Many people say that Amway is a legal pyramid scheme, and some say it is direct selling. If anyone knows more about Amway, please tell me the specific business model of Amway. Thank you.

MLM is illegal and there is no legal MLM.

Amway’s operation and management model:

In the company, we usually focus on maintaining business operations and promoting business development. The three departments are called the troika, which are operations, business, external affairs, and of course other functional departments such as the legal department and the finance department, but I think these are the departments that everyone is most concerned about and have the most controversy about. the work involved.

The operations mainly include nationwide logistics and distribution, store delivery and receipt, and cash flow management. From a management perspective, Amway's store operation and management model is worth learning from other domestic companies. It is supported by a set of large-scale computer network equipment and uses the advanced AS400 software system. This system can connect more than 100 people across the country through the network. The real-time sales information of each store is transmitted back to the Guangzhou headquarters. The storage and transportation department can use computers to count the sales volume of various products in each store on that day and the average sales trend of the products in order to allocate shipment goods. The finance department can know exactly how much cash each store receives every day, how much credit cards are swiped, and how much should be deposited in the bank. In addition to strong hardware support, good management also needs a rigorous internal control system. Every year, the headquarters sends internal auditors to all branches and stores across the country to conduct audits. The audit process is very detailed and is by no means a formality. All branches The reserved seal of the account-opening bank is taken back to the Guangzhou headquarters, and a collection agreement is signed with the bank to collect the store's business funds on a regular basis every day. In this case, the finance department often calls the bank to check the account status. Internal management control is a very detailed thing, and it is impossible to cover everything here in a few words. But I think Amway has indeed brought some advanced management experience and methods in this regard, and has trained and trained a group of people, so I will mention a few by the way. sentence.

Many people say on the Internet, "Amway says it is a store and hires salesmen. In fact, the store mainly serves Amway people, and ordinary customers cannot buy anything there." The actual situation is indeed like this. However, Amway's provisions do not prohibit selling to non-marketing personnel. Why is this? For example, a can of protein powder is priced at 295 yuan. An ordinary customer must pay the full price, which is 295 yuan. Although he can spend 60 yuan to apply for a preferential customer card and get a 20% discount, he must bring his ID card. Go through some procedures that are a bit complicated for people who don’t understand the situation. You have to go to three windows and often have to wait in line for an hour or two. The 60 yuan fee can also be refunded, but you must buy more than 500 yuan at a time. thing. From 2003 to 2004, the 60 yuan discount was canceled for a period of time, which means that if you want to get a 20% discount, you have to pay 60 yuan first. If you buy from a salesperson, they will make a special trip to deliver it to you. Most of them will be sold to you at a 20% discount, and some products that are heavily discounted will even have a lower discount. So as a person with normal judgment, would you go to the store to buy it yourself? This is a business trick. I never say you can't buy it. If you want to be taken advantage of and spend more money to buy it, of course I welcome it. Then many people will be surprised. Isn’t it better to let customers buy directly? If you let direct sellers sell, you still have to pay their wages. Why does Amway do this?

Because Amway doesn’t care about the people who actually use the products (only customers who really want to use Amway products but are afraid of encountering some aggressive marketers will go to the store to buy the products themselves), Amway’s Performance does not come from these people, but from marketers, so every method is used to create opportunities for marketers to help them expand their marketing teams. Because Amway understands that its core competitiveness is the bonus incentive system. It is this system that makes it successful today and has such large sales. And it wasn’t just after the store was restructured in 1998 and more salesmen were hired. In fact, it existed before the transformation, but it was called a delivery center at that time. The transformation is just a change of name. The functions and operation management model of the center have not changed at all. At most, it is a matter of renting a new location and renovating it.

Since its founding in 1983, Dell has adopted a model of selling computers directly to consumers, bypassing retailers. Initially it was sold over the phone and now it is also sold online. Dell has in the past resisted calls from analysts and investors to consider retail. Dell opened a store in Dallas, Texas, last year that displays the product but does not sell it, allowing customers to place orders for Dell to deliver later. Dell has set up counters in 190 stores to display its products, but none have them in stock.

However, Dell last week hired the head of Motorola's mobile phone business unit to head Dell's newly established business unit, responsible for managing Dell's global consumer business. Shaw Wu, an analyst at market research firm American Technology, said: "Dell must build its own stores or start cooperating with CompUSA and Circuit City's." He believes that Dell needs to adapt to consumer tastes.

The growth in consumer retail sales has helped HP achieve better-than-expected results. Dell has faced slowing growth in the past two years, and continued price declines have reduced the advantages of Dell's direct sales model. HP cooperates with CompUSA and Circuit City Stores. The operating profit margin of the personal computer division was 4.7% in the latest quarter, compared with 3.9% a year ago. Dell's operating profit margin was 5.7% in the quarter ended November 3. Forrester Research analyst J.P. Gownder said that Dell needs to find a way to build some retail stores so that consumers can contact and see them. product you want to buy. In addition to retailers, Dell should build its own stores.

The most direct difference is that Dell has abandoned the direct sales model and switched to mixed sales, while Amway insists on the direct sales model!!