Category Archives: Market News

Amway North America proposes biggest changes to compensation plan in 25 years

Amway LogoAt the recent North American Diamond Club, Amway announced a proposal for significant changes to the basic compensation plan in Amway’s oldest market. Probably the most obvious change is the removal of the 3% and 6% bonus brackets, combined with halving the group volume requirements for 9% down to 300PV.

Replacing the 3% and 6% bonus levels will be a tiered “rewards” system offering discount coupons on Amway purchases the following month. For generating 100-149PV IBOs will earn a $10 discount, for 150-199PV $20 and for 200-299PV, $30. This program is similar to one introduced in Amway Europe a couple of years ago, where IBOs receive a 10€ discount coupon to use the following month. Unlike North America, however, the 3% and 6% bonuses remain (albeit at the higher volume levels of 200 and 600 points). Continue reading

Amway’s new sponsorship revealed!

This was posted a few days ago and removed at Amway’s request. The announcement has now been officially made at Diamond Club, but remember – TTAA had the news first! :)
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Last week, following a teaser video released by Amway,  I asked What is Amway’s mystery new sponsorship? Well it seems the answer has leaked on Amway’s website (thank’s Carl for the tip!) so 3 days before the announcement at Diamond Club we can break the news that ….. Amway has entered an exclusive partnership between Amway, the United Football Coaches’ Association, and USA TODAY Sports. The sponsorship reportedly covers the next three College football championship games and playoffs as well as the coaches poll.


USA Today seems to have leaked the info more than a month ago, with their NCAAF Coaches poll website already mentioning “The Amway football coaches poll” (eta: after my original post revealing the sponsorship, the references to Amway on this page were removed. I expect they’ll be back soon, now that the announcement is official)

I’m not quite sure how this sponsorship “has the potential to capture the attention and active participation of more than 2 billion people!” but … ahhh …. look at that, the original pre-announcement on amway.com doesn’t say that any more! It now says – “has the potential to capture the attention and active participation of millons of people!”

That seems a little more realistic! For non-Americans, the NCAAF is College American Football and it has a HUGE following in North America, with upwards of 50,000,000 tickets sold to college football games. So while not quite the global impact the initial announcement suggested, this is a very significant announcement for Amway North America.

I’ve read the wikipedia article, but to be honest I’m not sure that I grasp what the NCAA Coach’s poll is, but it appears to engage a lot of people – can a fan explain in the comments?

What is Amway’s mystery new sponsorship?

Amway North America has posted a video teaser to a new sponsorship deal –

The video references earlier sponsorship deals, with a “Crown” and a “Champion”, with a football as a hint. It’s obvious these refer to Amway’s earlier sponsorship of the Miss America contest and their recently retired sponsorship of NFL legend Kurt Warner.

But what’s the new deal? The introduction to the video on Amway’s website says –

Get ready for a sponsorship announcement that will really move the ball!
This month, Amway will kick-off an exclusive national sponsorship program that has the potential to capture the attention and active participation of more than 2 billion people! This history-making partnership will provide an undeniable appeal to individuals of all ages! Look for complete program details to be announced on February 19.

In the meantime, you’d better put a helmet on because it’s going to be a huge hit!

We have to wait a little over a week until the announcement, but I can’t help but theorize – it’s a national sponsorship program, which implies the United States, but it has “the potential to capture the attention and active participation of more than 2 billion people”, which is way more than the entire population of North America – so it’s a national sponsorship with global reach.

But how can a sponsorship of some US based sport gain the active participation of people around the world? Or is it a sport? “Champion” certainly implies it is.

So I googled around. Around 3 billion people watched the last Football World Cup. I’ve been unable to find data for the NBA, but it has big coverage in China – Amway’s largest market. The NFL is over for the year. NHL doesn’t have the global coverage. Formula 1 does, but it doesn’t tie in at all with Amway’s health & beauty market image, nor does the hint in the headlin for “move the ball” fit.

Football initially seems the most likely market – Amway sponsors the Amway Canadian Championship, they work together with AC Milan in Europe, and have previously sponsored both the San Jose Earthquakes and the LA Sol, as well as footballing superstars like Ronaldinho and Marta.

