Tag Archives: Statistics

Amway North America – a stunning new statistic!

We’re still awaiting Amway’s official sales data from 2010 but already some info has leaked out in various press interviews and elsewere. In the recent USA Today article on Amway, Amway North American managing director Steve Lieberman was quoted as saying North American sales were up about 5% – the most significant growth in that market for many years. Over on Amway Talk it was reported that Sandy Spielmaker, Vice-President of Sales, announced at a conference that global sales were over $9 billion – putting global growth at over 6%, excellent in the current economic climate!

Tonight though I came across a figure that is in my opinion far, far, far more impressive. A few years ago when Team and Quixtar were busy suing each other, some internal Quixtar statistics (Amway North America was then operating as Quixtar) revealed that the overall renewal rate for North American IBOs was 56.9% – ie well over half of all IBOs renewed every year. This compared favourably with DSA (Direct Selling Association) statistics of an industry average of 56%.

What was not so good was the Quixtar statistic that only 30.5% of first year IBOs renewed. Seven out of ten IBOs that were sponsored did not renew. That figure isn’t at all surprising when taken with the statistic that half of them never even ordered a product after joining! Clearly there was a lot of energy going in to sponsoring people that was not actually leading to any results, apart from perhaps a bunch of people who felt overly pressured to join something they didn’t really want to join in the first place, or whom were never properly trained and helped to get their business started.

I’ve always thought that was a terrible inefficiency in this business model, and a great place where improvements could be made.

Well, tonight I was surfing around and I discovered a press release from Bersin & Associates, a research firm focused on enterprise learning and talent management and acquistion. A few days ago they announced the 2011 Learning Leaders Winners, recognizing organizations that “drove significant business improvement with innovative and effective approaches to employee learning and talent management”.

Amway was one of the winners, for –

… its blended sales training program designed to improve early success of newly hired independent business owners. The program resulted in a 76% retention rate in its first year – 46% higher than previous rates.

A 76% first year retention rate! That’s a better than 150% improvement and an absolutely stunning statistic.

Well done Amway! This bodes extremely well for the future, and I look forward to seeing the lessons learned implemented in other markets!

Amway IBOs get all their products free plus extra cash!

Amway critics just love to quote various government mandated statistics that Amway publishes. For example, for some years now Amway in North America has published the statistic, based on a 2005 survey, that the average “active” IBO makes $115/mth. $115/mth doesn’t exactly sound like it will lead you to the land of your dreams does it?

So, of course, Amway critics cite that as “proof” that it’s a bad business opportunity and most people make little or no money. Indeed they’ll often go on to mention “expenses” and claim it means most IBOs lose money.

Well, there’s a saying you’ve probably heard – lies, damn lies, and statistics. Continue reading Amway IBOs get all their products free plus extra cash!

How to improve Amway & Quixtar – Part I

This was originally posted back on August 9, 2007, however it got buried in events later that day and Part II was never written. A few folk have suggested the topic is worth revisiting, so here it is! Some changes, such as shipping cost changes in the US and the whole new setup in the UK mean not everything is as relevant to all markets and applicable as when originally written, but most still is.


I’ve been pondering for some time what kind of changes could be made to the Amway and Quixtar business opportunities to make them better. Amway and Quixtar have been pondering the same thing, and on the Opportunity Zone blogs have been asking IBOs for their input.

I believe that “improvement” needs to be addressed in three different arenas –

  1. improvements that can be made related to consumers (of which IBOs are a part) such as addressing product pricing and shipping costs.
  2. improvements that can be made related to training, and part of that is to do with BSM and BSM suppliers
  3. improvements that can be made related to reputation

Obviously these areas overlap somewhat and in this post I’m going to talk about a simple change that could dramatically improve reputation, yet change very little at all. What’s the change?

Continue reading How to improve Amway & Quixtar – Part I

Amway Success – What are your odds?

A common cry of the anti-Amway zealots is that the “odds” or “chance” of an individual being successful in Amway are low. They’ll typically look at some of Amway’s published statistics, such as the fact that in 2005, .0120% of “Direct Fulfillment IBOs of Record” qualifed at the Diamond level, and claim that your “odds” of going Diamond are 1 in 8333, so you’d be better off at Vegas, where your “odds” of winning on a single number in say, roulette are 1 in 29.

Oft-quoted anti-MLM zealot Jon M. Taylor, Ph.D., President, Consumer Awareness Institute, and Director, Pyramid Scheme Alert, for example, claims that –

The odds of winning from a single spin of the wheel in a game of roulette in Las Vegas is 286 times as great as the odds of profiting after enrolling as an Amway/Quixtar “distributor”

Amway is not a game of chance

A quick bit of math shows that Dr Taylor thus claims the “odds” of profiting in Amway are 1 in 8294. He calculates these “odds” based on numerous assumptions (for which I might add, he has next to no data to support), including what peoples expenses are. Now, for the purposes of this post I’m going to ignore these type of assumptions, but if they are correct (they’re not) then his “odds” might be a reasonable statistic to consider, except for one thing – unlike roulette, Amway is not a game of chance. Continue reading Amway Success – What are your odds?

Amway UK moves forward – Part I

I’ve been a little busy in the brand x and  offline world the last while (as well as setting up Amway Talk) so I haven’t had much chance for posting updates about the goings on in the world of Amway.

Amway UK & ROI has however passed a major milestone. On Monday, July 21, limited sponsoring of new Amway Business Owners began. This followed the UK High Court refusing BERR’s petition to close down Amway. BERR has appealed that decision, however Judge Norris refused their application to force Amway to maintain a moratorium on sponsoring new ABOs. Given the milestone, this is as good as time as any to review BERR vs Amway UK, it’s result, it’s effect, and the basis of the appeal. Continue reading Amway UK moves forward – Part I

The Internet War Against Amway Part II

Read part I first – The Internet War Against Amway

The Internet War Against Amway is not a traditional war with General’s directing units to attack our weaknesses (at least I don’t think so!). The war is more like the kind of “war” some religious or political fundamentalists wage. There is a relatively small number of people who believe they know “the truth” and they are obsessed with spreading this “truth” and “saving” people – and they don’t care about any innocent folk who might be hurt in the process, or the possibility that they themselves may be wrong. Continue reading The Internet War Against Amway Part II

The Internet War Against Amway

This is perhaps the most important post I have written, it’s my hope that Amway and the IBOAI is reading.

It’s been my opinion that a major component of Amway’s struggles for growth, particularly in english speaking markets, has been the Internet and Amway’s misguided decision some years ago to effectively leave Internet discussion about Amway to the critics (read Amway and the Internet – A History Part I). In my view, neither Amway nor any of the major leadership’s truly understand the magnitude of the effect that a relatively small number of internet critics have had on the Amway business.

Now I’ve got data to back it up, and it is far worse than even I imagined. Continue reading The Internet War Against Amway