A PRESENTATRION ON AMWAY

A GLOBAL DIRECT SELLING COMPANY WITH A

HUGE RANGE OF WORLD CLASS PRODUCTS
FOR HOME, PERSONAL & ALSO FOR
AGRICULTURAL PRODUCTS.

SUBMITTED BY :-
NIKHIL R. BANSOD
(NIKHIL18N@GMAIL.COM)

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CHAPTER-1

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 INTRODUCTION

Amway

Amway-Global Leader in Direct Selling

Amway is a global leader in direct selling, with over three million Independent
Business Owners (IBOs) in over 80 countries and territories around the world. No
other direct selling company can compare with our longevity, stability, and global
reach.

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For more than 45 years, Amway Corporation has enabled people to have a business
of their own. Originally known for direct selling of our household cleaning
products, such as SA8 Laundry Detergent and L.O.C. Liquid Organic Concentrate,
our business opportunity is now supported by an excellent portfolio of hundreds of
high-quality products and brands that can only be purchased through our IBOs.

Why People Choose the Amway Business Opportunity

People join this business for a variety of reasons. Some become IBOs simply to be
able to purchase products for their own personal use at a reduced cost. Others join
in order to direct sell the products to others, earning a profit on each sale and addi-
tional financial benefits based on their sales volume. Business builders not only
sell products; they also sponsor others to join the business. They are compensated
for their own sales and well as the sales of those they sponsor, receiving incentive
bonuses that increase as their own sales force increases. All IBOs have the identic-
al opportunity to grow a successful business. Each business owner is compensated
in direct proportion to his or her efforts.

Amway Products

We are proud of our products, which

generally fit into the health and beauty categories. Our focus has been on develop-
ing products that outshine the competition so that we can give our IBOs the com-
petitive edge they need to build strong, thriving businesses.

ARTISTRY Cosmetics and Skin Care

Our scientists and formulators have developed the complete line of ARTISTRY
cosmetics, now ranked as one of the top five prestige cosmetic brands in the world.
Along with the beautiful color products for eyes, cheeks, lips and nails, the
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ARTISTRY line of skin care products offers entire skin care systems, customized
for your own skin, as well as superior formulations to repair your skin, protect it,
and prevent additional damage.

Eddie Funkhouser Cosmetics

And, the exclusive, E.Funkhouser New York line of trendy, high-fashion color
cosmetics created by makeup artist Eddie Funkhouser will bring out your inner star
qualities.

NUTRILITE Nutritional Supplements

NUTRILITE is the world's leading brand of vitamin, mineral and dietary supple-
ments. (Based on 2006 sales). We are proud to be the only source of NUTRILITE
nutritional products, a respected name in supplementation around the world. Our
vitamin, mineral, and herbal supplements are made from plants grown on our own
certified organic farms in California, Washington, Mexico, and Brazil and manu-
factured under the strictest of standards to ensure consistency, quality and safety.
Our best known multivitamin, DOUBLE X (TRIPLE X in Japan)
Multivitamin/Multimineral Supplement, provides the nutrients that might be miss-
ing from your diet. And, we combine natural phytonutrients, the beneficial nutri-
ents found in plants, to create specific supplements targeted to address your indi-
vidual needs, as well. We grow most of our raw materials on our own farms, and
we only use raw materials grown on other farms if those farms adhere to our own
strict standards.

Amway Personal Care Products

SATINIQUE and PROTIQUE haircare products, BODY SERIES and G&H

soaps, lotions, and body shampoo, the TOLSOM line of men's skin care products,
and the GLISTER oral care system manage your personal care from head to toe.

Amway Home Care Products

If it is cleaner laundry, easier dishwashing, and immaculate household surfaces you

seek, the SA8, DISH DROPS, L.O.C. and PURSUE brands will do the job quickly
and thoroughly, with stunning results.

The eSpring Water Purifier, the ATMOSPHERE Air Treatment System, and the
iCook cookware line round out our portfolio, providing cleaner air, cleaner water,
and healthier meals for families worldwide.

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What is Amway? Amway is a well-established company with a solid record of sta-
bility and growth that provides a Business Opportunity to individuals. That oppor-
tunity is supported by a comprehensive line of superb products sold exclusively by
authorized Amway Independent Business Owners around the world.

Level of earnings of distributers

Independent Business Owners have pocketed $2.2 billion out of Amway's $6.8 bil-
lion in sales in the form of bonuses and incentives since 1999. IBOs earn income
based on business volume resulting from their efforts, using Amway's proven Inde-
pendent Business Owner Compensation Plan. Amway does not generate site traffic
through advertising, instead rewarding IBOs who provide the “high-touch” ele-
ment complementing Amway's “high-tech” infrastructure.

IBO STATISTICS

• IBOs earned $370.1 million in bonuses and incentives in fiscal 2006, bring-
ing their seven-year total to more than $1.72 billion.
• More than 370,000 Independent Business Owners received a bonus in FY
05.
• The average bonus and cash payments earned by a Diamond IBO in 2005
were $146,995.

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 • The average bonus and cash payments earned by an Emerald in 2005 were
$72,241.
• The average bonus and cash payments earned by a Q12 Platinum, an IBO
who qualifies at the Platinum level all 12 months of the year, were $47,472.
• The largest annual bonus earned by a Diamond IBO in 2005 was
$1,083,421.
• The largest annual bonus earned by an Emerald IBO in 2005 was $688,869.

Financial rewards in the Amway business are based on effort, time and talent.
Individual success varies, but Amway wants you to know the average earnings.

The Average Monthly Gross Income for “Active” IBOs was

$115.

Approximately 66% of all IBOs of record were found to be “active”

Social responsibilities performed by AMWAY

One by One Campaign for Children

One By One – is Amway’s Global Campaign for Children. In each of the 80

countries and territories that Amway is present it takes up and supports these
Children of Hope.

In India, this work is carried out under the banner of Amway Opportunity
Foundation (AOF) a registered non profit organization. All Amway employees and
distributors are volunteers of AOF.

Amway Opportunity Foundation (AOF)

A Corporate Social Responsibility Initiative of India’s Leading Direct Selling

FMCG Company

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 Former President, Dr Abdul Kalam, has recently been quoted saying that instead
of addressing (them as) ‘street children’, it would be better to refer to them as
‘children of hope’. If we stretch this definition a bit, that is what we are all about –
reaching out to all Children of Hope in the best manner at our disposal:

One By One – is Amway’s Global Campaign for Children. In each of the 80

countries and territories that Amway is present it takes up and supports these
Children of Hope.

In India, this work is carried out under the banner of Amway Opportunity
Foundation (AOF) a registered non profit organization. All Amway employees and
distributors are volunteers of AOF.

And why work for children?

Half of the world’s poor are children. Every year, 10 million children do not live to
see their fifth birthday. More than 115 million children don’t have access to the
most basic education.

With presence in most of the countries across the globe, Amway finds itself in a
position to focuses its philanthropic efforts so as to maximize a positive and
sustainable impact on society.

The program pulls together all of our resources – Business Owners, employees,
affiliates and customers – to make this happen.

Each of Amway’s markets is free to decide in which sphere it would like to

concentrate its resources. But in essence, One by One program is designed to build
local partnerships, addressing issues specific to children in their community – Live,
Achieve, Learn, and Play.

As of December 31, 2006, we have provided hope and opportunity to 5 million

children.

Donated more than 600,000 volunteer hours to children’s programs.

Contributed more than $39 million to children’s causes.

In each country, success is measured by impact – whether it is the 250,000

children in West Michigan whose lives have been changed through the campaign,
the 85,000 blind children who received Braille textbooks in India, the 1,135
children who received cleft palate surgery in Thailand, the 170,000 children in
China who were given the opportunity to attend school, or the 90,000 boys and

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girls in developing countries who received vaccines that are giving them a fighting
chance.

National Project for the Blind

In India, this work is carried out under the banner Amway Opportunity Foundation
(AOF).

Under its National Project for the Blind, AOF has:

Ensured that around 85,000 visually challenged school-going children have had
access to Braille textbooks. This project has covered the following states:
Rajasthan, Delhi, Maharashtra, Haryana, Uttar Pradesh, Punjab, Bihar, Gujarat,
Tamil Nadu, Andhra Pradesh, Karnataka and Madhya Pradesh. This work had been
carried out in partnership with the Delhi-based All India Confederation of the
Blind (AICB) and the Mumbai-based National Association for the Blind (NAB).

· Set up computer centres for visually challenged at

· All India Confederation of the Blind – New Delhi

• Antarjyoti Balika Vidyalaya – Patna, Bihar

• Ramakrishna Mission Blind Boy’s Academy – Kolkata, West Bengal
• Rajasthan Netraheen Kendra Sangh – Jaipur, Rajasthan
• National Association of Blind – Trivandrum, Kerala

Celebrated Louis Braille day for four years running, and also the International
White Cane Day for six years running along with AICB.

Donated Audio textbooks for Bangalore University and extended support to the
Karnataka Welfare Association for the Blind (KWAB) in conducting a cultural
event in Bangalore in 2001

Presented a 20-volume Braille set of the Webster’s Dictionary in English, to the

Delhi Blind School and donated a Braillon machine to the Indian Blind School at
Madurai.

Supported Dr. Shroff's Charity Eye Hospital in conducting communications

workshops for the blind in 2002, and a Car rally for blind children at Surat.

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 Distributed 1000 Braille kits for blind children in Kerala, and enabled the state-
level chess tournament for the blind, in Tamil Nadu.

Organized cataract operation camp at Surat, and free eye camps at Erode,
Balasore, Delhi and Siliguri - over 25,000 persons had free eye check ups and
around 500 free operations were carried out.

