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58-414: Construction began in 1988 with $ 60 million financed to Havlik by Amway and a Japanese bank. The building opened in 1991 as Eastbank Waterfront Towers during a mini-boom in downtown development. However, it experienced significant structural, water leakage, and HVAC problems and had to be closed and completely re-skinned in 1995–97, just five years after opening. Vertical cracks in exterior cement panels were

116-1078: A 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964, the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form the Amway Corporation. Amway bought a controlling interest in Nutrilite in 1972 and full ownership in 1994. Amway expanded to Australia in 1971, to parts of Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to Thailand in 1987, to China in 1995, to Africa in 1997, to India and Scandinavia in 1998, to Ukraine in 2003, to Russia in 2005, and to Vietnam in 2008. In 2014,

174-629: A Russian loyalty card program called "Alfa-Amway" was created when Amway joined with Alfa-Bank . Amway was ranked by Forbes as the 42nd-largest privately held company in the United States in 2018, and as the number one largest company on the Direct Selling News Global 100 list in 2018. The founders of the Amway corporation established a new holding company in 1999, named Alticor , and launched three new companies:

232-424: A combination of both. Often, commissions are awarded for reaching a sales goal called a quota. Also, commission structures can include multiple levels of attainments, each with a different threshold and associated rewards. A commission structure can apply to employees or independent contractors. Industries where commissions are common include car sales , property sales, insurance booking , and most sales jobs. In

290-522: A conservative 527 group , Progress for America . In July 1996, Amway co-founder Richard DeVos was honored at a $ 3 million fundraiser for the Republican Party, and a week later, it was reported that Amway had tried to donate $ 1.3 million to pay for Republican "infomercials" and televising of the GOP convention on Pat Robertson 's Family Channel , but backed off when Democrats criticized

348-753: A hotly contested compromise tax bill that granted Amway and four other companies a tax break on their Asian branches that totaled $ 19 million. In a column published in the Fort Worth Star-Telegram newspaper in August 1997, reporter Molly Ivins wrote that Amway had "its own caucus in Congress...Five Republican House members are also Amway distributors: Reps. Sue Myrick of North Carolina, Jon Christensen of Nebraska, Dick Chrysler of Michigan, Richard Pombo of California, and John Ensign of Nevada. Their informal caucus meets several times

406-563: A network of retail stores promoted by an independent sales force. China introduced new direct selling laws in December 2005, and in December 2006, Amway was one of the first companies to receive a license to resume direct sales. However, the law forbids teachers, doctors, and civil servants from becoming direct sales agents for the company and, unlike in the United States, salespeople in China are ineligible to receive commissions from sales made by

464-502: A private political army". In The Cult of Free Enterprise , Stephen Butterfield, who spent time in the Yager group within Amway, wrote "[Amway] sells a marketing and motivational system, a cause, a way of life, in a fervid emotional atmosphere of rallies and political religious revivalism." Philadelphia City Paper correspondent Maryam Henein stated that "The language used in motivational tools for Amway frequently echoes or directly quotes

522-972: A report by the Center for Public Integrity , in the 2004 election cycle, members of the Van Andel and DeVos families were the second, third and fifth largest donors to the Republican party. Dick DeVos , son of Amway founder Richard DeVos and past president of the company, served as Finance Chairman of the Republican National Committee, and his wife Betsy DeVos served as chair of the Michigan Republican Party from 1996 to 2000 and 2003 to 2005. In May 2005, Dick DeVos ran against incumbent Governor Jennifer Granholm in Michigan's 2006 gubernatorial election . DeVos

580-555: A report in Bloomberg Businessweek in April 2010, Amway had 237 retail shops in China, 160,000 direct sales agents, and $ 3 billion in revenue. Since then, Amway has been continuing to expand in China, even as the government has been imposing greater restrictions on the company, and launched a WeChat mini-program in 2021. Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later

638-479: A salesperson's base pay, plus expected commissions (assuming the salesperson meets a quota). On-target earnings help salespersons estimate their expected total compensation, should they meet company-specified goals. One of the most common means of attempting to align principal and agent interests is to design incentives tracking agent performance. There is a high degree of variability in terms of types of compensation plans, such as fixed salary, straight commissions, or

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696-404: A sister (and separate) Internet-focused company named Quixtar , Access Business Group , and Pyxis Innovations. Pyxis, later replaced by Fulton Innovation, pursued research and development and Access Business Group handled manufacturing and logistics for Amway, Quixtar, and third-party clients. The main difference was that each "Independent Business Owner" (IBO) could order directly from Amway on

754-493: A unified Amway brand ( Amway Global ) worldwide. According to the Amway website, as of 2011 the company operated in over 100 countries and territories, organized into regional markets: the Americas, Europe, greater China, Japan and Korea, and SE Asia/Australia. Amway's top ten markets are China, Korea, the United States, Japan, Thailand, Taiwan, India, Russia, Malaysia and Italy. In 2008, Alticor announced that two-thirds of

812-529: A year with Amway bigwigs to discuss policy matters affecting the company, including China's trade status." A 1998 analysis of campaign contributions conducted by Businessweek found that Amway, along with the founding families and some top distributors, had donated at least $ 7 million to GOP causes in the preceding decade. Political candidates who received campaign funding from Amway in 1998 included Representatives Bill Redmond (R–N.M.), Heather Wilson (R–N.M.), and Jon Christensen (R–Neb). According to

870-809: Is held to uberrima fides in his dealings with his principal; and if he acts adversely to his employer in any part of the transaction ... it amounts to such a fraud upon the principal, as to forfeit any right to compensation for services." In 2011, California Governor Jerry Brown signed into law AB 1396 amending the California Labor Code requiring all employers who pay commissions to enter into written contracts with their employees regarding how commissions will be earned, computed and paid. The new law, effective on January 1, 2013, further states that commission excludes "short-term productivity bonuses such as those paid to retail clerks" and "bonus and profit-sharing plans, unless there has been an offer by

928-417: Is the Nutrilite range of health supplements (marketed as Nutriway in some countries), and in 2008 Nutrilite sales exceeded $ 3 billion globally. In 2001, NSF International issued its first five dietary supplement certifications to Nutrilite. In 2011, Nutrilite brand of vitamins and dietary supplements led Amway's sales, totaling almost $ 4.7 billion. According to Euromonitor International, in 2014, Nutrilite

986-529: Is the largest multi-level marketing company in the world by revenue. It conducts business through a number of affiliated companies in more than a hundred countries and territories. Amway has been investigated in various countries and by institutions such as the US Federal Trade Commission (FTC) for alleged pyramid scheme practices. The company has paid tens of millions of dollars to settle these suits. Between 2007 and 2008, Amway

1044-511: The Center for Science in the Public Interest (CSPI), accused Amway of making unsubstantiated and illegal claims about Nutrilite Fruits & Vegetables 2GO Twist Tubes and threatened to launch a class action lawsuit against the company unless it took remedial action. Amway responded that the claims made about the products were properly substantiated and that they did not plan to change the product's labeling but nevertheless would review

1102-875: The Orlando Magic 's home basketball arena in Orlando , Florida. The Orlando Magic is owned by the DeVos family. The arena, formerly known as the TD Waterhouse Centre, was renamed the Amway Arena . Its successor, the Amway Center , was opened in 2010, and the older arena was demolished in 2012. In 2009, Amway Global signed a three-year deal with the San Jose Earthquakes Major League Soccer team to become

1160-534: The Bible, with the unstated assumption of a shared Christian perspective." Commission (remuneration) Commissions are a form of variable-pay remuneration for services rendered or products sold. Commissions are a common way to motivate and reward salespeople . Commissions can also be designed to encourage specific sales behaviors. For example, commissions may be reduced when granting large discounts. Or commissions may be increased when selling certain products

1218-615: The Internet, rather than from their upline "direct distributor", and have products shipped directly to their home. The Amway name continued being used in the rest of the world. Virtually all Amway distributors in North America switched to Quixtar, prompting Alticor to close Amway North America after 2001. In June 2007, it was announced that the Quixtar brand would be phased out over an eighteen– to twenty-four–month period in favor of

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1276-487: The United States, a real estate broker who successfully sells a property might collect a commission of 6% of the sale price. In a case from the 19th century that is still referred to today, Murray v. Beard , 7 N.E. 553, 554-55 (N.Y. 1886), the New York Court of Appeals held that under New York's faithless servant doctrine a disloyal broker could not recover commissions from his employer, holding that "An agent

1334-647: The XS Energy was the first exclusively sugar-free energy drink brand sold globally. Ditto Delivery is Alticor's automatic, monthly replenishment program that fills orders based on customers' predetermined needs. As of May 2001, Ditto Delivery accounted for 30% of Quixtar's North American sales. Amway combines direct selling with a multi-level marketing strategy. Amway distributors, referred to as "independent business owners" (IBOs), may market products directly to potential customers and may also sponsor and mentor other people to become IBOs. IBOs may earn income both from

