 | |
| Company type | Private |
|---|---|
| Industry | Multi Level Marketing |
| Founded | 1971 |
| Headquarters | Chatswood, New South Wales, Australia |
| Parent | Amway |
| Website | www |
Amway Australia is the affiliate of the United States company Amway that serves Australia and also New Zealand. The company began in 1971. Amway Australia is a Multi-level Marketing firm.
Amway Australia opened in April 1971 and was Amway's first market outside of North America. [1] [2] The company launched quickly, registering more than 400 distributors in its first month of operation, however sales soon stagnated. Investigations revealed problems with quality control at local manufacturers and the decision was made to manufacture and ship products from Amway headquarters in the US. [2] By 1993, wholesale sales had reached A$148 million. [3] In that year Amway Australia became part of the publicly listed company, Amway Asia Pacific, and by 1998 sales had reached A$198 million, [3] [4] with more than 100,000 distributors marketing over 2,500 products. [1] In 2000 Amway Asia Pacific returned to private ownership by New AAP Limited, a Bermuda corporation. [5] [6]
In March 1998, Amway Australia launched its first internet based ordering system (ELVIS - Electronic Link Via Internet Services), and processed $15.9 million in sales in July 1998. [7] In April 2000 ELVIS was replaced by a2k and Amway Australia became one of the first Amway affiliates to introduce a new business model, dubbed IMC (where the "I" stands for Independent Business Owner [IBO], the "M" stands for a new Member classification, and "C" stands for Client). Along with Amway products, the new portal provided access to various partner company products, including IBM, Petals, RM Williams, Blue Star Office Supplies, and AFS Financial services. [7] [8] In 2000 it was reported that Amway was the largest direct selling company in the Australian region with annual turnover of more than $170 million and a network of 100,000 home-based distributors. [7] Thirty percent of products sold by Amway Australia come from Australian suppliers, with the rest from Amway factories in the US, Europe, and Asia. [1]
By 2010, 40% of people joining Amway Australia were under the age of 30 [9] and the company had embraced social media such as Facebook and Twitter as part of their sales and communications processes, [9] as well as increasing brand marketing efforts through the signing of endorsement deals with swimmer Libby Trickett and Australian cricketer Adam Gilchrist as "Ambassadors". [10] [11] [12]
Amway Australia has one business centre in Castle Hill, New South Wales (NSW), [13]
The "direct selling" company has been dogged by allegations of being an illegal pyramid scheme for decades. The president of Amway has stated to Australian media that "this is old news". [14]
In 1994, NSW state parliamentarian Mr Scully questioned the Consumer Affairs minister whether Amway Australia's distribution practices used dishonest, unethical and inappropriate behaviour. The Minister for Consumer Affairs replied that "Complaints against Amway or Amway distributors are very few and indicate little cause for concern". Following a complaint from Amway, the department had prosecuted one Amway distributor for misleading conduct involving the potential recruitment of Amway distributors into another work-at-home scheme. [15]
In 2003, the Australian Tax Office challenged deductions made by Amway Australia over an 8-year period for seminar expenses in resort locations, offered as incentives to successful distributors. Amway had a partial win with the Federal Court ruling Amway was largely entitled to the deductions, however it was ruled that substantial food and drink bills associated with the seminars were not deductible. [16] In 2004, this ruling was overturned and the deductions were allowed in full because it was a serious business occasion. [17]
Amway is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and its sister companies under Alticor reported sales of $8.9 billion in 2019. It is the largest multi-level marketing company in the world by revenue. It conducts business through a number of affiliated companies in more than a hundred countries and territories.
Amway North America is an American worldwide multi-level marketing (MLM) company, founded 1959 in Ada, Michigan, United States. It is privately owned by the families of Richard DeVos and Jay Van Andel through Alticor which is the holding company for businesses including Amway, Amway Global, Fulton Innovation, Amway Hotel Corporation, Hatteras Yachts, and manufacturing and logistics company Access Business Group. After the launch of Amway Global, it replaced the Amway business in the United States, Canada and the Caribbean, with the Amway business continuing to operate in other countries around the world. On May 1, 2009, Quixtar made the name change to Amway Global and fused the various different entities of the parent company.
Distribution is the process of making a product or service available for the consumer or business user who needs it, and a distributor is a business involved in the distribution stage of the value chain. Distribution can be done directly by the producer or service provider or by using indirect channels with distributors or intermediaries. Distribution is one of the four elements of the marketing mix: the other three elements being product, pricing, and promotion.
