Monday, 26 November 2007

Amway UK - Berr outlines their case

The Times Online has outlined the case that BERR has brought against Amway in court in the UK today. In summary -
  1. Just 10% of agents make any profit
  2. Less than 10% sell a single product
  3. Amway's main activity is encouraging people to join so that they pay the registration fee and buy marketing materials
  4. Amway attracts people by "offering “substantial financial rewards or easy money”"
  5. Only 6 per cent of agents bought Amway products to sell on
  6. the vast majority of products offered by Amway were overpriced even before retail markup was added
  7. 71 per cent of agents made no income from Amway in the year 2005-06
  8. 90 per cent had made a loss after paying the £18 fee to renew their registration
  9. One marketing presentation authorised by Amway offered the opportunity for a “small secondary income or an income which would rank in the top 2 per cent of money earners.”
  10. Such money “is being achieved in the same time it takes to study for a degree”.
  11. Amway’s own records showed that only Trevor and Jackie Lowe, and Jerry and Mandy Scriven among its agents earned more than the £78,000 required to place them in the top 2 per cent of earners, the court was told.
  12. Amway’s records showed that of the 25,000 agents operating at that time, just 37 made more than £25,000 a year.
  13. 39,000 agents working for Amway
  14. 27,000 (71%) had no income
  15. 11,410 (30%) earned something
  16. 7,492 (of the 11,410) received average of £13.53 per year
  17. 101 agents received 75 per cent of bonuses
  18. £116K paid to top earner Trevor Lowe
  19. 26 number of years Mr Lowe was an agent
More information and analysis on The Truth About Amway

Friday, 9 November 2007

BERR (DTI) petitions for winding up of Amway (UK) Limited

The court date has been set, November 19, 2007. All the latest is on the truth about amway

Saturday, 6 October 2007

Amway UK & ROI launches new website

From the truth about amway -

Amway United Kingdom and Republic of Ireland has launched their new website. Despite some reports it was going to be a touched up version of the old Amivo website, it is, as I suspected it would be, a UK & ROI version of the new Amway sites that have been getting progressively rolled out in other Amway Europe markets - see for example Amway Russia.

In my opinion the site is much cleaner and more informational and user-friendly than the Amivo websites and, best of all, Customers and Privileged Customers (formerly members) can now login and order products themselves.

Discuss this article on the forums. (4 posts)

Friday, 14 September 2007

Amway's letter to IBOs in the UK & Ireland

This week Amway in the UK & ireland sent out a letter to all IBO's in that market outlining a series of important changes. You can read the letter from Amway here. The changes seem to mean a MUCH bigger emphasis on retailing that before - but it appears the DTI is still pursuing action against Amway.

The question is - why?

Wednesday, 5 September 2007

Artistry signs Sandra Bullock

From Amway UK & Ireland -

We are very proud to announce you that preparations are underway for the May European launch of the most advanced, luxurious, anti-aging moisturizer we’ve ever created, ARTISTRY Creme LuXury.

Because you are an integral part of the company’s success, we would like to take the opportunity to share an unprecedented development surrounding this premier product. In support of the Creme LuXury launch, we are pleased to announce that we have signed a 3-year contract formalizing an endorsement relationship with the talented, awardwinning, A-list actress and producer, Sandra Bullock.


Tuesday, 28 August 2007

Amway Europe - Stacking vs Depth-Building

Last week Amway Europe notified all European Diamonds and above about a new policy regarding "inappropriate depth building" or "stacking". If you are wondering what is "appropriate" and what is "inappropriate", Quixtar's Director of Sales, Todd Krause, recently did a great post on this topic on the Opportunity Zone - Stacking vs Depth Building - a couple of weeks ago. The guidelines from Amway Europe state ..

Read more on The Truth About Amway and Quixtar