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
|# earning CVR
|average monthly CVR
|highest monthly CVR
|lowest monthly CVR
|# of Certified RC
|# earning CVR/bonus
|average monthly CVR/bonus
|highest monthly earnings
|lowest monthly earnings
|# of Business Consultants
|# of new BC
|average monthly CVR/bonus
|# of Platinums
|# of Emeralds
|# of Diamonds
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.
I gave Amway Scandinavia a bit of a slam the other day for some of their partner store pricing and it provoked some interesting comments. What seems clear is some markets seem to do a good job of setting up good deals for ABOs, others are not so good at it. I’m curious as to how these deals are setup and who is consulted. My feeling is if it’s not obviously a good deal when a new ABO or prospect looks at it, then the deal shouldn’t be done at all. It matters – I’m sure I’m not alone amongst ABOs in having had prospects return waving printouts of supposed “price comparisons” done by anti-Amway zealots and claiming the whole thing was a rip-off. I’m fundamentally lazy – why make Amway harder than it has to be?
So, in the interests of making it easier, and a more positive note for Amway Europe, here’s a price comparison I did recently (2009-08-20) of a range of Amway products in the UK. I did the comparison after a critic I was engaged in debate with claimed that with outlets like Tesco and ADSA -
“(the price of) Amway products (in the UK) are so out of kilter as to be ludicrous.”
I had no idea if he was right or wrong, so I thought I’d go and look. Here is what I found, and my response …. Continue reading
Amway in the UK has launched a print ad campaign promoting the Amway Business Opportunity. The advertisement below is included in Jump magazine, a publication of the UKs largest parenting community Bounty. 100,000 print issues are distrubed via Toys R’ Us and a further 450,000 copies are circulated to members online. You can see the online magazine with the Amway ad on page 41 here.
One of our friends from the UK has posted some photographs of their visit to the Amway UK Flagship Experience Centre over on Amway Talk. All I can say is …. wow!
Check out the new photos on Amway Talk!
One of the innovations Amway has been launching around the world is more “brick and mortar” locations to help promote Amway and Amway brands. While there have been Amway Experience Centre’s for ABOs in some countries for some time, these were primarily targetted to the ABOs, not their customers and prospects. By contrast the new business centres seem to have been designed with the idea that ABOs can take their prospective clients and business partners along to get a better idea about Amway, as well as simply providing a visible location to increase credibility and provide a product pickup location. From what I understand the impetus for their introduction came out of their success in the Chinese market, where the government banned direct sales for several years, forcing Amway into changes.
It’s my belief the product pickup location idea may be an underestimated benefit of the new locations. People today love the convenience of internet shopping, but they also want things fast. One of my favourite computer stores allows me to order anything online (and pay for it if I choose) and then drop down to one of their pickup centers to get my order immediately. It makes for very fast and convenient shopping. I’d love to do the same with my Amway orders, alas there doesn’t appear to be any plans to introduce them in my corner of the world any time soon.
Amway UK has had a few challenges the past couple of years and their new “flagship centre” will be a welcome boost to the company there. I’m not sure when it’s due to open, but the design agency responsible for it’s construction, Mynt, today posted a blog with some shots of the interior and it looks sensational.
Check out the other pics on the Mynt Blog
Update: Amway apparently asked Mynt to pull the pics until the official launch. Guess I’ll just have to show them here then – click below Continue reading
It is a pleasure to be able to tell you that the Government’s legal action against us is over. The Court of Appeal has ruled today that we are clear to continue the business in the UK and that the High Court was correct to validate our new business model in its ruling last May.
This means the uncertainty that was hanging over us in the UK has finally been removed. It also means that the judges have endorsed the business model we are now operating and the opportunity we are offering our ABOs. Continue reading
Great breaking news out of the UK – BERR’s appeals against their loss in BERR vs Amway UK have been dismissed. More info as it comes to hand. Hat tip to cmfitzg on Amway Talk for the news.