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THECHARLOTTEOBSERVER
Copyright1995,TheCharlotteObserver

DATE:Sunday,March19,1995
ByJIMMORRILLandNANCYSTANCILL,StaffWriters

AMWAYTHEYAGERWAY

DEXTERYAGER'SEMPIREEMBRACES1MILLIONPEOPLEFROMBRITAINTO
BRAZIL.HE'SANEVANGELICALCAPITALISTWHOWANTSTOSELLYOUSOAP
ANDCHANGEYOURLIFE.BUTSOMEOFHISMETHODSBUYCONTROVERSY

InthegemstuddedranksofAmway,whereRubiesaspiretobecome
PearlsandEmeraldsdreamofgoingDiamond,DexterYagerisa24carat
celebrity.

FromCharlottehesitsatophalfofAmway'sglobalsalesnetworkof2
millionpeople.Hisdistributorssold$2billionworthofsoap,
cosmeticsandotheritemslastyearanoutputgreaterthanthe
grossnationalproductsof39nations.

DistributorsfollowtheYagerSystem,attendYagerrallies,readYager
books,listentoYagertapesandrecitetheYagerstory.Theyflockto
heartheYagerpitchthatwealthandsuccessarejustadreamaway.

Hesellsnotonlysoapbutanideologyandawayoflife.Admirers
speakofhimwithreverence,asifhisnextplateauofAmway
achievementweresainthooditself.

"He'sjustlikeroyaltyacrownprinceofAmway,"saysfriendTy
Boyd.

DespitehisrenownwithinAmway,Yagerremainslittleknownin
Charlotte.Buthisinfluenceisgrowing.

LastyearhehelpedRepublicanandAmwaydistributorSueMyrick
raiseabout$200,000fromdistributors,theYagerfamilyand
employees,almostathirdofallshegotinwinningherU.S.House
seat.Hisnetworkalsoraisedmoneyforotherconservativesacrossthe
county.

AndgrowingrealestateholdingsmakehisfamilyoneofMecklenburg
County'slargestnoncommercialpropertyownersandapartment
landlords.

ForYager,55,successisnotunblemished.

AsuitfiledinPhiladelphialastyearallegesthatheandhis
organizationcoerceddistributorsintobuyingmotivationalmaterials,
chargesYagerdenies.

SteveButterfield,whowrotea1985bookcalled``Amway:TheCultof
FreeEnterprise,''saysYagerprofitstwicefromdistributorsby
sellingthemtapesandbooks.

"HesellsthebusinessastheAmericanDream,''saysButterfield,a
onetimedistributorintheYagernetwork."Itmightbeforhim,but
notfortheaveragedistributor.It'smorelikeanightmare.''

Criticsalsoattackwhattheycallquestionablesalestactics.Some
sayhepreachesa"prosperitytheology''thatbestowsdivineapproval
onmaterialism.

LikethecomplexsaleshierarchyofAmwayCorp.theMichigan
companywhoseproductsdistributorslikeYagersellhisownworld
isasintricateashiswebofoverlappingbusinesspartnerships.

Someventuresfailed.AndwhileembracinghisAmwayfamily,he's
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turnedawayfromtwosiblingswhosayhe'sdrivenbymoneyandchanged
fortheworsesincejoiningAmway31yearsago.

"I'mveryhurtbywhathappened,''Yagersays.

ButrelationshipsarewhatYagersayshisAmwayisallabout.

"Ifyouworkjustformoney,you'llreachapointwhereyoumayhave
enoughandyou'llletup,''heoncesaid."Webuildrelationships,and
peopledon'tnormallyquitonpeoplewholovethem.''

TodistributorshopingtomoveupthesalesrankstoRuby,Pearl,
EmeraldandDiamond,Yagernurturestherelationshipwithadviceon
everythingfromspiritualneedstosex.

