Is there really a 30% savings?



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Is there really a 30% savings?

1Summary


"It makes sense to be involved in a small way. Just one of the first examples using 4,000 different products at wholesale prices. You're gonna save money for gosh sakes....Internal studies have shown that families could save even up to $3,000 and $4,000/year just by buying products from themselves." Double Diamond-Greg Duncan-tape: "EDC Attitude" RP419

"One more thing, Amway exists to MAKE money, not SAVE it. If you want to save money go to Costco and clip your coupons out of the paper." Site Visitor IBO

"...there was no savings and we ended up spending more." Former IBO

You may have been told that at the heart of the AmQuix Plan is that signing on as an IBO you will save 30% "buying consumables from your own store". Is this statement true? Reading the evidence below you may realize that saving 30% is one of the misconceptions perpetrated in the presentation of the plan. Saving 30% would appear to be mathematically impossible through the AmQuix distribution process. Practical purchasing habits seem to confirm the truth: you do not save 30% on a diversified basket of goods.

This page explains in detail the claims of savings, as well as the business and economic reasons why there cannot be such savings in the AmQuix distribution system. The page compares competitor's overhead structures with AmQuix's. It also analyzes the sales growth rates of Amway to competitors to show how the market has "voted" on whose system is better.

"I talk about saving money, and making money. Two parts of the program. One is to save a bunch of money on things that you normally spend money on...." Diamond Distributor - one time head of the ADA Ethics Committee - Billy Florence - Tape: "Building Your Network With Posture" DBR434


"I'm sure if you don't want the big business, you'd be interested in being involved at least in the small way wouldn't you? Be able to save $1,500-$2,500/year in savings because you are a distributor." "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business" RP681

"Q: Whenever you buy from yourself, through Amway, can you save 30% over Wal-Mart, Phar-more?'..."A: Yes, some might be a little more, some will be less.... But on average 30%" Emerald Distributor - Jamie Nettles - Open Meeting

"There is no catalog business in America that can touch our catalog business. And, Amway has already done the research for us and if you are an IBO, you are going to save over 90% on every item in that catalog over what you could buy it in a department store, at wholesale." Triple Diamond-Run Puryear- Tape: "Triple Triples 1999 FED" RP-846

"For eleven bucks, a family of four can save somewhere around five to ten thousand dollars per year, because two pennies saved is one penny earned." Triple Diamond - Ron Puryear - Tape:RP889

Do your own price study to see if these high level distributors are indeed telling the truth.


2All the Details about saving 30%

"Products sold through multilevel marketing programs are historically priced higher than retail store brands. Most MLMs recognize that they will not be able to compete on a price basis with mass production and merchandising machines like the Proctor & Gamble and Walmarts of the world. Therefore, MLMs tend to focus on niche markets by producing and selling higher quality products than the mass merchandisers offer. In addition, although MLMs do not have the high advertising costs associated with mass marketing, there are many layers of commission which are paid on the sale of each product. These two factors tend to drive up the price of goods sold by MLMs.


Although MLM's production and commission expenses are higher than those of mass marketed goods, MLMs must not ignore the realities of supply and demand if they are going to compete for legitimate retail sales. To reasonably attract customers, competitive pricing is essential. In order to advance retail sales, companies must price their products competitively with other goods competing for the same niche. Thus, for example, if a company positions a product as a high-end hair care system, it should at a minimum be priced competitively with similar high end salon and designer products. " The Personal Consumption Dilemma Messages from Webster v. Omnitition MLM Law Library

Distributors routinely detail how the AmQuix distribution system is a direct conduit from hundreds of Fortune 500 companies to the consumers. This "direct conduit" supposedly cuts out several layers of middlemen's costs making the products cheaper for you. Saving money, by cutting out the middleman, implies a competitive advantage and a reason why the business would function for you. The following are examples these claims.



So where does the money come from? Good question! It comes from "Direct Distribution" of products and services.

Direct Distribution simply means getting products directly from the manufacturer to the consumer. By eliminating the middleman (like trucks, warehouses, loading docks, wholesalers, and retail stores) you can eliminate a large percentage of the cost of the product.

For example, here is an illustration of traditional distribution. If you shop at a store, you are paying for each of these steps in the distribution chain

When you think about it, you're paying a lot of money for a product when you purchase it at the store. On average, a manufacturer's cost to produce a product is only 20%. This means for something that you pay $19.95 at a store, the cost to make it could have been around $3.99. The middlemen could have added as much as $15.96 to the cost of the product! And you pay for it!

The most costly part of a retail product is the distribution. In the above example, there are four middlemen between the manufacturer and the consumer. So, the products sit on trucks and in warehouses and YOU pay for it! What could happen if the manufacturers could just send the products directly to the consumer? Let's take a look....


By eliminating the middlemen, a large portion of the cost of a product is saved! That's a lot of money -- and if you're an IBO in the Quixtar business, it's where your profit comes from!

In short, by removing the wasted time and cost in distribution, you can have a profitable business and save your customers money and time. Quixtar has streamlined this process so consumers can make purchases and have the products shipped to their door!

 

This following comes from the World Wide Group's Private Franchising Review.

"Page 1: Define Private Franchising with several of its benefits.



  • Explain the traditional distribution process, in which 65-70% of the retail price is consumed, versus the simplicity of short-cutting distribution. Nuts and Bolts Video RV-17

  • The current marketing trend is to create a shortcut between manufacturers and consumers, thereby increasing profits. Warehouse Clubs and Online Services are capitalizing on this trend, but are missing some important ingredients that put high-touch into high-tech. Our Private Franchising group uses two sister corporations with 600+ manufacturer relationships, merchant partners, and billions of dollars of in place, paid-for warehousing and support infrastructure. Most importantly, Private Franchising offers personalized service to clients via motivated independent business owners." Private Franchising Review Instruction (notice how they don't say the sister corps. are Amway and Quixtar)

.we have no overhead...it is pure profit for us Ron Puryear - Nuts and Bolts Video RV-17


Other promotion materials, such as the DST104 brochure, show diagrams like this of the "traditional distribution model".



The promotional material states that only 20% of the retail price goes to the manufacturer and 80% of the retail price goes to the various steps in the distribution chain. This implies a 400% markup from the manufacturer.





Because AmQuix has supposedly eliminated many of the middlemen's costs, you could "save 30% by changing your buying habits" to their "leaner", more efficient distribution system. Show your friends how to save money and grow your business at the same time. One is made to believe this better distribution method is AmQuix's primary competitive advantage. It is the reason you could be successful in the business. After all, what sense would it make for an amateur salesman to try to compete against the Wal-Marts of the world with a more expensive product line?

Coincidentally, the lean AmQuix "buy direct from the manufacturer's" system looks just like the Wal-Mart and Costco models. From these companies Annual Reports, the manufacturers are paid 77% of the sales at Wal-Mart, and 85% of sales at Costco 85%. Wal-Mart works on 23% of the gross sales. Costco works on 15% of sales. This is only 30% markup at Wal-Mart, and 18% at Costco. This is a fraction of the 285%-400% markup claimed in the IBO's promotional literature.

The AmQuix distribution model still has the several layers of middlemen. They are upline distributors. They do not touch the product but they still get a cut of the revenue.


The Quixtar model has even more layers of costs. The partner stores add yet another link in the distribution chain. The Diamonds, Emeralds, Platinums, and Quixtar do not touch the product but they still get a cut of the revenue.



Top distributors admit that Amway hasn't eliminated all the middle-men in the distribution chain. That is why the profitability on non-Amway produced items is significantly lower than Amway items.



