Warning: "continue" targeting switch is equivalent to "break". Did you mean to use "continue 2"? in W:\HostingSpaces\chbbrorg\thetruthaboutamway.com_6tEYsEhl\wwwroot\wp-includes\pomo\plural-forms.php on line 210 Amway Facts | The Truth About Amway - Part 2
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.
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.
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 –
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.
In 2006 Amway’s sales dropped slightly for the first time in many years, settling back to $6.3 billion. In reponse Amway set the ambitious goal to reach $12 billion in sales in 2012, an almost doubling of sales in only 5 years. They have done it.
The Bangkok Post reports that for the first time in more than two decades, all of the top 10 Asia-Pacific markets have experienced growth. In October, Amway North America announced to IBOs they had achieved 33 consecutive months of growth in that market – it’s oldest. Figures for the official 2012 Amway financial year will not be released until February, but it is clear that Amway is now the world’s #1 direct selling company
Congratulations to Amway, Amway employees, and Amway IBO’s around the world!
Update: A reliable source is telling me that the sales figure reported in the Bangkok Post is not accurate. Another reliable source has however confirmed the claim about surpassing Avon.
Update 20120207: Official figures are out and my source was correct, sales were $11.3 billion, not quite reaching $12 billion, and they’ve still beat Avon for #1!