"I'mwritingaboutthingsthatmadethedifferenceinmylife,''he
explains.''...Everythinginlifeisselling.''
<box>**

"I'vehadpeopletellmeI'mmaterialistic.Isayyou'reeither
materialisticoryou'reanudist.''Successmagazineinterviewwith
Yager,1994

>Box<
ThePentagonofYager'sAmwayarmyisanondescriptofficewarehouse
onSteeleCreekRoadinsouthwestCharlotte.
>Box<

InternetServicesCorp.servesasheadquartersandsupplydepot.It
distributesmillionsofbooks,tapesandvideosthatarethe
motivationalfuelforYagertroopsintheirfightagainstslammed
doorsand"negativepeople.''Theycalltheirgeneralthe"master
motivator.''

Inthelobby,aportraitofYagerandhiswife,Birdie,hangsoveran
openBible.Hisbronzebustsitsatopadisplaycase.WhenYagerwalks
in,helookslikeanythingbutastar.

He'scarryingapackofGarciaYVegascigarsandwearingaleather
fannypackembossedwithared,whiteandblueflag.Abluecorduroy
caphideshisretreatinghairline.Atrimsaltandpepperbeardframes
aroundfaceatopa5foot6,185poundframe.

"Igotalongbodywithnoarmsandlegs,''heexplainsinagravelly
voice."IfmybodywasnormalsizeI'dbeamidget.''

Hisrightarmispartiallyimpairedfroma1986stroke.Hegestures
mostlywithhisleft.Hisdeepseteyesseemalwaysinmotionashe
offersuplifelessonslikesomanycigars:(''I'vebeenrichandI've
beenpoor,andtheonereasonalotofpeoplegetrichisthey'vebeen
poorenoughtohateit.'')

He'snotpolished,andeventakesacertainpridewhenstumblingover
aword."Ipurposelykeptmyvocabularysmall,''saystheauthorof12
books."Mostpeoplewithbigvocabularies,Ihadtofigureoutwhat
theymeant....SoI'veneverincreasedit.''

Dressedcasually,withcreamcoloredloafersandaburgundypullover,
Yagerisunassuming.Exceptforthejewelry.

Eachhandtotesa10caratdiamondring.AdiamondstuddedRolex
adornsonewrist.Theotherhasamatchingbraceletwith"DEX''
spelledindiamonds.Suchbanglesaren'tYager'sonlybowtosuccess.

Hisfleetofcars,oncenumberingmorethan50,isdowntoaround15.
ItincludesthreeRollsRoycesandfourMercedes.Thentherearethe
fourboatsandthesevenseatHawkerjet,nottomentionhomesonLake
WylieandinFlorida.HisLakeWylieresidenceisa15,000square
foot,$1.6millionlogshowcase.

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Likebooksandtapes,they'reallamongthetoolsYagerusesto
motivatedistributorsandencouragethemtorecruitnewones.

"You'vegottokeepthemdreaming,''headvisedlastfallin
"Dreambuilders,''thenetworkmagazine."Takethemdreaming...so
thattheygethungryforthethingsthey'renotsatisfiedwith,what
theyhavewon'tdo....

"We'vegottokeepthemlookingathouses,boats,planes,cars,vans,
coaches,expandingandstimulatingandfertilizingthatpowerfulbrain
thatGodgaveeveryoneofthemuntiltheybelievetheydeservemore,
andtheywillgoafteritandtheywillgetit.''

Yagerestimateshisincomeat"severalmillion.''Forbesmagazineput
itatmorethan$10millionayearin1991.BeforeAmway,themanwho
nowcollectscarsusedtosellthem.

>Box<
"Learntoassociatewithwinners.Ifyourbestfriendhindersyoufrom
reachingyourgoals,drophim.Soundhard?Maybetosome,but
ironicallythatstepwillprobablyhelpnotonlyyoubuthelphimas
well.''"Don'tLetAnybodyStealYourDream''
>Box<

DexterRoyalYagerwasbornin1939inFultonN.Y.,justnorthof
Syracuseand,asithappened,downtheroadfromDexterville.