For this work towards the visually challenged, AOF has received a citation and
award from the World Blind Union (WBU), in Dec 03. AOF is the only Indian
NGO to be so recognized by WBU.

Project Sunrise

The objective is to identify one orphanage/institution at each location where

Amway has a modestly-large office (52 cities). On-going assistance to be provided
in education, healthcare and vocational training under the following heads:

• Health care
• Education and vocational training
• Safe drinking water
• Children’s Day and AOF Day celebration with Amway staff & Amway
Business Owners
• Donation of clothes, books etc. on voluntary basis

The aim is to combine available resources and concentrate on building long term
relationships with one.

Awards and Recognition

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 • Presented the Millenium Outstanding Service Award 2000, by
the All India Confederation for the Blind (AICB), in recognition
for work carried out for the visually challenged.

• The Indian Red Cross Society, Orissa awarded AOF a memento & certific-
ate for conducting a mega-Blood Donation camp of 816 units on 4th May,
2003.

• The Surat Raktdaan Kendra felicitated Amway India at their annual func-
tion on 5th Oct, 2003, for the largest number of donors at a Blood Dona-
tion Camp (BDC) held by any financial and commercial institution and in-
dustry. The Mayor of Surat - Snehlata Chouhan - presented a trophy and a
certificate of appreciation.

• Amway also received the Hajee Sulaiman Omar Memorial Ever Rolling
Shield, by the Madurai Medical College. Amway was the ONLY corporate
entity to conduct a BDC on such a scale - rest of the camps are held by
educational institutions.

• Presented an award by the World Blind Union (WBU), for sterling contri-
bution to improve and elevate the quality of life of visually impaired chil-
dren', at a function in Delhi on Dec 2nd 2004. The award included a cita-
tion and a large-sized statue of Saraswati, the Goddess of Knowledge, was
presented by the Lt Governor of Delhi, Shri Vijai Kapoor. WBU is an apex
body for the visually impaired that enjoys consultative status with the
United Nations.

• The Central Red Cross Bank, Cuttack awarded Amway Opportunity

Foundation with a trophy and Certificate for contributing the highest num-
ber 400 units to their Blood Bank.

Contact Corporate Social Responsibility

Head Office

Amway Opportunity Foundation

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9th Floor, Express Trade Towers 1,

Plot 15-16, Sector 16A, Noida, NCR Delhi 201301

Tel.: + 91-120-309 6601 Fax: 91-120-309 6555

Contact Person:
Mr. Raj Narain

Regional Office - North

Amway Opportunity Foundation

5, DDA Local Shopping Centre,

Okhla Commercial Complex, Phase II,

New Delhi 110020

Tel.: +91-11-422 95 900

Fax: +91-11-26 38 81 41

Contact Person: Mr. Shivam Lall

Regional Office - East

Amway Opportunity Foundation,

The Legacy, First Floor, 25 A Shakespeare Sarani, Kolkata700017

Tel.: 91-33-30215666, 30215500

Fax: 91-33-30215557

Contact Person:

Ms. Sarbani Bhattacharya

Regional Office -West

Amway Opportunity Foundation

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"Landmark", A-Wing, Ground Floor,

Andheri-Kurla Road & Suren Road,

Junction Of Western Express Highway,

Andheri East, Mumbai 400093

Tel.: 91-22-66681600

Fax: 91-22-66681555

Contact Person: Mr. Jignesh Mehta

Regional Office -South

Amway Opportunity Foundation

# 243, "Aisshwarya Ambassador" 80 Feet Road, Defence Colony, Indiranagar,

Bangalore 560038

Tel.: 91-80-30561900

Fax: 91-80-25271999

Contact Person: Mr. S. Viswanath

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 CHAPTER 2

The History of Amway

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The History of Amway
What does the word Amway mean? Amway is an abbreviation for "American Way" and was
coined in 1959 by company founders, Jay Van Andel and Richard DeVos. Short, unique and easy
to remember, Amway has been registered as a corporate name and trademark ever since.

Jay Van Andel and Richard DeVos, founders of Amway

In the following decades, Amway Corporation successfully established itself as a leading

multilevel marketing business, built on strong values and founding principles that continue to
sustain our company today. The business is built on the simple integrity of helping people lead
better lives. We have long had a tradition of opportunity and success.

Today, Amway is a multibillion-dollar international business representing freedom and

opportunity to millions of people in more than 80 countries and territories around the world. We
offer over 3 million Business Owners the inspiration to grow those businesses, and we work hard
to provide new and better ways for them to achieve their life goals.

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1950s
A Solid Foundation

Jay Van Andel and Rich DeVos began their business in the 1950s using direct
selling to market NUTRILITE Dietary Supplements. What they discovered more
than 40 years ago still remains true today―that people and relationships are at the
core of any successful business.

Always searching for new opportunities, in 1959 Rich, Jay and their associates
looked for new product ideas to expand their business. They realized they wanted
products that everyone needs, all of the time―products whose features and
benefits anyone could understand and communicate easily.

"The products we want must be ones that just about anyone is familiar with and
can sell. The examples that come to mind are laundry and cleaning products." - Jay
Van Andel

The result of their search was Amway's first product, which today is called L.O.C.
Multi-Purpose Cleaner. It was an instant sales success story, opening up a whole
new world of opportunity.

With a strong belief in the power of initiative and free enterprise, Jay Van Andel
and Rich DeVos created the Amway Sales and Marketing Plan. They knew that
anyone who was willing to work hard could succeed using the same business
methods. This simple idea quickly gained popularity throughout the US, and then
Canada, as more and more people discovered what a real opportunity the Amway
business offered.

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1960s
The Early Years

As Amway's annual sales rapidly expanded, exceeding US$500,000 for the first
time, the company soon outgrew its basement office in Jay Van Andel's home. Dur-
ing this time, Amway moved to a larger facility and began developing new
products, including SA8™ Laundry Detergent, which was launched in 1961.

These Home Care products became big sellers for distributors and led to incredible
growth for the company. Within a few short years, the company had more than 700
employees, over 200 exclusive products and more than 100,000 Distributors.

Rich and Jay knew that the best way to interest people in the Amway business was
to bring the opportunity to them. So, in 1963, the famous "Showcase Bus" began
touring many cities throughout the US. Stocked with products and literature, it
helped distributors introduce Amway's growing product line and unique opportun-
ities to people all over the country.

In the 1960s, the achievement and enterprise of successful Distributors was recog-
nized with the introduction of Direct Distributor status. It became a model for re-
ward and recognition programs that continue to be developed in Amway markets
around the world.

In the midst of all this success and growth, however, tragedy struck as Amway's
aerosol factory was completely destroyed by fire in 1969.

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1970s
A Decade of Growth

After the fire, Jay Van Andel vowed to reconstruct the aerosol factory and to salvage the
business. The factory was rebuilt and sales reached an estimated retail figure of US$100
million. The Amway product line was also greatly expanded with NUTRILITE™ Dietary
Supplements becoming a best-selling line, and the PERSONAL SHOPPERS™ catalogs
continued this growth and diversification.

By the mid '70s Amway trucks travelled more than 3.25 million miles (approx 5.23 million
kilometres) shipping products to millions of Distributors. At the same time, the company
expanded overseas, opening markets in eight countries on three continents. Amway
launched its second international affiliate half a world away in Australia, swiftly followed
by the UK, Hong Kong and Malaysia.

Amway Japan Limited (AJL), founded in Tokyo in 1979, quickly became one of Amway's
largest markets in terms of product sales. As challenging as it was to enter new
markets―faced with everything from different languages and laws to difficult distribution
channels―Amway continued to grow globally.

At home, in Ada, Michigan, the Amway World Headquarters complex grew rapidly to keep
up with the exploding business. Amway's manufacturing facility grew to more than a mile
long, and really became a self-contained city, with its own power generator, water treatment
plant, recycling facility, shuttle bus service and fire department.

1980s
The Billion-Dollar Decade

Estimated annual retail sales exceeded $1 billion for the first time. Pressed by the
demands of increased growth, Amway expanded its US headquarters in Ada,
Michigan and built a new cosmetic plant where ARTISTRY products are de-
veloped and manufactured. It also pioneered an entirely new product category, wa-
ter treatment systems, with very successful results. In fact, Amway's water treat-
ment product line, under the eSpring brand name, continues to hold a top position
in the marketplace today.
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In the meantime, the Distributor incentive program was enhanced to provide more
rewards to those Distributors who put greater efforts into growing their Amway
businesses.

Always concerned with the environment, Amway was recognized as a corporate

environmental leader and promoter of environmental education when it won the
prestigious United Nations Environmental Programme Achievement Award in
1989.

1990s
The Next Generation

Following in their fathers' footsteps, Steve Van Andel and Dick DeVos succeeded
Jay and Rich as Chairman and President of Amway. At the same time, a new gener-
ation of leaders also began to emerge within Distributor families, building upon
and continuing the successes of their parents.

The 1990s saw continued expansion with estimated retail sales volumes reaching
US$5 billion. In California, Nutrilite's research into the links between diet and
health was given a public face with the inauguration of the Rehnborg Center for
Nutrition and Wellness, which gained world renown and was later renamed the
Nutrilite Health Institute.

Amway's growing role in Asia led Amway Japan to sponsor the 1995 Nagano
Winter Olympic Games in Japan. Around the world, Amway's regional and country
affiliates continued to support their Distributors with the launch of e-commerce
sites that extend the Amway opportunity into cyberspace.

This remarkable decade culminated in the 40th anniversary of the organization in

1999.

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2000s
New Horizons

In 2000, Amway prepared for a new century and a new exciting era. Almost 50
years after Amway began, the DeVos and Van Andel families created a new
structure to meet the challenges of this new century. A parent company, Alticor,
was established with subsidiaries Amway, Quixtar and Access Business Group—
the latter to consolidate manufacturing and distribution for the enterprise. At the
helm of Alticor are Steve Van Andel (Chairman) and Doug DeVos (President),
jointly holding the Office of the Chief Executive. Today each area of the business,
including Amway, has the freedom to build on its strengths.

