Multilevel marketing
continues to broaden its research around the world. In 2002,
the direct sale of products totaled 28.7 billion in the United
States out of nearly 90 billion worldwide. Over 13 million
people are involved in multilevel marketing in the United
States alone, more than in any other country.
Multilevel marketing
(commonly referred to as MLM) began as a means of distributing
products directly to the consumer. MLM differs from some forms
of direct sales in encouraging the dealers to sell the company's
product and to recruit other dealers, thereby increasing sales
and generating commission on more than one level of distribution.
Essentially, in MLM, a dealer is in the business of selling
themselves, the company and the product(s). If they succeed,
not only will people buy the product, but these customers
may become dealers themselves, earning the sponsoring dealer
commissions on their sales.
MLM's personal
sales approach eliminates much of the exorbitant cost of traditional
advertising and distribution, which can account for more than
50 percent of a product's price when sold at retail. In a
MLM company, the lower distribution costs allow for reasonably
priced products, more profit for dealers and the revenue to
reinvest in the company.
Over the past 10
years, the Internet has proven an extremely useful tool for
MLM businesses. From recruiting and advertising to MLM chat
rooms, the web has offered greater opportunities for MLM companies
and the individual distributor. Furthermore, people are increasingly
likely to purchase products via the internet. In a 2000 study,
50 percent of American adults reported that they were interested
in using the Internet as a means of purchasing products, up
from 30 percent on 1997. Moreover, the web has the potential
to reach these would-be customers worldwide. It is no wonder
the internet has created numerous MLM success stories.
Unfortunately,
the number of successful MLM companies is dwarfed by the scores
of scams masquerading as legitimate MLM businesses. Jim Kohm
of the Federal Trade Commission (FTC) stated that, "In
the last ten years, with the growth of the internet, we have
seen a significant growth in the number of pyramid schemes."
In July of 1999, complaints regarding MLM and pyramid schemes
ranked tenth on the National Association of Attorneys General
list of consumer complaints.
With so many companies
vying for our dollars, it is sometimes difficult to distinguish
a genuine MLM opportunity from an illegitimate one. Fortunately,
the profusion of scam artists has resulted in a wealth of
information warning the public of the possibility of MLM fraud.
To this end, the Federal Trade Commission has published a
consumer alert in which they suggest a number of questions
to ask oneself when assessing the legitimacy and long-term
viability of a MLM company.
What is
the company's track record?
A poorly run or
illegitimate company will not be in business for very long.
Many MLM hucksters tout their program as "the next big
thing" or "an amazing new opportunity." In
actuality, most of these are variations of previously failed
or scam operations. The money to be made is made by the few
at the top and made quickly before the company folds. In these
businesses, longevity is not a priority. This is why a history
of growth is a good indication that there is a demand for
the company's products and that the company is fiscally responsible
enough to sustain itself. A look at the history of AMSOIL
reveals a solid track record. It has established a strong
presence in the synthetic lubricants market over the last
30 years, during which time it continued to enhance its product
line. From two products in 1973 to well over 150 today, AMSOIL
continues to be an innovator in the synthetic lubricants market.
What products
does it sell?
If this question
is difficult to answer, then you are probably dealing with
an illegitimate company. Once you identify the product, simply
ask yourself if you or anyone you know would have a use for
it. After all, you do not want to stake all of your future
success as a business owner on a new product that has not
been proven commercially viable. AMSOIL's continued growth
demonstrates that not only is there a demand for its products,
but that demand is on the rise. Moreover, AMSOIL has so much
faith in its own products that it is unique among MLM companies
in recommending that people use its products before deciding
to become dealers. This way, the AMSOIL dealer is certain
to sell products he or she beleives in.
Does it
sell products to the public-at-large?
It is common for
MLM companies to derive nearly 90 percent of their profit
in sales to their distributors. In these companies, much of
the marketing effort is directed at finding new distributors
who will buy large quantities of product to generate commission
for their upline. Why are those already involved in these
companies buying most of the product? The answer is usually
because the product is not easy to market to the end consumer.
It is either not a good product, is too expensive or it caters
to a tiny market. When a company truly believes in its product,
it strives to bring it to the general public where the greatest
potential for revenue lies. Because AMSOIL is certain that
it offers high quality products that can benefit consumers,
it has always been focused on delivering these to the public.
With a vast and well supported dealer network, online
store, retail
catalog and retail-on-the-shelf accounts attract thousands
of customers every month.
Does it
have the evidence to back up the claims it makes about its
product?
In today's advertising-saturated
world, consumers are increasingly skeptical of the claims
made about new products. Still, many MLM companies bank on
luring naive customers using empty promises. A business based
on phony product claims is not around for long. AMSOIL's longevity
is testament to its sound product line. Both in-house and
independent testing, as well as millions of satisfied customers,
confirm the quality and performance of AMSOIL products.
Is the
product competitively priced?
If a MLM company
derives the bulk of its profits from sales to new distributors
rather than the end consumer, there is something amiss with
the product or, more likely, its cost. When a company, like
AMSOIL, caters to the public with quality products that are
priced right, sales grow along with the company. Higher quality
products come at a higher cost, but savvy consumers would
never pay that premium price unless they knew they were getting
a premium product. A strong, stable company like AMSOIL could
not have been built on false claims and price gouging. The
market would simply not allow it.