Hewasnamedforhismother,aDexter,andhisgrandfather,Royal.
RoyalYagerwasaplumber.Sowerefourofhisfivesons,including
Dexter'sfather.SoonthefamilymovedtothemilltownofRomeN.Y.

AdelbertYagerremembershisnephewas"abornsalesman.''

Oneday,herecalls,youngDexterwaswalkingdownthestreetwithhis
motherwhenhestoppedandtalkedtoagirl.Movingon,hismother
askedifheknewher."Hesaid,No,butIwillthenexttimeIsee
her,'''saysAdelbertYager.

In1949,whenYagerwasinsixthgrade,heearnedmoneypeddlingsoda
pop.He'dbuybottlesforanickelapieceandsellthemto
constructionworkersforadime.Hesoonraisedhisprofitsbybuying
themwholesale.

SchoolwasneverapassionforYager.Itstillisn't.Neitherhenor
sixofhissevenchildreneverwenttocollege.Onedaughterwenta
year.AheadlineinaYagerbookmaysumupwhy:

"Myth:Education=GoodJob=Success.''

Aftergraduatingfromhighschoolin1957,Yagertookaseriesof
salesjobs.HesoldSearstools,FordcarsandUticaClubbeer."It
gottothepoint,''heoncewrote,"whereIwasdrinkinguptotwo
casesofbeeraday.''

WhenarelativepitchedAmwayin1964,Yagergothookedfast.

"Amwaybecamemytoppriority,''hesaidonce."Iate,sleptand
breathedthebusinesssevendaysaweek.''

Thenasnow,hedidn'tsellsoapasmuchas"theplan,''Amway's
blueprintforsuccess.Inlinesandcircles,itmapsthewaytoward
geometricgrowthofyour"downline,''thatis,peopleyouenlistto
buyandsellAmwayproductsandthosetheyrecruitinturn.

TodayAmwaydistributorsrarelytrekdoortodoor.Instead,they're
encouragedtouseAmwayproductsthemselvesandfindotherstodothe
same.Salesbythoseinyourdownlinechainhelpdetermineyour
income.Becausethedropoutrateishighmorethan50%

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distributorskeephustling.

Yagerdid.Heshowedtheplanvirtuallyeverynight.In1969hemoved
hisgrowingfamilyandbusinesstoCharlotte,wherehehadagrowing
distributorbase.

Onweekendshe'dpilehisfamilyintoaWinnebagoandgotorallies.
Inbetweenhe'dshowtheplan.Hewasamillionaireby30and,over
thenextdecade,pioneeredthesupportnetworkofmotivationalbooks
andtapes.EventuallythatbecameInternetServices,nowa$35million
ayearbusiness.

TodayYagerisoneofonlytwopeopleinAmericaperchedatAmway's
"CrownAmbassador''level.He'sstillontheroadsome46weekendsa
year.

Atrallieshebouncesonstagetoupbeatmusicsuchasthethemefrom
"Rocky.''Middleageddistributorsleaptotheirfeetandclapand
screamasifhewerearockstar."Thisisalmostlikegoingto
Graceland,''newsmanMikeWallaceonceobservedafterwatchingYager's
admirers.

"He'skindofliketheWillRogersoftheAmwaybusiness,''says
FloridadistributorDeweyTobias,47."Hesaysthingsverysimplythat
haveaprofoundtruthinthem....Ittook168collegeprofessors
toteachmehowtogetajob,andDextertaughtmehowtoreallylive
effectively.''

Someformerdistributorsseeitdifferently.

BruceRoeser,37,ofStoneMountain,Ga.,attendedmanyYagerrallies
during13yearsasadistributor.HesayspromoterswouldsaveYager
andotherkeyspeakersuntil2or3a.m.

"Isyourbraingoingtobeslightlymorereceptivewhenyou'retired?
Thattomeisprogramming,''hesays.''...Itgotweird.The
speakerwoulddeliverthemessage,they'dputonthemusicanddance
allaround.Theweekendwouldcostme$500andI'dcomeoutfeeling
depressedbecauseIcouldn'tmaintainthestandard.''

