Re: Amway
Geplaatst: 14 dec 2011 00:37
Kwam van de week een interessant artikeltje tegen over Amway (en Fortune Hi-Tech Marketing ofzo). Hierbij even enkele opvallende citaten:
Even proponents of multilevel marketing say the cases and probes underscore one of the growing problems in the industry: It can be very difficult, if not impossible, for most individuals to make a lot of money through the direct sale of products to consumers. And big money is what recruiters often allude to in their pitches.
"The problem so many have is their prices aren't competitive in the real world," says Lou Abbott, who works in multilevel marketing and owns the industry site MLM-TheWholeTruth.com
When it comes to detergent, Consumer Reports program manager Pat Slaven agrees [with the statement of Lou Abbott that the prices of MLM products are often not competitive]. She did blind testing of detergents last year and ranked versions of Amway's Legacy of Clean detergents [9th] and 18th of 20 detergents tested. She recommends against buying them because consumers can "go to the grocery store and get something that performs a whole lot better for a whole lot less money." The highly concentrated Amway brands cost 23 cents and 28 cents a load, respectively. Five of the eight recommended brands cost less.
A 31-day supply of Amway's Nutrilite Double X multivitamins is $75. Supplement retailer GNC's most comparable product, Ultra Mega Green multivitamins, cost $40 for a 60-day supply.
Nou in het geval van hun wasmiddel dus niet, volgens de Amerikaanse consumentenbond..Amway North American managing director Steve Lieberman says, "The quality of our products (is) reflected in our pricing."
Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing, says it's little surprise Amway's big growth is now outside of the U.S. He says the "direct selling" in multilevel marketing is needed in countries with "primitive distribution systems and limited choices in retail stores," but its potential is "seriously limited" here.
Hmm, ik dacht dat als je je maar voldoende inzette, dat je dan rijk zou worden :SWittlich says he worked day and night on his Amway business and never made a profit. "Active" Amway distributors earn an average of just $115 a month, according to Amway's latest disclosure statement. Just a quarter of 1% (0.26%) make more than $40,000 a year, which Amway attributes to the fact many work part time. Active distributors, which describes about 60% of Amways's 600,000 North American distributors, get at least one bonus check, attempt to make one sale or attend one meeting a year.
"You'd be hard-pressed to find anyone making over $1.50 an hour," Whitsell says of multilevel marketing. "The primary product is opportunity. The strongest, most powerful motivational force today is false hope."
Oh, ik dacht alleen simpele zielen zoals wij (die nog nooit geMLMd hebben en er niets van snappen en er ook nooit iets van zĂșllen begrijpen) zulke rare associaties maakten..[...]Gerry Nehra, a Michigan attorney representing multilevel marketing companies and former director of the legal division of Amway from 1982-91: [...] would not comment on Amway specifically, [but] says that when selling training materials becomes the focus, the business becomes "overly dependent" on recruiting more representatives, which raises questions about whether a company is a pyramid scheme.
28 jaar verkoopervaring; 1 klant gevonden in een heel jaar. Zou er dan toch iets mis zijn met de producten?Jack Tucker of Knoxville, Tenn., who spent 28 years in wholesale sales, says the products simply weren't priced competitively enough to sell. He could only find one customer willing to pay for Amway's products in the year he was an IBO in the late 1990s.
Oeps.He earned $4 in commissions on the sale of a concrete cleaner to a friend, yet spent nearly $800 on trips, one or two training tapes a week, meetings and products.
[...]Amway broke the law by telling people they could "significantly supplement their incomes, or even become rich and retire" when about 99% of distributors lost "significant savings" because they had to buy so many training materials as well as the company's own products.
Wittlich says Amway IBOs were expected to buy products added to the catalog, even if they didn't need them. When he shopped outside the company to get lower prices, Wittlich says, his sponsor would remind him he'd never succeed that way. Besides, he says, it was so hard to sell products to others to get his "meager" bonus each month, he had to "hyper consume" them. "They would use all different kinds of things, like telling you about your kids' future being at stake," he says. "We were spending money we couldn't afford to spend."