Network TwentyOne

Network Twentyone
Private
Industry Education
Founded 1989
Founder Jim & Nancy Dornan
Headquarters Atlanta, Georgia, United States
Area served
 Worldwide
Website n21corp.com

Network Twentyone, is a training and support method for distributors working with the Amway business.[1][2][3] It was founded in 1990 by Jim and Nancy Dornan, distributors with Amway, originally to support their Amway network in the United States and Australia.[4] Through Network Twentyone those towards the top of the pyramid have the opportunity to create and promote motivational courses and literature directed at the lower tiers and aimed at encouraging them to recruit more members and thus to extend further the base of the pyramid. This material is known as Business Support Material (or "BSM"). The promotion of BSM to the captive market represented by the lower levels of the pyramid providing the IBOs ("Independent Business Owners") at the top with an additional and independent source of income to that derived from bonus payments arising from the sales generated by the lower levels of the organisation. The income of those who are at the top of the pyramid is derived substantially from the sales efforts of several or perhaps many levels of IBOs below them[5] Network TwentyOne operates in more than 35 countries and is considered one of the largest Amway related organisations in the world.[1][6][7]

In 2007, the UK Government Department of Trade and industry petitioned to ban Network 21 and Amway with the complaint of "distributors more focused on selling their motivational books, tapes and seminars to salespeople than peddling Amway merchandise".[6][8] The petitions were later dismissed after major reforms to fix company faults were made.[9][10][11] In 1997 the organisation was the focus of a controversial Polish documentary, Witajcie w życiu! (Welcome to life!).[3][12]

History

Jim & Nancy Dornan began an Amway business in 1971.[1][13] After their son Eric was born with severe birth defects they rapidly built one of the largest Amway businesses in North America.[13] In the late 1980s and early 90s Amway began to expand and the Dornan's decided there was an opportunity to develop a support system to work with Amway internationally.,.[13][14] In 1990 they founded Network 21 with a goal to build a business system "that ignores borders and languages".[1] Initially based in the US and Australia, Network 21 expanded rapidly in Eastern Europe,[3][15] China, Indonesia, Turkey,[4] Philippines[16] and later India.[2]

Business Operations

Network 21 publishes and distributes books and audio/visual training based programs and coordinates seminars for clients in 35 countries.[6][14] Members refer to themselves as "network builders"[17] and are taught personal development[14] and methods to expand their business network, including goal setting,[18] prospecting,[17] and "how to invite".[19] Network 21 reportedly has a greater "product focus" than some other Amway training organisations.[20] Apart from Jim & Nancy Dornan, leadership includes Robert Angkasa, Paul & Linda Agus, and S.R. Kristiawan (Indonesia),[1][21][22] Hans & Eva Nusshold (Europe),[23] and Mitch & Deidre Sala (Australia).[24]

Network of Caring

Network of Caring was founded in 1994 as the philanthropic arm of Network TwentyOne,[13][25][26] originally to help AIDS orphans in Uganda.[13] Through enlisting the help of other Amway IBOs associated with the organisation, more than a million dollars a year is sent to that country.[13] In partnership with World Vision, Network of Caring and affiliated IBOs have donated millions to the feeding, housing, and education of children throughout the world.[25] World Vision has recognized Network of Caring and Network TwentyOne's members as their largest corporate network of child sponsors.[25][26] Together with Free Wheelchair Mission, Network of Caring has provided wheelchairs to the disabled in South Africa and Ukraine [27][28][29]

Controversy

In May 2007, the UK Government's Department of Trade and Industry (DTI) petitioned to ban Network Twentyone and Amway after a year-long investigation alleging practices revolving around distributors being more focused on selling their motivational books, tapes and seminars to salespeople than peddling Amway merchandise. The complaint also focused on recruitment tactics that inflate income estimates for new salespeople.[6] The petitions were dismissed after certain "defects of the old business model" were changed such as Amway allowing "misrepresentations" of its business by independent sellers in years past and failing to act decisively against the misrepresentations.[9][30]

In 1997, Network 21's "training material" was depicted in the Polish film Welcome to Life.[31] The director and producer were later acquitted on the charge of disseminating false information.".[32][33] The film, banned for 12 years, was one of the highly anticipated movies of 2009's Warsaw Film Festival and was described in the press by one of the promoters as a "scary movie about brainwashing"[32] that depicts hard-sell "pep rallies" and distributors stating meetings were operated similar to the Communist Party[34] and methods of recruitment that confusingly resembled those of a sect.[35] A best-seller on the local video black market.,[36] the film was later banned and its producers fined for using Network 21's copyrighted material.[31] As of 2009 the film was still banned due to an ongoing case brought by "private individuals" ridiculed in the film.[37]

