Amway today reported record sales of $11.8 billion for 2013, a 4.4% increase on 2012 sales of $11.3 billion. This is the seventh consecutive year of growth and exceeds the previous year’s growth rate of 3.7%.
While the figures include revenue from other Alticor businesses, including JW Marriott and Amway Grand Hotels, Laura Mercier, and Gurwitch Products, 95% of it is from the Amway direct sales business. It is another solid result confirming Amway’s position as the #1 direct selling company in the world.
45% of sales were from the Nutrilite nutrition brand, 25% from Beauty, and 24% from Home Care and Durables.
Amway North America has a new Business Opportunity Brochure (BOB) out and it has some new statistics on average incomes.
One interesting thing is that the percentage of all IBOs reaching these levels has also increased – Continue reading
Back in 2009 Amway Europe released some data on the average incomes achieved by Amway Business Owners (ABO) at various levels in Western Europe. I’ve now received some updated statistics, for the Amway financial year from September 2010 to August 2011.
This data includes ABOs from the following countries -
Austria, Belgium, France, Germany, Greece, Ireland, Italy, Holland, Portugal, Scandinavia (Denmark, Finland, Norway and Sweden), Spain, Switzerland and the United Kingdom.
All levels had a decent increase in income, especially Founders Emerald, however for European ABOs, there’s still concern when comparing to Amway North America incomes (using EUR-USD exchange rates as of September 1, 2010) -
It appears the Founders Diamond discrepancy might be because in the US it includes Founders Diamond and above, thus including high achievers such as Founders Crown Ambassadors, whereas the European data seems not to. The discrepancy in Founders Platinum income is even worse than it appears though, as in Europe the statistics include Sapphires, whereas the US disclosure document states they’re excluded in the North American data. On top of this, Platinums and above generate more in sales than their North American equivalents, with 10000PV/mth required to qualify Platinum in Europe, and only 7500PV/mth in North America.
Why are North American Platinums and above getting paid more for lesser results than their European counterparts? I’ve no idea, but it may be one reason why some European markets like Amway Germany have been going backwards. Even so, these are still great incomes for a part-time business!
For the first time, Amway has topped Direct Selling News’ “Global 100″ list of the world’s top direct selling companies. With sales of US$11.3billion in 2012, Amway passed Avon, which dropped to second at $10.7 billion. Herbalife was a distant third at $4.1billion. The top 10 are -
- Alticor (Amway) $11.3B USA
- Avon Products, Inc. $10.7B USA
- Herbalife Ltd. $4.1B USA
- Vorwerk Co. KG $3.3B Germany
- Natura Cosmeticos SA $3.2B Brazil
- Mary Kay Inc. $3.1B USA
- Tupperware Brands Corp. $2.6B USA
- Nu Skin Enterprises, Inc. $2.2B USA
- Oriflame Cosmetics SA $2.0B Luxembourg
- Belcorp Ltd. $1.9B Peru
- $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.
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|
|# 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.