The Difference between Amway and Market America

1.    Company History

Amway is an American direct marketing company. They are headquartered in Ada, Michigan. It was founded by Jay Van Andel and Rich DeVos in 1959.

Market America, is an American direct marketing company. They are headquartered in Greensburg City, North Carolina, United States. It was founded in 1992 by former senior Amway distributor JR Ridinger and his wife Loren Ridinger at their home. 

2.    Products

Amway is a manufacturer and retailer. Mainly conducts consumer goods. It covers Nutrilite nutrition supplement, Artistry cosmetics, personal care products, home care products, and home durables etc. 2013’s global turnover was $ 11.8 billion (53 years) and 4,000,000 Independent business owners (IBO).

Market America is just a product broker and it never produces any products. They mainly conducts health & nutrition, anti-aging, cosmetics, personal care, weight management, home & garden, pet care, Internet, auto care, and financial services etc. There are more than 700 exclusive products and 3,500 products of partner stores. (Including Walmart, Dell, Sony, etc.). 2013 global turnover was $ 5.5 billion (21 years), 200 000 distributors.

3.    Sales or Marketing

Amway marketing relies on direct selling and network marketing that establishes “Multi-level market" model (more people under each person=more legs). It is a gathering and accumulation of products direct sales model. That is, in addition to retail margin, up line get paid a percentage of commission of down lines’ sales. The company's overall sales model is a parallel sale between the distributors and mass marketing. There are competing with each other, as well as compete for customers.

Its model of operation is: down line distributor purchase products from their top-level IBO, they can get a 35% discount. If an independent business owner recruits 25 people, and each of them purchase a month of products, he becomes a "sponsor." At this time, his customers and his down line distributors have to orders directly from him. They can earn 35% of profits from the sales sold to customers. The sponsor can get commission from down line distributor's sales up to 25%. When sponsor and down line distributors accumulate 150 people, he becomes a top agent of the "pyramid". As I know now they can order online and pay monthly too. (These narratives were told by my neighbor who joined Amway 10 years ago for a short time.) 

Market America is built on social networks and the Internet, based on "vertical network marketing" model (only two people under each person-two legs). It is a teamwork ABC (You and two partners) with a healthy consumption marketing model. The main source of profit is from product sales. People can quit freely and no deposit. The company's overall sales model is complementary advantages between distributors and vertical sales of leveraging each other. There is no competition only support of each other. The marketing is one to one between distributor and customer. The distributor is a health consumption consultant. 

The mode of operation: all distributors must purchase directly from the company’s website at distributor’s cost. You either resell at retail price to earn gross retail profit or personal use. Your customers can order products either through you or your own shop.com portal. They can have 2% --50% cash back on shopping MA exclusive products or products from partner stores. Distributors can earn BV and IBV on themselves, customers, and downline distributor’s sales and purchases. Relationship among all the distributors (including upline and downline) are vertical equal. And profit-sharing mechanism associated with the sales value points (BV, Business Value on exclusive products; IBV, Internet Business Value on partner stores) is accumulated vertically from the Bottom up. While team cooperates, team members use each other’s knowledge, advantages, and interpersonal skills to achieve profit-sharing, which means one person’s success benefits everyone. MA pays weekly. 

4.    Commission and Bonus System

Amway, based on the number of products sold to the final consumer by each individual independent business owner (IBO) as a standard measure of income. Currently, the highest compensation ratio is 25%, calculate and make payment monthly. The figures below are shown how you earn bonus:

Market America, has an exclusive patent profit sharing plan: left and right system (binomial system,) which is one distributor selling the products to get the business values (BV), respectively places at left and right legs of his personally sponsored downline distributor. The BV will flow from the bottom back to him. Everyone between him and his new sponsored distributor will get same BV points.

The figure below is shown how you earn commission: 

When BV and IBV was searched infinity and continue to accumulate, and the distributors in your organization will not drop out:

• ·         When you left and right legs of organization each accumulate at least 1200 BV, you can get $300 commission. Even if your one side of the organization have not meet the requirement of 1200 BV, the number of BVs for the week will not disappear. It will be retained to next week and add to next week’s BV until you meet the criteria of 1200 BV. The BV cumulative will keep for up to one year.
• ·         When you left and right sides of organization has accumulated another 1200 BV for each side, which is accumulated 2400 BV each leg on both side of organization, you get a commission of $ 300 again. When you left and right side of organization each has accumulated at least 1200 BV, the original 2,400 BV increased to 3,600, you then get third commission of $ 300; when you left and right sides of organization each has accumulated at least 1,400 BV, the original 3,600 BV increased to 5,000, then you can get $600 commission.
• ·         Total commission you can get $1500. At this point, your Business Development Center (one store) of BV will be adjusted to zero. You must re-start accumulating again to achieve goal of 1200, 2400, 3600 and 5000 BV.
• ·         Now you have a super-chain organization of Unfranchise owners and distributors. They will generate additional orders and new BVs. If this continues, you are more likely to earn a commission every week. The existing Unfranchise owners will help you to recruit more new distributors and create more BV. Left and right side of your organization easier to reach 5000/5000 BV criteria until you eventually earn $ 1500 commission every week. Depending on your total accumulated week BV, you can earn a commission of $300 to $1,500 per week.

Helping others complete the BV commission cycle in the same week, you will receive a management bonus of $600.

5.    The Relationship of Upline hand Downline

Amway needs A, B, C, D four sales partners to form a bundle of benefit groups. Of course, the more sales partners, the more income will increase. From the composition of Amway independent business owners to many sales representatives, mostly is family members to participate in Amway.

Because the products sold are in their own inventory, when IBOs sold a product, they are not paid only the time; they may also owe a debt of gratitude to someone they try to sell, and this is the negative returns. Meanwhile, independent business owners often only consume their own selling products that are all the company's own products. Therefore, they give up the opportunity to a variety of choice. As a result, the relationship between upline and downline are not just family members and interest relationships, they are also a competitive relationship.

Market America only need two business partners (lower distributor) consisting of a sales and consumption pattern groups (binomial system), which we say "personal super chain stores." Of course, if there are more business partners, the more income will increase and more stable. The relationship between business partners are solidarity and teamwork. “The network marketing" maximizes to inspire the advantages of the network.

Distributors sell a product will pay not only the time but also personal feelings and caring. Distributors promote not only products but also the concept of healthy living and lifestyle. Through company agent of thousands of consumer products, with carefully selected products that is suitable for every consumer's personal health and living habits. As a result, although the relationship between upline and downline has certain interests, the primary personal interest come from product sales and jointly support of upline/downline. It reflects a big family relationship of upline care about downline, and downline is thankful upline. Both are working together created for a happy life.

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