Reaching customers through direct selling
An Amway case study

Page 3: Direct Selling

The concept of direct selling is based upon person-to-person relationships. The seller goes to the consumer rather than the consumer to a shop. In today's fast changing society, where more people work and shopping patterns have altered, this type of shopping not only provides consumers with accessibility to a wide range of products but is also convenient.

An organisation involved in direct selling cannot sell without a sales force! At the heart of Amway's approach to direct selling is the critical relationship between Amway and the seller or distributor. There are more than 2.5 million renewed independent Amway distributors world-wide, around 37,000 of whom are in the UK.

Each of these distributors is self-employed. Anyone over 18 can establish their own business as an Amway distributor, either on a part-time or full-time basis. Amway offers individuals the chance to set up their own business with little or no experience or capital investment. Working hours and flexibility can be adjusted to suit each individual.

Individuals may have many different motives for starting their own businesses. Some individuals strive for achievement and may have tremendous energy and commitment to succeed. Others may want independence; to work their own hours and have the ability to make their own decisions. However, for many others the financial incentive is usually reward enough to engage in activities, where they may measure their success by income and standard of living.

The vast majority of new Amway distributors have no previous experience running a business of their own. Participating in the Amway business has helped them with their personal and professional development, acquiring skills in dealing with people and developing a wider business acumen.

Amway products are sold person-to-person, rather than door-to-door or via party plan. Distributors earn their income through retail profit on the goods they sell. In addition, they receive a commission from Amway based on the volume of sales they generate personally, as well as those by their own distributor network.

Amway | Reaching customers through direct selling

Downloads

You can download resources for this case study below

This page and contents, ©2017 Business Case Studies, is intended to be viewed online and may not be printed. Please view this page at http://bizcas.es/nHLOwQ.