Amway North America
Amway North America (previously Quixtar North America) is an American multi-level marketing (MLM) corporation founded in Ada, Michigan, USA in 1959.
It is controlled by the families of Richard DeVos and Jay Van Andel through Alticor, the holding company for firms including Amway, Amway Global, Fulton Innovation, Amway Hotel Corporation, Hatteras Yachts, and Access Business Group.
After the creation of Amway Global (initially operating under the name Quixtar), it supplanted the U.S., Canada, and Caribbean Amway company, with the Amway business continuing to operate in other countries around the world.
On May 1, 2009, Quixtar made Amway Global name change and united the parent company's numerous companies.
History
In 1949, Rich DeVos and Jay Van Andel first created Ja-Ri Corporation, a multi-level Nutrilite marketing distributor. Ja-Ri was incorporated in 1959 and transformed in 1963 to "Amway."
As of 2012, Amway works in over 100 countries worldwide. In 1999, Amway's founders developed a sister Internet-based company called Quixtar. Alticor owns Amway and Quixtar, and several more enterprises.
Quixtar succeeded Amway's North American business in 2001 after most distributors transferred to Quixtar, with Amway functioning worldwide.
The move unified Amway companies worldwide. "We're now re-introducing our brands in North America, moving away from Quixtar and returning to Amway's name," said Steve Lieberman, Amway Global's management.
"We determined we had to go down a number of routes to reestablish awareness for a brand that, quite honestly, many people felt gone.
Products
Quixtar is the sole U.S. and Canadian distributor of Alticor Products including Nutrilite dietary supplements, XS Energy Drinks, personal care, home care, air and water purifiers and Artistry cosmetics.
Business model
Quixtar relies mostly on person-to-person referral rather than advertising for product sales; however, Quixtar unveiled a multimillion-dollar ad campaign in 2012.
Much of the marketing budget is spent on distributor bonuses. IBOs received around $370.1 million in bonuses and incentives in 2006.
Bonuses are granted for individual sales and sales generated by one sponsor, but not sponsorship.
After most Amway Independent Business Owners (IBOs) switched to the new firm in 2001, Quixtar effectively supplanted Amway as the marketing initiative for Amway/Alticor Products in North American territories.
In several ways, the Quixtar business model differs from the preceding Amway business model, such as how distribution is conducted and the items and services given through partner stores. Rather of ordering a product from a distributor who delivers it in person, Quixtar clients can place orders online and ship the Products directly.
However, in mid-2007, Quixtar announced a two-year phasing-back in the Amway name and discarding the Quixtar identity. With the re-branding effort, Amway Global is investing over $580 million in both enhanced IBO remuneration and extensive brand name advertising.
Individuals can buy Products via Quixtar's website with an IBO reference number. Quixtar also allows IBOs to construct free personal websites that can be customised to focus on health, beauty, health and beauty, and/or gift and incentive Products.
The referring IBO then receives retail/wholesale profit (typically 30%) plus a percentage ("bonus") of the cost of the sold items (from 3% to 31% depending on the total PV generated), with Quixtar-exclusive Products generating a larger Point Value and Business Value (PV/BV) bonus per dollar. Quixtar offers a wide choice of IBO Products to buy for personal use and/or sell to consumers through Quixtar.com and IBO personal e-commerce sites.
IBOs pay registration fees and expand their businesses through client retail sales, sending business to Quixtar.com, and helping other IBOs start similar enterprises.
Their earnings are based on the sales of their business and the sales volume of IBOs registered by them.
0 comments: