Winning the Hearts and Minds of Customers and IBOs
Consumers weren’t the only ones Amway targeted in the rebranding effort. Amway execs realized that they needed to keep their existing IBOs happy and keep recruiting new ones. To help beginning IBOs become profitable faster, Amway began offering larger bonuses, free freight on orders of more than $75, cash incentives for meeting volume goals, and a promise to make better products. “We are going to focus on customer needs by developing products consumers want to buy and IBOs want to sell,” Jim Payne, Amway’s executive vice president responsible for markets in North America, Europe, Japan, Korea, Australia, New Zealand, India, and Latin America, pledged in the “Ada-tudes” e-letter to IBOs about the business transformation. “We will invest in marketing and advertising efforts to create positive awareness initially for our products and product brands and, at the end of our transformation, for our business opportunity. In total, the company will invest more than $200 million in making this business better for all IBOs.”20
Many IBOs liked that it might be easier to bring new distributors into their downline if beginners could make money faster. But many also were unhappy to hear the business would change its name and model again. “The name Amway gets a very negative response,” an IBO named Dave said in an Internet post to Payne’s announcement:
Amway is the name that comes up when used for jokes. How would you sell this? Do you try to ...