The FTC consider any USA company with a network marketing compensation plan and retail sales below 51% as a Pyramid Scheme and regular attack smaller companies who are not compliant with the FTC Business Guidance For MLM.
In 2012 a Wall Street Journal reporter asked Doug DeVos and Steve Van Andel, in an interview:
What percentage of the products that Amway sells to the distributors, are resold to end-user customers who are not also distributors?
The Amway co-CEO’s told the Wall Street Journal that 50% of the sales that are made to distributors are resold to actual retail customers. The other half is not resold by the salespeople to anyone.
That seems to be not true, at least not for the USA…
Amway nowadays release the retail numbers at their achievers conference every year and have not gotten over 15% in the USA market.
Average is around 12-13% and Amway tries to improve those retail figures. International retail sales might be higher.
I am not after Amway, I am not trying to poke a bear, however as an international Direct Sales reporter in my opinion it’s a strange situation the FTC goes after smaller MLM companies and let a Network Marketing giant get away with minor retail sales for the past 25+ years.
Its measuring
Tag Archive for Amway
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Richard DeVos Co-Founder Amway Dies At 92
by Ted Nuyten • • 0 Comments
Richard DeVos, who co-founded Amway and was one of the area’s biggest philanthropists, has died.
Spokesperson Nick Wasmiller says Rich DeVos’ death was caused by complications from an infection, but that the icon was surrounded by family as he died peacefully at his home in Ada Thursday. He was 92 years old.
DeVos’ wife of some 65 years, Helen DeVos, died in October 2017. They had four children, 16 grandchildren and five great-grandchildren.
Rich DeVos’ family released the following statement shortly after his death:
“Our father, grandfather, and great-grandfather, Rich DeVos, passed away peacefully at home surrounded by his family on September 6, 2018, at age 92.
“Dad spread positivity everywhere he went and encouraged everyone he met. He did that for his children and grandchildren, and for countless others around the world. His positivity was a constant, motivating force that inspired many others to make meaningful changes in their own lives and communities. He was a visionary leader, builder, life enricher, motivator, and a champion for people from all walks of life.”Rich DeVos was many things to many people, but to us he was simply “Dad,” “Grandpa,” “Bumpa,” or “Papa Great.”
We are deeply grateful and blessed beyond measure to have been loved unconditionally, raised,
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Amway 2017 Sales Up 3% to $8.6 Billion
by Ted Nuyten • • 0 Comments
Amway has announced sales of $8.6 billion USD for the year ending Dec. 31, 2017.
The company achieved sales gain in several key markets, including South Korea, Thailand and India. Total sales in the second half of 2017 grew by 3 percent, compared to same period of the previous year, led by China and the United States. The company forecasts year-over-year sales growth in 2018.
“We have weathered a challenging period for our business in China that, combined with less than favorable exchange rates, have impacted our sales for a few years,”
Amway President Doug DeVos said.
“That downward trajectory has leveled off and now, with our China business rebounding faster than expected, we are forecasting sales growth in 2018.
Several factors further support the company’s 2018 forecast, including steady growth in bellwether markets like South Korea and Thailand, expanding investments in digital platforms and distributor tools, and new product launches that are exceeding expectations.”
The company’s significant investment in digital platforms is considered a key sales driver in 2018 and beyond.
“Technology is evolving at a rapid pace and we are evolving and investing right along with it,”
said Steve Van Andel, Amway’s Chairman of the Board.
“The next-generation entrepreneur wants to run his or her
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Amway Made China A Billion-Dollar Market Now It Faces A Crackdown
by Ted Nuyten • • 0 Comments
As first published in the New York Times:
Feng Gang stood in front of 150 people in a conference hall in Beijing that Amway, the American marketing giant, calls its flagship “experience center.”
Introduced endearingly as Big Brother, he pitched the company’s newest product to an audience of recruits — men and women, young and old, one a street sweeper still in his orange municipal jumpsuit.
Mr. Feng said Amway’s energy drink, XS, could reduce blood-alcohol levels by as much as 70 percent. It could cure depression, he went on, or help someone who is drunk drive home. His aim: to get the crowd to go out and sell the products.
For more than a decade, scenes like this represented a financial salvation for Amway and other companies that use sales representatives to recruit others below them in what’s called multilevel marketing.
Facing declining fortunes in the United States and elsewhere, they turned to a ballooning consumer class in China hungry for new products — and susceptible to promises of the riches to be had by selling them.
Now, the future seems less promising. The giants of multilevel marketing have come under a dual assault, from regulators here and in the United States.
Two companies, Herbalife and
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Amway Names Nick Thole As Chief Financial Officer
by Ted Nuyten • • 0 Comments
Amway, the $8.8 billion USD direct selling leader, announced the appointment of Nick Thole to the role of Chief Financial Officer.
As a member of the executive team, Thole will provide broad financial oversight and will be responsible for developing strategic financial objectives to ensure the company’s continued financial performance.
In this position, Thole will have direct responsibility for Amway’s balance sheet, capital structure, and the overall financial reporting and control process with broad responsibilities for Tax, Treasury, Accounting and Corporate Financial Reporting and Business Planning.
Thole previously served as Chief Financial Officer of the Company’s Europe, India and Africa region, Vice President of Internal Audit, and Vice President of Financial Planning and Analysis. He joined Amway in 2008 as Manager of Mergers and Acquisitions.
Prior to Amway, Thole worked in the capital markets as an investment banker and investor relations consultant. He has a Bachelor of Science degree in Journalism from Northwestern University and an MBA in Finance from Michigan State University.
