Is Amsoil business structure similiar to Amway??

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Just last week I purchased by first batch of Amsoil ASM 0w20. While I was at it, I also signed up as an Amsoil Preferred Customer. Well yesterday I get a UPS package from Amsoil with a LOT of marketing materials, including Amsoil, vitamins, Mother's car care products, etc... There was also a brochure showing how I can make money selling Amsoil. It looks like an Amsoil "dealer" can make commission on what they sell directly, and if a "dealer" gets another person to become a "dealer", then they make a commission off their sales too... Am I reading it wrong, or is this indeed how Amsoil operates? From what I've read, Amsoil has a very solid motor oil. But I've always shyed away from any Amway-type of businesses.
 
Amsoil is a legal USA MLM company, and has some distant similarities to Amway. But there is no similarity to the extremes and subversion Amway has gone to. Amsoil is limited in organizational height, and has no forced minimums.

There are no forced recruiting standards or meetings either. If I do have a dealer "under" me I only get very small commision on the sale. A dealer doesn't even need to sell if he wants. Although this is foreign to many folks, it gives the customers close attention and care. How much attention does a customer get from Walmart and Mobil1 when they make a purchase?

I will also add that I would not have anything to do with Amsoil if they were the least bit shady. They do some silly stuff, but nothing nasty. Amway has just been down right nasty. But people say that about Walmart, too.
 
Like I said, Amsoil has proven itself by it's superior product. So I don't have a problem with the MLM... But what really surprised me from their package was the vitamin stuff... I mean at least Mother's products are related to the automotive industry. But vitamins..??.. Just seems like a strange marketing plan.
 
Unfortunately, man people associate a MLM with a pyramid scam. Also unfortunately, some companies, like Amway, use the strategy to sell ____ products, with, imho, the real revenue being generated by exploiting greed and naivety.

The difference is that a MLM is a legitimate business marketing and distribution structure/practice. Amsoil offers a competitive product to generate its revenues. If you want to become a dealer, you have that option, but you can also simply purchase the product.
 
Try to explain that to those on other sites and it winds up with 900 posts, most misspelled and nasty.
 
maybe this will put things in perspective.

Not everyone cares for AMSOIL's marketing strategy. That is their choice. Certainly, there are plenty of MLM companies out there that are selling mediocre products with a high level of hype and a questionable compensation structure. AMSOIL is not one of them.

Most of these companies are around for a few years (at most) and then the owners cut and run with the profits. AMSOIL has been selling oil for over 30 years. How does a company the size of AMSOIL's (tiny in comparison to giants like Mobil and Shell and the like) continue to grow in such a competitive industry unless their products do what they say? How do they avoid any FTC warnings or judgements against them if their products don't live up to the claims?

AMSOIL doesn't do hyped up sales meetings and conference calls that spend 90% of the time telling people how much money they can make and 10% of the time avoiding questions about product. They don't have pages and pages of hyped up website information about how much money a person can make selling AMSOIL and then devote a half page to a description of their "unique" product. AMSOIL has thousands of pages of product/technical information on their website and in their brochures and a few pages devoted to the business.

Where they DO talk about the business, they publish realistic earnings examples (if not UNDER-inflated earnings examples) on their site and in their brochures.

Of any MLM company out there, I'd say AMSOIL (as a company) is probably about as low-key as they can be regarding the business opportunity. They are a product focused company.

As far as middlemen, there are actually ALOT less middlemen in the AMSOIL marketing method than that of any other major oil company. Take a moment and just think logically about how many hands a traditional oil company's product could pass through before it arrives at the consumer. Consider the millions/billions spent by major oil companies on NASCAR sponsorships and prime time TV ads. Who pays for that? You do. So, how do you suppose the price of the product stays so "low". Cut the quality. That's the only way. That doesn't mean other oils are not "good" oils, it simply means they are not as good as they could be.

The only "middleman" with AMSOIL is the dealer who is simply your first line of customer/technical support before going to the company. AMSOIL pays dealers a commission for being a sales and customer service rep as well as a tech support rep. For all that dealers do, their commission is pretty reasonable, I think. Many MLMs charge super high prices for products because their commission payout is often as high as 50 - 75% or more.

