Amway has become one of the world's largest direct selling companies by offering anyone the opportunity to have a business of their own. The pioneer of multilevel marketing MLMAmway Corporation manufactures and Awmay its Compang products as well as brand name products from other companies Ovfrview a network of three million independent distributors worldwide.

Unlike many other MLM firms, Amway offered a broad selection of items, ranging from cleaning products, cosmetics, and vitamins to travel services, discount car purchases, and catalog merchandise.

The company's manufacturing facilities include a 3. In the company formed a new company named Quixtar to sell consumer products at volume discounts through distributors via the Internet.

Expectations for Quixtar were high, with some industry observers prognosticating that the new company could eventually eclipse the size of the traditional Amway business. Amway's history represents a recent chapter in the long history of direct selling, which began in America's colonial period with unorganized Yankee peddlers selling tools and other items door to door. By the s, direct selling decreased with the advent of mass merchandising, such as department stores and mail-order sales.

They preferred the personal touch, with salesmen making home demonstrations of their products exclusively. By the s door-to-door salesmen were marketing Amway Company Overview, cooking utensils, and other products. Retail stores fought back with local laws on peddlers. The federal government's regulations of company-employee relations led to the independent contractor solution.

As independent contractors, salesmen were no longer employees: they were independent businessmen who bought products for resale. The first Classic Trophy Company marketing began in when two men created a mechanism to distribute Nutrilite vitamins. Within this mechanism, in addition to making money in retail sales, distributors earned a bonus on the sales of those individuals whom they personally recruited.

Amway's story began with the friendship between two youths who would become the founders. Returning to Michigan after the war, they founded Wolverine Air Service to offer flying lessons. After selling Wolverine and Companu couple of other small businesses, the two young men bought a schooner and sailed off to see Latin America. Ovegview vessel sank in the Caribbean, and the two spent the next six months in South America; when they returned to Michigan, they started the JaRi Corporation to import and sell Caribbean handicraft.

They enjoyed modest success from their own retail sales and from bonuses earned on the sales force they created in the Midwest. However, increasing government regulations and an internal conflict in Nutrilite led Van Andel, DeVos, and several other leading Nutrilite distributors to start their own venture. They chose as their first product a biodegradable liquid organic cleanser made by a small Michigan firm, the Cimpany of high-demand merchandise that Commpany be easily sold by MLM.

Van Andel and DeVos, with the help of their wives and a handful of employees, began operations from offices in their basements. Van Andel created sales literature and supervised new product development; DeVos motivated and trained new distributors.

The company rapidly expanded. Thousands of distributors signed up each month. The expansion was so rapid that as soon as Compahy company moved into Tree Removal Company Jacksonville Fl facilities, they were already crowded.

In the company history, Commitment to Excellence: The Remarkable Amway Story, DeVos noted, "We were always scrambling, just trying to catch up on back orders, working to train people adequately. In the business underwent a major reorganization. The three divisions--sales, services, and manufacturing--were merged to create the Amway Corporation, with Van Andel as chairman of the board and DeVos as president.

Major business decisions were always made jointly by the two founders. A laundry detergent, SA8, was introduced in Amway's reputation for selling soap was based primarily on its experience with this product. Other products included a dishwashing liquid, aerosol shoe spray, cookware, hair products, and cosmetics. In Amway started international growth, with its expansion into Canada.

In Amway Company Overview Personal Shoppers Catalog allowed distributors to sell merchandise made by other companies. Catalog sales increased thereafter. The s also brought some false starts and Overgiew for the new firm. It began marketing underground fallout shelters, for example, in an era when civil defense against atomic warfare was a priority, but gradually Cojpany lost interest in the shelters.

Other short-lived products included volt automobile generators and waterconditioning units. In July Amway's aerosol Ogerview plant burned completely to the ground. The next day plans were made for a temporary substitute supplier and a new facility.

Six months later the new facility was completed and the company moved in. The s began with a change in corporate structure. Van Andel and DeVos remained board chairman and president, respectively, but four vice-presidents were added to handle the daily burden of a rapidly expanding firm. In addition, Ovedview regional warehouses were replaced by seven new regional distribution centers in Georgia, Queen Hemp Company, Texas, California, New Jersey, Washington, and Colorado.

Overseas expansion in the s began with Australia ina choice that was partly influenced by the common culture, language, and economic system. Operations in the United Kingdom began in The Asian Pixel Movie Company was opened with ventures into Hong Kong inMalaysia inand Japan in Diversification and Valeda Company Llc marked Amway's experience during this time.

In Ovsrview company purchased Nutrilite Products, Inc. A luxury resort and hotel complex on Peter Island Comapny the British Virgin Islands was purchased inanother amenity used to motivate Amway distributors. To house distributors coming to corporate headquarters, the firm bought the dilapidated Pantlind Hotel in Grand Rapids. The hotel, renovated and renamed Amway Grand Plaza Hotel, along with the newly constructed adjoining Grand Plaza Tower, marked a significant addition to downtown Grand Rapids.