Amway continues to be a leading company in the multilevel marketing industry. Its

fundamental principles—freedom, family, hope and reward—hold as true today as
they did in the very beginning.

CHAPTER 3

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PRODUCTS OF AMWAY

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PRODUCTS

1950s and 1960s

• 1959

L.O.C Liquid Organic Cleaner becomes first Amway product

• 1961

SA8 Laundry Detergent introduced

AMWAY Shoe Spray and Car Care introduced

• 1963

DISH DROPS Liquid Detergent introduced

AMWAY QUEEN Cookware introduced

• 1965

First of the SATINIQUE product range introduced

• 1968

SWEET SHOT Breath Freshener introduced

ARTISTRY cosmetic products introduced

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PRODUCTS OF AMWAY
Amway: A World of Product
Amway offers a range of exclusive, competitive brands that meet proven customer
needs around the world. From nutritional supplements to water treatment, cosmet-
ics to cleaning products, these brands are the solid foundation for a successful, in-
dependent retail business.

Amway and Direct Selling

Amway products are sold directly to consumers by Independent Business Owners
(IBOs) or sales representatives through one-on-one, in-person selling or via the in-
ternet

NUTRILITE Products

NUTRILITE is the world's leading brand of vitamin,

mineral and dietary supplements (based on 2006 sales).
Nutrilite is the only global vitamin and mineral brand to
grow, harvest and process plants on their own certified
organic farms. Nutrilite has made supplement products
using natural plants and plant concentrates since
1934.The same high quality products produced by Nutri-
lite are sold under the NUTRIWAY brand in certain coun-

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tries.

Nutrilite Health Institute

The Nutrilite Health Institute (NHI) is a worldwide col-
laboration of scientists dedicated to helping people
achieve optimal health - through research, education, and
practical, personalized solutions.

Center for Optimal Health

The Center for Optimal

Health is a world class teaching and training facility
within the Nutrilite Health Institute. Science, nutrition,
fitness, research and people are brought together for a
one-of-a-kind experience focused on optimal health and
the NUTRILITE brand.

There are products for kids also, at the early age of a per-
son (childhood) needs some proteins and vitamins for a
proper growth.

Spring Products

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 The
spring Water Purifier is the first in-home system to com-
bine ultraviolet light technology with a patented multi-
stage carbon-block filter to provide the quality drinking
water your family deserves. The spring Water Purifier
destroys more than 99.99% of waterbourne disease-caus-
ing bacteria and effectively removes more than 140 con-
taminants. Other systems treat water spring purifies it.

spring Water Purifier Technology

spring
products are the result of nearly 20 years of research and
technological breakthroughs. Beginning in 1996, a signi-
ficant investment was made in emerging water-related
technologies that led to the innovative spring system. The
research was time-consuming and costly but let to a spec-
tacular end result-a product that is like no other in the
marketplace.

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iCook Products
iCook Cookware is the healthiest way to cook anywhere
in the world. Trends indicate that consumers are becom-
ing more focused on healthy and safe foods. The iCook
Cookware brand delivers on its promise of quality and
nutrition.

iCook Technology

VITALOK cooking method - compared to traditional

cooking methods, the iCook VITALOK cooking method
locks in over a third more essential vitamins and miner-
als.

DURAMIC nonstick coating system - is the toughest,

longest lasting nonstick coating in the world.

OPTITEMP base- the base improves heat distribution

and retention so foods and sauces cook evenly. The OP-
TITEMP base is universally compatible with any cook
top.

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Home Care Products
Everyone loves clean. Clean says you are in control of your life and your surround-
ings.

Amway's Home Care brands provide complete cleaning systems that fit with
everyone's needs. Their versatile, effective product systems offer the features and
benefits consumers want. No matter what your lifestyle, Amway's Home Care
products make light work of your cleaning chores with the SA8, LOC and Dish
Drops brands.

COSMETIC PRODUCTS – ARTISTRY

Since its launch in 1968, the ARTISTRY brand has become a global leader in
prestige beauty. ARTISTRY sets standards in skin science and research and is com-
mitted to the synergy of health and beauty.

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ARTISTRY and Direct Selling
ARTISTRY is the only direct-sell brand classified in the prestige category, with
over US $1 billion in annual sales.

ARTISTRY Science

ARTISTRY has researched, acquired and developed the most advanced technology
and tools to evaluate skin and the performance of the brand products. ARTISTRY
skin science and research is conducted in 89 Research and Development facilities
around the world, representing over 4,500 collective years of research and develop-
ment experience.

ARTISTRY Brand Worldwide

With more than 250 unique products sold in over 50 markets around the world, the
ARTISTRY brand has attained an international following of loyal users. Superb
quality and devotion to excellence have earned the ARTISTRY brand a reputation
as one of the most admired companies in the skin care and cosmetics industry.

CHAPTER 4

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 The Product Life-Cycle

The Product Life - Cycle

Markets are in a constant state of change. Over a period of time, tastes and fashions
alter and the technology used to produce goods and services moves on. As a result,
there will always be a demand for new products as old ones become redundant.

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According to the product life-cycle concept, all products move through four life-
cycle phases. During the introductory phase growth is slow and volume is low be-
cause of limited awareness of the product's existence. Sales rise during the growth
phase and profit per unit sold reaches a maximum. As products reach maturity,
growth in sales starts to level off. Organisations have to invest heavily to extend
the life-cycle while competition becomes stronger. When sales start to fall a
product is said to be in decline.

In a global environment, managing and maintaining the market share for fashion
products is particularly demanding. Cosmetic manufacturers are constantly chal-
lenged by different changes in the fashion industry. If these changes are not prop-
erly managed, products could quickly move into decline.

Injecting New Life into the Artistry Life - Cycle

To prolong the life-cycle of a brand or product range, an organisation must inject

new life into the growth period through readjusting the ingredients of the market-
ing mix. In 1996, to ensure the Artistry range would stay in line with evolving mar-
ket trends and tastes, Amway set about upgrading its brand with the additional ob-
jective of increasing its global competitiveness.

Amway engaged in world wide market research to gain a comprehensive under-

standing of the needs and wants of target markets.

Market research is the systematic gathering, recording and analysing of data

about positives and negatives relating to the marketing of goods and services.

Through acquiring a substantial know-ledge of each marketplace, the marketers

could identify elements of the marketing mix which could be standardised, in addi-
tion to elements requiring change.

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 CHAPTER 5

DIRECT SELLING IN
INDIA

~ 31 ~
Direct selling catching up in India
HYDERABAD, MARCH 18. Turnover and growth trends in direct selling in India
have been impressive, a pointer to the tremendous potential this concept has. More
importantly, that the trend is fast catching up here too.

Though the direct selling industry has existed for over 15 years in India, the entry
of international companies and their activities in the last five years has given
greater visibility to the industry, which is still considered to be at a nascent stage in
India.

Yet during the last two years, the trends have been encouraging to the supporters of
direct selling, whose basic philosophy is to eliminate middlemen in the sale of
commodities, and instead provide employment to a large number of trained sales
staff, who sell products directly to consumers either through group meetings or by
hosting tea gatherings at their homes.

According to the Indian Direct Selling Association (IDSA), the total turnover
through direct selling in India in 1998-99 was $140 million. As against the
expected growth of anywhere between 30 and 50 per cent, it registered a growth of
38.5 per cent for a turnover of $200 million in 1999-2000. For 2000-01, the growth
is projected at 40 to 60 per cent.

Similarly, the growth in the number of sales people has been impressive during
1998-2000. From a five lakh strong direct selling force in 1998-99, it has grown to
seven lakhs in 1999- 2000, a clear 40 per cent. For 2000-01 this is projected to
grow by 50 to 60 per cent.

Does this indicate that the traditional industry is losing its market share to the new
philosophy of taking goods directly from the manufacturer to the consumer? While
it may not be so large as to create panic or alarm the well-established traditional
players, it has created a place for itself in the hearts of the people.Interestingly, the
IDSA says during 1999-2000, it received as many as 27 queries from national and
international companies expressing interest in opening a direct selling business, or
to start a new division for direct selling within their existing businesses in India.

Set up in 1992, the IDSA is an association for companies that sell products directly.
It was started by two companies `Lotus Learning (exclusive distributors of World

~ 32 ~
Book)', and `LB Publishers and Distributors (exclusive distributors for Time Life
Books)'.

In 1995 multinational companies such as Avon, Amway and Oriflame joined the
association. Since then, some more like the Tupperware, Herbalife, Modicare and
Sunrider have joined the association. Of its nine members, three are fully Indian
companies owned and run by Indians and three are wholly owned subsidiaries of
foreign companies. All of them manufacture in India either through their own
facilities or through contract manufacturers.

Another significant development is the emergence of direct selling as a women's

bastion. The direct selling industry in India comprises 72 per cent women, 24 per
cent couples, and four per cent men. In the U.S., this is 69.7 per cent women, 10.4
per cent couples, and 19.9 per cent men.

In two years, Amway, has emerged as India's leading direct selling company and
registered a turnover of about Rs. 250 crores (September-August). It has ambitious
plans of reaching a target turnover of Rs. 1,000 crores, much before its originally
targeted year 2004.

The company has invested over $35 million in India of which $6 million is in the
form of direct foreign investment, and $4 million is for transferring technology,
free of cost, to contract manufacturers. It has over 32 offices and a reach of 352
locations, and by 2001-end it envisages an office in every city with a population of
10 lakhs and above. It has trained 3.60 lakh distributors last year, overwhelming
majority of whom were women.

