Amway (short for American Way) is an American company that uses a multi-level marketing model to sell a variety of products, primarily in the health, beauty, and home care markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported sales of $11.3 billion for 2012, the seventh consecutive year of growth fo
r the company. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance, and cosmetics. Amway conducts business through a number of affiliated companies in more than a hundred countries and territories around the world.[6] Amway was ranked No.26 among the largest private companies in the United States by Forbes in 2012. Although Amway has been frequently subject to investigation as having a pyramid like structure, the Federal Trade Commission has ruled the company's sales and marketing plan is not an illegal pyramid scheme. Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the hair care product Satinique (1965) and the cosmetics line Artistry (1968). Today Amway manufactures over 450 products, with manufacturing facilities in China, India and the United States, as well as Nutrilite organic farms in Brazil, Mexico and the United States (California and Washington State). Amway brands include Artistry, Atmosphere, Body Blends, Bodykey, Body Works, Clear Now, eSpring, Glister (brand)|Glister, iCook, Legacy of Clean, Nutrilite, Peter Island, Perfect Empowered Drinking Water, Personal Accents, Ribbon, Satinique, Artistry Men and XS. Amway owns a patent on the online shopping method of Ditto Delivery, which allows consumers to specify an automatic monthly delivery of each product
Business model
Amway combines direct selling with a multi-level marketing strategy. "Independent Business Owners" (IBOs) may market products directly to potential customers and may also sponsor and mentor other people to become IBOs. IBOs may earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (IBOs they have sponsored) have generated.People may also register as IBOs to buy products at discounted prices.
