Amway - The Story of the Leading Direct Sales Corporation

Brand Stories & Strategies Network Marketing & MLM Business Insights 14.01.2016  0 64 0
Amway - The Story of the Leading Direct Sales Corporation

💡 Want more business insights? Stay ahead of the curve with our exclusive updates!

👉 Join our Telegram channel for daily business ideas and expert tips.

👉 Follow us on Facebook to never miss a trend or update!

Don’t just read—connect, grow, and innovate with us today!


It's hard to impress our contemporaries with various network marketing systems - literally every month a new company appears on the local market offering an "innovative product and business building system." But all these are just attempts to achieve the same success as the founding companies of the direct sales system. One such exemplary company is Amway - a corporation that stood at the origins of network marketing and is not inferior in scale to the legendary Avon. And yet, the foundation for creating the most successful corporation was the simple business idea of selling dietary supplements...

Origins

The modern form of Amway, as we know it, stemmed from the company Nutrilite. It was established in 1939 by Carl Rehnborg, who, in 1917, was interned in China and had to survive in harsh camp conditions for ten years. The detainees' diet was poor, and Carl managed to survive only by consuming various plants and powdered bones as "emergency rations."

Thus, the accidental discovery of dietary supplements happened, a concept almost every adult in the modern world has heard about. After his release from the camp, Carl devised the idea of a business selling dietary supplements that would provide all necessary nutrients to the body, regardless of the food consumed. The dietary supplements took their final form after seven years of rigorous experiments. And then began the organization of a revolutionary sales system.

Nutrilite focused on direct sales and, thanks to a successful marketing system, rapidly developed a partner network of 15,000 people. At that time, this was unprecedented success. Initially, the success was driven by powerful advertising that promised the supplements could cure various ailments, even cancer. This attracted authorities' attention, leading to a four-year legal process that resulted in changes to exaggerated advertising claims. Around this time, the MLM sales strategy was refined, a blueprint that many modern companies still follow.

Birth of Amway

Amway was founded by two partners who were selling Nutrilite products. Born in Ada city, Jay Van Andel and Rich DeVos became such successful networkers that they built a network of two thousand partners. After a decade of work, they decided to leave the company and start their own business. They chose to operate based on a proven MLM scheme, using their existing Nutrilite network as a foundation. They chose a rather pretentious name for the new company - "American Way of Life," shortened to Amway.

The first product was a biodegradable cleaning product, serving as the foundation for the entire L.O.C. product line. Besides excellent performance, this new product had a notable competitive advantage - it could decompose in a biological environment, making it environmentally safe. It's worth noting that this formula was not an in-house invention but was purchased from a talented chemist in Detroit.

The cleaning product quickly gained overwhelming success, leading to large-scale industrial production. However, the company founders realized that expanding their product range was necessary for real success.

Starting from 1960, Amway began producing the following product lines:

  • Laundry detergent.
  • Dishware.
  • Women's cosmetics.
  • Fragrances.

The catalog at that time included over 300 product names. Within a couple of years, the distributor network had grown to 100,000 people.

In 1972, Amway acquired a controlling stake in its parent company Nutrilite and started trading in dietary supplements.

Success Achievement

By 1981, the corporation had earned its first billion, marking a period of massive growth for the company. In 1989, Amway received a United Nations award for environmental protection efforts. By then, the company had 3.5 million distributors in 80 countries and a product range of 6,500 items. Amway branches started appearing in the post-Soviet space in the early 2000s.

The company's success is based on a well-developed MLM system that incentivizes network participants to expand and increase sales. The income of those involved in Amway product sales depends on earned points within the system, personal product turnover, and sales generated by the people they invite. To receive rewards from the company, individuals must register with tax authorities.

It is worth noting that the number of Amway product distributors who earn real income is relatively low - less than 1% of the total participants in the network. The majority of network participants primarily purchase products for personal or family use.

Criticism

Amway has faced criticism from various governments and individuals, but it’s worth noting that all legal proceedings against the company have been won, demonstrating the legality of its operations and absence of pyramid scheme elements in its sales structure. The attacks on the corporation stem from skeptics trying to find signs of fraud in the company’s activities, which, in reality, do not exist. These suspicions are fueled by high-profile pyramid schemes worldwide, causing people to harbor fears of network marketing.

