Archive for June, 2009

Law Professor Claims Amway Operates Like Mafia

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Here’s what Notre Dame law professor G. Robert Blakey has to say about Amway: “It is my opinion that the Amway business is run in a manner that is parallel to that of major organized crime groups, in particular the Mafia. The structure and function of major organized crime groups, generally consisting of associated enterprises engaging in patterns of legal and illegal activity, was the prototype forming the basis for federal and state racketeering legislation that I have been involved in drafting. The same structure and function, with associated enterprises engaging in patterns of legal and illegal activity, is found in the Amway business.”

Read the whole report by Professor Blakey

Blakey makes some good points. Here’s more:

The Amway business has a “family” structure parallel to that found in organized crime. With respect to both organizations, the family orientation is twofold. First, every participant;in the business is considered a member of a “family,” led by a particular individual at the top of a chain of command. Second, the business stresses involvement by participant’s family members, such that wives and children are drawn into the business to perpetuate their family influence over time. Family dynasties result that may be passed from generation to generation.

One of the primary family lines relates to the Amway Corporation itself. Amway Corporation is a privately held company founded in 1959 by Jay Van Andel and Rich DeVos. The Amway Corporation primarily provides the various products and services that serve as a backdrop for the pyramid-type recruitment and motivational schemes undertaken in the Amway business. The control of the Amway Corporation and its related entities appears to be shifting to the sons of the founders – Richard DeVos, Jr. and Steve, Van Andel. Amway Corporation also has a Policy Board that consists of Richard DeVos, Sr., Steve Van Andel, Richard DeVos, Jr., Jay Van Andel, Cheri DeVos Vander Weide, Dave Van Andel, Doug DeVos, Nan Van Andel, Dan DeVos and Barb Van Andel Gaby.

In addition to the DeVos and Van Andel family, who control the Amway Corporation, according to a 1996 Amway Corporate Culture document there are at least eight “lines of sponsorship” that control groups of Amway distributors. Every family is involved in the Amway business, in terms of using the Amway Sales and Marketing Plan. However, each family also is involved in Business Support Materials (BSM), or “tools,” which include books, tapes, and rallies. The leaders of the families sit on the Amway Distributor Advisory Board, where they work with Amway Corporation to develop the direction of the business. (AM0023684).

The Yager family has the largest organization in North America. Dexter Yager runs his organization, but has an “inner circle” of about 20 key Diamonds that work with him in a leadership role. Yager also has a tool business called “Internet” which provides BSM to thousands of Diamonds and Direct Distributors. The Corporate Culture Document states that “loyalty to Dex is paramount to have a voice in the organization,” a statement which is also reflected in various lawsuits that have been brought involving Yager and his company as defendants.

Another large family is the Britt family (aka Britt East Coast), with Bill Britt as the “unchallenged leader.” This family is comprised of over 149,000 distributorships, and is located primarily in the East. Bill Britt sets policy along with some “front-line” Diamond leaders, and decisions are ratified by a management team that includes 20 additional Diamonds.

Other families include: the Childers family (run by a leadership team of six Diamonds); the Stewart family; the Gooch family; the Bryan family (aka Down East); the Wilson family (aka WOW – Wilson Out West) – with Don Wilson also being one of Dexter Yager’s “inner circle;” the Puryear family (aka World Wide Drearnbuilders); the Hays family (aka IC or International Connection); the Matz family (aka IDA or International Diamond Association); the Dornan family (aka Network 2 1); the Strehli family (aka Creative Life Styles); and the INA (International Networking Association) family, run by a group of seven families.

The Amway business stresses that once you are involved, you are a member of the Amway family, and your upline and downline are part of your family. (TS0000058). You are to “edify” or honor your upline, and “counsel” with them regularly. The “upline” assume virtual “parental” control, and distributors are urged to “counsel” on all aspects of their life, including topics such as which car to buy or how to handle marital problems. Distributors are told how to dress – for example, “Wilson women” (those in the Don Wilson family) at functions do not show ankles, thighs or cleavage. Amway becomes a way of life for its participants, much like those involved with the Mafia.

Genetic Testing Goes Mainstream With Amway Direct Sales

From MIT’s Technology Review:

“With minimal advertising, these companies have captured the imagination of the public,” says Robert Green, a neurologist at Boston University and one of the conference organizers. “The public is eager to know more about genetics.”

Want to share your genome online with friends and family? Find out how well you metabolize B vitamins? Determine if you’re genetically susceptible to forming blood clots on long flights? All of this is possible with a credit card and an Internet connection, thanks to the growing field of direct-to-consumer genetic testing, which aims to move genetic tests out of the doctor’s office and into the hands of individuals.

The first annual Consumer Genetics Show, which started today in Boston, will highlight some of what’s possible with today’s technology, as well as grapple with the controversies that have grown along with the field. First and foremost among these concerns is how well people can understand the information delivered by these tests, and how effectively they can help people manage their health.

To date, medical genetics has been largely limited to tests ordered by physicians for rare disorders triggered by defects in single genes, such as cystic fibrosis. But as the price of genetic technologies has plummeted–the cost of sequencing a genome has dropped 10,000-fold in the past four years–the possibilities for genetic testing have grown. Scientists have identified hundreds of genetic variations that can raise the risk of common diseases, such as diabetes and heart disease; point to particular ancestries; and even influence traits, such as height.

A number of companies offering direct-to-consumer genetic testing have cropped up in the past two years to capitalize on these advances, from 23andMe and Navigenics, which offer genome-wide scans to identify specific disease-linked genetic variations, to Knome, which offers whole-genome sequencing to the wealthy. Any doubts that personal genomics is making its way into the mainstream can be assuaged with a look at Interleukin Genetics, a startup that sells genetic tests for heart-disease risk, B vitamin metabolism, and other factors through Amway, the direct-sales company.

Read more…

Amway Global #1 in Online Health And Beauty

From PRWeb:

Grand Rapids, Mich (PRWEB) June 4, 2009 — Amway Global Independent Business Owners (IBOs) have once again earned the company first place in online Health & Beauty (H&B) sales. According to Internet Retailer’s annual Top 500 Guide to the web, Amway Global is ranked first in the Health & Beauty category for the sixth consecutive year, and 28th in overall web sales.

Amway Global is the North American affiliate of Amway Corp., a worldwide leader in direct selling, with more than three million IBOs in more than 80 countries and territories. Amway Global’s Top 500 Guide ranking is based on estimates made by Internet Retailer, since Amway Corp. does not report sales by individual market. Enterprise-wide sales for Amway Corp. were $8.2 billion in 2008.

According to Internet Retailer estimates, Amway Global’s online sales surpassed $904 million in 2008. The online H&B category grew 14% to more than $2.9 billion, with Amway Global’s sales estimated to represent more than 31% of that category.

“The leader for online health and beauty sales for six straight years is not a label most people would normally associate with Amway Global, but it’s one we’re extremely proud of,” says Steve Lieberman, Amway Global’s Managing Director. “The ranking would not be possible without the hard-working Independent Business Owners who drive our sales. It’s also a great testament to the quality and appeal of our key health and beauty brands, NUTRILITE supplements and ARTISTRY skin care and cosmetics.”

Read more

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