Our friend Shaun over at WWDB Expeditions Of Truth posted a new article about Amway growth: http://expeditionoftruths.com/2011/11/08/updated-amway-statsfed-presented/
Some of the details:
Figured I’d post a few slides shown by Amway at our recent FED conference. There are some naysayers out there saying business is slowing down, or business isn’t growing in North America, however here are some stats from the horses mouth as it were showing otherwise.
■New IBO Applications +12%
■PV per Engaged IBOs +8% (I’ll assume engaged = active)
■New IBO PV +7%
■$50 Fast Track +30% (Fast Track program is now a full time program and has expanded)
■First year renewal rates were +2%
■Highest qualification growth rate for the US since 2003
Joecool's commentary: Okay, so I am no longer of the opinion that North America Amway is shrinking. What I find a bit odd is that Amway stopped reporting North American sales seperately from Global sales (Because Amway was shrinking in North America???) But what do these figures mean?
Does it mean that today, IBOs register and do something? Or do most people still sign up with the vast majority "doing nothing"? Are IBOs more profitable? Not necessarily. I read recently that the "average IBO income" increased, but Amway did not clearly delineate how they arrived at the number. Maybe they just discounted more "inactive" types of IBOs in their calculation? Maybe they actually paid out more bonuses? However with their compensation plan remaining the same, I would venture a guess that the rate of IBOs going platinum is still a fraction of 1% which makes Amway at best, a questionable business venture. Maybe the Amway sales increase is simply from their significantly raised prices on products and shipping?
So Amway is growing. It's great for Amway and the DeVos and Van Andel families. How does that translate for IBOs? Are you making more than $10 a month? Have you sold products for a profit? Have you made net profits or are you reinvesting all your bonus and more to attend functions and buy tools? Amway might be growing but that doesn't do anything to suggest that IBOs as a whole are better off.