Against this background the industry expects to grow at 50 to 100 per cent rate for
the next 3-5 years. Given the socio-economic conditions, the fact that a large
proportion of the country's women are housewives, who can spare some time to
take up concepts such as direct selling, and the growing need and realisation to
supplement family incomes, are seen as encouraging factors for its growth
potential. Viewed against the backdrop of a $80 billion global direct sales turnover
already achieved last year, the future appears bright. Direct selling industry seeks
legal framework

COIMBATORE, June 6

THE multi-layer marketing (MLM) companies are worried that their legitimate
businesses are hampered because their direct selling methodology is confused with

~ 33 ~
the money rolling schemes or the prize chit fund schemes.

This misconception has arisen partly due to lack of information/awareness on the

functioning of the MLM and largely for want of a legal framework that checks the
abuse of direct selling mechanism by unscrupulous elements.

The latter factor is a major issue confronting the genuine MLM companies,
according to Mr Rathin Mathur, General Manager, Sales of the Rs 130-crore
Modicare Ltd, the Delhi-based MLM company.

Pressed against this background, the nascent MLMs coming under the Indian
Direct Selling Association (IDSA) were moving with the Government to put in
place a legislation that would prevent the misuse/abuse of the MLM system by the
unscrupulous operators who had sought to fleece the consumers through `Pyramid
schemes' in the garb of direct selling, said Mr Mathur, who was here on a
marketing binge for Modicare's direct selling of consumer goods, including the
personal care products.

Mr Mathur told newspersons that IDSA had been working with the FICCI in
evolving a legal mechanism and with the support of the FICCI, the association had
already put up a draft legislation to the Government. Now the Government was to
suitably come out with its legislation, which had to be put in place in time;
otherwise, the consumers' faith in this nascent but potential industry would be lost,
he added.

The main strength and the ethics of direct selling business, said Mr Mathur, stood
quite distinctively apart from that of the `Pyramid selling systems'.

While the direct selling offers a business opportunity based on the sale of products
as well recruitment of `consultants' or agents, the rewards of `Pyramid system'
emanates from the addition of new participants and their investments not
necessarily from the sale and distribution of real products and the latter schemes
need not have commercially viable products.

The IDSA consists of 13 member-MLM companies of both Indian and MNCs and,
according to Mr Mathur, in the absence of any set code of conduct evolved for
direct selling in India, these IDSA members' business practices are largely
governed by the norms fixed by the world federation of direct selling associations
formed in 1992.

Though the MLM concept in India made its way some 15 years ago, the direct
selling took off strongly from 1996 only and the business volume too steadily kept

~ 34 ~
raising from Rs 300 crore six years ago to Rs 2,000 crore now.

The potential for direct selling is huge (given the vast manpower and human
resource available in teeming unemployed/ underemployed numbers) but it is yet
to be fully exploited, as this system would understand the consumers' needs better.

Indian companies entering into direct selling have understood the needs of the
consumers and their interests better and accordingly, the members taken in as
consultant-recruits are given focussed training.

Modicare currently has about 9.5 lakh persons as `Modicare consultants

propagating its consumer goods ranging from personal care, home care, auto-care
products and these persons are backed up by 52 `Modicare Success' centres that
supply the products and serve as training centres.

In Tamil Nadu, it has product centres in Chennai, Madurai and Coimbatore and
will soon locate one in Tirunelveli.

Direct selling fits into Indian psyche

The great Indian middle class, with little inheritance, is the major ambassador of
direct selling. Though direct selling is a concept considered alien to Indian culture,
the sense of financial insecurity of Indians, especially regarding their post-retire-
ment life, makes them the ideal candidates to undertake this innovative method,
Stephen Beddoe, Director, Distributor Relations and Marketing, Amway India En-
terprises, tells G. Satyamurty.

In Europe, 80 per cent of the last drawn salary gets back to the employees as pen-
sion after their retirement. But the situation in India is not rosy. Most of the people
are at the mercy of their children or kith and kin. Earning something substantial for
the old age is almost in every Indian's mind. This has offered us the greatest oppor-
tunity. China is the biggest direct selling market in the world as a similar sense of
insecurity prevails. It is way ahead of India because it took to this concept 15 years
ago.

"In 1959 we introduced this method in the United States and grandsons and great
grandsons of many of the early distributors are now our proud ambassadors This
has almost become a legacy. In India, it is so fast catching up, with 4.5 lakh direct
selling agents, that we have ambitious plans of opening an office almost once in

~ 35 ~
three days and have a sales target of Rs. 3,000 crore by 2012 from the current Rs.
738 crore," says Mr.Beddoe.

After all, every entrepreneur is also a consumer and all of us would like to bargain
like hell to get the best price. We want value for the price and we are very careful
with the money. Very few splurge. Direct selling gives an opportunity to make ad-
ditional income as consumers.

Our mantra has been "self-reliance and enterprise" and this firmly fits the bill
among Indians .Women, especially unemployed and hail from middle class, are our
best entrepreneurs. These women want to supplement their family income. And
they have a vision and a long-term plan. Can I help the family buy a house? Send
my children to better school and provide them better education?

Many middle class people have already been supplementing their income by be-
coming insurance agents and Peerless agents as direct selling is nothing but a part-
time avocation. They want to leave something for their children and this direct
selling business itself becomes an asset for them to leave for posterity.

Of course, Mr. Beddoe is not so sure of their enterprise. It depends upon their indi-
vidual needs. He considers Coimbatore and Surat as "two islands" of enterprise.
And they have the highest per capita income in the country.

Adverting to the spread of direct selling, he compares it with other markets.

Take for instance, market for the Fast Moving Consumer Goods (FMCG). While
north accounts for lion's share of 30 per cent followed by the west, south is only
the third with 20 per cent to 22 per cent share. East is the hardest market with just
11 per cent.

The survey with regard to direct selling has revealed that all the four regions are
"exactly the same." There is almost an equitable balance and it looks that direct
selling has been accepted all over the country.

On the great urban-rural divide, Mr.Beddoe observes that there seems to be a great-
er need for direct selling in B1 cities and smaller towns.

There is willingness to work harder in these places. In villages and small towns
there is more time whereas metros do not have the same leisurely lifestyle.

~ 36 ~
He considers that the sense of security among the people in metros is comparat-
ively much higher than the other parts of the country. Metros have lesser needs.
The future of direct selling lies in small locations.

The Amway India Enterprises franchise is a global leader in multilevel marketing.

The direct sales franchise is a part of the US-based Amway Corporation which
brought about the concept of direct selling at the convenience of the customer.
From the past 45 years, Amway Corporation has enabled people to have a business
of their own, providing home care and health care products of repute.

Originally, the multilevel marketing franchise was known for direct selling of its
household cleaning products; but as time went on hundreds of high-quality
products and brands were introduced to make the Amway India Enterprises Fran-
chise what it is today. The Amway Corporation created a business opportunity for
direct sale of products to others and later started the concept of sponsoring people
to join the business.

The Amway India Enterprises franchise, a wholly owned subsidiary the USA-
based Amway Corporation, was established in 1995, and commenced commercial
operations in May 1998. Today it has become the largest direct selling FMCG
Company in India. With over 4,50,000 active independent Amway Business Own-
ers, the Amway India Enterprises Franchise has grown to its present number of 74
offices and 55 city warehouses. Servicing over 2000 cities & towns of India, this
direct sales franchise provides a 100 per cent money back guarantee if the product
ids found unsatisfactory.

Today, Amway India Enterprises franchise promotes individual entrepreneurship

through its novel direct selling approach of world class consumer products. Am-
way supplies all its products from within India, thereby providing motivation to the
local manufacturing industry.

A Bright Future for Direct Selling

by Neil Offen

Recently, Direct Selling News talked with Direct Selling Asso-

ciation President Neil Offen about the opportunities and chal-
lenges facing the direct selling industry. We're pleased to bring
you this excerpt of our conversation:

~ 37 ~
Direct Selling News: Over the last few years, we have seen some very prominent
brands begin to utilize a direct selling channel of distribution. Will these new
entries change the competitive landscape?

Neil Offen: The last few years have shown a remarkable interest from investment
firms, retailers, non-direct selling firms and non-direct marketing firms in the viab-
ility of our business distribution. This is a whole new group of companies that are
thinking about direct selling. Our membership roster is at a record high, with
nearly 200 active direct selling companies, 75 pending and close to another 70 in
the subscriber category. In addition, we have more than 200 supplier companies in
membership. The growth of the last couple of years is remarkable.

The success of these companies that are coming from the outside will not change
the industry; it will change those companies. They have to adjust to direct selling,
not bring retailing concepts, direct mail concepts and telemarketing concepts to our
industry to see if they work. We know the core element of direct selling has not
changed-the simple element of a person-to-person approach. Direct selling seems
easy from the outside looking in, but it is anything but easy to manage a direct
selling company.

Direct Selling News: Despite the continuing efforts of the DSA, direct selling still
struggles with negative consumer perceptions. What is currently being done to ad-
dress this?

Neil Offen: We know that we have had image problems and these problems have
manifested themselves over the last few decades. The association has implemented
an Image Enhancement Program to tell the wonderful story about industry people
from all walks of life who are coming into our business. Direct selling is keeping
the American Dream alive for people who otherwise might not realize their
dreams.

The Image Enhancement Program is being rolled out globally and we have a pro-
gram coming up in New York in a couple of weeks to roll out the social economic
impact study that Ernst and Young has done for us. We're going to let the Wall
Street people know that the contributions this industry makes go far beyond the es-
timated sales volume that we report each year.

Direct Selling News: What is your assessment of global potential for the direct
selling channel of distribution?

