Amway Is Changing Its Business Model

Amway is changing its business model in Germany (and probably also other countries within the EU, with Greece and Poland explicitly named to follow by the  end of 2021) in an effort to harmonize business practices.

On Dec. 23, 2020 Amway published new Rules of Conduct effective Feb 1, 2021.

The major change can be found in the last sentence of Article 1.2 which bars Amway’s IBOs from reselling products.

From Feb 1 on Amway will offer an affiliate program where registered business partners can profit from product purchases by third parties directly from Amway upon recommendation of a business partner.

In deviation of the previously IBO-centric sales process, Amway will also sell products directly to non-registered, un-affiliated customers at a premium. This has already been introduced in other parts of the world (USA, Australia).

How IBOs interpret this competition by Amway itself is yet unknown.

About Amway

Amway is a family-owned, $8.4 billion consumer goods manufacturer and direct selling company based in Ada, Michigan, USA that is committed to helping people live better, healthier lives. Top-selling brands for Amway are Nutrilite™ vitamin, mineral and dietary supplements, Artistry™ skincare and color cosmetics, eSpring™ water treatment systems and XS™ energy drinks – all sold exclusively by independent Amway Business Owners.

Global sales in 2018 made Amway the No. 1 direct selling business in the world, according to the 2019 Direct Selling News Global 100. The company’s annual sales figure includes revenue from direct selling operations and other business holdings. For more information please visit www.amway.com