Alticor is a privately owned American corporation run by the DeVos and Van Andel families. It was established in 1999 to serve as the parent company for a handful of business ventures, most notably the multi-level marketing company Amway and Amway Global, and a manufacturing and distribution company, Access Business Group.
Jay Van Andel was an American billionaire businessman, best known as co-founder of the Amway Corporation, along with Richard DeVos.
Nutrilite is a brand of mineral, vitamin, and dietary supplements developed in 1934 by Carl F. Rehnborg. Nutrilite products are currently manufactured by Access Business Group, a subsidiary of Alticor whose products are sold via Amway worldwide. The Nutrilite brand is known as Nutriway in Denmark, Finland, Norway, Sweden, Turkey, Australia and New Zealand.
Nu Skin Enterprises, Inc. is an American multilevel marketing company that develops and sells personal care products and dietary and nutritional supplements. Under the Nu Skin and Pharmanex brands, the company sells its products in 54 markets through a network of approximately 1.2 million independent distributors.
Network Twentyone, is a training and support organization for distributors working with the Amway business. It was founded in 1990 by Jim and Nancy Dornan, distributors with Amway, originally to support their Amway network in the United States and Australia. Network Twentyone provides complete "turnkey business support solutions" for Amway Independent Business Owners from meetings and function production including education, recognition and motivation to web applications and multi-media products designed to aid you in building a profitable Amway business. These materials are often referred to as Business Support Material. BSM are promoted to a captive market represented by fellow IBOs as well as potential IBOs, creating an opportunity for an additional and independent source of income to that derived from bonus payments arising from the sales generated within the network. The income of those who have reached significant levels can be substantially more through the sales efforts of BSM, to several or perhaps many IBOs Network TwentyOne operates in more than 40 countries and is considered one of the largest adult education organizations in the world.
In re Amway Corp. is a 1979 ruling by the United States Federal Trade Commission concerning the business practices of Amway, a multi-level marketing (MLM) company. The FTC ruled that Amway was not an illegal pyramid scheme according strictly to the statutory definition of a pyramid scheme, but ordered Amway to cease price fixing and cease misrepresenting to its distributors (participants) the average participant's likelihood of financial security and material success.
Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling the company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.
Usana Health Sciences, Inc., or USANA, is an American direct-selling company based in West Valley City, Utah. As of 2021, Usana was the 14th largest direct-selling company in the world by revenue. The company manufactures most of its nutritional products, dietary supplements, and skincare products at a West Valley City facility. Its products are sold in 24 countries via a network of independent distributors.
MonaVie is a defunct, American multi-level marketing company that manufactured and distributed products made from blended fruit juice concentrates, powders, and purées. The company was the subject of several controversies. Health claims for its products had not been scientifically confirmed or approved by regulatory authorities, and its chairman had been previously involved in false health claims concerning another beverage company. According to Forbes, MonaVie's business plan resembled a pyramid scheme. In 2015, the company defaulted on a US$182 million loan and went into foreclosure. Florida-based Jeunesse Global took over MonaVie’s assets when it purchased the note for $15 million.
Market America is a multi-level marketing company founded in 1992 by JR and Loren Ridinger. Headquartered in Greensboro, North Carolina, the company employed around 800 people as of 2016. The products offered by the company include household cleaning supplies, jewelry, personal care products, auto care, cosmetics, dietary supplements, custom websites, water purifiers, and weight management products. A 2017 lawsuit accused the company of being an illegal pyramid scheme.
Grupo Omnilife is a Guadalajara-based multi-level marketing company that distributed dietary supplements. The corporation is owned by Amaury Vergara, who also owns the football club CD Guadalajara.
Young Living is a multi-level marketing company based in Lehi, Utah. Founded by Donald Gary Young in 1993, it sells essential oils and other related products.
Bellamy's Australia is a major Australian food and beverage company, and is the parent company of Bellamy's Organic, Australia's largest organic infant formula producer.
Libby's was an American company that produced canned food and beverages. The firm was established in 1869 in Chicago, Illinois. The Libby's trademark is currently owned by Libby's Brand Holding based in Geneva, Switzerland, and is licensed to several companies around the world.
LuLaRoe is a United States-based multi-level marketing company that sells women's clothing. It was founded in 2012 by DeAnne Brady and her husband Mark Stidham and is currently based in Corona, California.
Morrison v. Amway Corp. 49 F. Supp. 2d 529 was a lawsuit concerning the enforcement of a contractual arbitration provision between the defendant Amway Corp. and the plaintiff their distributors.
