by Matt Lau

Created on: October 15, 2009   Last Updated: June 05, 2011

12 Facts About Amway Global/Quixtar

In the early 1970's Richard Russell published in the Dow Theory Letters a list of the perfect points for the "Ideal Business."

He said that there would probably never be a company that fulfilled his perfect list, but lets go over his points and see how they compare to this crazy company called Amway.

(1) The ideal business sells the world, rather than a single neighborhood or even a single city or state. In other words, it has an unlimited global market

Fact: Once you become an Independent Business Owner (IBO) through Amway Global, you are legally able to operate your business in all 50 states and over 70 countries and territories.

(2) The ideal business offers a product which enjoys an "inelastic" demand.

Fact: While Amway Global currently has access to over 3 million products and services, the product it started with was soap. Highly concentrated, bio-degradable soap. While it continues to expand its product line into multiple areas, the core of its business is built around consumable commodities. To give you an idea of how inelastic the demand for Amway products is, the week of the September 11th attack against the World Trade Center, business fell to 10% of its normal volume. The second week it was back to 80%. The third week it was at 110% and continued to climb. Compare that dip in sales to any other company.

(3) The ideal business sells a product which cannot be easily substituted or copied. This means that the product is an original or at least it's something that can be copyrighted or patented.

Fact: Amway Global gives its IBOs exclusive distribution rights to a core line of 450 products, including such inelastic lines as home care products, personal care products, health and nutrition, cosmetics, and food and beverage.

(4) The ideal business has minimal labor requirements (the fewer personnel, the better).

Fact: It requires no employees to build your Amway Global business. If you are married, your spouse can become your full-time business partner.

(5) The ideal business enjoys low overhead.

Fact: You can operate your Amway Global business out of your home (making your house-payment a tax-deductible business expense). In fact, you also get highly comprehensive liability insurance for the cost of $3.00 a year.

(6) The ideal business does not require big cash outlays or major investments in equipment.

Fact: It costs about $45 to begin your Amway Global business. For that cost you get access to millions of products and services

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