About Amway
Amway is an $8.8 billion direct-selling business based in Ada, Michigan, USA. Top-selling brands for Amway are Nutrilite™ vitamin, mineral and dietary supplements, Artistry™ skincare and color cosmetics, eSpring™ water treatment systems and XS™ energy drinks – all sold exclusively by
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Helen DeVos, Wife Of Amway Co-founder Rich de Vos, dies At 90
by Ted Nuyten • • 0 Comments
Helen J. DeVos, a philanthropist from western Michigan, USA known for her support of children’s health, Christian education and the arts, has died at age 90.
Her family says in a statement that she died Wednesday of complications from a stroke following a recent diagnosis of myeloid leukemia.
DeVos was the wife of Rich DeVos, who co-founded direct-sales company Amway and owns the Orlando Magic. He says she was “a wonderful wife and the heart of our family.”
She was also the mother-in-law of U.S. Education Secretary Betsy DeVos. Helen DeVos was born in Grand Rapids, USA where a children’s hospital is named after her.
An Amway spokeswoman says in an email Helen DeVos died in the Grand Rapids-area community of Ada Township and funeral arrangements were pending.
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Amway – Not A Feasible Option For Students
by Ted Nuyten • • 0 Comments
The Gateway is the Online magazine of Nebraska’s university (USA) and has published the next controversial article about Amway:
“It seems like more and more these days our Facebook feeds are filled with multilevel marketing. Your high school acquaintance is selling Mary Kay. Your friend’s mom is selling Avon and Plexus. But the granddaddy of all multilevel marketing schemes?
Amway was founded in 1959 in part by Richard DeVos. If that name sounds familiar, it’s because he is the father-in-law of current Secretary of Education Betsy DeVos.
Last week on Sept. 5, the Daily Nebraskan published an article in their news section that may have misled students into believing that Amway is a great way for college students to make money.
In the article, the support for Amway was expressed more than the drawbacks to the company.
Although the comments directly on the article were mostly positive for Amway, the commenters on Facebook took great exception to the tone of the article, to say the least.
“How much did Amway pay you to publish this sponsored advertisement posing as journalism The Daily Nebraskan?” Facebook user Daniel Baer wrote.
While Amway was cleared of being an official illegal “pyramid scheme” by the Federal Trade Commission in 1979, their recruitment and
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DeVos Family Seeks Deregulation Of Amway So It Can Beat Herbalife
by Ted Nuyten • • 0 Comments
According to an article in the New York Post:
Betsy DeVos’ well-connected family wants Amway to get a leg up on Herbalife — and it’s pushing Congress to make it happen.
The US education secretary’s Michigan-based family, which is the controlling shareholder of privately held Amway, is backing a little-noticed amendment to the US House spending bill that would limit regulatory oversight of so-called multilevel marketers, or MLMs.
Specifically, the rider would curb the ability of the Federal Trade Commission to investigate whether MLMs like Amway are pyramid schemes — potentially protecting Amway from costly regulations that have recently ensnared its archrival Herbalife.
“Of course, Amway is supportive” of the amendment,
said Joseph Mariano, president of the Direct Selling Association, which represents MLMs and counts Amway as its biggest member.
Meanwhile, Herbalife Senior Vice President Ed Rosen asked several US Congressmen in a July letter to tack added consumer protections to the bill — the kind that Herbalife will be forced to implement whether Amway’s bill passes or not.
Under a 2016 settlement with the FTC, Herbalife agreed to fully restructure its US business operations, and distinguish customers, who sign up to purchase products at a discount, from distributors, who resell the products to earn commissions.
“[The] compensation
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Amway Co-CEO Steve Van Andel Announces His Retirement
by Nicole Dunkley • • 0 Comments
Steve Van Andel, the co-chief executive officer of direct sales giant Amway Corp., plans to retire at the end of 2018.
The early announcement is intended to give the Ada-based company time to figure out who will take over his role as co-CEO, a position he shares with Doug DeVos. Van Andel plans to remain as chairman of the board while stepping away from day-to-day duties. Doug DeVos serves as company president.
“My goal is to stay engaged,” Van Andel told MLive/The Grand Rapids Press.
“I love the Amway business. I love being part of it. I love what Amway does and what Amway stands for.”
Van Andel has worked for Amway for 45 years and has served as co-chief executive since 1995, when he succeeded his late father, Jay, who co-founded the company with Rich DeVos, father of Doug DeVos.
“Both our dads told us don’t ever forget two heads are better than one and that probably helped out our partnership,” Steve Van Andel said.
He said a decision hasn’t been made if one of his siblings Nan, David or Barb, or even if someone outside the family would take over the co-CEO responsibilities. David Van Andel is founder and CEO of the Van Andel
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Amway Opens $2.5M Business Center In Los Angeles
by Ted Nuyten • • 0 Comments
In recent years, Amway has been opening dozens of brick-and-mortar locations around the globe.
The pace has been slower in the company’s North America market. Amway recently opened a location in the Los Angeles area, four years after trying the concept out in New York.
Depending on its success, more could be added in major U.S. cities.
“We will be looking at if we do another one, what is the next, most logical place for us to go,” said Jim Ayres, Amway North America’s managing director. “I would suspect though in the coming years, we will do at least a few more of these in major cities around the United States and Canada.”
He added that Amway will take a measured approach to opening more locations because they require a large capital expense.
Described as a business center,