Neil Offen: Growth is still occurring dramatically internationally. The opportunit-

ies and challenges in China are huge and I predict that you will see incremental

~ 38 ~
growth in China, as we can prove to the Chinese that we can control our sales or-
ganizations and that we are a source of stability. We are creating supplemental in-
come and career opportunities for people who desperately need them there.

India is taking off now and is growing at 15 to 20 percent a year. We did over $630
million in sales in India last year, and it is going to be in the billion-dollar range
very shortly. Russia is performing incredibly well. Japan, after 15 years in the
doldrums, is coming back. Korea is booming and is the third largest direct selling
market in the world. Eastern Europe is doing particularly well, though Western
Europe has been difficult. Mexico, Brazil and Colombia are strong, and with 70 or
80 million people Viet Nam has the potential to become an excellent direct selling
market. The international arena is experiencing tremendous growth and I think we
are at the right place at the right time as a method of distribution.

Direct Selling News: Is there anything else you'd like to mention?

Neil Offen: We don't have data yet for 2005, but I predict it will be flat. I believe
the war in Iraq has had an impact, especially in those states where a lot of the
troops have been drawn out of the National Guard and Reserves-the husbands of
folks in our business. Counter-intuitively, the rise in gasoline prices-which you
would think would get more people into the business to earn extra money-keeps
people away from the business, because they don't want to spend the money on
gasoline. Catch-22.

Also consumer debt has risen and it seems like a malaise is growing. This under-
cuts people's energy and willingness and spirit to go out and start a direct selling
business.

Marketing is a business term referring to the promotion of products, advertising,

pricing, distribution channels, and branding. The term developed from the original
meaning which referred literally to going to market, as in shopping, or going to a
market to sell goods or services. The American Marketing Association (AMA)
states, "Marketing is an organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing customer rela-
tionships in ways that benefit the organization and its stakeholders."

Marketing practice tends to be seen as a creative industry, which includes advert-

ising, distribution and selling. It is also concerned with anticipating the customers'
future needs and wants, which are often discovered through market research.

~ 39 ~
Marketing is influenced by many of the social sciences, particularly psychology,
sociology, and economics. Anthropology is also a small, but growing influence.
Market research underpins these activities. Through advertising, it is also related to
many of the creative arts. The marketing literature is also infamous for re-inventing
itself and its vocabulary according to the times and the culture.

n the early 1960s, Professor Neil Borden at Harvard Business School identified a
number of company performance actions that can influence the consumer decision
to purchase goods or services. Borden suggested that all those actions of the com-
pany represented a “Marketing Mix”. Professor E. Jerome McCarthy, also at the
Harvard Business School in the early 1960s, suggested that the Marketing Mix
contained 4 elements: product, price, place and promotion.

• Product: The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs and
wants. The scope of a product generally includes supporting elements such
as warranties, guarantees, and support.
• Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is ex-
changed for the product or services, e.g. time, energy, or attention.
• Promotion: This includes advertising, sales promotion, publicity, and per-
sonal selling, branding and refers to the various methods of promoting the
product, brand, or company.
• Placement (or distribution): refers to how the product gets to the customer;
for example, point-of-sale placement or retailing. This fourth P has also
sometimes been called Place, referring to the channel by which a product or
service is sold (e.g. online vs. retail), which geographic region or industry, to
which segment (young adults, families, business people), etc. also referring
to how the environment in which the product is sold in can affect sales.

These four elements are often referred to as the marketing mix,[1] which a mar-
keter can use to craft a marketing plan.

CHAPTER 6
~ 40 ~
 THE CONCEPT OF
DIRECT- MARKETING

~ 41 ~
THE CONCEPT OF DIRECT- MARKETING

HOW DOES AN AMWAY DISTRIBUTER EARNS?

WHATEVER A PERSON EARNS, HE GOES TO SPEND IT TO THE MARKET, FOR

EXAMPLE IF A PERSON GOES TO A MARKET WITH Rs. 4000 WITH HIM, THERE HE
PURCHASE PRODUCTS OF DAY-TO-DAY USES. THE COST PRICE OF THAT PRODUCT
IS Rs.1600 IN THE FACTORY, BUT HE GETS IT @ Rs.4000 BECAUSE OF THE
MIDDLEMEN (ADVERTISERS, WHOLESALERS & RETAILERS). 60% OF THE MONEY
IS DISTRIBUTED AMONG THE MIDDLEMEN.

BACK TO 45 YEARS, THERE WERE TWO FRIENDS WITH A DREAM TO GIVE EVERY
INDIVIDUAL A CHANCE TO DO A BUSINESS, WHICH WILL BE TENSION FREE AND
IN THE SAME WAY MAKE RICH. TODAY THEY HAVE ACHIEVED THEIR DREAM.

I. BENEFITS FOR DISTRIBUTER.

The company provides world class products to the distributers. They also gets
profit from the sales model of the company which is beyond their imagination
that’s because it is fully acceptable and honest so that you can believe and have
full trust and confidence on it.

 The products are of world class.

 The distributers get help from the easy marketing plan.
 There are demonstration lectures on each type of product
1. Full information about the product.
2. Full instruction on how to use the product properly and get 100%
advantages of it.
3. Qualities of products.

Guarantee of full satisfaction from the use of the product by the company is one
of the most important attractions of this business. These benefits of distributers
are kept reserved by the company’s “CUSTOMER PRODUCT REFUND
POLICY”.

Some important attractions/ benefits for the distributers.

 With the help of this business after being a distributer can establish his
own (independent) business all over the INDIA.
~ 42 ~
  To be successful in this business one need “VERY LESS AMOUNT” and
“DESIRE TO BE SUCCESSFUL”.
 If any distributer wants to leave the business can leave get the money
back by returning the BUSINESS KIT within 90 days of joining.

II. TO STUDY THE EARNING OF THE DISTRIBUTER

~ 43 ~
M
AR
KE
T

AD
VE
RT-
ISE
WH
OL
E-
SA
LE
RS

RE-
TAI
L-
ER
S

60
%

~ 44 ~
 THE CONCEPT OF DIRECT- MARKETING
F
ACT
ORHOW DOES AN AMWAY DISTRIBUTER EARNS?
Y
WHATEVER A PERSON EARNS, HE GOES TO SPEND IT TO THE MARKET, FOR
EXAMPLE IF A PERSON GOES TO A MARKET WITH Rs. 4000 WITH HIM, THERE HE
PURCHASE PRODUCTS OF DAY-TO-DAY USES. THE COST PRICE OF THAT PRODUCT
CU
IS Rs.1600 IN THE FACTORY, BUT HE GETS IT @ Rs.4000 BECAUSE OF THE
S-MIDDLEMEN (ADVERTISERS, WHOLESALERS & RETAILERS). 60% OF THE MONEY
TO
IS DISTRIBUTED AMONG THE MIDDLEMEN.
M-
ER
BACK TO 45 YEARS, THERE WERE TWO FRIENDS WITH A DREAM TO GIVE EVERY
INDIVIDUAL A CHANCE TO DO A BUSINESS, WHICH WILL BE TENSION FREE AND
IN THE SAME WAY MAKE RICH. TODAY THEY HAVE ACHIEVED THEIR DREAM.

3-4
III.
Rs. BENEFITS FOR DISTRIBUTER.

The company provides world class products to the distributers. They also gets
profit from the sales model of the company which is beyond their imagination
that’s because it is fully acceptable and honest so that you can believe and have
9- full trust and confidence on it.
10R
s.
 The products are of world class.
 The distributers get help from the easy marketing plan.
 There are demonstration lectures on each type of product
4. Full information about the product.
5. Full instruction on how to use the product properly and get 100%
DI advantages of it.
R- 6. Qualities of products.
EC
T
Guarantee of full satisfaction from the use of the product by the company is one
of the most important attractions of this business. These benefits of distributers
are kept reserved by the company’s “CUSTOMER PRODUCT REFUND
POLICY”.

Some important attractions/ benefits for the distributers.

~ 45 ~
 With the help of this business after being a distributer can establish his
own (independent) business all over the INDIA.
 To be successful in this business one need “VERY LESS AMOUNT” and
“DESIRE TO BE SUCCESSFUL”.
 If any distributer wants to leave the business can leave get the money
back by returning the BUSINESS KIT within 90 days of joining.

CHAPTER 7

MARKETING STRATEGIES
ADOPTED BY AMWAY FOR
DISTRIBURTERS

~ 46 ~
MARKETING STRATEGIES ADOPTED BY AMWAY FOR
DISTRIBUTERS

How to Join?

Starting your own business

To start the Amway Business one needs to buy the Amway Business Kit and be
sponsored in the business by an already existing Amway Business Owner. Despite
what you may have heard, starting an Amway business doesn't involve handing
over large amounts of cash. With your efforts and our knowledge, the Amway
opportunity can become everything from a means of earning a little extra cash to
building an international business. Where do you want to go?

Business Kit

Priced at Rs995 only

~ 47 ~
Contents of the kit

1. All Product Handbook.

This is an attractive book with a size customized to fit the business kit. It gives
information on the entire product range including colours and will play an
important role in retailing.

2. Unique Opportunity Unmatched Products

A set of 2 CDs:-

1. Opportunity CD

Available in English & Hindi

Gives information on all the important business aspects that a new ABO needs to
know to start his Amway business.

2. Product CD

First Purchase Offer

Amway brings an EXCITING NEW FIRST PURCHASE OFFER for new Amway
Business Owners
The first few days of joining are the most important period for a new Amway
Business Owner and keeping this in mind we have designed this program to guide
and motivate a new Amway Business Owner and help him in building his Amway
business.

Offer 1- Purchase products worth 100PV in a single invoice and avail discount of
Rs. 995 on the order value.

Offer 2- Buy Products worth 60PV and get Nutrilite Cal Mag Re.1 only.

