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$12 billion in 2012
#11
I think though this campaign needs the accompanying product campaign as well.

Tag line - "Amway. World Class Products. World Class People"
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#12
"Our network of employees and Independent Business Owners, teamed with world-class products and world-class support, have contributed...or done...blah, blah, blah.

What kind of people take part in Amway?

Did you know that Amway IBOs...
...are pilots...teachers...doctors...engineers...philanthropists...etc, etc, etc...

It might even be your ......

It's okay to say, "Are you in Amway?"

World-class products. World-class service. World-class people.

I can see it.
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#13
ibofightback Wrote:I'm curious to hear people's ideas on what Amway can do to boost sales a further $3.6 billion in the next 3 years.

Probably worth mentioning which Amway market you live/work in!


From a U.S. IBO perspective:

Amway needs new DNA. New blood that isn't so "pin" oriented. IBOs who are interested in being profitable, rather than being recognized on stage at a new, whatever-pin.

What I see as the easiest, is for the sales dollars to come from customer volume, not from the BFYATOTDTS model, nor the current water-down version of the BFY model.

If each 100 PVer IBO obtained just one customer $75 (suggested retail price)-order a month, that would be 17% growth (the $75 SRP order is, at IBO Cost, about 17% of the 100 PVer's IBO cost) .
Add to that by getting one more monthly customer for 2011 (that would be a 14% growth over 2010),

and another one for 2012, (that would be a 12% growth over 2011)

and Amway would have 49% growth comparing 2009 numbers to 2012 numbers.


Don't know how much more Amway can do. They've done a ton, and are doing a ton in order to grow their volume this way--through non-IBO sales.

The "problem" is that not all IBOs are on board. And some "leaders" continue to teach the most unprofitable way to build an Amway Business, all in the name of that allotrope of carbon.
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#14
Bridgett Wrote:And some "leaders" continue to teach the most unprofitable way to build an Amway Business, all in the name of that allotrope of carbon.


What "most unprofitable way to build an Amway business" in the name of building a network arguably producing at least $2M annually in product sales (likely considerably more) and practiced often enough to warrant space here are you referring to?

Is it a method no-one can duplicate?

I don't want to perpetuate that method, if it is so pervasive.

In my neck of the woods, I see a whole bunch of "un-profitable" means being employed to build Amway businesses...

...like telling no-one what you are doing.

WAY too common.

...we were doing SO good being solution oriented...
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#15
I think there's 3 areas of inefficiency that could be looked at to provide almost immediate benefits

(1) 80%+ of people exposed to the business (ie "shown the plan") don't join, and I suspect the VAST majority of them don't become customers either -> ergo you have a large pool of people who have passed the first hurdle for an IBO - they were successfully contacted and an appointment booked. We should be able to get way better at converting at least some of that 80% to customers. Diamond Mike Wilson also spoke about this problem on the now defunct "Speaking of Amway" blog. We need to develop a systemitised approach to this. Is it possible to develop a simple, duplicatable "plan" that can develop both IBOs and customers? This needs a thread of it's own!

(2) 50% of those who join never place an order after registration. These are people who said "yes"! And we're wasting them. Some of them likely have buyers remorse, but I suspect many of them are also just left behind in the wild hunt for a self-starter. We need to get better at getting people started. Again, like the plan, this process needs to keep in mind a goal of keeping them as customers (wholesale or otherwise) even if they don't initially, or ever, end up pursuing the business

(3) A further 20% who join don't renew after their first year. These are guy who actually placed an order, but didn't renew. Why? Was it the renewal fee? Something else? Here's a thought - how about you can maintain your IBOship (and any downline) and IBO pricing after your first year for free. But if you want to sponsor, or have the personalised websites etc, then you pay the renewal fee. Or just get rid of the renewal fee. As far as I'm concerned, with entirely electronic communications possible there's little economic justification for the membership fee as it stands, in any of the markets where it still exists.

So -> more customers from plans, better systems for handling new IBOs, better systems for handling those who fall inactive

All of this would make a significant difference to volume without needing major growth in recruitment, and would also increase IBO profitability.
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#16
@IBOFB

You make GREAT points.

