Amway Australia:A Review
Amway Australia is a branch of the Multi-level Marketing Company, Amway, and serves the regions of New Zealand and Australia. The company has members all over Australia which ages mostly under 30 becoming the reason for the Amway Australia to embrace social networking websites. Through its years of operation, Amway Australia has faced issues and allegations regarding its “pyramid scheme” and unethical behavior.
In April of the year 1971, Amway opened an affiliate branch in Sydney, Australia called Amway Australia. It was the company’s first major head office outside of its North American territory. Amway Australia’s opening was a harsh mix of success and failure. With its first month of opening, the company registered more than 400 distributors already but their sales soon stagnated. This could be attributed to the quality of products produced by Amway Australia’s local manufacturers. Soon, Amway shipped products from the US and in 1993; Amway Australia registered a total of A$148 million. The success of the company has led its top management to open ordering system called ELVIS (Electronic Link Via Internet Services) and be a part of Amway Acia Pacific. In 200, Amway Australia become the largest direct selling company serving the country with a whopping $170 million annual turnover and more than 100,000 home-based individual distributors.
Amway Australia’s local distributors were composed of 40% of people under the age of 30. These individuals were the reason for the company to expand its operations and level of communication to social media websites such as Facebook and Twitter. This move has put a greater amount of sales strategy and communications process in Amway Australia’s sleeve. Moreover, the company has also signed deals with Australian athletes Libby Trickett and Adam Gilchrist to become Amway Australia’s local Ambassadors.
Mr. Scully, a parliamentary member of the NSW state questioned the behavior of Amway Australia in 1994. He claims that the company has unethical, dishonest, and inappropriate behavior in recruiting members and selling their products. In 2003, the Tax Office of Australia has questioned Amway Australia over its deductions made on its expenses on seminars and incentives offered to its distributors. Furthermore, many people questioned the home-base work scheme that Amway Australia offers. It is powered by many reports saying that money is hard to earn in Amway Australia even if you tried so hard. However, Amway Australia was able to worm its way out of every issue thrown at it. In fact, in 2004 the Federal Court has allowed the full deductions made by Amway Australia.
Today, Amway Australia is one of the biggest and most successful branches of its mother company, Amway (American Way). It sells products developed and produce in Northern America and has a legion of more than 100,000 individual marketers.