1392-556: The building and around the sewer line, which prolonged the evacuation. The evacuation lasted until the building reopened on May 8, 2013. Amway Amway Corp. (short for "American Way") is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan . Amway and its sister companies under Alticor reported sales of $ 8.9 billion in 2019. It

1450-533: The business further. Earlier in 1949, DeVos and Van Andel had formed the Ja-Ri Corporation (abbreviated from their respective first names) to import wooden goods from South American countries. After the Chicago seminar, they turned Ja-Ri into a Nutrilite distributorship instead. In addition to profits on each product sold, Nutrilite offered commissions on sales made by new distributors introduced to

1508-467: The cause of the water leakage, which soaked and molded interior carpets. Corroded pipes caused issues with the cooling system and air ducts distributed foul smells. The $ 36 million 1995 renovation was financed by Amway, who gained majority ownership. 250 residents and 160 building employees were displaced for two years during renovation work. Prior to reopening, the Radisson hotel chain left the project and

1566-542: The company by existing distributors—a system known as multi-level marketing or network marketing. By 1958, DeVos and Van Andel had built an organization of more than 5,000 distributors. However, they and some of their top distributors formed the American Way Association, or Amway, in April 1959 in response to concerns about the stability of Nutrilite and in order to represent the distributors and look for additional products to market. Their first product

1624-469: The company's 58 markets reported sales increases, including strong growth in the China, Russia, Ukraine and India markets. Amway China launched in 1995. In 1998, after abuses of illegal pyramid schemes led to riots, the Chinese government enacted a ban on all direct selling companies, including Amway. After the negotiations, some companies like Amway, Avon , and Mary Kay continued to operate through

1682-471: The company's extensive voice-mail system to rally hundreds of Amway distributors into giving a total of $ 295,871" to Myrick's campaign. According to a campaign staffer quoted by the magazine, Myrick had appeared regularly on the Amway circuit, speaking at hundreds of rallies and selling $ 5 and $ 10 audiotapes. Following the 1994 election, Myrick maintained "close ties to Amway and Yager", and raised $ 100,000 from Amway sources, "most notably through fundraisers at

1740-639: The country over a period of 15 years; it had to pay a fine. Jay Van Andel and Richard DeVos had been friends since school days and business partners in various endeavors, including a hamburger stand, an air charter service, and a sailing business. In 1949, they were introduced to the Nutrilite Products Corporation by Van Andel's second cousin Neil Maaskant. DeVos and Van Andel signed up to become distributors for Nutrilite food supplements in August. They sold their first box

1798-494: The distributors they recruit. In 2006, Amway China had a reported 180,000 sales representatives, 140 stores, and $ 2 billion in annual sales. In 2007, Amway Greater China and South-east Asia Chief Executive Eva Cheng was ranked no. 88 by Forbes magazine in its list of the World's Most Powerful Women. In 2008, China was Amway's largest market, reporting 28% growth and sales of 17 billion yuan (US$ 2.5 billion). According to

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1856-455: The donation as a ploy to avoid campaign-finance restrictions. In April 1997, Richard DeVos and his wife, Helen, gave $ 1 million to the RNC, which, at the time, was the second-largest soft-money donation ever, behind Amway's 1994 gift of $ 2.5 million to the RNC. In July 1997, Senate Majority Leader Trent Lott and House Speaker Newt Gingrich slipped a last-minute provision into

1914-433: The employer to pay a fixed percentage of sales or profits as compensation for work to be performed". Trail commission (TC) is commission paid by investment management companies to financial advisers . It is generally around 0.1% to 0.9% p.a. of the value invested by a client . If an investment is made directly through a financial adviser, TC is generally kept by the adviser. A financial adviser should act purely in

1972-403: The entire building and approximately 80 vehicles parked in the basement garage were flooded with up to 11 feet of water. Structural concerns for a sanitary sewer line under the building (dating back to a time when Campau Ave. extended to Fulton, where the building now stands) caused building maintenance to keep the lowest level of the building flooded until the river receded to prevent erosion under

2030-434: The firm. However, models other than percentages are possible, such as profit-based approaches, or bonus-based approaches. Commissions allow sales personnel to be paid (in part or entirely) based on products or services sold, rather than just hourly or based on attempted sales. Although many types of commission systems exist, a common methodology to manage total spend is known as on-target earnings . On-target earnings represent

