$700 on Products, $200 of which are shown here
This BusinessWeek article on Amway flew under my radar last week. Amway: Shining Up a Tarnished Name doesn’t share any new information about Amway Global, but what I found interesting was the IBO they interviewed. Cathy Cross is described as a part-time seller who:
has spent $700 on products and marketing materials this year, just less than what she’s earned in sales and bonuses (She doesn’t expect to take home profits until 2011).
I hope that Amway provided the products she proudly displays in the photo accompanying the article (shown here on the right), because — by my reckoning — there’s at least $200 of products there, and it’s already August, 2008! Those bottles of Perfect Water and XS do add up in dollars, and I don’t even want to think about the price of that Artistry skin care kit in the background! Good thing I don’t see a few containers of Double X, or I’ll be asking to see her receipts!
All kidding aside, say she’s earned $800 in sales and bonuses this year. I’d expect that’s because she’s been retailing products to friends, family, and strangers. This is a good thing, and something that IBOs should do more of if they want to take home profits at the end of the month instead of incurring mounting losses due to System expenses.
Readers of this blog will know that I’m critical of the Alticor Corporation (parent of Amway and Quixtar), which has done very little over the past several decades to curb the excesses and greed of a few individuals at the top of certain Lines of Sponsorship (LOS). Though they appear to be taking steps to clean up their tarnished name, I feel Alticor needs to take more dramatic steps before they actually start seeing results:
- Get rid of the Alticor name: I know Quixtar is by the way of the dodo next year, but what about the Alticor name?
- Lower product prices: Products need to be more affordable for retail customers.
- Focus on retail: If you have more affordable products, the emphasis has to switch from self-consumption to retail. That’s how the rest of the world works, folks. Buy from cheap, sell for a little higher. Repeat.
- Stronger accreditation program: Many LOS seem to be doing the same thing they’ve always done in the past. Unless Amway Global takes aim at the kingpins, the things many System critics point at will continue to happen.
- More direct communication with IBOs: Amway has outsourced teaching and training to the Amway Motivational Organizations (AMO) and it needs to take some of it back.
I’ve been reading some old articles on Amway and Quixtar recently. It would be very illuminating to interview those people quoted in articles five, ten, or fifteen years ago to see if they are still in the business and continue to maintain the same stance.
I know I’m singing a few different tune than I was ten years ago!