As you can see, an MLM sales strategy can lead to dizzying success. So, if you want to start your own business, it's worth taking a cue from how the Amway corporation evolved.

If you enjoyed this article, share it with your friends - they may be interested in partnering with Amway or applying MLM principles to their own business.

💡 Want more business insights? Stay ahead of the curve with our exclusive updates!

👉 Join our Telegram channel for daily business ideas and expert tips.

👉 Follow us on Facebook to never miss a trend or update!

Don’t just read—connect, grow, and innovate with us today!


14.01.2016  0 64 0
Beauty & Wellness Industry Food Products Business Ideas Healthcare & Wellness Business Ideas Home Accessories & Tableware Business Ideas Home Business Ideas Jewelry & Accessories Business Ideas Manufacturing Business Ideas Network Marketing & MLM Business Insights Trade & Commerce Business Ideas
Brand Stories & Strategies Success Stories
сетевой маркетинг Amway Джей Ван Андел Рич Де Вос Nutrilite МЛМ
New business ideas

Note: Comments are being moderated and may take a while to appear. There is no need to resubmit your comment.

How to Start Real Estate Investment: Lessons from Keith Wasserman 159
How to Earn with Affiliate Programs Using Shopify and Pinterest 139
How I Grew My YouTube Channel Using 7 Free Platforms 137
How to Earn $3,400 per Month with Short Video Challenges 131
Is It Really Possible to Make Money Online? How Not to Waste Your Time 129
5 AI Business Ideas with Massive Potential in 2025 127
9 Profitable Digital Products to Sell Online in 2025 124
The Best and Worst Business Ideas to Start in 2025 120
How to Earn Money with Free Google Certifications: Complete Guide 120
10 Inspiring Entrepreneurial Stories: From Failures to Success 99
How to Make Money Selling Canva Templates: A Step-by-Step Guide 98
How a Young Entrepreneur Made $2.7M with Affiliate Marketing 85
How to Earn with Coloring Books on Amazon KDP 82
10 Businesses Under $100 to Start in 2025 with Million-Dollar Potential 79
6 Netflix-Based Business Ideas That Work 74
How to Make $780/Day with Google Trends and AI: Step-by-Step Guide 69
50 Ways to Save $50 a Month: Updated for the Modern World 63
How to Build a Million-Dollar Online Business: A Step-by-Step Strategy 62
How to Use Your Stimulus Check 2025 to Start a Business 62
Artificial Intelligence (AI) Certifications to Boost Your Career and Earnings in 2025 60
Top Free Video Editors for YouTube Creators in 2025 53
How to Earn Money with ClickBank: A Complete Beginner's Guide 52
Today Everyone Uses Canva, but Who Created It? 43
Pet Care Services (Dog Walking and Pet Sitting) 37
How to Start Investing in Rental Properties and Build Passive Income 13
How to Build a House for $250: Practical Guide 26
Make Your Own Furniture Using Old Tires 107
Gift Jam: A Sweet Business Venture 26
The First Lady's Porcelain Artist 35
Fascinating Facts from the History of the Largest Hosting Provider, Digital Ocean 32
Mark Shuttleworth: Internet, Space, and Ubuntu 25
Fascinating Facts About Shutterstock 39
Amazon Bestseller: Doona Infant Car Seat & Latch Base – The Ultimate Stroller-Transformer 197
Amazon Bestseller: Sugru Moldable Glue – The Flexible Fix for Any Project 40
Foot Hammock: A Simple Solution for Leg Fatigue 35
Construction Using Primitive Techniques 59
The Future of Medicine: Israel's Breakthrough in 3D Printing and AI for Drug Development 49
Olga Vidischeva and Her Boutique Aggregator Shoptiques 48
Plastering Station with Daily Income of up to 20,000 Rubles 59
Turning Treasure Hunting into a Profitable Business Venture 70
Seaweed Bottles 72
Real Business for Real People! 98
15 Unique Inventions That Can Simplify Life 84
Creating a Scrap Metal Recycling Center: A Business Idea 84
Scooter vending 85
Top 5 Devices and Technologies That Will Soon Make History 51
Exciting Business Idea: Exhibition and Sale of Live Tropical Butterflies 83
TeslaMotors: A Business Idea Set to Revolutionize the Automotive Industry 70
Eco-Friendly Furniture Made From Mushrooms 92
Microgrids: The Future is Here! 39