Automatic Replenishment Program/ Home Shopping:
Secrets Revealed

What is it?

It is a service known by many names:

According to one source:

Direct Fulfillment is an Amway controlled program. The Corporation administers the shipping of products and services directly to the distributors participating in the program. They directly send the bonus checks and a monthly group recap to all distributors regardless of pin level. For this service the corporation now charges a 5% shipping charge or $5.00 (whichever is higher) on all core line products (ostensibly, to cover the cost of administration). Interestingly, the Corporation now uses the U.S. Postal Service to deliver products, as opposed to UPS, in order to reduce the cost of shipping. Unfortunately, average ship times have now increased from 2 to 5 days.

The program was originally introduced into the [Hal] Gooch line of sponsorship and was then picked up by INA. There are no other groups participating in the program.

In essence, this is a program where people (distributors and customers) place orders for products up to 6 months in advance. By using product-usage charts and filling out forms, people can determine how much product they use and how often they should receive the products.

ARP is actually an outgrowth of the warehouse authorized distributor (or Direct Fulfillment/ Direct Shipment) service. Instead of having each distributor order from the RDC, the weekly and monthly orders would be "automatic." In reality, the service was NOT "automatic"- the Directs actually placed the order for their ENTIRE group, including all distributors and customers. The monthly orders would be placed on the same date every month, which depended on the schedule Amway gave the Directs. An exception to this ordering occurred when a Direct let a downline distributor place the orders himself, usually if that distributor's group was a long distance group.

How does it work?

Distributors are taught to show a "new" plan- one that emphasizes a shopping program instead of building a business. This plan shows prospects how they can join a "shopping club" comparable to Cosco's or Sam's Club. With this service, a person could have products delivered to their door instead of driving out to get them. If the prospect becomes excited about this service, the distributor can then explain how to "save 30% off retail" by becoming a distributor, or even how to "build a business" by "sharing this idea with others."

In my own group, our Direct explained that this program was so incredible that every distributor should expect the following results:

If you show 15 plans a month, you will get:

Which gives the following results:
PV Each PV Total Your PV Total
5 customers 100 500 500
5 distributors 100 500 1000
MCI sign-up from each of the 5 distributors 100 500 1500
For month #1, you (as a distributor) have generated 1,500PV and are probably making over $200.00 in bonus checks and around $100.00 in profits from your customers.
If you (and your 5 existing distributors) duplicate your efforts, you get the following results:
5 existing customers (from last month) 100 500 500
5 new customers 100 500 1000
5 existing distributors 100 500 1500
5 new distributors 100 500 2000
MCI sign-up from each of the 5 new distributors 100 500 2500
5 new customers from Distributor #1 100 500 3000
5 new distributors from Distributor #1 100 500 3500
MCI sign-up from each of the 5 new distributors from Distributor #1 100 500 4000
5 new customers from Distributor #2 100 500 4500
5 new distributors from Distributor #2 100 500 5000
MCI sign-up from each of the 5 new distributors from Distributor #2 100 500 5500
5 new customers from Distributor #3 100 500 6000
5 new distributors from Distributor #3 100 500 6500
MCI sign-up from each of the 5 new distributors from Distributor #3 100 500 7000
5 new customers from Distributor #4 100 500 7500
5 new distributors from Distributor #4 100 500 8000
MCI sign-up from each of the 5 new distributors from Distributor #4 100 500 8500
5 new customers from Distributor #5 100 500 9000
5 new distributors from Distributor #5 100 500 9500
MCI sign-up from each of the 5 new distributors from Distributor #5 100 500 10000
For month #2, you are now generating 10,000PV (10 times more than the previous month)! This means that you are now WAY BEYOND the Direct distributor level- in only 60 days! If duplicated a third month, each of your 5 distributors will generate 10,000PV themselves. If duplicated a fourth month, each of those 5 distributors will be Emeralds themselves and you will be in qualification for the Diamond level. Exactly 6 months later, you will be eligible for all the bonuses and awards due to Diamond distributors. Therefore, using the ARP service, you will become a Diamond distributor in as little as 10 months!

And you did this WITHOUT using any tools- no tapes, no meetings, no functions, nothing. Profits (instead of dreams) now motivate your group to build the business.

Obviously, "results may vary"- no one in my group EVER did anything close to this. In fact, I still have not heard of ANYONE achieving this kind of success with the ARP service.

How did it get started?

There are a number of differing stories about how and where the program began. One fact is consistent, though: the ARP service began sometime between April 1996 and April 1997, depending on which Diamond organization the distributor was in. The following information came from a variety of people who were kind enough to e-mail me the "origin story" they were told.

The story I heard was that [there was a] couple around 60-65 years old, lived down the street from Amway (in Ada or even near Grand Rapids), had never even heard of Amway, and just "decided" to go on a tour of Amway (since they were retired from their "real" jobs). After that, they were so "fired up" that they broke a kit and quickly created the ARP/ APR/ HSD system to go direct in a month, PSD in 6 months, and Diamond in 11 months.

[A] couple [was] two in depth from Scott and MJ [Michaels], and [Dexter Yager] had decided that this program needed to be tried. MJ supposably worked closely with the woman of the couple in developing the program and getting it started. The woman was supposed to be, get this, a CPA, accountant, and Real Estate Broker (at the same time) who used her sphere of influence with her client base to [suggest to] her likewise busy clients to get on the program. We saw them go across the stage at an [Free Enterprise function] as new emeralds with only six months in the "business". They were apparently in diamond qualification in their fifth month in the business, and we were constantly told that they were in qualification for Double Diamond when they went diamond.

