Amway critics lie. Again.

I’ve multiple times pointed out the lies of Amway critic “joecool”, who has been exposed creating false blogs and false identities simply to rubbish Amway. A reliable source contacted me a while back and told me that Anna Banana, aka Cheryl Rhodes, was doing much the same on her “Married to an Ambot” blog, and that many of the stories were plain made up, and many of the commentators were in fact Cheryl pretending to be a legitimate commentator.

Now she’s made it easy to show her dishonest activity. Earlier in the month she posted a blog “Worst Amway Distributor” and claimed -

Not too long ago I get an Amway employee working in the Alticor office in Grand Rapids Michigan end up at my blog after doing a Google search for “worst Amway distributor”.

I thought that was pretty bizarre, so I did that google search. There were ZERO results that referred to her blog except for that current post. (Virtually all the rest are her anti-amway zealot friends linking to that post.)

I tried searching with quotes, I tried searching without quotes. I tried it with all sorts of different search settings. I even tried Bing.

Until she wrote that blog post, google simply did not return her website as a result for that search. Clearly this search by this supposed “Amway employee” simply never could have happened as she states.

What’s the only conclusion? She made it up.

What else is she making up? My sources tell me an awful lot.

Amway 2012 – by the numbers


  • $11.3 Billion in Sales
  • Sales Increased 12 of the Last 13 Years
  • All Top 10 Markets Grew
  • $3.5 Billion in Bonuses & Incentives
  • 55,264 New Pin Qualifiers
  • 18,982 New Platinums
  • 53,200 Incentive Trip Qualifiers
  • 2.5 Million Volunteer Hours
  • More than $166 Million Donated
  • Nutrilite is the World”s #1 Selling Vitamin & Dietary Supplements Brand
  • Artistry is Among the Worlds Top 5 Largest Selling Premium Skin Care Brand
  • eSpring is the World’s #1 Largest-Selling Brand of Kitchen Water Treatment Systems
  • Atmosphere is the World’s #1 Largest-Selling Brand of Residential Air Treatment Systems
  • More Than 21,000 Employees Globally
  • More than 1,000 Patents Granted and 800 Patents Pending
  • More Than 900 Scientists and Technicians
  • 65 R&D Labs
  • Amway Paid Out More Bonuses & Cash Incentives to Its Distributors and Business Owners Worldwide Than Any Other Direct Sales Company
  • More People Renewed Their Amway Business Than Any Other Direct Selling Company in the World.

MLM has too many middlemen?

One of the claims of critics of the multi-level marketing model is that due to having paying the independent distributors, there’s too many “middlemen” to be able to distribute products efficiently, thus it forces the prices of MLM products to be too high. Well, if you’ve been paying attention to European news in the past week, there’s been a great example showing how MLM critics aren’t just ignorant of the MLM model – they’re ignorant of business models in general.

What’s happened is that it was discovered that some pre-packaged food products, such as lasagne, being sold in supermarkets around Europe contained horse meat instead of the advertised beef. Following the trail of blame shows just how many middlemen there are involved in “traditional” supply and distribution -

  1. The customers are upset at
  2. The supermarkets who are upset at
  3. Findus (brand) who blames their supplier

  4. Comigel (manufacturer) who blames their supplier

  5. Spanghero (meat processer) who blames their

  6. agent in Cyprus who blames their

  7. agent in the Netherlands who blames

  8. abattoirs in Romania who bought

  9. the horse meat off local farmers

So to get the product (meat) to the customers, there are at least 8 different middlemen, including at least 3 in the distribution chain. Indeed there’s almost certainly more, such as transport companies, local wharehouses. advertising companies, legal and accounting firms and more. All of these get paid out the final price of the product as paid by the consumer.

How does it work in Amway? Well, back in the 1970s when the FTC investigated (and cleared) Amway, they found -

43. Currently about half of all Amway distributors were sponsored by a Direct Distributor or by a distributor sponsored by a Direct Distributor. More than 70% were within three positions of a Direct Distributor and 99% were within seven positions. (RX 423)

So for half of all distributors, it went -

  1. distributor
  2. direct distributor
  3. Amway (manufacturer)

So just 3 levels of “middlemen” for half of all transactions in the distribution chain, and only two when you consider the distributor as customer, which is a common scenario. That compares to 3+ levels in the distribution channel for the Findus product – and then you have 5 levels in the supply chain. How long is the supply chain for Nutrilite, Amway’s largest brand? Amway is the supplier, they own their own farms which supply their core ingredients. Yes there’ll be some suppliers for other ingredients, but it’s nowhere near the total of 8 levels in the supply and distribution chain for the lasagne.

MLM critics – not just ignorant about Amway and the MLM model.

Official: Amway reports record 2012 sales of $11.3 billion

I reported a few weeks back that according to a Thai newspaper report Amway had recorded 12 billion in sales last year. As I noted on the article shortly after it was published, a reliable source indicated it wasn’t accurate. That source proved to be correct and the official sales figures have now been released – a still impressive US$11.3 billion. This confirms Amway as overtaking Avon as the world’s #1 direct selling company. 2012 marks Amway’s seventh consecutive year of growth, and for the first time in 20 years there was growth in all of Amway’s top 10 markets , which include China, India, Japan, Korea, Malaysia, Russia, Taiwan, Thailand, Ukraine and the United States. Markets posting double-digit increases in 2012 included Colombia, Hong Kong, Italy, Mexico, Russia, Turkey and Venezuela.

Nutrilite again led sales, accounting for 45 percent of Amway’s sales. It continues to be the world’s #1 selling vitamin and dietary supplement brand. Beauty brands – including Artistry, BeautyCycle, Attitude, and Moiskin – generated 26 percent of sales. Home products, including Amway’s well known cleaning products and the world’s #1 selling point-of-use home water treatment system, eSpring, accounted for 22 percent of sales.

Amway Sales Data
note: prior to 1999 Amway reported “estimated retail sales”, ie the sales value if all product were sold at recommended retail price. Since restructuring under the parent company Alticor, actual revenue from sales to distributors are reported. Estimated actual revenues for earlier years are included for comparison.