"...and I look at the Personal Shoppers catalog as one of those of those, uh, products that I consider gravy. They don't have full BV and PV. They got about 1/3 to 1/4th. Why? Because Amway doesn't manufacture them. Ok. Someone else does. Ok, but, Amway does inventory them. they buy in huge quantities and inventory....But still there was a third party between us and Amway" Triple Diamond-Ron Puryear-Video: "Nuts & Bolts" RP-17V

A Quixtar press release reported that distributors received $143 million in bonuses on $443 million in sales for fiscal year 2000. Bonuses calculate to be 32% of Quixtar sales, and 27.6% when Partner Store sales are included. This pushes total expenses well over 32% of sales, when Quixtar Corporation's overhead expenses are factored in. AmQuix has at least a 47% markup versus 30% at Wal-Mart and 18% at Costco. For IBO retail customers there is an average 26% retail markup. 26% assumes 80% core line products were sold with a 30% retail sales markup, and 20% catalog items were sold with a12% markup.


"...and they all have individual overheads. And, they all have markups to recover their individual overhead and make a fair profit. And if you add them all up on basic commodities all their overhead and their profit margins, it comes to about 65% of the retail value of the product. So 35% of the brand-x is made up of manufacturing and advertising. 65% of it is made up in marketing ." "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business" RP681

Data available from the Amway Asia Pacific (AAP) Annual report, reveals that AAP spent an additional 72% of the cost of goods sold, not including distributor incentives, to run its business. Including distributor incentives, Amway Asia Pacific marked up its cost of goods sold 130%. Amway Japan. had a markup of 201% over the manufacturers cost. In both annual reports, each company was listed as a "distribution company". This comparison assumes products are purchased at wholesale from Amway manufacturing plants and other suppliers. Either the transfer pricing between Amway and its sister companies was unrealistically low, or the sister companies were terribly inefficient when compared to US distribution systems. For calculations, which follow, I assume Quixtar only takes 4% of manufacturing cost as its overhead. Four percent is most likely a very low estimate, based upon the Amway Asian Sister companies overhead structures.


The chart below shows the costs associated with various companies distributing goods. Each distribution company is assumed to have the same costs from manufacturers, less manufacturer's advertising costs. Quixtar uses its own private label goods containing no advertising costs. Consequently, in this analysis each of the Quixtar competitors are burdened the cost for manufacturer's advertising and promotion at 9.7% of manufacturer's cost. P&G spends about 9.7% of sales on advertising and promotion



"What method of distribution is better?" "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business"


"It has to be able to compete in the market place, or it is just a wonderful idea....We don't have to advertise. We don't have to spend the millions and millions on advertising every year that our competitors do. So what we'll do with that savings in advertising, we'll pass that on to the end consumer so we will have an advantage over brand x.. in cost ." "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business"

From the chart above, the Quixtar method is more costly than wholesale clubs, slightly more costly than discount stores and almost on par with higher end retailers, assuming they only have 4% of manufacturing cost as overhead expense. The cost disadvantage at Quixtar retail pricing probably explains why there are so few retail sales by IBOs.

The Quixtar wholesale method does indeed take money spent on direct advertising and store overhead and pays it out as bonuses to IBOs. However, we must not forget that the typical "IBO store" has expenses. The chart below compares various competitor's overhead costs to that of an "IBO store". The "IBO store" used here is for a married couple with 158PV per month, or $4,266/year of personal volume.


The problem here is that the IBO's fixed costs are spread out over a small sales base, unlike the competition. The charts show how it is more expensive to distribute goods with "IBO stores" than with Wal-Mart or Costco. The chart below compares the "IBO Store" expenses to the total bonuses generated for the group at various levels of personal PV.



In general, IBOs will not breakeven on average until personal sales (BV) exceed expenses by three to four times. This would be equal to about two times PV. In the case of married couples, they would need about 300PV per month of sales to breakeven on average



"They either lose their shirts or begin making money by getting enough people underneath to do the same." Don Gregory, former speechwriter for Amway founder Jay Van Andel Forbes March 25, 1985

Personal sales is defined as personal consumption plus sales of inactive, non-building personally sponsored IBOs and member/client purchases. Calculations show it is likely that the average sales per IBO does not even exceed 65 PV/month. Like in any business, those businesses with lower costs will have lower breakeven points. In most cases, a 65PV IBO with two personal inactive 65PV IBO/members still does not generate enough bonuses for the group to cover their own costs, let alone be compensated for any of their time.