~ 48 ~
Why You?
What do you want out of life? There are as many different reasons to be in this business as there
are Quixtar Independent Business Owners (IBOs). A Quixtar business can help with those tuition
bills. It can help reshape your work week. It can help you build a future for your family. It's your
life, and Quixtar can help you build your own business - the way you want it.

An Industry Leader
Back in the 1950s, Rich DeVos and Jay Van Andel were sales reps for a vitamin company called
NUTRILITE. They envisioned an even better sales and marketing plan, however, and created a little
company called Amway to set it into motion. Working with a core group of Independent
Business Owners (IBOs), they provided a new opportunity to people in the U.S., Canada, and,
today, more than 3 million entrepreneurs around the world.

In 1999, Quixtar was launched to combine the best aspects of Amway with the power and
convenience of the internet. Three years later it became the company’s exclusive opportunity in
those markets. Now, Quixtar North America is making a transition to the AMWAY GLOBAL brand to
leverage the power of the $6.8-billion business Rich and Jay built.

The business opportunity we support features:

• An industry-leading compensation plan.

• High-quality products.
• Experienced support from an industry leader.
• The community and support you receive from other IBOs.

At Amway Global, we believe that the proper use and management of the earth’s resources are
the responsibilities of industry and individuals alike. After all, alone we can do so little –
together, we can do so much.

QUIXTAR is the number-one online retailer in the Health & Beauty category based on sales, and
22nd among all e-commerce sites, according to Internet Retailer magazine’s “Top 500 Guide.”

As of Sept. 1, 2008, people who join AMWAY GLOBAL become AMWAY GLOBAL IBOs.
Quixtar North America joins the Amway Global family in 2008-2009.

Quality Products That Inspire Confidence

Amway Global Independent Business Owners (IBOs) enjoy access to a great portfolio of
products they can retail and use. In addition to a wide range of products providing solutions to
your home and personal care needs, Amway Global is known for its Health and Beauty brands.
In fact, some IBOs choose to specialize their retail efforts in health, beauty, or even our
innovative Ribbon gift program.

Exclusive Amway Global brands include:

~ 49 ~
 • Nutrilite, the world's leading brand of vitamin, mineral and nutritional supplements
(based on 2006 sales).
• Artistry, the billion-dollar prestige brand of skin care and colour cosmetics.
• Ribbon, our gift and incentive program that makes gift-giving a snap
• More: From XS sports nutrition and eSpring water purifiers to home cleaners and person-
al care, Quixtar has it.
• Our exclusive brands are backed by extensive research, more than 516 patents, and a 180-
day money-back Satisfaction Guarantee. You can be confident in our products as you
build your business.

Making Money with Your Amway Global Business

You wouldn't consider your very own business unless it rewarded you for your
time and effort. Put simply, the Amway Global Independent Business Owner (IBO)
Compensation Plan rewards you for selling products and for sponsoring others as
IBOs who will do the same.

You earn income from:

• Retail markup* on product sales to customers

• Monthly performance bonuses ranging from 3% to 25% of business volume
depending on your monthly productivity
• Monthly and annual leadership bonuses and other cash awards and business
incentives based on group performance.

Simple Steps to Success

IBOs who grow the most successful businesses sell to non-IBO customers and
sponsor, while experiencing the products by purchasing them for their own use.

Step 1: Learn. The only way to truly understand your products is to use them.
Knowing what our products can do for you is important when presenting them as
~ 50 ~
solutions for your customers. You'll also want to fully understand the compensation
plan and Amway Global's business rules. Check out Amway Global University to
see other training options we provide.

Step 2: Sell. As your product knowledge increases, you will discover people all
around you who need what you have through your Amway Global business. Retail
selling is the easiest way to make quick money through your Amway Global
business.

Step 3: Sponsor. For some of your friends, products provide the solution they seek.
For others, the Amway Global business opportunity will have strong appeal as they
seek a business that can help them achieve their goals. When you sponsor them,
you can be rewarded for the business volume they generate.

*Retail margins on health, beauty, and home care products average about 29%
when these products are sold at suggested retail price. You have the freedom to
determine independently the prices at which you sell products to customers, so you
decide your retail margins.

The Amway Global opportunity is unlimited, but individual results vary. The
average monthly gross income for IBOs who are "active" in the business was $115
based on the most recent independent survey. Some earn less while others earn
much more. In 2006, IBOs earned more than $370 million in bonuses and
incentives on $1.12 billion in sales.

Approximately 66% of all IBOs of record were found to be "active." An "active"

IBO is one who attempted to make a retail sale, or presented the Amway Global
IBO Compensation Plan, or received bonus money, or attended a company or IBO
meeting during the year.

In Business For Yourself, Not By Yourself

~ 51 ~
Whether you're a new Independent Business Owner (IBO) or someone who's been
in the business for 20 years, you'll be supported at all levels by the IBO
organization you were sponsored into as well as by Amway Global. Together, we
have the infrastructure and resources to help.

Amway Global provides you with support like:

• Customer care: If you have a question about anything - like registration, re-
newal, business, or product information - our Customer Care Associates can
help you.
• Business management: You can manage your business, check customer
volume, order products, and renew your business, all at Amway Global.com.
• Order management: You sell the products, and we'll do the rest, like pro-
cess the order, manage your customer accounts, and handle the shipping de-
tails.
• Training: Online, video, and instructor-led training are some of the ways we
can share with you the knowledge to grow a successful independent busi-
ness.
• Marketing: We support your sales efforts with DVDs, online sites,
magazines, brochures, and free websites you can personalize. And we help
build awareness of your products and brands with national advertising, pro-
motions, and event sponsorship.

PLUS: The IBO organization you may become involved in also provides training
and motivation in the field. You may be offered Business Support Materials
(BSMs) that are independent of Amway Global, including DVDs, CDs, books,
websites, seminars and business conventions. Many IBOs find these BSMs useful
as they build their businesses, but they are completely optional, so it's your
decision. Just so you know, some IBOs earn income from the sale of these BSMs
apart from their earnings through the Amway Global IBO Compensation Plan.

~ 52 ~
No one may pressure you to buy or use BSMs. Whether or not you purchase these
materials, your sponsoring IBO is still obliged to provide you with training and
support. Your own good judgment should guide you in deciding what is best for
your independent business, considering among other things the cost, benefit, and
time commitment associated with the purchase and use of BSMs.

A Community of Entrepreneurs

When you join the Amway Global business, you join a community of other
Independent Business Owners (IBOs) who share your desire to achieve personal
goals through a business of your own. This group of IBOs will provide business
guidance based on personal experiences.

A compelling aspect of the Amway Global business is the Line of Sponsorship

(LOS). When you register a new IBO, you are their sponsor. The person who
introduced you to Amway Global is your sponsor. This Line of Sponsorship is
important to the calculation of bonuses based on business volume generated by
IBOs in the LOS.

Success as an IBO can help others in your LOS achieve their goals, too, since they
may earn bonuses based on your volume, just as you will be rewarded for helping
others generate product sales. Amway Global IBOs achieve when they help others
achieve. So, while you might be in business for yourself, you're not in business by
yourself. You've got help right in your LOS.

~ 53 ~
 Amway Sales and Marketing Plan

∝ The gross income of your AMWAY business is based on im-

mediate income or profit from retail sales, discounts on pur-
chases for own use plus a commission on group sales.

∝ This Commission is calculated from two sets of numbers – PV

and BV assigned to AMWAY products. You earn PV and BV on
products sold to customers or consumed by yourself, as well
as products purchased by Distributers in your Business
Group.

 PV (Point value) is a unit amount assigned to each

product; it determines your Performance Incentives
bracket.

 BV (Business Volume) is a monetary (Rs.) figure for

each product. BV is used for calculating of monthly
commission and annual incentives.

 D.A.P. (Distributer Acquisition Price) is the cost at

which a Distributor buys products from Amway inclus-
ive of sales tax.

Your PV/BV & Performance Initiatives

PV/BV
M.R.P. - Maximum Retail Price
D.A.P. - Distributor Cost
B.V. - Business Volume
P.V. - Point Value

~ 54 ~
Ratio between PV & BV 1:45
i.e 1PV= 45 BV
or 100 PV= 4500 BV

Example:
Product Amway Car wash E-4111-ID
D.A.P. Rs.175
B.V. = 155
P.V. = B.V. /45= 155/45= 3.44

Performance Incentives
Discounts: Performance incentive percentage applied to the BV of your own
purchases for the month.
Commission Earned: Difference between Group Commission earned and
commissions
Paid out to your Downlines.
YOU
YOU GET THE OPPORTUNITY TO START YOUR OWN BUSINESS

~ 55 ~
Case 1

Case 1: self example

~ 56 ~
ASSUMPTION:
1. You sell products worth 100 point value (PV)

2. PV/BV ratio is 1:45

PROFITS:
Total PV = 100
Total BV= 4,500
Retail Profits#: Generally 20%. Therefore, (20/100*4,500) = Rs. 900
Commississions: No Downlines = Nil
Discounts : 100 PV means 3% level = (3/100) * 4,500 = Rs. 135
Gross Monthly Earnings =Rs.900 + Rs.135 = Rs. 1,035
Gross Annual Earnings =Rs. 1,035*12 = Rs.12,420

Case 2

6 you sponsor 6 people

~ 57 ~
Case 2
ASSUMPTION:
1. You personally sponsor a total of 6 people

2. All Distributors including you do only 100 PV

3. For retail profit %, we take an average 20%

GAINS:
Total Group PV = Your PV+ 6 Distributors PVs
=100+ (6*100) =100+600 =700
Total Group BV = Group PV*45 =700*45 =31,500

Retail Profit = (20/100)*your BV = (20/100)*4,500 =900

Total Commissions =At 700
PV you are at 6% level
= (6/100)*31500
= Rs. 1,890
Commission paid out to Downlines = (100*45) * (3/100) * 6 =Rs. 810

Gross Annual Earnings =Total Commission – Payouts + Retail Profit

=Rs. 1,890-Rs.810+900 =Rs. 1,980
Gross Monthly Earnings =Rs. 1,980*12 =23,760

CASE 3

~ 58 ~
Case 3
ASSUMPTIONS:
Same as previous case, and each of your Downlines sponsor 4 more people each.

