In-Depth Business Model of Amway – One Of The Oldest MLMs In The World

Updated on: Sep 21, 2021

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One of the oldest and most reputed MLMs in the world, the business model of Amway is a great case study for enthusiasts who wish to learn how to be successful in businesses.

Amway is a USA based multi-level marketing company that was established in 1959. At present time Amway’s revenue is $8.4 billion. In that, we cover Amway skincare products and the innate details of Amway’s business model to know how they channelize and become the world’s top company.

In this case study, we will explore Amway’s business model by analyzing its target audience, market share, and product offerings. Let’s begin with the introduction of the company. 


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About Amway

Amway imitative from the name ‘American Way’ is an American multi-level marketing (MLM) company that sells health, beauty, and home care products such as Amway Home, Glister, G&H, Nutrilite, Artistry, Amway Queen, eSpring, Atmosphere, XS Energy which are provided to the people with the help of the MLM services of the company across the world.

The company was founded in 1959 by Jan Van Andel and Richard Devos. Today it works with

several companies in more than +100 countries and territories. It is also listed in Forbes Magazine as well. Amway uses both direct selling and the MLM model.  It began through a subsidiary in India in 1995.

So, there is no doubt about the fact of the business model of Amway company. It will be a real eye-opener for new startups out there. Let’s get started to know more about the business model of Amway. 

Business Model of Amway

A business model is a high-level plan for running a profitable firm in a certain market. The value proposition is an essential component of the business model. This is a description of a company’s strategies and why customers or clients find them appealing, ideally articulated in a way that distinguishes the product or service from its competitors.

Amway uses a mix of demographic and geographic segmentation characteristics such as age, gender, occupation, location, economic class, and others to understand consumer demographic and geographic elements that might help in finding new customers. Now let’s further study the market share of the management in the coming section. 

Market Share

Amway is the largest direct seller in the world. In the global Amway category, nutrition and wellness is the largest business. Today’s world as we all know, increasing awareness for health and wellness. Amway tries to expand its nutrition business in  India and it has a 12% market share in vitamins supplements that has been estimated to be Rs.9400 crore. And now we further look into the products offered by Amway. 

Product Offerings

When it comes to the best quality products with reasonable prices. Amway comes first. and it also became the world’s largest direct selling FMCG company. There are different brands of Amway

There are the list of the top 5 best products of Amway today

1). Amway Nutrilite Protein Powder

  This product contains are as follows:

  • Combination of protein from soy and milk
  • Refills all 9 amino acids in the body
  • Used for muscle repair
  • Building for bodybuilders

2). Amway Attitude Gel Cleanser 

     The following are the ingredients present in the product:         

  • Removes excess oil 
  • A soap-free
  • Non-drying cleanser and gives you clean, matte skin 

3). Amway Satinique 2-in-1 Shampoo & Conditioner

     In our busy schedules, we forget or skip conditioning our hair. So its single wash gives you:     

  • Hair stronger
  • Tangle-free
  • Lustrous.

4). Amway Nutrilite Daily Tablets    

 This product contains:

  • Overcome nutritional deficiencies with multivitamins and multiminerals
  • It is single-dose tablets
  • It is a power packer with 11 minerals and 13 vitamins

5). Artistry Youth Xtend Enriching Cream 

     This product has:

  • An ultra-hydrating formula.  
  • Goodbye to your damaged skin, signs of aging, scars.  
  • Get your glowing skin back in a few weeks.

These are the different product portfolios introduced by the company. Let’s deeply study the company’s prices.

Pricing Strategy of Amway’s Products 

Most people think it has multi-level marketing schemes, but the company always denied it and always maintained itself as a direct selling company.

Products are reasonably priced and they are suited to the middle and upper class of people. They are a little bit more expensive than their competitors because Amway has better quality. Amway follows different premium pricing policies. and few products are made for mid-income groups, always customers and dealers both get margins. Let’s look into the target audience of Amway. 

Target Audience of Amway

Amway uses a mix of demographic and geographic segmentation characteristics such as age, gender, occupation, location, economic class, and others to understand consumer demographic and geographic elements that might help in finding new customers.

Because the majority of Amway’s products are offered through cross-selling and upselling to current clients, the company employs a homogenous targeting strategy.

Amway has long been known for its innovative business approach and high-quality merchandise. To position itself as a quality brand in the minds of consumers, it employs a customer benefit and value-based positioning strategy. 

This concludes the case study of Amway’s business model. Let’s wrap it up shortly. 


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In today’s world, we don’t easily find the right brand which is comfortable for ourselves and better quality one. Amway is the one which is the world’s largest direct selling company and its quality is very good and it is also fitting for everyone and there are some details of the business model of Amway that helps you.

Use this business model to gain more success that needs to have you in first place in the future and generate good revenues. Also, this company has a unique business model which helps those who start their businesses and gain success.

So, you know how important the right business model is for the company for success? Are you interested in learning more? Did you like it? Do visit the website for more. You can also attend a free Digital Marketing masterclass by the founder and CEO of IIDE Karan Shah. Thank you.


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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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