icerat
Philosopher
So, would you agree with this? "Amway is effectively an opportunity for someone to start their own retail product business, without the tremendous overhead usually associated with starting one."
Yes, that's well put.
However, I also understand that there is more to it than that. I hear there is a whole MLM angle associated with it. Would you be able to justify that particular aspect on its own merits? Why would I, as a retail entrepreneur want to be part of an MLM?
MLM is really no different from a fixed location retail establishment opening new stores.
If these products were so good, why would they need the convoluted system of Amway to sell them?
(1) I don't think it is convulated, though I think it does get explained in a convulated way sometimes
(2) Contrary to popular belief, no product "sells itself". Products sold through the direct sales channel typically benefit from having 1 on 1 or small group presentations that more clearly define and demonstrate the features and benefits of a product, something that can be very difficult (and expensive) to do on a shelf or through mainstream advertising.
Also: I could sell products that are just as awesome the traditional way. Yes, it would cost more. But, it still means that the "high quality products" argument is not a very strong or unique selling point.
It is when you include the "exclusive" part. One reason why people I introduced to the products more than a decade ago are still buying them from me (via my automated website) is because they can't get them anywhere else.
Amway could be seen as an opportunity to tap into all of that infrastructure for very little cost.
If you agree that is the case, you SHOULD be defending Amway more along those lines. Push forward the positive; and cut out all the wordy, elaborate defensive maneuvers!
All of those points are irrelevant if people don't believe them, or think the model works in some bizarre way.
Believe me, those kind of points are what's presented when promoting the business opportunity. Contrary to the beliefs of some, that's not why I'm talking about Amway on this thread. I'm not here to promote Amway. I'm debunking irrational beliefs that fly in the face of evidence. That's kind of what JREF is about, no?
This, I think, is a BIG ONE.
If I were serious about considering joining Amway, I would certainly want this bullet point to be delineated into more specific details. What are the key things I am allowed or not allowed to do? As compared to a more conventional retail business.
Mass market advertising is the main one. In some markets there are also limitations in promoting competitor business/products.
And, how does the MLM structure fit into those?
On the con side there are things like rules around cross-line promotion.
On the pro side, the MLM compensation structure allows you to continue to be compensated for the sales volume you helped generate even if one of your customers (wholesale or retail) develops big enough volume to start dealing directly with the manufacturer.
Typically in traditional business if one of your customers starts ordering in big enough volumes they can bypass you and you lose their business. In MLM you still get commissions of some variety.
The US contract and associated rules are available online for perusal.
This is true for any business.
In general, I agree, but it's closer to a sales job than say a programming contract.