"One must turn outside the world of business - to religion and politics - to find people who work as hard for as little financial reward as most Amway people do." Forbes Magazine Dec 9, 1991

"We have created a marketing business that is so efficient ...", "Network Marketing is the most focused, most efficient way to market, that you will ever run into in your entire life." Double Diamond-Greg Duncan-tape: "EDC Attitude" RP419

I believe the best ways to compare who is more efficient at distribution are:


  1. Compare the prices from each system. The one with the lower prices is more efficient.

  2. Compare sales growth. The one with faster sales growth is more popular with consumers and more efficient for them.

It appears Wal-Mart has been tens of times more successful executing the "lean" distribution model than AmQuix, despite Wal-Mart being three years younger. On the chart below, the Amway scale is 1/25th that of the Wal-Mart scale.

Sales figures in Millions of Dollars US

The Amway data also include sales from 53 foreign markets, reported by USA Today to be 70% of 1998 sales. Wal-Mart has only a small overseas presence. Most US distributors will not have the opportunity to directly benefit from overseas expansion.

"Savings of 30%" was the most seductive line used to interest others and me in the business. If AmQuix had savings of 30% over other competitors it would be a huge competitive advantage for the business. The 30% savings could make it into the next Wal-Mart of retailing. The faster sales can grow, the faster people could become financially independent from this business.

I found I would not reduce my expenditures 30% over discount stores. My research showed I would have actually spent 40% more buying a diversified basket of commodities at Amway wholesale prices. Many site visitors admit that they were attracted to the business by the potential of saving money. Their TL244 brochure clearly highlights the savings potential, amounting to 56% over current brands in stores.

"... The average single consumer spends $4,973/year for catalog items that could be obtained from Amway; a household of four spends $11,574/year. The potential savings range from $2,785/year to $6,481/year, respectively." Distributor Cost Comparison Survey & Analysis-Internet Services Corp. TL244

My observations and research reveal a few Amway brand products, mostly cleaning supplies, which have true per-use savings over brands at discount stores. My study at discount stores showed four out of five Amway catalog products were more expensive on a per unit/use basis. Those fewer, cheaper items alone will not have enough consistent usage to make even a fraction of the100PV/month plan goal. This means you will need to sell to friends or buy other items with a higher cost per use, in order to push you over the 100PV plan goal. This can cause you to spend more than you would have, if you were not in the business. You can save 30%-56% with the AmQuix generic brands if you intentionally seek out the most expensive name brand in the smallest package, at the highest cost retailer in your town. You might have discovered house brands at your favorite stores. Most likely AmQuix will not be competitive with those.


"Then I decided to make a purchase through Quixtar just to see how it worked. I couldn't believe the prices. I thought I'd buy cat litter--something we always need. We pay $5.50 for 14lbs (.39/lb) of a name brand cat litter. On Quixtar it was $22.50 for 30 lbs (.75/lb). Shampoo, toilet paper, food--everything was the same." New IBO - Site Visitor

"Amway has always relied on its sales reps to use personal relationships to pitch its proprietary merchandise, whose high prices can require a hard sell." Fortune Magazine 3/20/00

Many people love the Amway cleaning products, cosmetics, vitamins, and direct home delivery. Many website visitors praise the Amway core products and Amway's excellent product warranties. Many don't mind paying for the "premium" products or waiting for delivery.



"I liked the idea of getting my products delivered to my house without the hassle of normal shopping." IBO site visitor

These types of people should be sought out to be your core customers. However, these people will be a small fraction of the population. People on a budget will not be good prospects. The products fill a niche market. Saturation of this niche market can be determined if sales growth is slowing or sales are declining.

