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

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