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Direct-seller Amway angling for a comeback in United States [View All]

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Robbien Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-25-08 06:37 PM
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Direct-seller Amway angling for a comeback in United States
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Source: Canadian Press

ADA, Mich. Once a household name and reputedly the key to great fortune for modern salesmen hoping to live out a Horatio Alger myth, the Amway brand faded from the American market years ago, tarnished by legal and regulatory problems.

The direct-seller of everything from health and beauty items to household cleaners repeatedly fought allegations that it was a pyramid scheme. The company also paid $20 million in fines in a Canadian criminal fraud case in 1983.

. . .

The company is gambling that consumers at home, where sales have been flat for years, will remember the days when Amway was known less for scandal and more for unrelenting pitches from well-scrubbed and optimistic door-to-door salesmen.

Marketing experts say that, despite the baggage attached to the brand, the company is doing the right thing by bringing Amway back to North America in a campaign that launched in March and first made a splash in October with sponsorship of a Tina Turner concert tour that concludes in April.

"My sense is that many of the negative associations of Amway have now begun to fade," says Tridib Mazumdar, a marketing professor at Syracuse University.

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My guess is that they are betting wrong. Amway is still a scam. No amount of advertising will make up for the fact that it is a bad business.

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