2088-596: The hair care product Satinique (1965) and the cosmetics line Artistry (1968). In 2018, nutrition and wellness products were 52% of total sales, and beauty and personal care products were 26% of total sales. Amway is best known in North America for its original multi-purpose cleaning product LOC, SA8 laundry detergent, and Dish Drops dishwashing liquid. Consumer Reports conducted blind testing of detergents in 2010 and ranked versions of Amway's Legacy of Clean detergents 9th and 18th of 20 detergents tested. Consumer Reports program manager Pat Slaven recommended against buying

2146-495: The homes of big distributors", in the 1997–98 election cycle. In October 1994, Amway gave the biggest corporate contribution recorded to that date to a political party for a single election, $ 2.5 million to the Republican National Committee (RNC), and was the number one corporate political donor in the United States. In the 2004 election cycle, the organization contributed a total of $ 4 million to

2204-442: The investors' best interests. However, it is possible that the financial adviser may direct the investment towards funds that are most profitable in terms of TC. Supporters of the directing of investments into funds benefiting the financial adviser claim that it encourages the adviser to maintain the value of the portfolio, thus aligning their interests with those of their clients. Detractors suggest that investors are usually unaware of

2262-593: The jersey sponsor. In March 2009, Amway Global signed a multi-year deal to become the presenting partner of the Los Angeles Sol of Women's Professional Soccer . The deal, however, would last only one year, as the Sol folded in 2010. In 2011, Amway signed a three-year deal to be the presenting sponsor of the National Hockey League 's Detroit Red Wings . In the 1990s, the Amway organization

2320-507: The management of their client's wealth. As set out by the Financial Conduct Authority , advisers must now agree an upfront charging structure in advance to a client before advice is given. For customers who do not want to pay a separate upfront fee, there is an option to have payment of the charges deducted from the investment held by the product provider. These new measures have been applauded by many, particularly in

2378-450: The name of the building was changed to Plaza Towers. Eenhoorn LLC bought the building from Amway for $ 17.5 million in 2001. Amway's $ 31.5 million loss in the project was a “philanthropic gesture” for downtown development. Many legal battles took place over the faulty construction, excessive initial project cost, and renovation displacements. Small fires in the building have led to evacuations in 1996, 2001, 2002, and 2010. The 2010 evacuation

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2436-469: The next day for $ 19.50, but lost interest for the next two weeks. They traveled to Chicago to attend a Nutrilite seminar soon afterward, at the urging of Maaskant, who had become their sponsor. They watched promotional filmstrips and listened to talks by company representatives and successful distributors, then they decided to pursue the Nutrilite business. They sold their second box of supplements on their return trip to Michigan, and rapidly proceeded to develop

2494-429: The organization wants to promote. Commissions are usually implemented within the framework on a sales incentive program, which can include one or multiple commission plans (each typically based on a combination of territory, position, or products). Payments are often calculated using a percentage of revenue, a way for firms to solve the principal–agent problem by attempting to realign employees' interests with those of

2552-737: The practice and that it is ineffective as an incentive . Following the Retail Distribution Review in the United Kingdom , trail commission is banned on sales of new investment products as of April 6, 2014 and will required to be completely phased out by April 6, 2016. In the financial services industry in the UK, rules set out in the Retail Distribution Review of December 31, 2012 mean that an independent financial adviser cannot take commission in

2610-718: The products because consumers can "go to the grocery store and get something that performs a whole lot better for a whole lot less money". Amway's health and beauty brands include Artistry, Satinique, Hymm, Body Series, Glister, Moiskin (South America), Nutrilite, Nutriway (Scandinavia and Australia/New Zealand), Attitude (India), eSpring, Atmosphere and iCook as well as XL and XS Energy drinks . Other Amway brands that were discontinued or replaced include Tolsom, Eddie Funkhouser New York, or beautycycle (Eastern Europe). Amway's Artistry products include skin care, cosmetics, and anti-aging creams and serums. In 2011, Artistry brand reached sales of $ 2.8 billion. Amway's largest-selling brand

2668-447: The retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (IBOs they have sponsored) have generated. People may also register as IBOs to buy products at discounted prices. Harvard Business School , which described Amway as "one of the most profitable direct selling companies in the world", noted that Amway founders Van Andel and DeVos "accomplished their success through

