**Trademark of Amway


Copyright Jeffrey Babener

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Founding Story
40 years ago, Rich DeVos and Jay Van Andel came up with a plan in which people could own their own business selling quality retail products under the guidance of a successful company.

Amway's headquarters are in Ada, Michigan and covers over a mile of ground. The facility also holds hundreds of research and development scientists, product development teams, and global ( support personal. This facility is one of the four manufacturing facilities around the world. The others are located in Buena Park, California, Lakeview, California, and Guangzhou, China.

Amway is short for "American Family" which was coined by the founders in 1959. The founders were looking for a name that was short and easy to remember. The name Amway has been trademarked ever since.

The founders started their business in the 1950s using direct selling to market NUTRILITE Dietary Supplements. In 1959, Rich and Jay began looking for new products to sell in their company. They wanted to sell products that everyone needed to use all of the time. Their first product resulted in L.O.C. Multi-Purpose Cleaner, which was a success for the company.

In the 1960s, the company's annual sales were exceeding $500,000 and the company outgrew its basement office in Jay's home. They relocated the business to a bigger facility and launched the new product SA8 Laundry Detergent in 1961. Home products proved to be a success for the company and in only a few short years Amway had more than 700 employees, 200 products, and 100,000 distributors.

In 1963, Amway launched a "Showcase Bus" that toured many cities with products and information to help distributors spread the word about the Company. Amway's aerosol factory was destroyed in 1969 in a fire, which slightly disrupted the company's success.  

In the 1970s, Jay reconstructed the burnt facility and the company began making $100,000 million in annual sales. The product line was also expanded. They introduced catalogs and new home products. Amway also began expanding overseas, opening markets in eight countries on three continents. Amway Japan Limited became one of the company's largest markets and the manufacturing facility in Ada, Michigan reached over a mile long, nearly becoming its own city. The facility has its own power generators, water treatment plant, recycling facility, shuttle/bus service, and fire department.

In the 1980s, Amway reached sales of 1 billion dollars. To meet demands, the company built an Artistry plant in Ada and created a new line of water treatment products. eSpring continues to be one of the highest selling products today. Amway distributor rewards were enhanced for those that reached above-average sales. Amway was awarded the United Nations Environmental Programme Achievement Award in 1989.

In the 1990s, the company reached $5 billion in sales. In 1995, Amway sponsored the Nagano Winter Olympic Games in Japan. 1999 was Amway's 40 th anniversary.

The new century brought new improvements to the Company. Alticor was established as the parent company of Amway, Quixtar, and Access Business Group. Steve Van Andel is the chairman of Alticor and Doug DeVous is the president.

Impact on the Industry
Amway sells hundreds of quality products and services and has a state-of-the-art global distribution and ordering network. Amway operates in approximately 80 countries and tailors its products to each specific regions criterion. It is also one of the largest local companies in the world. Amway also has thousands of full-time employees worldwide. Representatives are offered thousands of training session opportunities annually.

Discussion of Products
Amway offers a variety of products to its customers including dish detergents, herbal supplements, garlic supplements, cookware, and water treatment systems.

Discussion of Opportunity
 The company states the following regarding its income opportunity:

  • Monthly performance bonuses ranging from 3% to 25% of business volume depending on your monthly productivity.

  • Monthly and annual leadership bonuses, other cash awards, and business incentives based on group performance.

  • Retail mark-up on product sales to customers.

Amway offers the following information about its compensation plan:For additional information, one must contact the company.






For additional information, one must contact the company.

Discussion of Distributor Base and Sales Volume in U.S.
In 2005, Amway sold 6.4 billion ( dollars in annual retail sales. Amway is part of the Alticor family of companies. The company has over millions of business owners in over 80 countries.

Established in 1959, as a seller of household cleaners, Amway expanded and diversified over the years and today sees its sales led by Nutrilite vitamin and mineral supplements and ARTISTRY(TM) skin care and cosmetics. Global sales for Amway and affiliated companies exceeded $7.1 billion in fiscal 2007. In North America, the Amway Global opportunity operates as Quixtar North America.

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Jeffrey A. Babener, principal attorney in the Portland, Oregon, law firm Babener & Associates, represents many of the leading direct selling companies in the United States and abroad.