Most consumers on a budget will settle for immediate availability of cheaper, competing brands at a discount store. Consumers can drop by the discount store on the trip to the grocery to pick up perishable items, which AmQuix does not sell. Many discount stores are also now on-line, giving the consumer the ability to get convenient home delivery. Amway is a niche player in retailing whose largest, most dedicated consumer base is its own constantly rotating distributor force buying their way to the next sales level.

"I still think the Amway products are good--though overpriced. I did 1000 PV on personal buying alone. I hate to think how much it cost me!"


"We were not genuinely 2500 points as the innocent people in the audience would naturally assume. We simply "purchased" that pin."

"I got caught in THE DREAM and spent myself silly" IBO Site Visitors

All businesses need a competitive niche enabling them to grow. AmQuix's competition in retailing are all the various retailers in the market. If you were to ask your sponsor what the competitive advantage of the business is, how would he respond? Low prices? Ease of shopping? Great warranties? Great products? The ability to make money off those you recruit?



"Online shopping doesn't always mean the lowest prices in town"...."Listen, Quixtar products may seem overpriced, some are I agree." IBO site visitor

"You see, what do really you see it as? What this crazy business is.....it's Hope." Diamond Distributor - Randy Haugen - Tape: "This is Amway" DBR 932

I believe the main competitive advantage of AmQuix is that it is the worlds largest pyramided, commissioned based referral buying club. Its participants have the opportunity to earn money from the purchases of people they refer to the club. The monies for the performance bonuses come not only from the savings in various parts of the distribution chain, such as store overhead, and direct advertising, but also from the higher prices the club members pay themselves for their own goods.


"You stress the issue of the prices of Amway and Quixtar prices. That tells me right there why you could not make it. You see while many will tell you that is it is a business and not coupon clipping etc.: that is not the whole story because if you would have got of your butt sponsored at least to active legs (not people who sit home and watch TV ) you would have been running at least 3% and up more than your group which in return would give you a check back at the end of the month for more than what you had paid out. You cannot buy cheaper than at Wal-Mart" IBO Site Visitor

The AQMOs have heard many times over the complaints from their distributors about product prices.


"I truly want to find a way to help people out of their financial problems and so do my sponsors. It always comes back to how expensive the products are." IBO Site Visitor

If you can find recruits with money and you can convince new recruits it is in their best interest to buy higher priced, premium products, you will be more successful than other distributors. Successful distributors have developed strategies to combat this standard objection to higher prices. They even sell tapes to teach their strategies.



"If it (a product) was a dollar more, that's an investment in my future...How many 50 cent coupons is it gonna take to put your kids through the college of their choice... You're not doing this business to save money. You're doing this business to make money that you can save...If you want to go to Sam's, go... This is a business first" "Emerald Distributor" - BoShort - Tape: "How to Handle Objections"

"If you owned a Ford Dealership would you let your wife drive a Chevy around town? But she says "honey I love Chevy's". I don't care whether you love Chevy's or not. Chevy's won't bring you home from work. Chevy's won't pay the bills. Chevy's aren't going to send our kids to private schools. Chevy's aren't going to take care of you and me in our old age. Chevy's aren't going to send us around on that world trip we want to go on. Chevy's aren't going to build our new home. So I don't care whether you like Chevy's or not. You are not going to embarrass me...and drive Chevy's when I own a Ford dealership. "Well the kids, they don't like Fords." I don't care whether the kids like Fords or not. What's that got to do with anything." "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business"

"I keep being told "It is a business to make money, not to save it." IBO Site Visitor

"If you give your money to the competition, it doesn't make any sense. Why would you want to give your money Sears or Penny when you have a company that provides you 5000 products and services? Does it make any sense to anybody that you wold give retail money to the competition? Of course not." Executive Diamond Louie Carrillo - tape: "Forks in the Road" DBR767 (Mr. Carrillo uses AOL instead of Quixnet.net)


"The guy says "well to him it (high prices) makes a whole lot of difference". "Why would I buy a bar of soap of $10, when I can buy it for 50 cents". If you understand that 68% of every dollar you and I send to Amway is available in bonuses, who cares! It is all a percentage anyway. Do you realize that if we all paid $10 for a bar of soap we would make more money?" Diamond Distributor Kenny Stewart - Tape: "Develop a Plan of Action" DBR677A (Quixtar reported year 2000 bonus pay outs of $143 million on sales of $518 million, or 27.6% of every dollar Quixtar claimed in sales.)