NO commission or bonus of ANY sort is ever paid by the AMSOIL company unless product is sold. That's more than can be said of most other MLM's which pay huge bonuses for sign-ups and then consider any possible product sales the icing on the cake.

As for vitamins. A pretty good percentage of AMSOIL dealerships are family oriented. The wife doesn't understand very much about lubrication in vehicle drive trains, but she does have a passion for taking care of health and the Altrum Division of AMSOIL gives them an opportunity to help with the business in her own way. If that is of no interest to you, ignore it.
 
Met some Amsoil guys in my day (my best friend is one of them) - I was a user in the mid-90's - it was shipping cost that drove me to M1 - the guys I knew were way more into the intrigue and efficiency of a great motor oil than they were into money.
 
"But vitamins..??.. Just seems like a strange marketing plan".

Those are for strength in loosening your oil drain plug. See, they're a related product!
laugh.gif


John
 
fyi
Quote:


June 15, 2007

Back Orders

The healthy growth of AMSOIL INC. has created many opportunities and challenges. Recent record-setting sales months, as well as shifting sales trends and new product and package size introductions, have created a strain on production capabilities, a quick draw down of inventory and an increased number of back orders. Overall, AMSOIL ships over 98% of all products within one week of order. In fact, over the last 12 months, AMSOIL shipped 99% of back orders within one week for 10 of 12 months and 98.4% of back orders
within one week for the other two months.

A dedicated team at AMSOIL is committed to ensuring Dealers and customers receive product as quickly as possible, and AMSOIL has responded to the back order issue by increasing the length of production days, hiring additional personnel and shipping trucks to every distribution center weekly. In addition, a significant financial investment has been committed to a bulk plant expansion at the AMSOIL Center.


 
I have no problem with Amsoil. Ordered off the internet.
The products comes in a few day. There stuff works as
advertised. There ASL is 5.70 prefered customer. Mobil 1
EP at Wal-mart was 7.00. The shipping is a small cost for
value in there products.
 
As long as they continue to make very high quality oil, I don't see them having a problem. They can't loose the quality though, and your off the shelf brands have become significantly better.

Let's not forget "Slick 50", "SUV Torque Power", "Hot Soccer Mom SUV OIL" marketing ____ other companies claim. Mobil now has High Mileage Mobil 1. PLEASE. I could do without the 4-ball wear test and Al's prostate vitamins, but as I said, they all have some sort of ridiculous marketing tactics so you have to pick one.
 
Hey, I never received vitamins. I did get a sticker though. Amsoil also sent me a MSDS in the mail after I received my oil.
I have called Amsoil a few times and have found them very helpful. Ordering off the web makes it no different than ordering anywhere else. I just make sure that Pablo's number gets the credit and it's a done deal.

BTW, the prices aren't that bad either. I purchased the 5w-20 XL oil for $4.00/qt. Even with shipping it's not a bad price.
 
Quote:


"But vitamins..??.. Just seems like a strange marketing plan".

Those are for strength in loosening your oil drain plug. See, they're a related product!
laugh.gif


John


There is a high profit margin on vitamins.
 
I too am an Amsoil dealer. I love the product, and I believe in it. What Mike said is spot on about the company. While MLM isn't usually smiled upon as a business practice, I do think that Amsoil does it great.
Scott
 
Does Amsoil have a deal with Mary Kay for their cars? My wife signed up with Mary Kay until I did some research and discovered www.pinktruth.com that provided a lot of things to watch for. The thing that I found most interesting was that they sent her some paperwork and a tape specifically for husbands to convince us of the value of Mary Kay. It was all so full of ____ I could hardly keep a straight face when we talked about it. After a few weeks she started to see the way they operated and backed out.

I have a friend that sells Amsoil and I'm sure there are very few, if any, similarities with Amway (my grandparents were Amway lemmings) and Mary Kay (have your wive's purchase it on eBay for great prices).

Maybe Amsoil could include some propaganda for wives to better understand why men are interested in oil?
 
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