(Of course, it never seems to sink in that without anyone but the dealers themselves actually buying the products at 'wholesale' there IS no profit to be shared.)
Not true.
(a) like traditional distribution there are discounts available based on volume, which are, by definition, not shared equally amongst "dealers". Ultimately, dealers with higher volumes get a better wholesale price, which is how they profit from recruiting others who purchase in smaller lots
(b) there are relatively few actual "dealers". Of those generating volume, most are not actively trying to profit
The company may say it is supposed to be different, but in 20 odd years here in the Northwest U.S.A, I have never seen any other sales presentation made. (And I have lived in 5 states out here.)
Amway has been promoting their products on TV and at sports events for several years now (primarily marathons), I'm surprised you haven't seen them.
Nevertheless over the last decade or two the focus for most has indeed been on developing volume through "wholesale buyers", ie signing everyone up as a
potential distributor (INO) with the aim that those who don't try to sell or recruit create volume through personal use, which can contribute to profit from the volume discounts.
Thus "recruiting" is actually a technique to get customers. Not to say that's a
smart way to build a business, IMO it's not, and corp says the statistics are pretty clear - IBOs that develop personal retail clients, and encourage there groups to do the same, are far more profitable and far more likely to continue their relationship with Amway. Surprise surprise.
So there's been a lot of changes towards encouraging that the last few years. Still some groups holding out on it though.
Irregardless of how good the products may/may not be, if all everyone is doing is selling to their family,
at wholesale, (Like Kirby Vacs, but don't get me started on THAT one...
) how can any profit be made?
Well, if you take the base wholesale price, and sell say $150 worth to three separate family members, at wholesale price, you'll have qualified for a 3% volume rebate - ie 3% gross profit. If one of those family members happens to do something similar, they'll get a 3% discount, but you've now got enough volume to get a 6% discount, so you make 3% profit on that family member and 6% on the rest.
Ultimately the manufacturers selling price is, in the US, about 29% lower than the price a new IBO pays, and that 29% is available as profit
separate to the recommended retail markup. In traditional business it's the $$$$ being shared by the importers/exporters/wholesalers/advertisers etc. The last step, retail profit, is only one potential profit center.