Of course, I suspect a lion's share of the challenges you noted would be solved if people thought better of what an Amway IBOs sitting down with them "represented", and further, if the prospect them-self could feel a "pride" for being an Amway IBO, or at least a pride in participating in the program as a customer.

Seems to me it's the image of Amway and the Amway IBO that needs a little bolstering.

We've all long established, for better or worse, most people aren't gonna' buy or sell the best products in the world just because they are the best products in the world, even if the T.V. ads are telling them they are.

They have to feel "cool" doing it.
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#17
Wearyeyed Wrote:
Bridgett Wrote:And some "leaders" continue to teach the most unprofitable way to build an Amway Business, all in the name of that allotrope of carbon.


What "most unprofitable way to build an Amway business" in the name of building a network arguably producing at least $2M annually in product sales (likely considerably more) and practiced often enough to warrant space here are you referring to?


One way is affectionately known as "stacking." A more acceptable term is called "building a taproot" (even though that's NOT what building a taproot originally meant).

"Helping" a new IBO get to, say, 1,500 PV, as soon as possible, by placing people "beneath" them, all in one straight line, that they don't even know.

And why? Why build these 1,500 PV legs? What is the point? Surely not to help this new IBO make money. Anyone who has a remote clue of how the Amway Comp Plan works knows that most of that $500+ Performance Bonus gets passed down that IBO's one leg.

So all that work, all that volume, all those stacked IBOs, (10 doing 150 PV each in volume), more than $4,000 in revenue, and that new IBO "on top" is pulling in around a hundred bucks.

This is what it looks like when PV is the focus, rather than $$ profitability. The two do not always go hand-in-hand.
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#18
Wearyeyed Wrote:Of course, I suspect a lion's share of the challenges you noted would be solved if people thought better of what an Amway IBOs sitting down with them "represented", and further, if the prospect them-self could feel a "pride" for being an Amway IBO, or at least a pride in participating in the program as a customer.


Absolutely, and not having the prospects feel "deceived" into an appointment would aid that, as of course would increased brand awareness through corp marketing.

Quote:Seems to me it's the image of Amway and the Amway IBO that needs a little bolstering.

Reputation improvement is a medium to long term process, and I think improving these aspects would naturally to contribute

Quote:We've all long established, for better or worse, most people aren't gonna' buy or sell the best products in the world just because they are the best products in the world, even if the T.V. ads are telling them they are.

Yup - take Nutrilite (I do! Big Grin ). #1 in the World with a little under 4% market share. Take it to 6% and we've added a couple of billion to Amway's revenues. 94% left for people who want to buy less than the best :cray:

Quote:They have to feel "cool" doing it.

some do, but that's more of a generic marketing thing that I don't think we as individual IBOs can do much about right now.
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#19
@Bridgett

Thanks for the example. I don't have the brain capacity to understand the whole thing, but I am always a little cautious when talking about specific strategies, using static "snap-shots" in time to illustrate.

Many a critic has made fun of 6-4-2, demonstrating "all the losses", but fail to take into account the equal opportunity for each person to do the same, and the fact that most people won't even try, and many don't even want to.

Or that people aren't "losing" anything if they are getting some product or other value for their money.

@IBOFB

I am SO tickled by your campaign idea using "regular" folk...even to the point of making an impressive ad that in no way, shape, or form encourages an neggo-Amway response, but ends with the fact they "ARE" Amway...

I think that's why I don't normally get asked, "Is this Amway?"

When I am not on this board, I am not weird. :crazy:
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#20
Wearyeyed Wrote:Thanks for the example. I don't have the brain capacity to understand the whole thing,


Yes you do.

Quote:but I am always a little cautious when talking about specific strategies, using static "snap-shots" in time to illustrate.

Many a critic has made fun of 6-4-2, demonstrating "all the losses", but fail to take into account the equal opportunity for each person to do the same, and the fact that most people won't even try, and many don't even want to.

6-4-2 is an illustration of how the money flows.

Stacking IBOs like pancakes is a strategy to break pins.

One is used to educate the prospect/new IBO on the Comp Plan so that they can make educated decisions on how to best use their time to make the most money they can.

The other is used to keep the prospect/new IBO in the dark, and the focus is to benefit the Upline, now.
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