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Get the Facts! Get the Facts! Perception: “MLM / Amway Are Just Pyramids” Facts: • 27 million small businesses in the U.S. 1 o 52% are home-based 1 • MLM has become mainstream o Warren Buffet’s (the richest man in the world) 2 company owns one 3 o Have or have had: CITI ® Group 4 TIME WARNER ® 5 READER’S DIGEST ® 6 BODY SHOP ® 7 CRAYOLA ® Crayons 8 • 15 million people participate in U.S. 9 o 50% increase in the last 10 years 9 • $20 billion in sales 9 • 74% of Americans have purchased goods or services through Direct Sales, according to recent surveys 10 o More than television shopping and on-line computer services combined 10 • General Counsel for the FTC (speaking before the International Monetary Fund) 11 o Landmark ruling by FTC used Amway policies to show how legitimate multilevel marketing programs operate 11 o FTC recognizes that some people confuse pyramid schemes with legitimate MLM 11 MLMs have real product to sell MLMs actually sell their product to members of the general public o AMWAY offers over 450 quality products (800 patents) 15 NUTRILITE ® is the largest selling brand of vitamin, mineral, and dietary supplements in the world based on to 2008 sales. The ARTISTRY ® brand is among the world’s top five, largest-selling, prestige brands of facial skin care and color cosmetics 13 Amway has been ranked the top online health and beauty retailer in the U.S. for six consecutive years according to Internet Retailer Magazine “Top 500 Guide” 14 Page 1 Updated 7/21/2011 Get the Facts! Perception: “Products Are Too Expensive To Be Sold” Facts: • Amway ranked first in web sales in the Health & Beauty category by Internet Retailer • Magazine for six consecutive years 24 • Amway ranked 28th among all e-commerce retail sites by Internet Retailer Magazine 24 • NUTRILITE ® Daily Multivitamin costs only $3.75 A MONTH (when sold at Suggested Retail) and compared to ADVANCED FORMULA CENTRUM ® †*18 o Contains 50% more B1, B2, B12 o 200% more Vitamin K • ARTISTRY ® TIME DEFIANCE ® Lifting Eye Crème (when sold at Suggested Retail) is less than half the cost of ESTEE LAUDER ® RE-NUTRIVE ® Intensive Lifting Eye Creme 16 • XS Energy Shot™ cost $2.85 each (when sold at Suggested Retail). The national average convenience store price for 5-HOUR ENERGY ® is $3.11 for their Berry flavor 17 • Many people turn to a cup of coffee to keep themselves going late in the day, and the $1.20 variety, not an El Grandiose, double-mocha with two shots of “who cares”. NUTRILITE Rhodiola 110 is less than $0.70 a tablet (when sold at Suggested Retail) and can help increase mental and physical performance. • Is every Amway product the lowest cost on the market? No. But the primary measure of any product is value - do you get the benefit you pay for – and we believe our products offer extraordinary value. o If lowest price were the only criteria then the TOYOTA ® YARIS ® would outsell the TOYOTA ® CAMRY ® TOYOTA CAMRY 4-door sedan sells for $20,000 more than TOYOTA YARIS 4-door sedan 19,20 However, TOYOTA CAMRY outsells TOYOTA YARIS 5-to-121,22 o Both are dependable, comfortable, safe transportation. o Same manufacturer, so brand preference not a factor o Is the TOYOTA CAMRY too expensive to be sold? Obviously not. • Amway is so confident in the value of the product for the money, that they extend a 180-day money back guarantee if a customer is not satisfied for any reason…. no questions asked. ** † Trademark: Advanced Formula Centrum (Wyeth Holdings Corp., Madison N.J.) * Advanced Formula Centrum also contains a phosphorous content of 109mg. ** (NOTE: Specific limited guarantees apply to designated products). This satisfaction guarantee does not apply to Partner Store purchases or IBO purchased for stock, inventory, or product kits. Page 2 Updated 7/21/2011 Get the Facts! Perception: “It’s a Scam” Facts: • Amway is a global leader in the $102 billion direct selling industry. o More than three million AMWAY™ Distributors o More than 80 countries and territories around the world 41 • Amway has been in business for 50 years o Only 29% of small employer firms survives 10 years 38 o Thousands of firms have begun in this industry since 1959 - only 50 direct selling companies have survived 10 years and are still around today 28 • Globally today, eight people start an AMWAY business every minute - 24/7/365 30 o In the U.S. alone, someone starts an AMWAY™ business every 2 minutes 31 • In 2008, Amway had 7.9 billion dollars of direct selling revenue globally – up nearly 15% from last year 23 (during a severe world-wide recession) • Alticor is the 44th largest privately held company in the U.S. according to Forbes magazine 32 o In the same rankings neighborhood