Amway UK & ROI continues to grow

Amway United Kingdom & the Republic of Ireland went through a tough time a few years ago with an investigation by the UK government (ultimately dismissed) . The company halted all sponsoring during the investigation, yet millions of pounds of Amway products continued to be bought and sold, and leaders all the way up to Diamond continued to qualify. Sponsoring renewed several years ago, along with a slightly modified business model that requires, amongst another things, Amway Business owners to have a certain amount of registered customer sales before they’re allowed to sponsor and to earn bonuses and rebates. The latest income disclosure indicates the model appears to be working well. This years figures (for October 2011 to September 2012) are below, along with the same data for the previous two years.

Retail Consultants can purchase and sell Amway products, but are not yet allowed to sponsor

Certified Retail Consultants are Retail Consultants that have developed at least 5 customers and €125 in sales, completed an online course, and are now able to sponsor.

Business Consultants have reached the top of bonus scale. If their business also has a structure that reaches minimum income level requirements, they qualify as Platinums.

CVR is Customer Volume Rebate. It includes the standard Amway volume rebate plus retail margin, which (unlike in most other Amway markets) is collected by Amway and then rebated to those who qualify.

Amway UK & ROI Income disclosure data
      2010       2011      2012
# of Retail Consultants  13,270  16,287  28,696
# earning CVR  5,522  6,582  9,161
average monthly CVR  €49  €47  €52
highest monthly CVR  €1,131  €642  €1,870
lowest monthly CVR  €16  €23  €23
# of Certified RC  7,640  10,043  12,544
# earning CVR/bonus  6,211  7,585  8,742
average monthly CVR/bonus  €132  €126  €139
highest monthly earnings  €4,865  €3,720  €5,644
lowest monthly earnings  €6  €7  €5
# of Business Consultants  50  62  76
# of new BC  12  13  21
average monthly CVR/bonus  €2,664  €2,584  €2,405
# of Platinums  45  58  71
# of Emeralds  3  3  4
# of Diamonds  1  1  1

That’s a more than doubling of registered consultants in just two years, and based on the # earning bonuses and the averages somewhere near a 50% increase in sales. One of the most vocal European critics of Amway and multilevel marketing is a man by the name of David Brear. His entire argument is based on his opinion that Amway’s products are “unsellable”. If we look at the figures above, each of those Certified Retail Consultants had to have a minimum of 5 clients in order to earn a CVR in any given month, which means they alone represent, at a bare minimum, over 43000 Amway customers and €10-15 million in retail customer sales in the UK & ROI. Many of the retail consultants will of course also be developing customers and making retail sales, as are the Business Consultants. It’s also interesting to note that at least one Retail Consultant earned straight retail sales commissions for a month of nearly €1900 (over US$2500)

As is usually the case, the beliefs of Amway’s critics just doesn’t stand up to the facts.

Is India moving to ban all multilevel marketing?

The Hindu newspaper in India has today reported on some proposed new guidelines from the Indian Government for State legislation regarding the “Prize Chits & Money Circulation Schemes” (PCMCS). The PCMCS law is, to say the least, not clear and this lack of clarity has allowed pyramid and other scams to flourish in India.

Unfortunately, critics of the multilevel marketing business model have convinced some in India that it too should be made illegal. Incredibly, news articles even in reputable media talk about how pyramid schemes are banned around the world, and then go on to talk about companies like Amway as if they are pyramid schemes (and thus illegal everywhere). Amway is not banned anywhere. These draft guidelines would do so, however in India -

 5. No individual or Company or firm or business association, in any form, shall run a scheme that induces enrolment of new members by offering benefits or commission, by whatever name called, to upline members in the pyramid out of the action or performance like sale or purported sale of goods or services by the downline members.

This guideline, if implemented as law, clearly would ban all multilevel marketing in India, with an outright ban on earning commissions based on sales through agents you recruit and train. I’ve received a copy of the proposed guidelines as well as accompanying background notes and will be posting a series of articles over the next few days. In the meantime, if you’re involved with network marketing in India, you need to get in contact with your local political representatives and ensure they are aware of these guidelines and the damage they’ll do to Indian enterprise and India’s reputation.