Friends and MLM recruitment. HELP!

[Stomatopoda]

It's a feature that all the users pretend is a bug.

 

[luchog]

It only shows that if you don't bother with product differentiation. There is a huge market of people who not interested in simply purchasing the cheapest possible product in a particular category but are interested in other aspects to assess "value". Whitening toothpastes vs normal toothpaste. Environmentally friendly vs not environmentally friendly. Longer lasting mascara vs cheaper mascara etc etc etc. Very few (if any) of Amway's products are targeted towards the same market as Walmart.

The problem is that Amway doesn't have any real product differentiation, only image differentiation.

Consumer Reports evaluations a few years ago found that the quality of Amway products, with only one exception, are consistently equal to or below the quality of equivalent commonly available brands; while being at a considerably higher price point. In other words, you can get the exact same results, cheaper, by buying at Walmart instead of Amway.

 

[icerat]

The problem is that Amway doesn't have any real product differentiation, only image differentiation.

On what basis do you make that claim?

Consumer Reports evaluations a few years ago found that the quality of Amway products, with only one exception, are consistently equal to or below the quality of equivalent commonly available brands; while being at a considerably higher price point. In other words, you can get the exact same results, cheaper, by buying at Walmart instead of Amway.

Consumer reports has done very few comparisons of Amway products, and rarely (if ever - I can't find any cases) have they done any from their two major brands, which constitute over 2/3rds of their sales. If you're going to evaluate a business, I'd suggest doing so on minor brands is not the way to do it.

Anyway, when CR have done comparisons it's been all over the place and never do they bother with the product differentiation factors, and sometimes they actively ignore it.

They ranked the eSpring water filter #1, but then took the price of the highest range model, even though all the features they evaluated were available on a cheaper price. They did not evaluate the higher models differentiator (a disinfecting UV light) because no competitor had one.

One year they ranked SA8 washing powder #1 in environmentally friendly washing powders, but screwed up the pricing in several ways. For example they compared non-members Amway price with members CostCo price. Amway membership is cheaper, a fair comparison would have noted this and compared membership pricing. They also didn't properly follow the usage recommendations. Most importantly, from my perspective, they don't evaluate things like powder residual, a health issue.

Other years they've included it in comparison with non-environmentally friendly powders, so it's competing against products with bleach and nitrates that can do a better straight cleaning job, cheaper.

The Australian CR counterpart did a comparison of dish drops dishwashing liquid, where they marked it as an excellent cleaner, but gave it poor marks on price. If you read the fine print (I didn't the first few times) you'll discover they actively chose to ignore the recommended usage because they didn't believe anyone would follow it - ignoring the fact that Amway offers a special dispenser to control usage or a bottle to blend with water and control concentration. Both of which are explained and/or demoed by a rep.

Again, the whole purpose behind having direct sales agents is for them to be able to explain the features and benefits of particular products. If you simply purchase off the Amway website, as CR does, you will most likely not learn of these features and benefits, so you simply won't evaluate them.

Per use cost, health aspects, and the environment are important factors for me, and many other people.

Again though - why would you evaluate a business based on minor products in the first place? Wouldn't it make more sense to evaluate it based on it's major categories, where the money comes from?

 

[Joecool]

Consumer Reports evaluations a few years ago found that the quality of Amway products, with only one exception, are consistently equal to or below the quality of equivalent commonly available brands; while being at a considerably higher price point. In other words, you can get the exact same results, cheaper, by buying at Walmart instead of Amway.

You are correct. Amway products are in general, average in quality compared to competition, but are high in price. I believe that is because Amway's IBO's are fiercely loyal to Amway products, but usually that only happens when they are starry eyed newbies thinking that Amway will lead to untold wealth and retirement at the age of 28. Once those unrealistic dreams fade away, so goes the desire for Amway products. It is why Amway can charge such high prices.

IBO's in turn, will justify the prices by saying the products are premium, or concentrated, etc.