GAINS:
Total Group PV =Self generated PV + Those generated by your
personally sponsored Downlines + Those
generated by their Downlines.
=100 + (6X100) + (6X4X100)
=100 + 600 + 2400 =3100
Total Group BV =45 X 3100 =139500
Retail Profits =20% on an average of the sale price
= (20/100) X Group BV = (20/100) X 4500
=Rs.900
Total Commissions =At 3100 PV ypu qualify at 12% level

~ 59 ~
 =(12/100) X Group BV =(12/100) X 139500
= Rs. 16740
Commissions paid out to
Downlines =Your immediate Downlines have 500 PV i.e. 6%
level
Total Commissions paid out =6 X(6/100) X 500 X45 =Rs.8100
Gross Monthly Earning =Total Commissions - Payouts + Retail Profit
=16740 – 8100 + 900
=Rs. 9540
Gross Annual Earning =Rs. 9540 X 12 =Rs. 114480

Case 4: 6-4-3 Principle

~ 60 ~
ASSUMPTIONS:
• Each 6 Distributors sponsor 3 each further expanding the
group.

• Rest of the assumption same as earlier.

GAINS:
Total Group PV =Your PV + Your personally sponsored
Downlines’ PV +Their personally sponsored
Downlines
=100 + (6X100) + (6X4X100)+(6X4X3X100)
=100 + 600 + 2400 + 7200

~ 61 ~
 =10300 PV
Total Group BV =Total Group PV X45 =463500
Retail Profits =20% on an average of the sale price
= (21/100) X Your PV =(20/100) X 4500
= Rs.900
Total Commissions =At 10300 PV you qualify at 21% level
=(21/100) X 463500 =Rs. 97335
Commission paid out to Downlines =Your immediate Downlines have 6 X 100
i.e. 9% level

Total Commissions paid out =(9/100) X 6 X 45 X 1700 =Rs. 41310

Gross Monthly Earning =Total Commissions – Payouts + Retail Profit
=Rs. 67335 – Rs. 41310 + Rs. 900
=Rs. 56925
Gross Annual Earning = Rs. 56925 X 12 =Rs. 683100

Silver Producers

Gold Producers

Platinum

Ruby

Founders Platinum

Founders Ruby

Sapphire

Founders Sapphire

Emerald
Recognition Levels
Founders Emerald

Diamond

Founders Diamond
~ 62 ~
Executive Diamond

Founders Executive Diamond

What are awards?
Awards are the non-monetary benefits that Amway
Distributers receive for their dedication &
commitment in building the Amway business.

Distributors are eligible to receive

∝ Personal letters of recognition from

Amway

∝ Personal recognition, awards including

Pins (Silver Producer onwards)

∝ Certificates and Plaques (Platinum

onwards)

∝ Recognition in Amagram*

∝ Amway sponsored trips and seminars

~ 63 ~
CHAPTER 8

OBJECTIVES

~ 64 ~
 Primary objectives

IDENTIFICATION OF REASONS

Amway is a global organization which markets products in international market

places. Planning for global markets is a much more complex process than for
domestic markets. It presents many more risks than operating in a domestic market
where goods are sold in only one local area. Global marketing involves recognising
that people from all over the world have different needs, i.e. values; customs;
languages; rules and currencies.

Though it is said that consumer needs around the world are converging, there are
commonly accepted needs and wants that go beyond national barriers. The
marketing mix consists of a complex set of variables which an organisation
combines together in order to ensure that both global and local corporate objectives
are achieved.

Standardising elements of the marketing mix is key to operating successfully

in the global marketplace. As a result, common needs and wants are identified
across countries. At the same time, parts of the marketing mix requiring adaptation
are identified so that it can be developed to cater for local differences. This
requires a thorough understanding of every market in which Amway operates.

Many advantages arise from competing in a global marketplace, including:

• Economies of scale - over a larger output, costs per unit are decreased to
provide the supplier with a competitive advantage. Amway is able to spread
its research, development, technology and distribution costs so that it can
maximise its production efficiency.

• The development of new business opportunities - in numerous countries,

markets are growing faster than in Europe and America. Overseas markets
offer the opportunity to compete in different marketplaces and extend the
life-cycle of products.

~ 65 ~
 • To meet the tastes of consumers from different nations - over recent years
there has been a convergence of tastes resulting in a more global market-
place.

Founded in Ada, Michigan in 1959, Amway has become one of the largest 'Direct
Selling' companies in the world with nearly three million Independent Distributors.
Direct selling involves dealing with customers 'Face-to-face' so that personal
attention can be given to each of their requirements. Direct selling differs from
traditional retailing as it often involves selling to consumers on a one-to-one basis,
usually in the comfort of their own homes. The industry has grown rapidly over
recent years and is currently estimated to be worth £40 billion a year world wide.
This case study examines this growth which has helped Amway to become one of
the industry's market-leaders influenced by changing lifestyles, demographics and
economic recession.

Direct selling for Amway is undertaken by its own independent distributors. Their
own income is based on the goods they sell, bonuses paid by Amway and the
volume of sales generated through their own distributor network. These
distributors sell to people they know or meet. Amway distributors operate as their
own independent businesses.

Amway is a long-standing member of the Direct Selling Association (DSA) in the

UK and Republic of Ireland. The DSA regulates the industry by providing a Code
of Conduct endorsed by the Office of Fair Trading (OFT).

Amway has developed into a global corporation manufacturing over 450 products
and employing more than 12,000 people in over 80 countries and territories around
the world. To supply a global base of customers, Amway manufactures products
ranging from household cleaners to cosmetics, food supplements to housewares. It
also markets products on behalf of other leading manufacturers, such as Kenwood,
Aiwa and Philips.

~ 66 ~
CHAPTER 9

CASE STUDY

~ 67 ~
 CASE STUDY

This is the case study of Mr. Surendra Sharma:-

Mr. Surendra Sharma is a Businessman, He owns a soap and chemical

industry at Wardha. He is a 57yrs old person and an Independent Amway Business
owner from the last 7yrs. He was introduced to amway business by Mr. Mohinder
Singh Bhraich seven years ago. At that time Mr. Sharma was strugging with his
business. He had no time for his family. He was searching for a business which can
provide him with time for family, financial security, freedom etc. which he was not
able to get from his Traditional business. His search came to an end with amway
business, he took it as an opportunity and started working over it. And now he has
earned a recognition for him as a Founder Platinum in amway business & today he
is earning a monthly income of Rs.50000 +.
He is interested in selling mainly health related products. Whenever he
meets any person whom he wants to show the plan, he starts with the health care
products and if the person is interested, he starts encouraging them to join the
business.

This is the case study of Mrs.Vijaya Borkar:-

Mrs. Borkar is a house wife. She is an amway distributer from the last 5yrs.
She has two downlines under her. But at present she is not an active amway
business owner, she purchases amway products for personal use and she tries to
sell the products to relatives and friends

~ 68 ~
 SUCCESS STORIES

Jay and Hani Lee

Orangeburg, New York

Jay Lee was working at a store from 3 a.m. until 8 p.m. when he first saw the Am-
way business plan. He was looking for a way out of these kinds of long hours and
immediately saw the business as his opportunity to make a change.

Hani admits that they both felt like they didn't know what they were doing when
they first started. But they gradually began to achieve small successes and soon she
was able to stay home with her children.

Jay believes their success with Amway is largely due to a combination of their de-
sire and determination to succeed, mixed with a focused concentration on their
goals. He believes that anyone, especially Korean immigrants who come to Amer-
ica, could start a Amway business without restrictions or conditions. He also feels
that anyone who approaches this business with a desire to work hard can achieve
success.

Raj and Sangita Shah

Atlanta, Georgia

By setting small goals one at a time, Raj and Sangita have moved far beyond their
original vision for their Amway business. Their plan was to build a small business
that would allow Sangita to stay at home with their children. The Shahs now work
together full time on their Amway business and have the income to support their
family and more than 350 schoolchildren in India.

The couple feels blessed to provide education, food, clothes, and housing to chil-
dren in need while being able to spend quality time with their own children and
teach them through example. The Shahs look forward to a bright future with Am-
way but feel they are just getting started.

~ 69 ~
Michael Palmer

Toronto, Ontario

Michael plays football for the Canadian Football League’s Toronto Argonauts and
had just graduated from college with an honors philosophy degree when he was
first introduced to the business opportunity.

Michael finds that owning a Amway business has developed his character, not just
as a business owner, but also as a son, father, and friend.

He appreciates that developing a Amway business requires developing people,

which puts an emphasis on the quality of the relationships in one’s life.

Michael believes that this business can meet the needs of different people with dif-
ferent goals and dreams by giving them greater control of their time and finances.
His goals include improving the lives of inner city children through sports. Michael
believes that his Amway business will help make it possible for him to achieve that
dream.

*The following are approximate percentages of Direct Fulfillment IBOs of re-

cord in North America who achieved the illustrated levels of success in the cal-
endar year ending August 31, 2005: Diamond .0120%; Emerald .0320%; Q-12
Platinum .1683%.

**Based on an independent survey during 2001. “Active” means an IBO attempted

to make a retail sale, or presented the Independent Business Ownership Plan, or re-
ceived bonus money, or attended a company or IBO meeting in the year 2000.