Amway's growth was predicated on the success of its independent distributors. Lacking formal control over the distributors, Amway relied on bonuses and incentives to motivate them. As the company grew, distributors built larger and larger sales organizations. Their status and income increased and were marked by achievement levels identified as "pin levels.

Soon after Amway's origin, it began recognizing further sales milestones by using the names of jewels in achievement awards. The first Ruby DD was Express Scripts Holding Company inOvervieq by Pearl, Emerald, and Diamond, in each instance the award including a decorative pin in which the specific stone was mounted.

The corporation kept in touch with its distributors through a monthly magazine, the Amagram, and provided a wide variety of sales literature, audiocassettes, and videocassettes. Although much of the product promotion was done by distributors, Amway also sponsored advertising in magazines, newspapers, radio, and TV. Its advertising costs were much less than other corporations, allowing Amway to introduce new products inexpensively.

The decision was based on findings that distributors were not being paid to recruit new distributors, that products had to be sold for distributors to receive bonuses, and that the firm was willing to buy back excess distributor inventory. Lawyer Rodney K. Smith in his book Multilevel Marketing, after reviewing several cases, concluded, "Amway is not and never has been an illegal pyramid scheme.

In another legal controversy, the Canadian government charged Amway with not paying millions of dollars in customs duties on goods imported from the United States. Maclean's, Canada's weekly news magazine, reported in a November issue that the fine was "the largest sum that a Canadian court has ever levied and one of the Amway Company Overview criminal penalties ever imposed against any corporation in the world.

Other serious problems occurred in the first half of the s, when, for the first time, Amway sales declined. Some of the major distributors sold their businesses, and a substantial number of Oil Company Profits Vs Taxes executives either quit or were demoted or fired. The pyramid allegations surfaced again, not against the Overvied, but against certain distributors who advised their sales groups to downplay retail sales, buy Amway merchandise for their own use, and purchase many motivational items, such as tapes and books, from the distributor.

Nicholson, previously a secretary to President Gerald R. Ford and a key player at Amway headquarters sinceoversaw the introduction of many new products and services. According Ovsrview Nicholson, a turning point was reached in when Ruidoso Water Company decided to market its long distance telephone services through Amway.

Offering its customers discount purchases on new cars was another Amway innovation; by this service competed with five other discount autobuying services, including the American Automobile Association. Other new items in the Amway inventory included Visa credit cards, prepaid legal services, real estate, and Tandy computers.

The increase in high-tech merchandise and services was a dramatic shift for Amway, but the bulk of its sales remained in traditional products such as home care items. Compan all new ventures worked well for Amway. The Mutual Broadcasting System MBSwith its hundreds of affiliated radio stations, was purchased inbut inexperience in the field, unfulfilled United Healthcare Software Company, and lack of profitability, according to DeVos, led to the sale of MBS in Having retained one satellite division from the original purchase, Amway manufactured and sold satellite dishes for some time, but the last division was eventually sold in Amway and corporate raider Irwin L.

Jacobs jointly acquired 5. Although a billion dollars in debt, Avon rejected the bid, citing Amway's evasion of Canadian customs duties and an incompatible corporate culture.

In May Amway withdrew its bid. Business Week, in a May issue, characterized the bid as Amway "flexing its muscles for the first time"; although the bid failed, it was a good indication of Amway's financial strength. Amway and its founders also became significant sponsors of the arts in the s. Ford Presidential Museum.

Amway also made commendable efforts to be environmentally responsible. Several of Amway's early products were biodegradable, and its SA8 detergent was available in a phosphate-free formula to limit pollution Affiliate Company In The Philippines waterways, and products were concentrated, reducing the amount of packaging that ended up in landfills.

After chlorofluorocarbons were reported as hazardous to the ozone layer, Amway modified its aerosol products to delete those compounds. In Amway was a main sponsor of the two-month-long Icewalk, an CCompany to the North Pole, designed to focus attention on environmental issues. In fact, on Bucks Hat Company 5,Amway received the United Nation's Environmental Programme's Achievement Award for Excellence, becoming one of two corporations Quickbooks Cannot Communicate With Company File gain that honor.

That same day the firm announced that it would end all animal testing in its research programs and that it would not cooperate with the Cosmetics, Toiletry and Fragrance Association's campaign against the ban on animal testing.

In the area of recycling, Amway was named Michigan Recycling Coalition's Recycler of the Year, for its onsite recycling center and recycling practices in its operations and product development. Despite the legal battles and occasionally unfavorable media characterizations of Amway, and direct selling in general, the concept was becoming increasingly popular.

A Harris poll of U. The boom was influenced by shifts in employment trends. Amway's European expansion also continued throughout the s, with operations established in Switzerland and Belgium inand in Spain and Italy in In Panama became the first Latin American base of Amway operations, followed by Guatemala in

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