. That’s roughly equivalent to 150 million people in the US alone who make at least one purchase from a direct selling company in a 12-month period. When you consider there are 15.2 million direct sellers in the US, that leaves a lot of customers who aren’t also direct sellers. (Source: 2004 General Public Attitudes Toward Direct Selling, Burke, Inc.) 

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    MYTH #4:The vast majority of new recruits quickly drop outFACT Nearly four in five (78%) direct sellers who are in direct selling for less than a year report that they are very or extremely likely to continue as a direct seller in the future. In addition, in a survey of former direct sellers, only 34% of them had a tenure in direct selling of less than one year at the time they dropped out from direct selling. (Source: 1997 Survey of Attitudes Toward Direct Selling, Wirthlin Worldwide) Moreover, the turnover rate of direct sellers is similar to the turnover rate of employees in the retail industry. During 2001-2003, the average annual turnover rate of direct sellers was 56%, compared to 53% for the retail industry.When considering the drop out rate, one also has to consider direct sellers who get involved for several months each year to earn extra money for family vacations, holiday gifts or other seasonal purchases. These sellers don’t “drop out” because they weren’t successful, they drop out because they achieved their goal and don’t choose to sell all year. For many, they’ll join again the next year and drop out just the same.

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    MYTH #5:Direct selling is an outdated method of buying and sellingFACT More and more people are getting involved in direct selling because they enjoy the personal service that accompanies shopping this way. In fact, direct sales have increased 79% in just over a decade from $17.94 billion in 1995 to $32.18 billion in 2006. (To see a full year-by-year chart and other stats, visit DSA’s Web site) With hundreds of direct selling products and services to choose from, both those looking for supplemental income and those looking for a fun way to shop and socialize with friends find direct selling appealing.Home parties offer great opportunities to chat with friends in a relaxed atmosphere and browse through great products at the same time. And, you might even learn a new tip, trick or skill, or even pick up a new hobby. Many direct selling companies today emphasize education about a particular topic, taking the focus off the sale and onto having fun.Similarly, person-to-person demonstrations of products provide an opportunity to try products, talk to a knowledgeable salesperson and get personal service that only comes with direct selling.Outdated? Not at all. Today’s consumers demand high levels of personal service that many retail establishments just can’t deliver. Couple that with fun and flexibility, and you’ve got a winning combination. Direct selling is based on people so it easily changes with the times.

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    MYTH #6:Direct selling products are overpricedFACT The consumer market won’t sustain products that are overpriced for long. Competition is a powerful force and products that aren’t competitively priced won’t sell and can’t last.But for direct selling, there’s a bit more to the price equation than might immediately meet the eye.The decision to sell a product through direct selling is often based on very specific factors. For example, products that require demonstration to convey the finer points of their operation are ideal for direct selling because a knowledgeable salesperson can personally conduct that demonstration for every customer. In a traditional retail setting, consumers might not understand the product’s unique qualities based on appearance or packaging.It’s true that some direct selling products are priced at the upper end of the retail market’s acceptance level, but there is higher acceptance based on the value-added incentive of the demonstration and personal service. Lexus brand cars are also at the upper end of the retail market acceptance level, but superior performance and service after the sale make that higher price reasonable.Each customer needs to weigh the price, quality and desirability of a given product and make a purchasing decision accordingly.

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    MYTH #7:Direct selling companies are unregulatedFACT Several governmental bodies, as well as the Direct Selling Association and organizations like the National Association of Consumer Agency Administrators, National Consumers League and Better Business Bureau, work to protect consumers against fraud. It is an unfortunate truth that some scam artists try to masquerade as legitimate direct selling companies, making these laws and regulations necessary. Here are a few of the protections on which consumers can rely:
    • All 50 states and the Federal Trade Commission (FTC) have cooling-off laws that provide consumers with an unconditional 3-business-day right to cancel an order or contract. These laws are designed to counteract high-pressure sales and allow people who change their mind about a purchase to make a quick and easy return.
    • In addition, all 50 states, the FTC, the Securities & Exchange Commission (SEC) and the U.S. Postal Service have anti-pyramid scheme laws or regulations that they can use to prosecute and shut down such frauds. (See citations for examples of State anti-pyramid scheme laws.)
    • On the federal tax side, the Internal Revenue Service (IRS) regulates direct sellers through a special form, 1099-MISC, to insure income tax compliance by direct sellers. Direct sellers are independent contractors by virtue of section 3508 of the U.S. tax code. A 1099-MISC form must be filed for all direct sellers who have received $600 or more from the company with which they are affiliated. In addition, a 1099-MISC form must be filed for those purchasing on an annual basis $5,000 or more of consumer products from the parent company. Direct sellers also must file a Schedule C with the IRS in order to claim business expense deductions.
    • The Direct Selling Association’s Code of Ethics is also a powerful self-regulatory document by which all DSA member companies must abide. The Code includes important provisions including a buy-back requirement (for both inventory and sales aids), a cooling-off period and other provisions enforced by an Independent Code Administrator. Consumers who feel a Code violation has occurred should file a complaint with the DSA Code Administrator.

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    MYTH #8:Most companies require inventory purchasers; direct sellers who drop out are stuck with the inventory they purchasedFACT Companies that belong to the Direct Selling Association agree to abide by a strict Code of Ethics. Among other things, the Code requires members to:
    • Repurchase marketable inventory and sales aids purchased in the past 12 months for at least 90% of the purchase price if a direct seller decides to leave the business.
    • Explain the repurchase option in writing.

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    MYTH #9:If you attend a direct selling party you are expected to buy somethingFACT The only thing you have to do at a party is enjoy yourself! And the key to enjoying your shopping experience is to work with knowledgeable and friendly consultants who can tell you about products or services, answer any questions, and let you and your friends peruse the items on display or in catalogs that offer a wider selection. You’re absolutely not obligated to buy, but chances are you’ll walk out with something you’ll really enjoy.

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    MYTH #10:Everyone who gets involved in direct selling wants an easy way to make moneyFACT People choose to get involved in direct selling for a lot of reasons. Some hope to make it a full-time career, but most sign up to either earn a little extra money or to receive a discount on their own purchases.Legitimate direct selling companies are very careful to represent earning potential accurately. The DSA Code of Ethics requires companies and their salesforce members to provide potential independent sellers with accurate information about the company’s pay structure, products and sales methods.And no one should be fooled into thinking direct selling is a way to make money with little or no effort. Don’t be convinced by ads or people who tell you you’ll instantly make thousands of dollars just by signing up or recruiting a few people. As with any business, it takes time to establish a customer base and build a business.While direct selling is not an opportunity to get rich quick, you can be successful if you establish your goals and a plan to reach them. Legitimate direct selling opportunities offer the flexibility to set your own goals and achieve them on your own terms.
    Share and Enjoy:

    Quiz

    What is the primary reason you became a direct seller?

    • To earn supplemental income (48%, 1,354 Votes)
    • To earn full-time income (35%, 970 Votes)
    • To buy the products at a discount (10%, 289 Votes)
    • I like to be recognized for my accomplishments (4%, 102 Votes)
    • I like to meet other people (3%, 79 Votes)

    Total Voters: 2,794

    Loading ... Loading ...

    Myths

    Direct sales is a pyramid scheme.

    Fact

    There's a big difference between legitimate multi-level marketing and a pyramid scheme. Learn how to tell the difference.

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