“Gross Income” means the amount received from retail sales, minus the cost of
goods sold, plus the amount of Performance Bonus retained. There may be signi-
ficant business expenses, mostly discretionary, that may be greater in relation to in-
come in the first year of operation.

~ 70 ~
 Amway Inc. was created in 1999 by the families of Rich DeVos and the
late Jay Van Andel, founders of Amway Corp. and numerous other successful
ventures involving lodging and dining, sports entertainment, real estate, health,
and other business sectors.

Amway offered a new kind of web-based business opportunity to people intrigued

by the web and interested in a business of their own offering exclusive products.

In Amway's first seven years, Independent Business Owners (IBOs) generated

more than $6.8 billion in sales for Amway, plus more than $500 million for its
affiliated Partner Stores, earning in excess of $2.2 billion in bonuses and other
incentives. Their efforts have made Amway the number one online retailer in the
Health & Beauty category, and 22nd among all e-commerce sites, according to
Internet Retailer's "Top 500 Guide.”

Based near Grand Rapids, Michigan, Amway's nearly 900 employees support the
efforts of several hundred thousand IBOs in the U.S., Canada, Puerto Rico, and
various trust territories and independent island nations in the Pacific, Atlantic, and
Caribbean. Amway Canada Corp. headquarters are located in London, Ontario.

Amway - Subsidiary of Alticor

Amway is a subsidiary of Alticor, which reported sales of $7.1 billion for its 2007
performance year. Other Alticor subsidiaries include Amway, which operates
outside the U.S. in more than 80 countries and territories, and Access Business
Group, a manufacturing and logistics company. Alticor is headquartered in Ada,
Michigan, where nearly 4,000 employees operate out of more than a million
square feet of facilities.

Alticor's support to Amway includes research and development, manufacturing,

logistics, and more. Independent Business Owners powered by Amway also
benefit from access to international business development opportunities through
Alticor's global direct selling operations.

Jim Payne
Executive Vice President, Amway Inc.

Amway is a business opportunity company that offers entrepreneurs the ability to

have a web-based business of their own. Through Amway's Independent Business
Owner Compensation Plan, individuals are rewarded for product sales resulting
from their business-building efforts. Amway does not generate site traffic through

~ 71 ~
advertising, instead rewarding IBOs, who earned $370.1 million in bonuses and in-
centives in fiscal 2006.

The beauty of a business powered by Amway is that it allows one to be in business

for themselves, but not by themselves. Amway and other IBOs are there to help
and support IBOs every step of the way. In addition to the resources provided by
Amway, there may also be a proven training and motivation system available to
help IBOs learn from the success of others. This combination of support makes a
business powered by Amway unlike any other.

IBOs and Customers

Amway services the needs of both Independent Business Owners and customers.
IBOs build businesses that allow them to earn income based on sales made at
www.Amway.com resulting from their efforts. To launch an Amway-powered busi-
ness, individuals must register with an existing IBO.

Customers pay no fee to shop from a large selection of products and learn from ex-
pert advice on health, beauty, home care, and other topics. Products are shipped to
their homes and covered by Amway's Customer Satisfaction Guarantee. Customers
must register with the identification number of their servicing IBO. If a new regis-
trant does not have a servicing IBO, Amway will assign them one.

Personal Referrals
Unlike most other companies, Amway's sales are not the result of advertising. The
biggest chunk of Amway's marketing budget goes directly to rewarding IBOs for
sales volume resulting from their efforts. Those efforts include registration of new
IBOs, Members, and Clients, resulting in product sales. Amway's tiered compensa-
tion plan rewards the movement of product through an IBO's sales organization
and their ability to train others to create their own successful organizations.

When people visit Amway's site, it is the result of a personal referral by an IBO -
not as a result of some advertisement they saw on TV. Personal referrals have
proven to be much more effective. Only 8% of respondents in the Edelman 2005
Annual Trust Barometer study indicated that information obtained in advertising
was credible, while 42% trusted information obtained from family, friends, and
colleagues.

Buzz Marketing
Alticor pioneered buzz marketing through its person-to-person referral model.
Some companies spend millions on strategies intended to get people to spread the
word about their products. Through its Independent Business Ownership Plan, Am-

~ 72 ~
way does the same by rewarding IBOs for spreading the word about the business
opportunity and the exclusive products available through Amway. This is a much
targeted market spend, since IBOs are rewarded only when their efforts actually
result in product sales.

Business Systems
IBOs employ many different approaches to build their businesses, typically in-
volving training systems, motivational meetings and tools, and time-tested tactics
to approach people and interest them in the business opportunity and products.

When a person registers with Amway, it typically is the result of having been ap-
proached by an IBO already involved in one of several large organizations that
provide training and support to IBOs. Often, a new IBO also will choose to attend
optional and voluntary training sessions or purchase professional development ma-
terials provided by that organization - all covered by a money-back guarantee.

Independence
The beauty of Amway's business model is that there can be as many ways of pursu-
ing the business as there are IBOs. If you're into health, you can focus on Nutri-
lite supplements and XS Energy Drinks. Beauty? Try Artistry skin care and color
cosmetics products, and the new NAO never accept ordinary line of cosmetics.
Larger ticket items like the eSpring Water Purifier and Atmosphere Air Treatment
System are appealing to many retailing IBOs because of their larger margins.

Some IBOs focus more of their efforts on building large organizations of downline
IBOs who each will commit to smaller monthly sales volumes, knowing that Am-
way's compensation plan rewards both the movement of product by the IBO as
well as the movement of product by those he or she develops.

STARTING A BUSINESS
To start your own Amway Global business, you must sign a registration
contract with an existing IBO. The contract enables IBOs to earn income through
the Amway Global Independent Business Owner Compensation Plan and binds
IBOs to abide by the Amway Global Rules of Conduct in the Business Reference
Guide.

If you know an Independent Business Owner (IBO), you should discuss with him
or her how this business can help you achieve your personal goals. If you aren't
interested in working with a particular IBO, or don't know one and are interested
in being sponsored, let us know and we'll introduce you to an IBO near you. After

~ 73 ~
all, this is all about your life, your business, your way. Let us help you get started!

Back in the 1950s, Rich DeVos and Jay Van Andel were sales reps for a vitamin
company called Nutrilite. They envisioned an even better sales and marketing plan,
however, and created a little company called Amway to set it into motion. Working
with a core group of Independent Business Owners (IBOs), they provided a new
opportunity to people in the U.S., Canada, and, today, more than 3 million
entrepreneurs around the world. In 1999, Amway was launched to combine the
best aspects of Amway with the power and convenience of the internet. Three years
later it became the company’s exclusive opportunity in those markets. Now,
Amway North America is making a transition to the Amway Global brand to
leverage the power of the $6.8-billion business Rich and Jay built Back in the
1950s, Rich DeVos and Jay Van Andel were sales reps for a vitamin company
called Nutrilite. They envisioned an even better sales and marketing plan, however,
and created a little company called Amway to set it into motion. Working with a
core group of Independent Business Owners (IBOs), they provided a new
opportunity to people in the U.S., Canada, and, today, more than 3 million
entrepreneurs around the world. In 1999, Amway was launched to combine the
best aspects of Amway with the power and convenience combine the best aspects
of Amway with the power and convenience Back in the 1950s, Rich DeVos and Jay
Van Andel were sales reps for a vitamin company called Nutrilite. They envisioned
an even better sales and marketing plan, however, and created a little company
called Amway to set it into motion. Working with a core group of Independent
Business Owners (IBOs), they provided a new opportunity to people in the U.S.,
Canada, and, today, more than 3 million entrepreneurs around the world. In 1999,
Amway was launched to combine the best.

~ 74 ~
 CHAPTER 10

CONCLUSION

AMWAY IS A DIRECT SELLING COMPANY. THE MAIN OBJECTIVE OF

~ 75 ~
AMWAY IS TO PROFIT THEIR DISTRIBUTERS BY ELIMINATING THE
MIDDLEMEN AND PROVIDE THE PRODUCTS TO THE DISTRIBUTERS IN
A CHEAPER PRICE.

• AMWAY IS ONE OF THE LARGEST DIRECT SELLING COMPANY IN

THE WORLD.
• THE PRODUCTS ARE OF THE WORLD CLASS QUALITY. THEY ARE
MADE UP OF NATURAL THINGS THATS WHY ARE VERY GOOD
FOR THE HEALTH AND ENVIRONMENT.
• AMWAY COVERS A WIDE RANGE OF PRODUCTS FROM BEAUTY
CARE, HEALTH CARE, SKIN CARE, HOME CARE TO CLOTHING,
UTENCILES AND DAILY USE PRODUCTS ETC.
• THE PRODUCTS ARE COSTLY AS COMPARED TO OTHER
BRANDED PRODUCTS AVAILABLE IN MARKET, BUT IF WE
COMPARE THE QUANTITY WHILE USING THESE PRODUCTS
REQUIRE LESS AMOUNT AND THUS CAN BE USED FOR A LONGER
PERIOD.

~ 76 ~
CHAPTER 11

SUGGESTIONS

~ 77 ~
SUGGESTION
• TRAIL PACKS SHOULD BE USED.
• THE PRODUCTS SHOULD BE CHEAPER.
• THE HOME DELIVERY SYSTEM TAKES ATLEAST TWO DAYS TO
DELIVER THE PRODUCTS, THE DELIVERY SHOULD BE INSTANT.
• THERE MUST BE MULTIPLE OPTIONS FOR PURCHASING THE
PRODUCTS FOR DISTRIBUTERS LIKE ONLINE, TELE AND
INSTANT PURCHASING.
• IN EVERY CITY OFFICE SHOULD BE SITUATED IN SUCH A
LOCATION SO THAT IT IS IN REACH OF ALL THE DISTRIBUTERS.

~ 78 ~