2726-483: The statements that CSPI has questioned. CSPI later reported that Amway had agreed to changing product labels by the end of 2014. Amway's eSpring water filter was introduced in 2000. According to Amway, it was the first system to combine a carbon block filter and ultraviolet light with electronic-monitoring technology in the filter cartridge and it became the first home system to achieve certification for ANSI /NSF Standards 42, 53, and 55. According to Amway, eSpring

2784-474: The use of an elaborate pyramid-like distribution system in which independent distributors of Amway products received a percentage of the merchandise they sold and also a percentage of the merchandise sold by recruited distributors". In the late 1980s and early 1990s, Amway sponsored racing driver Scott Brayton in the CART IndyCar championship . In December 2006, Alticor secured the naming rights for

2842-399: Was United States Secretary of Education from 2017—2021 under the first Trump administration . Several sources have commented on the promotion of Christian conservative ideology within the Amway organization. Mother Jones magazine described the Amway distributor force as "heavily influenced by the company's dual themes of Christian morality and free enterprise" and operating "like

2900-683: Was a founding member of the Wireless Power Consortium which developed the Qi (inductive power standard) . In 2007 eSpring was ranked fifth out of 27 brands in a comparison of water filters by Consumer Reports . On January 14, 2015, Amway announced that it had acquired XS Energy, a California-based brand of energy drinks and snacks. The XS Energy brand has been sold as an Amway product since 2003. As of January 2015, it has been distributed in 38 countries, generating annual sales of $ 150 million. According to Euromonitor International,

2958-478: Was a major contributor to the Republican Party (GOP) and to the election campaigns of various GOP candidates. Amway and its sales force contributed a substantial amount (up to half) of the total funds ($ 669,525) for the 1994 political campaign of Republican congresswoman and Amway distributor Sue Myrick (N.C.). According to two reports by Mother Jones magazine, Amway distributor Dexter Yager "used

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3016-582: Was called Frisk, an organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner). They subsequently formed the Amway Sales Corporation to procure and inventory products and to handle sales and marketing plans, and the Amway Services Corporation to handle insurance and other benefits for distributors. In 1960, they purchased

3074-474: Was defeated by Granholm, who won 56% of the popular vote to his 42%. In August 2012, gay rights activist Fred Karger began a movement to boycott Amway in protest of the contribution from a private foundation of Amway President Doug DeVos to the National Organization for Marriage , a political organization which opposes legalization of same-sex marriage in the United States. Betsy DeVos

3132-471: Was due to a 17th-floor fire causing fire and water damage, but no injuries. Refacing the building to correct for rain-related water leakage from exterior cracks displaced 250 residents and 160 building employees two years. The building was again evacuated on April 20, 2013, as the flooded Grand River filled the lower level mechanical space and flooded the basement parking garage with over 7 feet of water. A waterlogged basement generator sent black smoke through

3190-603: Was found guilty of illegal business practices in India, a ruling upheld by the Supreme Court of India and followed in 2021 by India's Enforcement Directorate attaching company and bank assets, and labeling Amway's business model a "pyramid fraud" and its product offerings a "masquerade". In 1983, Amway admitted to defrauding the Canadian government of customs duties and taxes by falsely undervaluing goods it imported into

3248-564: Was the first water treatment system to receive certification for all fifteen NSF/ANSI 401 contaminants which include pharmaceuticals, pesticides and herbicides. The company also claims that, in addition to these 15 contaminants, eSpring is certified for more than 145 potential contaminants, including lead and mercury. eSpring was the first commercial product which employed Fulton Innovation's eCoupled wireless power induction technology. Companies licensing this technology include Visteon , Herman Miller, Motorola and Mobility Electronics. Fulton

3306-408: Was the most popular vitamin and dietary supplement brand in China. In January 2009, Amway announced a voluntary recall of Nutrilite and XS Energy Bars after learning that they had possibly been manufactured with Salmonella -contaminated ingredients from Peanut Corporation of America . The company indicated that it had not received any reports of illness in connection with the products. In 2012,

3364-399: Was the world's No. 1 selling vitamins and dietary supplements brand. In 2015, it was reported that according to Euromonitor International, Amway was the largest vitamin and dietary supplement vendor in China, with 11% of a market that generated 100 billion yuan ($ 15.6 billion) in annual sales. In 2015, it was reported that according to China Confidential consumer brands survey, Amway Nutrilite

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