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Products featured at Amway's annual distributors' convention proved the company is preparing to take advantage of the increasingly service-oriented economy.
Amway unveiled a mortgage network and a Visa Credit Card to complement its realty network in the company's fledgling line of financial services.
The home and personal care products which launched Amway still account for 40 percent of overall sales. Though revenue from service products is relatively slim so far, Amway hopes residual income from these products will prove helpful in attracting new distributors and stemming turnover among veteran distributors.
"Service products really come of age this year," said William Nicholson, coordinator of policy and planning for Amway Corp. "We wanted to bring some balance to the income of the distributors to the point where they make one sale and continue to benefit for years."
In July, distributors in Michigan, New York and Washington will begin offering a Visa Credit Card in conjunction with Western Savings of Phoenix, the 32nd-largest savings and loan in the United States. Amway plans to expand the offering throughout the country by April, 1988.
Distributors who sign up customers for the credit card through Amway will receive 1 percent residual income on every purchase the cardholders charge.
"A lot of distributors would love to see a few hundred people running around the world charging on their...