In the canonical 6-4-2 pyramid, the “Direct Distributor” on top receives a 25 percent “Performance Bonus” on the entire group’s spending. The Performance Bonuses that go to his six “legs” (12 percent of their sub-groups’ spending) are deducted from his own, leaving him with a 13 percent profit. In turn, they payout 6 percent bonuses to their four “legs,” who payout 3 percent bonuses to their two. Those bottom forty-eight distributors, in other words, get back 3 percent of everything they spend while the top distributor gets 13 percent of everything they spend. (The amount of all checks are calculated, incidentally, by Amway’s central computer and distributed by Amway; uplines don’t actually write checks to their downlines.) It would amount to the same thing if the distributors at the bottom were to receive the 25 percent rebate—and then pay fees directly to their uplines equal to 3 percent, 6 percent, and 13 percent of their purchases.
On August 6, 2011, Kerala Police sealed the offices of Amway at Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and Thiruvananthapuram following complaints. In November 2012, the Economic Offences Wing of Kerala Police conducted searches at the offices of Amway at Kozhikode, Thrissur and Kannur as part of its crackdown on money chain activities and closed down the firm's warehouses at these centres. Products valued at 21.4 million rupees (about US$400,000 at the time) were also seized. Later, Area manager of Amway, P. M. Rajkumar, who was arrested following searches was remanded in judicial custody for 14 days.
The idea of Amway was started in 1949 by two friends, Jay Van Andel and Richard DeVos. Originally called the Ja-Ri Corporation, the pair began by selling Nutrilite and a few imported products. In ten years, they had over 5,000 distributors below them. By 1959, together with some of their top distributors, DeVos and Van Andel broke off to form Amway. They began selling their now famous Liquid Organic Cleaner (L.O.C.) and quickly expanded to more home products before launching into the health and beauty industry that defines their business today.
Both parts of the 70-10 Rule have major loopholes. According to the Business Reference Manual, “for purposes of [the 70 Percent Rule], products used for personal or family consumption or given out as samples are also considered as part of sales volume.” Thus, overbuying for “personal use” is not ruled out. As for the Ten-Customer Rule, the Manual states that the “distributor should not disclose the prices at which he or she made the ten retail sales.” This makes possible a practice alluded to by a World Wide speaker: giving Amway products away to ten people and calling them “retail sales.” He added that the income from the Performance Bonus made the giveaways well worth it.
From the beginning, designers focused on creating a sustainable site; providing water efficiency; optimizing energy and atmosphere protection; conserving materials and resources; monitoring indoor environmental quality and health; and selecting environmentally preferred operations and maintenance. These elements combine to create one of the most environmentally friendly, high-performing professional arenas in the country.
In Western Michigan, what matters isn’t how Amway is run, but what the DeVoses have done for the community. Drive through downtown Grand Rapids, Michigan’s second-largest metropolis, and the family’s contributions are omnipresent. There’s the Helen DeVos Children’s Hospital. A few blocks west, hugging the Grand River that bisects the city, you’ll find the sleek DeVos Place Convention Center, the DeVos Performance Hall and the Amway Grand Plaza Hotel. Across the water, the campus of Grand Valley State University is anchored by the spacious Richard M. DeVos Center. A few blocks north is the DeVos Learning Center, housed at the Gerald R. Ford Presidential Museum. (You would be forgiven if you assumed that DeVos, not Ford, had been president.)
After years operating behind the scenes, Betsy DeVos is set to become the public face of education policy in America—an advocate of private Christian education helming the largest public-education agency in the country. Most education policymaking happens at the state and local level; the Education Department administers financial aid and collects and analyzes educational data, but doesn’t set state standards or school curricula. Even so, the position is a considerable bully pulpit, one with the ability to define the national discussion on education.
Her alienation didn’t stop with non-Amwayers. She was also bitterly resentful of “crosslines,” her Amway cousins who belonged to other downlines. As fellow unrecovered wage junkies, they were a potential reservoir of misinformation, discontent, and backsliding. Josh cautioned her against fraternizing: Polite small talk was O.K., but you shouldn’t, say, go to a movie with them (Amway lore is full of disaster stories about crosslines who carpool). But Sherri’s animus went further. Crosslines were her competition, soaking up prospects and “saturating” Chicago before she had a chance. She was incensed when they hogged seats at meetings, hysterical when they went Direct.
Year by year, cycle by cycle, the DeVoses built a state Legislature in their own image. By the time Democrat Jennifer Granholm was term-limited in 2010 and Republican Rick Snyder was elected governor without any political experience, it was the DeVoses, not Snyder, who knew how to get things done. Unlike the Engler years, this time, they had more sway than the governor.
I'm sure that the success stories I heard were all true. The problem is that they build an unrealistic expectation of what is possible. People hear these rags to riches tales and think 'hey that could be me'. Unfortunately very few of them will ever make any money at all. Even fewer will achieve financial freedom from Amway Joining Amway is extremely easy, making a profit in Amway is extremely difficult.
In October 1994, Amway gave the biggest corporate contribution recorded to that date to a political party for a single election, $2.5 million to the Republican National Committee, and was the number one corporate political donor in the United States. In the 2004 election cycle, the organization contributed a total of $4 million to a conservative 527 group, Progress for America.
I notice only one person has indicated any sort of income ($500/week – WOW!!) – but without stating their expenses. My sister (in Australia) has been involved in this for decades and has made nothing, despite co-opting several others into the fold. I had to quickly learn to ask what she was inviting me to before I accepted any invitations and eventually had to tell her not to ask me to any more Amway things. Then she started on my fiance.
Their vertically integrated supply chain is one of longest in the industry. In addition to running plants, they own organic farms. They have farms in Brazil, Mexico, and the state of Washington where they grow and harvest key botanical ingredients like echinacea, spinach, alfalfa, watercress, and cherries. They then take those products and manufacture intermediates. Cherries, for example, are processed for Vitamin C. These intermediates they both use in their own products and sell to other companies.