What is with all the Amway commercials on TV all of the sudden?

Question

I thought their whole plan was that they saved money by NOT advertising and only selling through direct reps? Now we see all these Amway commercials on TV. What is the deal?

Answer 1

This is all to funny to me. Do you think that they will have to cut the commissions of the IBO's to compensate for the advertising costs? (Really, I already know the answer)

I think the advertising spots have everything to do with PR and and politics. Some people speculate that the advertising is a way to phase back into the Amway name.

This type of advertising is not new to Amway. Alticor released "I am Amway back in '06. http://www.alticor.com/i-am-amway/

http://media.alticorblogs.com/2006/08/31...

I honestly get a kick out of their "good guy" advertising. http://www.thetruthaboutamway.com/index....

We know you are successful Amway. Kudos on all those that you employ.

All the advertising draws attention away from the fact that many IBO's still fail to make profit in their business.

Even Amway reports that the average annual income of an IBO is $1380 http://www.thisbiznow.com/quixtar/ibo_st...

These numbers are just based on active IBO's. They also report that only 66% of IBO's are active.

Answer 2

Because they have to keep up with the Jones. Many of the other MLM/Network Marketing companies are using forms of advertising to lure reps outside of the "warm market" tactics.

Notice that the focus is on the opportunity and not their products.

They have been flaunting their profits from 2007 in the process.

The design is to lure people into the opportunity or their focus would be on marketing their products.

Amway is only following suit of many other companies. As you have seen some are using celebs to promote theirs. For example Donald Trump and ACN.  Many are standing behind the quotes of Donald Trump and Robert Kyosaki as well.

Smoke and mirrors baby, smoke and mirrors!! That is the deal.

Answer 3

Just as any industry changes MLM is changing and are expanding their market in ways that other companies have for years. These advertisements are being used to support the direct reps' businesses. Avon is advertising for people to be put in touch with local reps, and I assume Amway/Quixtar is doing the same though I can not confirm or deny this.

Remember it's all about brand awareness and a positive feeling. Whether or not these ads are doing that is still in question, but the exposure in different ways is the latest in a changing market.

Unlike others, I don't see cuts in commission happening for companies that are advertising in ways they have not before. They're using these forms of advertising to increase their businesses and will use that increased business to offset the cost of the advertising.

Answer 4

LOL! Are you joking? They have not been truthful since their inception.

They have plastered their advertising here on Yahoo Answers as well.

Don't be fooled. The root of the advertising is all the same. Whether it is direct through the reps, TV or internet adds, the focus is still on recruiting people into the opportunity.

They still flaunt the same old empty promises and false hopes.

What amazes me most is the fact that they still are successful in attracting the "naive."

I compare this type of marketing to the weight loss fads that attract the people desperate for change and expect an easy out.

Answer 5

advertising is about brand awareness which will help to boost the business of all amway distributors. amway has always play by the rules and truthful in all their actions. amway didn't cut down any bonuses from the distributors to support their advertising activities. in fact, they've more than enough funds to do much more because they are a debt-free company. and amway still keep their promise in helping people to live better lives by having their business in every country worldwide. vietnam is the latest market opened in 2008

Answer 6

Amway is marketing through commercial advertising to boost the number of IBO's coming in.  They are not shifting gears. There intent is to get reps through the advertising and then teach them to advertise by word of mouth as they say. The same old warm market tactics.

Outside of my opinion of that, I find it to be no surprise that participants in MLM/Network Marketing like Mitch would respond to others opinions crying "ignorance."

Mitch, your ignorance is debatable. Your statements have no backing whatsoever. Your response to others opinion is all to common in the industry.

You may be one of the few to make money in MLM/Network Marketing. I would dare say that you have coupled marketing skills that are non-traditional to MLM/Network Marketing with your opportunity. In fact the answer lyes in your profile http://answers.yahoo.com/my/profile;_ylt...

You DO NOT make your money from building successful people. Your form of marketing attracts the naive just as the companies. I would even venture to say that if you are successful in the industry it is not from making others successful.  Your website http://www.optin2succeed.com/btguru-g

portrays the same false hopes and empty promises.

The heading of your own site states "Spend More Time With Your Family This Year."

This is by far one of the greatest lies in MLM/Network Marketing. You would have to work several years in MLM/Network Marketing and put in far more hours outside of your day job to build a successful business.

If you build your downline quick and took a break you would not be able to keep up with the attrition rate.

Even a top MLM'er/Network Marketer knows this is false advertising.

As far as the industry producing the most millionaires, that is truly absurd. If you were successful in building a strong business in the industry, you could become a top income earner in the word. However, the industry has failed to show that it does produce what it claims. In fact, what it claims, is not mathematically possible.

Answer 7

I saw the commercials as well.  My wife's answer was "If they are so great, how come I've never heard of their products."  Personally, I laughed.  Amway/Quixtar/Alticore/Etc. IBOs/reps/salesmen have for 40 years bragged about how they don't advertise so they can keep their prices low and payouts high.  Now, they have all of the sudden seen the light and need to advertise on TV.  I think it is all PR and trying to get a good image for the company again.

Mitch, MLM has not made more millionaires than the traditional business model (whatever you mean by that).  Dr. Stanley who studies millionaires and their habits and written a few books about them has not listed MLM as a significant contributor to the millionaire population ever.  Have some MLMers become millionaires? Yes.  However, out of the 6 million millionaires in the US, I would bet that MLMers account for less than 5000 of them (or less than 0.1%).  Its interesting that this myth has been passed around by throughout the MLM industry and not once has an MLMer produced any information which would substantiate this claim.

Lets get some other facts straight:

MLM is not a growing industry - total sales by all MLMs have been stagnant for several years (this is an indication of market saturation - only so many people want to buy a bottle of vitamins for $74). Even the largest of them - Amway - is still reporting $6.8 billion this year which is less than they were reporting in 1997.  You can always check out the information on publically traded companies (Nature's Sunshine, Nuskin, Herbalife).

MLM is not the most ethical business ever - one only need to look at the court cases to find that this industry is filled with as many unscrupulous people as any other.

MLM will not usher in the 2nd Coming of the Savior - no matter how many people believe MLM is part of God's plan, its not. Never was and never will be.

MLM is hard work - as with any work that is going to make you money, it will take long hours or a long time or both to make money at MLM.  If someone tells you otherwise, ask to see their tax return.

MLM products are not superior to every other product on the market - Consumer Reports has done numerous studies about the products that MLMs sell.  Sometimes they are better, sometimes they aren't.  Get over it.

MLM products are not cheaper than every other product on the market - see the line above.

Answer 8

Quote: "They still flaunt the same old empty promises and false hopes."

Is there no end to the ingnorance of people in this and other forums? MLM is NOT a bunch of empty promises. Sure, there are companies who seem to be unable to deliver. Sure, there are companies who use unethical marketing methods. Sure, there are companies who will lie to you, promise to make you wealthy, almost overnight. Sure, all of those things are true, but they are just as true in Corporate America, or in any other type of business.

That doesn't  negate the legitimate MLM or other Home Business Opportunities. I am in a very successful MLM, myself (no, not Amway). I understand that things don't come easy, I understand I have to work my business, or nothing will happen. But, and here is an important point, nothing happens if no one knows you exist. However you do it, you have to advertise. Today, online  and tv are the best ways to do it. Amway is just like any number of companies who have figured this out.

Amway is still alive and kicking as well as a number of MLM companies. Don't be so quick to pass judgement on the industry, it has produced more millionaires than the traditional business model, in a fraction of the time.