Is it likely
to appeal to a large customer base?
Convincing someone
they need something they do not is not easy, yet that is exactly
what many MLM companies try to do. Without the force of a
nationwide advertising blitz, distributors of unnecessary
MLM products end up sitting on stockpiles of unsold product.
The most successful MLM companies market products that most
everyone uses and AMSOIL certainly falls in this category.
Millions of Americans already use lubricants and any sensible
person would be interested in improved performance and fewer
fuel and maintenance expenses. When it has a product that
can serve these common desires, it is no wonder why AMSOIL
continues to grow.
How much
is the investment to join the plan?
Many MLM companies
subsist on large initial investments by new distributors.
Indeed, for many pyramid schemes this is the only source of
revenue. A small initial fee, on the other hand, suggests
that the company relies primarily on its marketable products
for revenue rather than on new dealer investments. AMSOIL
continues to keep the initial investment at a minimum to encourage
easy access to all of the benefits of a dealership.
Will you
be required to recruit new distributors to earn your commission?
If the answer to
this question is yes, then be skeptical. This type of structure
suggests little faith in the actual product. In these companies,
rather than concentrating on selling products to the end customer,
you are trying to sell a convoluted system to potential distributors.
AMSOIL, by contrast, requires no such thing. You can use your
dealership to purchase products wholesale only for yourself
or you can actively pursue sales and earn commissions immediately.
As multilevel marketing
continues to mature and expand into new markets, AMSOIL stands
apart as a remarkable example of how MLM can make good on
its promise of continuous and reliable growth. Over the years,
by focusing on getting high quality products to the consumer,
AMSOIL was able to sidestep the pitfalls that swallow so many
fly-by-night MLM companies.
AMSOIL also recognized
early on that a well supported dealer network is key to success
in this business. If you provide dealers quality products
and the tools to sell them, you will succeed. It sounds like
such a simple equation. But while so many MLM companies pollute
the system they operate in, AMSOIL can take pride in knowing
that it represents multilevel marketing at its best.
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Premium AMSOIL
Synthetic Motor Oils offer the longest drain intervals
on the market, unsurpassed protection and performance that
effectively extends equipment life and improved fuel economy,
saving customers money at the pump and reducing the nation's
dependence on foreign oil.
"AMSOIL INC. warrants that the use of its lubricants will not cause mechanical damage to any mechanically sound equipment when AMSOIL INC. products are used in full compliance with the company's recommendations and instructions."
AMSOIL
synthetic motor oils are formulated to surpass engine test
specifications, offering protection far greater than competing
motor oils for extended drain intervals. Most synthetic oil
manufacturers make no claim to extended drain intervals, deferring
to the maintenance schedule provided by the vehicle manufacturer.
With its unparalleled oil and warranty program, AMSOIL offers
consumers unprecedented protection and economics.
Another
AMSOIL First
More than 20 years
ago, AMSOIL began using the NOACK volatility test as a comparison
tool and measurement of quality. Back then, nearly every oil
tested side-by-side with AMSOIL synthetic motor oils failed,
and those that passed barely squeaked by. Other oil companies
paid no attention to NOACK results until Ford Motor Company
made it a requirement for service fill oils, validating what
AMSOIL had said all along.
THE
NOACK Volatility Test
The NOACK
Volatility Test determines the evaporation loss
of lubricants in high temperature service. The more
motor oils vaporize, the thicker and heavier they become,
contributing to poor circulation, reduced fuel economy
and increased oil consumption, wear and emissions. AMSOIL
Synthetic Motor Oil resists high temperature volatization
better than other motor oils. AMSOIL Synthetic Motor
Oil maintains peak fuel efficiency and reduces oil consumption
and emissions.
AMSOIL Now An ISO Certified
Manufacturer
AMSOIL recently
received ISO 9001:2000 certification of our Quality Management
System (QMS). NSF International Strategic Registrations is
the registrar that has verified our QMS meets the requirements
of the ISO 9001:2000 standard, the most widely utilized quality
standard throughout the world for quality management systems.
ISO standards are used by over 300,000 companies worldwide
setting rigorous standards for businesses, government and
industry.
ISO 9001:2000
is applicable to any manufacturing and service organization
providing a framework for system development that focuses
on the customer, quality system performance and ongoing improvement.
AMSOIL received ISO 9001:2000 registration under the scope:
synthetic lubricants blending, packaging, and other fulfillment
directly associated with lubricant product.
The ISO
certification puts AMSOIL in line with some of the most efficient
companies in the world. It is further assurance that the products
and services AMSOIL provides will continue to maintain the
high level of quality the company always demanded.
AMSOIL Product Information
Use This
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on AMSOIL Products.
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weekly newsletter by email - please complete this form.
Personal contact information
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assistance. You will not be enrolled in advertising
or marketing programs and your information will not
be sold.
I welcome the opportunity
to work with you personally as your servicing AMSOIL Dealer.
Use the information on this website to contact me. You may
also check out the AMSOIL
Corporate Website for product and business opportunity
information.
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