See also

References

  1. 1 2 3 4 5 Robinson, James W. (1997). Empire of Freedom: The Amway Story and What It Means to You. Prima Publishing. pp. 6–7. ISBN 0-7615-1088-5.
  2. 1 2 Saxena, Rajan (2005). Marketing Management. McGraw-Hill. p. 751. ISBN 978-0-07-059953-6.
  3. 1 2 3 Henryk Dederko (producer) (1997). Witajcie w zyciu! (Welcome to life!) (documentary). Poland: Contra Studio.
  4. 1 2 Robinson, James W. (1997). Empire of Freedom: The Amway Story and What It Means to You. Prima Publishing. p. 148. ISBN 0-7615-1088-5.
  5. ↑ http://www.bailii.org/ew/cases/EWHC/Ch/2008/1054.html
  6. 1 2 3 4 Lupo, Lee (July 1, 2007). "UK threatens to ban Amway". The Muskegon Chronicle (Grand Rapids).
  7. ↑ V Sloveniji imamo dva smaragda, pa še nic diamantov : Network 21 alias Amway - najvecja svetovna mreža (In Slovenia we have two emeralds, diamond is still waiting: Network 21 aka Amway - the world's largest network of agents), Gorenjski Glas, Issue 52, 1997, p.21
  8. ↑ Brown, David; Luck, Adam; Bawden, Tom (November 24, 2007). "Doorstep trading giant faces court threat". The Times (London).
  9. 1 2 Knape, Chris (May 14, 2008). "U.K. judge dismisses claims against Amway". The Grand Rapids Press (Grand Rapids).
  10. ↑ The Secretary of State for Trade and Industry v AMWAY (UK) LIMITED, Petition Nos 2651,2652,2653 of 2007 (Chancery Division, Companies Court May 14, 2008).
  11. ↑ The Secretary of State for Trade and Industry v Network TwentyOne Support Systems Ltd, Petition No 2653 of 2007 (Chancery Division, Companies Court April 3, 2009).
  12. ↑ ""Amway" wygral z Dederka (Amway wins against Dederko)". Money.pl. December 10, 2001.
  13. 1 2 3 4 5 6 "The Secret to My Success". The Christian Businessman: 28–34. May 1998.
  14. 1 2 3 "Nov posel za nov svet (New Business for the New World)". PROFESIONALNA prodaja (Professional Sales: 6–8. April 2000. ISSN 1318-976X.
  15. ↑ Robinson, James W. (1997). Empire of Freedom: The Amway Story and What It Means to You. Prima Publishing. p. 112. ISBN 0-7615-1088-5.
  16. ↑ Network 21 Starts Today, Manila Standard,19 Sep 1997, p.18
  17. 1 2 Priosaksono, Aribowo; Sembel, Roy (2003). Maximise your strength. Elex Media Komputindo. pp. 192–193. ISBN 979-20-4117-6.
  18. ↑ Sarosa, Pietra (2005). Becoming young entrepreneur: dream big, start small, act now!. Elex Media Komputindo. p. 23. ISBN 979-20-7110-5.
  19. ↑ Warta ekonomi: mingguan berita ekonomi & bisnis 9 (9-16): 30. 1997. Missing or empty |title= (help)
  20. ↑ Groß, Claudia (2008). Multi-level-marketing: Identität und Ideologie im Network-marketing. Gabler Wissenschaftsverlage. pp. 194, 228, 268. ISBN 978-3-531-15936-2.
  21. ↑ Harefa, Andrias (2000). berwirausaha dari nol. Gramedia Pustaka Utama. pp. 33–35. ISBN 978-979-655-506-2.
  22. ↑ Robinson, James W. (1997). Empire of Freedom: The runway Story and What It Means to You. Prima Publishing. pp. 101–103. ISBN 0-7615-1088-5.
  23. ↑ Robinson, James W. (1997). Empire of Freedom: The Amway Story and What It Means to You. Prima Publishing. p. 114. ISBN 0-7615-1088-5.
  24. ↑ Robinson, James W. (1997). Empire of Freedom: The Amway Story and What It Means to You. Prima Publishing. p. 103,109. ISBN 0-7615-1088-5.
  25. 1 2 3 "Network of Caring - A report of Network 21 Activities In Partnership with World Vision". World Vision. 2004. Retrieved April 7, 2010.
  26. 1 2 World Vision - Network of Caring History
  27. ↑ Free Wheelchair Mission - The Friday stories, September 12, 2008
  28. ↑ Free Wheelchair Mission - Friday Wheelchair Story: She used a wheelbarrow
  29. ↑ Life Will Never Be The Same!, Daily Sun (South Africa),Monday 30 July 2007, p.12
  30. ↑ The Secretary of State for Trade and Industry v AMWAY (UK) LIMITED, [2009 EWCA Civ 32] (SUPREME COURT OF JUDICATURE COURT OF APPEAL January 29, 2009).
  31. 1 2 http://www.money.pl/gospodarka/wiadomosci/artykul/quot;amwayquot;;wygral;z;dederka,244,0,50676.html
  32. 1 2 http://wiadomosci.wp.pl/kat,1345,title,Przerazajacy-film-o-praniu-mozgow-nie-w-Warszawie,wid,11589486,wiadomosc.html
  33. ↑ Perlez, Jane (June 14, 1998). "Ban on Film Has Poland Debating Censorship". The New York Times (Warsaw).
  34. ↑ Perlez, Jane (June 14, 1998). "Ban on Film Has Poland Debating Censorship". The New York Times (Warsaw).Perlez, Jane (June 14, 1998). "Ban on Film Has Poland Debating Censorship". The New York Times (Warsaw).
  35. ↑ http://www.plejada.pl/2,24876,news,1,1,witajcie-w-zyciu-film-o-amwayu-wycofany-z-wff,artykul.html
  36. ↑ Perlez, Jane (June 14, 1998). "Ban on Film Has Poland Debating Censorship". The New York Times (Warsaw).
  37. ↑ http://www.amway.pl/news?news_id=11226&back_uri=/
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