Does The Amway Network Marketing Business Model Actually Work?

The Amway network marketing business opportunity is one of the oldest MLM corporations in history serving its customers and members for over fifty years. Founded in 1959, Amway has watched annual sales of almost US$8.4 bn. and has repeated on to have a great level of success. Amway has grown to be one of the biggest MLM opportunities in the world and operates in more than 80 different countries. This company has created multiple millionaires by representatives working tirelessly to reach this status creating 6 figure incomes every single month. There are always major earners in each field of business although how practical will it be for you to turn into a top earner inside this company or ultimately will it be simply a waste of your time?

Amway products consist of healthy vitamins, supplements, high energy juices, beauty and body products like make up, body lotions for example. Amway has such a wide range of selling items that you can even find goods like cooking pots, vehicle & home cleaning liquids and even jewellery for sell as well. In total Amway offers around 450 products. Reps have such a abundant list of stock items it should not be difficult to sell things even if people are just browsing. Price ranges depend on what products are sold of which representatives make good commissions. In 1999, Amway partnered up with a company called Quixtar which form part of the Alticor Group who then developed the Amway network marketing model.

Amway has around ten thousand workers and nearly 3 million Independent entrepreneurs ( IBOs ) worldwide. The determination to stay as the top direct selling company makes Amway stand out from other MLM corporations.

The Amway network marketing opportunity works in a similar way to most other MLM corporations now available, sell x amount of the product, recruit x amount of distributors and your financial independence is handed to you, sounds terribly simple and easy. The marketing strategies encouraged by Amway are to sell and recruit those from your direct warm market i.e. friends, family, neighbours for example. This is an established method by plenty of network marketers that has produced great results. There are however some major difficulties that come with this marketing method for some members. Network marketing is a people business which needs other entrepreneurial folks to join your down line. If you already have focused, determined people within your warm market then you should find it quite a simple process to sign them up, if you don’t have these types you will need to hunt for these few and far between individuals which can prove very exhausting and unrewarding.

The Amway network marketing opportunity has had skeptics watching every move made by the company and was eventually in a position to take Amway to court on allegations of illegal pyramid practice. The prosecution were never able to prove this charge so Amway continued with business as normal. With many businesses of this nature there are always folks who don’t understand this industry and are quick to jump to conclusions wasting peoples time and money in the process. Network marketing is nothing like a pyramid, an important factor to remember is pyramid schemes hardly ever have a product connected with the business, instead just cash is paid in with the hope that you receive it back plus twenty percent for example. Amway operates in a completely different way and has over 450 products of which repss sell to consumers to make an income.

The Amway network marketing business model does have the capability to create your financial independence however as discussed above marketing this business can prove a lot more harder than it sounds. Inside my personal mlm company It took me some time to understand speaking to folks like my neighbor who had no interest in becoming an entrepreneur at all was a complete waste of my time. I hated the sheer amount of refusal that I faced not to mention the amount of money I wasted on calls, petrol, hotel suites, leaflets etc.

Some Amway marketing pros have become dependent on internet marketing allowing them to open doors that they had never done before. Network marketers are always taught warm market methods with the basic fundamental being folks may join your team because they know, like and trust you, put any decent business model in front of them and there is a possibility of them joining solely due to you. Working on the net is a much colder market however using personal branding (attraction marketing) strategies like creating blogs and lead squeeze pages is a good way for prospects from all over the world to learn more about you and what it is you do so turning a relatively cold market into warm.

Internet marketing has allowed Amway reps to generate 50+ leads each day virtually on autopilot which is great. This solution to selling has had amazing results worldwide creating millionaires in the process and could help practically anybody in the world have better success within any MLM company including your Amway network marketing business.

The 10 Fundamentals of Direct Sales

Network marketing is sometimes misunderstood, mistrusted and treated with disdain, and it is of course all a matter of perspective and individual opinion, plus an understanding and education in why it makes such a popular choice for people wishing to start their own business from home.

As with anything there are good companies and there are of course bad ones whether you are on-line or not. The general advice for anyone seeking to place money into any home based business, whether it is on-line or off-line is to carry out their own due diligence and investigate everything as thoroughly as possible, seeking personal recommendation wherever possible and taking a business training course before you start. This will not only save you a lot of money, but will help avoid a lot of heartache, disappointment and mistakes that often lead to the high drop out rate in both network marketing ventures and failures in business start ups.

People are mistakenly told that there is no selling involved with some companies; they are simply told they refer the products and services to friends and families and hand out a DVD for prospective distributors who may be interested in joining the company in the near future.

Whether you are Richard Branson offering tickets to airline passengers, or a market stall holder offering second hand books, make no mistake every business owner of any kind is in the Direct Sales industry.

Networking in Direct Sales creates the opportunity for very large incomes, which is why so many already successful business people are joining the industry. The vast majority of net workers are looking to earn a few hundred dollars a month to increase their lifestyle. With patience and practise most people can succeed because you work with a set system at your own speed, just like owning a franchise.