Frankly I’d be stunned if Amway sponsored the World Cup finals, but it’s in Brazil, so it’s not a “national sponsorship” for the US. Neither would say, sponsorship of the Champions’ League in Europe. The only US-based sport I can think of with large global appeal is the NBA – so perhaps Amway sponsoring the NBA finals?

Only other possibilities I can think of – US Open Tennis, US Open or Masters Golf? Any others?

And how does any of this get “global participation”??

I guess we just have to wait and see!

Update: Major League Baseball is another obvious option I missed – it’s a national sport in the US and it involves both balls and helmets. Amway has an existing relationship with MLB – but does it actively engage 2 billion people? Frankly I’m beginning to suspect I’m completely on the wrong track – heck, it could even be something with BodyKey and a weightloss related TV show like The Biggest Loser? After all, it’s estimated 2 billion people are overweight, and I’ve discovered that Amway and The Biggest Loser Resorts share the same supplier for their weightloss support websites.

Update2: Amway’s new sponsorship revealed!

Amway Average Incomes 2012

Amway North America has a new Business Opportunity Brochure (BOB) out and it has some new statistics on average incomes.

AverageHighest
Q12 Platinum$55,042$190,264
Founders Emerald$135,664$838,533
Founders Diamond$590,928$2,945,820

One interesting thing is that the percentage of all IBOs reaching these levels has also increased – Continue reading

Does Amway Europe understand how to motivate people?

Sometimes Amway drives me nuts.

From this month’s Amway Amagram throughout Europe

Read the GIP 2013/14 section on your local Amway website available from September 2013

GIP stands for “Growth Incentive Programme”. It’s a program that is announced yearly with various rewards and incentives, including free business trips, for ABOs who grow their businesses. Great, right? So why does it drive me nuts? Because the first day of qualification is September 1 the beginning of the new Amway “year”. And the requirements for qualification are made available when? After then. Many of the incentives require you to have qualifying volume for 12 months, so to receive the reward that you learn about in September you already need to be in qualification.

Now, to be fair, many of the incentives are for people who have already reached Platinum and above, and they do get notified of the GIP details a little bit earlier (but often not by much). ABOs below platinum, however (ie those who most need incentive, as they’re not yet making much money) – it’s kept secret from them. This is even the case with an incentive that’s probably the most popular – the Amway Leadership Training Seminars (LTS). Qualifers have just recently been enjoying EuroDisney, courtesy of Amway. For various reasons I haven’t been actively building an Amway business for some years, and I don’t qualify for these Leadership seminars, but as a parent with two young children, an all expenses paid trip to EuroDisney is a huge attraction for me. When did Amway Europe first tell me and other not-yet-qualifying ABOs about the EuroDisney incentive?

After it was too late to be able to qualify!

What on earth is the logic behind this? What is Amway thinking?

Watch this video, this is for the Amway Europe LTS in 2014. Have you ever wanted to go on a cruise through the magnificant fjörds of Norway?



Looks beautiful doesn’t it! Can you picture yourself on the boat? The snowcapped mountains rising from the see around you? Treading the streets of cities that were founded more than a thousand years ago? Climbing to the top of Pulpit’s rock, with it’s  sheer cliff face dropping to the waters more half a mile below you?

Put yourself in the picture! Would you like to go? All paid for by Amway? Does that motivate you to build an Amway business?

Sorry, you had to be in qualification for that a year ago. It’s too late. But don’t worry, there’s another trip coming up you can qualify for! It’s  …. somewhere … put yourself in the picture! Imagine going there! Imagine walking the … beaches? streets? ????…

This is NOT motivating. Indeed, psychologists will tell you that this kind of “disappointment”, seeing what you can’t have, what you’ve missed out on, can be demotivating.

I simply don’t understand why Amway doesn’t have these incentive programmes decided upon and publicised 6 to 12 months in advance? You’d still motivate the leadership who are already or on their way to qualifying but you’d also motivate the new ABOs, and the many many ABOs like myself that have not yet prioritised building an Amway business.

C’mon Amway Europe. Fix this.

Amway Sales – Top 10 Countries 2012

CountrySales (USD$m)Growth
China$4,385+1%
Japan$1,185+2%
Korea$885+2%
United States$861+5%
Russia$629+19%
Thailand$568+10%
India$493+7%
Taiwan$340+8%
Malaysia$263+8%
Ukraine$150+7%

source: Amway Europe Leadership Training Seminar 2013