"Q/A: "Q: What answer do you give to someone that tells you the products in the catalog are too expensive? A: I don't know. Tell them "I think they are expensive too" Stay focused on what you have to do to build this business. You can't control the prices.....if they lowered the prices tomorrow you would not be rich....You're the key. Not Amway. Not the product. Not the prices. Not the catalog." Dimaond - Doug Wead - Tape: "Questions for Doug Wead" PN2077

Distributors routinely say that they won't get rich "saving money at Costco or Wal-Mart". This tells me that they accepted the fact they are paying more for goods to participate in the pyramiding characteristics of the club's compensation plan. This is the last ditch argument to justify higher prices and initiate brand loyalty. Retail selling of the products is difficult since retail customers will be price sensitive. They have no psychological bond to "buy from their own store". This is why actual retail sales are so low. As you will read later, the AQMOs also provide a powerful life experience solidifying their brand loyalty, and indifference to higher prices. Irrational spending to earn points in order to achieve the next sales level is common in the business.


"My upline platinum, who I thought was my friend took the liberty of ordering $300 worth of coffee for me to put me over 1000 PV." Quixtar IBO


"They noticed we weren't making any purchases on Quixtar ditto delivery so they came over and got on our computer and pushed us into buying $25.00 worth of toilet paper (48 rolls)."

"Once I tried to get my free box of Double X (Amway brand vitamins) after purchasing 10 (on a promotion). My upline was who I had to go through to get this to happen. At any rate they talked me out of requesting my free box because it would take away PV and BV(points)."

"I remember hearing on some tapes that some Diamonds would go into others bathrooms (if they were doing a meeting in the home for that particular person they were supposedly helping) and made sure that all items were from Amway and if they were not they would empty them in the sink etc."

"Jody Victor (diamond distributor) said a few things that will always stick in my mind forever. He said "Do you think we buy the toothpaste because of the taste, NO BECAUSE OF PV!"

"I was also struck by what the speaker before Jerry Bogus said, that when he got involved in the business he threw out all of his wife's personal items (make-up, soap, shampoo, etc...) because they were negative products (not Amway) and bought it all from Amway."

"Sometimes, like many hard-core IBOs, we would use the stuff full strength (concentrated items), just to use it up so we could buy more and up our PV/BV."

"I've got some big-ticket items from my days as a core distributor and reaching for pins. A Clear-trak vacuum, Queen cookware, Artistry sample case ($400 bucks for makeup samples...ouch). etc. I wonder if I put up the Cleartrak for auction on Ebay, listed as an "Amway Cleartrak", would I be allowed to sell it?" IBO Site Visitors

In support of IBOs, some have noted that despite the higher prices at Quixtar, they have saved money since their impulse buying has been cut down. Shopping with the kids can be an expensive proposition according to some site visitors.

At functions, brand loyal distributors are singled out and rewarded if they can stay standing during their "questioning secessions".


"....our upline had a little habit of checking our orders each month not to mention the trick they liked to use at meetings of having everyone stand up and listen to a product list. As soon as you heard one that you weren't wearing, hadn't used or taken that day, you had to sit down and endure the knowing snickers and smug looks from everyone still fortunate enough to still be standing. The person or couple still standing at the end of the list usually got the privilege of going out to eat with the upline at dinner break. This little tactic was usually employed at Seminar/Rally when there would be plenty of people to witness your disloyalty." Former IBO

"People would question every piece of clothing, food, personal care items, pens, paper. Anything that you might be using would be questioned if it has been BOUGHT FROM THE BUSINESS" Web Bulletin Board

Do your own price study for what you would buy!