Another story about ARP is that a Diamond couple (Chuck & Kayja Orsted) "intercepted" a wrongly-addressed Amvox message. The message talked about how this new program was doing wonders in that group. The Orsteds tried it out, talked to Kenny Stewart, who talked to [Hal & Susan] Gooch, and Diamonds in the Gooch org[anization] started the program.

Along with the IDA system comes the new ADS-AUTOMATIC DELIVERY SERVICE in which Amway products are now shipped directly to your door and eliminating going through your upline every month for products. The new story on that is that apparently there is an older couple in Michigan who built their business to a Direct level in 3 months, an Emerald level in 6 months and to the Diamond level in 362 days. The story seems to change depending on who is telling it, such as; first they were both retired, then only the husband was retired, first they lived in Grand Rapids, MI, then it was somewhere outside of Grand Rapids. When I questioned for more pertinant details on this monumental achievement, secrecy prevailed.

Supposedly this couple was in Scott & MJ Michaels' group. Supposedly one of them was a computer programmer and developed the computer tracking system for [the ARP service]. Shortly after the program was introduced in the Yager organizations, the Michaels organization started selling a computer program developed by Scotty Michaels (Scott and MJ's son). They sold the program through InterNET [Services], and InterNET promoted it heavily.

All these programs are a result of a pilot program conducted by Amway and first deployed through Hal and Susan Gooch and more specifically Tim and Connie Foley. Not coincidentally, the "10 month wonders" are in Foley's group, and the Foley's have, in the space of year, gone from Triple Diamond through Crown to Crown Ambassador. One organization, INA, has fully deployed Direct Fulfillment which basically makes all distributors in [the INA group] warehouse authorized.

It makes a person wonder why there are different stories about how this program was created. After all, everyone agrees that Amway was created by Rich DeVos & Jay VanAndel and that the tools system was created by Dexter Yager. Why don't people agree on how this program was created? Also, according to a number of sources, this "magic Diamond couple" has not yet appeared in the Amagram. Why not? How long does a couple have to be Diamond before they get their picture on the cover of the Amagram?

Why was it created?

According to the Diamonds, the average distributor only moved (by selling or self-consumption) about 23-39PV worth of products per month. The plan was to get distributors to move more products by automating their product ordering. This way, each distributor would do their "recommended" 100PV, without fail, every month.

Distributors were taught to sign up customers as a quick way to generate some extra income so they could attend functions or "re-invest" in their own business by buying more tools. But, at least in my group, the service was NOT promoted as a way to sell products or as a way for distributors to make a profit from their business.

Since distributors would no longer have to handle the paperwork and ordering of their products, it was believed that they would have more time to build the business- show the plan, listen to more tapes, read more books, etc. The Amway business would now be free of all the "administrative" paperwork. Of course, the paperwork and ordering of tools did NOT change one bit- distributors would still fill out the same forms and still pick up the tools from their upline.

According to another source:

[ARP] is merely a technique to get the average distributor to do his/her 100PV. As [is well known], most "active" distributors do about 20PV per month, and thus the Diamonds don't make too much money from the sale of soap. Every couple of years, Dexter [Yager] comes up with some new technique to get the existing distributors excited so they can keep them in the business longer than they would otherwise stay (i.e. motivational tapes, etc). I can't tell you how many new "most revolutionary thing in the world [ideas]" came out while we were in the business [for example:] (home satellite dishes, scanners in the kitchen, web sites for home shopping, video conferencing for training, etc.) THAT WERE NEVER EVER REALLY GOING TO HAPPEN. I believe [all these "new" ideas are] designed to just keep the [distributors] in, spending money on tapes and overpriced products that they wouldn't otherwise buy.

What about the future of this service?

For the most part, whenever this program was introduced to a group, the distributors realized they could get products without product pickup. This further led distributors to realize the fact that they didn't need to do tool pickups either. As a result of this, tool orders dropped significantly. So significantly, in fact, that, in order to stop the loss of tools profits, many Diamond groups all but dropped the ARP service. (The program was not "officially" dropped, but the Diamonds no longer emphasized its importance at functions.)

When the service first started, the paperwork and orders were handled by the Directs. Recently, though, I have been able to confirm that Amway has, indeed, taken control of the service from the Directs. Again, though, this does not apply to every group.

One fact is becoming clear, though: if a distributor starts to use the ARP service in his group, he will probably sign up customers. This will start to generate profits for himself. He will soon learn that the tools are NOT NECESSARY to build a profitable Amway business. He will also teach this to any distributors in his group: duplicating himself will lead to a group that generates high PV, high personal profits for the distributors, but NO tool sales. Needless to say, this development is NOT in the best interest of the upper-distributors tool business.

Why is this information on this website?

I put this information here so people can learn about a possible approach used by distributors. By approaching people to be customers for this program rather than to "build a business," distributors believe more people will become interested in Amway. Distributors also believe that as more people become customers, those customers will want to get the distributor "savings" and become distributors themselves. Beware of this "back-door" approach.

Many distributors are using this approach without even mentioning the word "Amway" in hopes that people won't even realize that it is, in fact, the Amway Corporation that they will be dealing with. Also, some distributors further disguise the issue by using words such as ARP, "a new way of shopping," Scheduled Shipment, or others.



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