as MENARDS ® and HILTON ® Hotels 32 • Amway is not dependent on credit or the whims of the stock market 34 • Amway is ranked as the third favorite foreign company in Korea (beaten only by McDONALD’S ® and Carrefour [French: world’s largest hypermarket chain]) 35 • The AMWAY brand has been listed as one of China’s top consumer brands 36 o Of all consumer brands in any category (including Chinese), ranked 72nd Outranking companies such as NESTLE ®, APPLE ®, PANASONIC ®, TOSHIBA ®, and WHIRLPOOL ® 36 • “Alticor is one of our nation’s pillars, advancing important social and economic goals in communities across the country” Suzanne Clark, U.S Chamber of Commerce Executive Vice 37 President and COO Page 3 Updated 7/21/2011 Get the Facts! Perception: “But Is the Product Any Good?” Facts: • Amway operates 65 Research and Development laboratories worldwide 27 , staffed by more than 500 scientists, engineers, and technical professionals 39 o 800 patents 39 , 500 additional patents-pending 41 • Each year Amway produces 150 million units of cosmetics 27 , 10 billion tablets, capsules and softgels 41 and 75 million units of soap, detergents, and cleansers. 27 • NUTRILITE ® 27 o NUTRILITE ® brand is the world’s leading brand of vitamin, mineral, and dietary supplements, according to 2008 sales figures o In 2008, sales of NUTRILITE products worldwide reached a record $3.1 billion o More than 75 years ago, Nutrilite founder Carl Rehnborg created the first multivitamin/ multimineral supplement sold in North America o NUTRILITE is the only global vitamin and mineral brand to grow, harvest, and process plants on self-owned certified organic farms o Scientists for the NUTRILITE brand are at the forefront of a new scientific discipline called nutrigenomics, the study of how our genes interact with nutrients. o The Nutrilite Health Institute Scientific Advisory Board, a worldwide group of leading nutrition, health, and genetics scientists, helps guide the future of the NUTRILITE brand • ARTISTRY ® o The ARTISTRY brand is one of the world’s top five largest-selling prestige brands of facial skin care and color cosmetics. (based on 2007 global retail sales) 39 o ARTISTRY TIME DEFIANCE ® age-defying products are designed to help prevent the visible signs of premature aging, before they appear, and help reverse preexisting environmental damage that can cause the skin to age prematurely 41 • It takes almost sixteen of THE SHARPER IMAGE ® IONIC BREEZE ® units (15.6 units) to clean the area of one ATMOSPHERE ® Air Purifier – and with far less effectiveness and efficiency 49 • In Europe, Amway sells more point-of-use water filtration systems (Amway’s eSpring ® Water Purifier) than any other competitor 27 o The August 2009 issue of a leading consumer magazine features eSpring in their Best Buy section • Coming Soon – easy-to-use genetic tests 50 to: o Identify the best diet and exercise level to most efficiently help you lose body fat o Learn about predisposition to heart disease base on inflammation Page 4 Updated 7/21/2011 Get the Facts! Perception: “If It’s So Great, Why Don’t People Stay?” Facts: • Over 120,000 IBOs in North America have been onboard for more than 10 years 51 • Running any business of your own is hard work and has risks o 50% of new small businesses with employees do not survive 5 years 38 (no statistics are kept on single-person companies) • One of the appeals of a business like that offered by Amway is that you don’t have to have a college degree or have previous experience or have a lot of upfront money or pass a test in order to succeed. • But the ease of entry also attracts a lot of people who would like to see their life unfold differently as long as that doesn’t require them to change anything o Think of all the people who make a New Year’s resolution to faithfully go to the gym in the coming year in order to get into better shape o Some succeed and whether they lose 2 or 200 pounds they are better off for the attempt o But then think of all the empty machines at the gym in March when most of members are back on the couch o They really meant to follow through when they made the resolution, but something distracted them (life, lack of willpower, etc) o Is the gym at fault for their choices? • Why do people get frustrated (and quit) learning to play an instrument or speak a new language or play a new sport? o Because each requires learning a new skill. There is the need for knowledge, practice, execution, evaluation, more knowledge, and so on. o Wouldn’t it be great to be able to watch a DVD on Tiger Woods’ swing mechanics and be able to go to the golf course and shoot under par? That’s not how you develop a skill.
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