"...you're still gonna save money.....If you don't believe that what are you doing in the Amway business?" "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business"

Common business sense dictates that if consumers could actually save 30% by shopping with AmQuix there would be no reason for an almost 50% annual distributor drop out rate, and a 27% drop in sales in three years. Rational consumers don't leave great deals behind. Good deals would immediately cement brand loyalty. The "Market" is not stupid.



"If that were true (30% savings), human nature's natural course would have already lead to the majority of the population joining up."

"If people were NOT losing money, at least three levels down, the business would have exploded and saturated the world years ago." - IBO site visitors

"We were product loyal as far as we could be but I have to tell you as a certified Coupon Queen and Wal-Mart aficionado it killed me to pay $6 to $8 per bottle for shampoo that I didn't particularly like and which certainly did not work any better than the brands I could buy at Wal-Mart for .99 to $1.58. I also liked those negative brands better. " Former IBO

AmQuix brand loyalty is based on the distant possibility of earning money from the pyramiding characteristics of the business. If prices were more competitive there would be a lot less turnover in the business. If prices were lower there would also be a lot less money available to support the pyramided commission schedule. This is the AmQuix price paradox.

If Amway had "a better or more popular mouse trap", why hasn't the marketplace embraced it more?


"If this business is so great then it would be in a top financial magazine." Site Visitor

"...the problem is volume. But you (Amway) really need to grow in a significant way". Paul Zane Pilzer Economist - Author "Unlimited Wealth" - Cassette Tape "Economic Paradigms"

At no time has Wal-Mart suffered a sales revenue decline. Amway has had three sales declines in the last 17 years, two of them in the last three years. If their savings claim were true, it should be easier for such a small company like Amway/Alticor to grow faster on a percentage basis than a large behemoth like Wal-Mart.



In sizing up a MLM opportunity, what do we need to know about the company itself?

"Look at the sales history: Is the company in rapid growth, or has it reached a plateau?"

Charles W. King, Professor of Marketing at the University of Illinois at Chicago, Doctorate business administration - Harvard University - Multi-Level-Marketing spokesman/advocate





"...I wished I saw your site a little sooner before going into Quixtar. I wasn't in it to make any money. I just wanted a wholesale price on items and if some of my family and friends decided to buy from me, great. I've found that not only are the products not saving 30 percent, but they're almost double what I would pay at Costco. I would slam my sponsor but I figure she's just gullible and is preaching only what she hears." Site Visitor - Hawaii

"My wife and I joined COSTCO last week and I thought she was going to start beating me in the aisle for getting us involved in Amway." WWDB Direct Distributor - Site Visitor

"If the Dream is Big Enough the Prices Don't Count" Former Amway Direct Distributor


"I have saved SO MUCH MONEY on everything since we stopped buying the Amway products."

"We save so much money now that we no longer buy from our business!" Former Distributors

"You'll never show the program to anybody who understands it, who will not get involved if nothing else than to buy wholesale....Anybody that tells you they understand it, and don't get involved, don't understand it. Diamond Distributor - one time head of the ADA Ethics Committee - Billy Florence - Tape: "Building Your Network With Posture" DBR434

Common sense analysis of some numbers and your own price study will tell you that what they are claiming about savings is most likely not possible in today's competitive US market place. Any business with valuable products or services will see their market share grow over time, not shrink.



"the facts are that there is less percentage of people involved in the Amway business today in North America, in the North American market, which is the US and Canada, which is all there was when I started. That is the only market there was. But there is less percentage in that market today than there was when I started 24 years ago. " "Triple-Diamond" - Ron Puryear - Tape: "Basics of the Business"

"If you want to be rich, you've got to read and understand numbers." Robert Kiyosaki - author of the book "Rich Dad, Poor Dad"




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