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All companies start with an idea. Good companies, bad companies, top tier, winners and losers - they are all born of hope and an idea. The idea came when two Nutralite® salesmen, Rich DeVos and Jay Van Andel found themselves at the top of a small but successful MLM operation. At the time, Nutralite was sold door to door. This was the 1950s, Nutralite was a single entity company, and by the end of the decade, Jay and Rich had built a respectable business of their own - about 5000 distributors working in their downline.


The two men knew how to sell product - build on relationships. But what was needed was a way to expand. A way to extend the business past what any one individual could do and use the direct sales techniques they had learned...

In 1959, the American Way Association was formed. This would be the chance to grow and set the direction of a new entity. Rich and Jay immediately set out to find an initial product to add to the line. They purchased the rights to Frisk, a household cleaner (which was later renamed Liquid Organic Concentrate or L.O.C.).

Vertical integration

                click to see video

In 1960, the American Way Association, now Amway, bought a controlling share in the manufacturing facility in Michigan where LOC was made. This meant there were now three companies, all using the Amway title. The Amway Sales handled product and distribution, Amway Services did business related tasks (like insurance for distributors) and Amway Manufacturing, which produced LOC. By 1964, the three arms of Amway were all merged into a single entity - Amway Corporation.

The idea was by handling the manufacturing and distribution of a product line, and then allowing a network of IBOs (independent business owners) to grow the brand, you could have an entire vertical structure - all with economies of scale. Better than this, it would be a private network and quality could be controlled from start to finish. This seemed like the only way to offer what Jay and Rich originally envisioned - a solid opportunity where anyone with motivation could excel, regardless of their background and status. This remains at the core of Amway's philosophy today. Not just products and not just sales, but a way to a better life.

Continued growth

Amway continued to grow under the co-ownership of Van Andel and Devos. In 1972, the pair purchased Nutralite outright - they now owned the company they had started as employees with. Amway continued to expand, reaching past the borders of the US to offer the same opportunities in other countries:

· Australia - 1971

· Europe and parts of Asia - 1974

· Japan - 1979

· Latin America - 1985

· China - 1995

· Africa - 1997

· India - 1998

· Russia - 2005

· Vietnam -- 2008






Critics argued that the model wasn't sustainable and that growth was mathematically limited. They cried, "Pyramid scheme!" Fifty years of steady growth has shown this criticism has no basis in fact.






Where are they now?

In 2008, Amway (now technically, Amway Global) reported sales of 8 billion. The company is in 58 markets worldwide and manufactures more than 450 products. Amway Global does business in more than 98 countries. Rich DeVos is still alive, although he has passed the Presidency of Amway to his son Dick. DeVos was named one of the richest men in America by Forbes magazine, with an estimated 4.2 billion dollars in personal wealth (2009). DeVos owns the Orlando Magic basketball team among other assets.

Jay Van Andel passed away at age 80 in 2004. His place at Amway is held by his son, Steve, who is now the Chairman of Amway Global. At his death, Van Andel's net worth was estimated to be 2.4 billion dollars. The company is still thriving and still offers opportunity to individuals who have the desire to build their own business. Network marketing is a robust and tested way to achieve business success.






Some of the methods have changed, and there have been improvements (Click on the link below to see a system that is revolutionizing the MLM industry), but the original vision of Jay Van Andel and Rich DeVos has come to pass. Amway Global is a dream that came true.