In order to learn how to succeed in Direct Sales, the ten fundamentals you will need to cover are as follows:-

  1. Creating a focussed motivation, sometimes referred to as your why, this has to be something that you have written down as your goal, something that will be your driving force when you inevitably hit the obstacles that will come your way.
  2. Develop your character continuously; it was Jim Rohn who famously said work harder on yourself than you do on your business. Personal development is also number one on the list of his best selling book Pillars of Success.
  3. Manage your new career effectively, there will be a huge learning curve required as you learn new skills, but remember that you are effectively changing a career and it will need to be managed just as effectively as if it were a job.
  4. Retail your products and services consistently; there are many new ways open to small business owners since the Internet opened our audience up to global customers. Make sure you have a detailed marketing plan to follow consistently to raise awareness of your products and services.
  5. Recruit consistently, without this vital element your residual income is likely to fall short of your goal and acknowledge that the real power of the business model lies in duplication.
  6. Coach your team members until they are independent and are able to coach others, this can and does go dramatically wrong for many people who find they have joined someone who can sell product but has no people skills, patience or understanding for his or her team members.
  7. Recognise individual success, no matter how small, someones first lead will be a huge occasion for that person, celebrate with them to build momentum.
  8. Attend events with enthusiasm and make sure your team enjoys the atmosphere, even if it just the weekly team talk, have fun, be inspiring, learn new ideas and move forward each week.
  9. Communicate well with your team stars, the leaders of tomorrow will always stand out from day one and you should recognise the potential in them. If you do not nurture your stars, do not expect them to shine.
  10. Create team spirit, this sounds easier on the surface than it is in reality as you will be dealing with lots of different types of personalities, circumstances, mindsets and skill sets. If you can utilise all those factors into creating a working team, phenomenal success will be yours.

3.5 Ways to Jump Start Your Direct Sales Business

Are just starting your direct sales business as an independent representative?

As a new business owner how would you like to make $50, $100 or more than $500 dollars in sales right out of the gate? Sound good?

All right listen up. I am going to show you how to make the big sell’s with ease. These methods will work in any Direct Selling program.

Step #1. Make a list of friends and acquaintances that live within 10 to 15 minutes from your home. Your list should be no less than 10 people. But, you will probably have at least 50 friends on your list. The friends that you don’t have telephone numbers for, you will want to drive to their homes and deliver your business literature.

The friends that you have a phone number for give them a call. Be casual with your conversation. Somewhere in your conversation mention that you have started a new business and that you would like to stop by and give them some literature. Schedule a time to do this. Pass out at least three brochures to your friends a day. On your commute home from work or after dinner,etc.

By doing this first step you will gain at least 10 customers whom may spend at least $25.00 with you every campaign. Let’s break this down: 10X25= 250 that is an extra $250.00 in sales every two weeks. Not bad work for spending 150 minutes a week or 30 minute a day delivering your companies literature. Just by giving up one movie a week you can make at least $250.00 in extra revenue and save $20.00 on soda pop, popcorn and ticket price. So, that is a total of $270.00 or $290.00 if you go see a movie a week.

Step #2. In this business it is consistent sales that will make you money. Your first sale should come from you. That’s right you. You need to become your first best customer. This is called replacement buying. All you have to do is replace products that you buy from the stores with your own product line. Sam Walton, founder of Wal-Mart didn’t go to K-mart to shop, did he? Of course not, he shopped at his own store, Wal-Mart. Just like millions of people do every day. Let’s get this replacement buying started here’s how to do it:

A. Go through your literature and get familiar with your product line. Make notes about special prices, buy one get one or buy two get one free, ex.

B. Find the items in your home that you are getting low on or are completely out of and replace them with items from your product line. If you are out of something that needs replacing now, then replace it with a smaller product or travel size from the store just to get you by until your next shipment.

C. By using replacement buying you will also learn firsthand the quality of your products and will be able to honestly recommend them to your customers and down-line.

Step #3. It’s a buyer’s market out there. When you get orders ask the customer if they would like to save 50%. How do they save 50%? Ask them if they would like to become a representative. If they don’t want their own business then let them know that if they join they can use their representative status to buy products at a discount for the next campaign. This is like joining a discount club that delivers to their door step.

Step #3.5: Or you can use an incentive to get prospects to join. What kind of incentive can you use? How about a membership site that will teach your down-line how to get prospective customers to their business website. All for the low, low cost of free.

You will have to emphasize, that this training would cost them over X amount of dollars or more anywhere else online. And over time it very well could be well worth over a few thousand dollars a year. You should also write a weekly news letter with great tips and tricks like you are reading now and an e-course on free advertising methods. Over time this step alone could be well worth over $97.00 per month.

When I started selling Avon products back in 2008, I used these 3.5 methods above as a spring board for my direct sales business. These steps alone have brought in over $1500.00 worth of sales month after month from the first day until now and will continue in the future.