Question

Take a look at ONE of the network marketing businesses (Amway, Quixtar, Herbal Life, Pampered Chef, etc.) and use the companies' web sites to get more information on their sales process, sales force structure and how the company recruits and trains it's salespeople, then share it with the class.

Do they do a good job?

Answer 1

Amway has a Sales and Marketing Plan in place that focusses on the sale of Amway products to retailers and provides an opportunity to sponsor others to help them retail products. Thus, a network of business opportunity is created through sharing of knowledge and expertise.

Amway Training:

Amway doesn't charge for its training programmes. Aspiring business owners have unlimited access to Amway's training programmes. There are 4 levels of training at Amway:

1. Basic Product Training: A new business owner is given basic product knowledge that help them in the initial stages of starting a business. Amway also offers free online training courses for sales and product knowledge.

2 Presentation Skills:

The key to successful marketing depends largely on the selling and presentation skills of the salesperson. Business owners are given proper training in this regard for making them effective on the job.

3.Certificate Courses:

Those who have attained the basic selling skills and product knowledge and wish to professionalise it can opt for Amway's certificate courses for building a sustainable business of Amway products.

4. Experiential Training and Leadership Empowerment:

Amway provides a platform for working professionals to accelerate their career growth by conducting various experiential training events and leadership programmes.

In addition, Amway offers incentive trips, recognition through its monthly performance bonuses for keeping its people motivated.

Becoming an Amway Business Owner (ABO):

One can work either part time or full time with Amway. Anyone who aspires to work as an independent business owner can enrol at Amway. There are tremendous opportunities for women, particularly homemakers, to work independently from home and earn an additional income.

Success Rate:

Much of Amway's growth in the last 10 years can be attributed to the Chinese market ( Amway's 30% sales revenue came from China in 2017). However, China denounced marketing models like Amways' as a pyramid scheme in 2018. As such, Amway is facing challenges in its biggest revenue generator.

In 2015, the Food and Drug Administration and Food Safety and Standards Authority of India, banned 6 Amway products for containing more than the permissible levels of minerals and vitamins. Amway also faced criticism in England in 2007 for its misleading marketing campaigns.

Despite the challenges, Amway continues to grow both domestically and internationally. Amway's sales grew by 2% in 2018, owing to investments in digital tools About 70% of Amway products were sold online in China.

By capitalizing on the growing opportunities created by technology, Amway has built an expanding network of business owners around the world who have a passion for entrepreneurship.