>Box<
"You'vegottokeep'emdreamin'alot.Thenyou'vegottobuilda
relationshipwithhimandmakehimhungryforyou....IfIcanget
hiswifeandhimlovin'Birdieenoughalso,thatstretchesthe
(relationship)evenmore.''UndatedmessageonAmwayvoicemail
>Box<

JodyVictorofAkron,Ohio,isanAmwaysuccess.

ButevenasvicepresidentoftheAmwayDistributorsAssociation,he
stillrelishes"counseling''sessionswithYager.Hecomesto
CharlotteandentersYager'snocturnalworld.They'relikelytoembark
ona2a.m.tourofwhatVictorcalls"Dexter'sroute.''

"You'reprobablygoingtodrivebyacardealershiporyou'lldriveby
anewhome,''saysVictor,47.Thepoint:to"keepusmentally
broke.''

"MentallybrokeisatermDexterusestosaythatifyouhaveadream
maybealittlebitoutofyourreach...maybeitwillkeepyou
hungryanddriventomoveontothenextstepinAmway.''

Yager'sadviceflowsfreely.Sometimesit'sthrough"Amvox,''the
Amwayvoicemailsystem,where"DitsfromDex''filterdownthe
network.OftenitcomeswhereverYagerhappenstobe.

DeweyTobias,thenanAmwayneophyte,wasgettinggasatSouthParkin
1975whenhespottedYagerdoingthesame.

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"Hetalkedtomeforanhourandahalf,''recallsTobias,whobecame
asuccessfuldistributorinadifferentnetwork."Hetookatotal
strangerwhocouldhavenoeffectonhisfutureincome...(and)
tookthetimetoencourageme.''

Butbecausedistributorbonusesdependonsalesdownthechain,
there'sclearincentivetonurturetheirsuccess.Andbecause
attritionissohigh,Yageroffersanallembracingsupportgroupto
fightanydistractionsthatmightsnuffoutthefiretosell.

That'swhytohisAmwaydistributors,he'smorethanabusiness
consultant.He'safamilyfriendandselfhelpguru.

He'spartMissManners(''Loose,wrinkledclothessuggest...a
lackofambition'');partAnnLanders(''Agoodselfimagewillkeep
yougoingwhencircumstancessaySTOP!'');andpartDr.Ruth(''Not
allsexwillbeamountaintopexperience.'')

Hefreelysharesthoughtsongenderroles:"Amanneedstobethehead
ofahometofeellikeaman,''heoncesaid.''...Arealman
wantstogooutandconquerandachieveforthegalheloves.''

"Welearnquicklyinnetworkingthatproductsdon'tmovepeople,
peoplemoveproducts,''saysBrigHart,43,anotherFlorida
distributor."Dexter'swholesystemiscreatedtomakeyouawareof
whoyouareandhelpyoutorisetoyourfullpotential.''

TyBoyd,alongtimeWBTandWBTVpersonalityandmotivationalspeaker
himself,understandstheappeal.

"Everybodywouldliketohavemorepositiveworldinwhichtolive,''
hesays."Soithaslesstodowithbuildingahugebusinessformany
ofthemandjustasmuchtodowithbeingpositivelyreinforced.''

ThreeyearsagoWadeCowart,aFloridadistributor,washonoredata
YagerrallyatRockHill'sWinthropColiseum.He'djustleftthestage
whenhewasinformedhisfatherhaddied.Yager,thenacasual
acquaintance,walkedouttoCowart'smotorhome.

"Dexter...satdownwithmywifeandme3045minutesandhelped
metounderstandandfeelbetteraboutthefactthatmyfatherhad
died,''saysCowart,47."He'snotjusttalk,heliveswhathe
teaches.''

>Box<
"Asourgoalschange,sodoourrelationships.Thismightsoundcruel,
butacceptitaspartoflife'smaturingprocess.''"Don'tLet
AnybodyStealYourDream''
>Box<

TheharmonyinYager'sAmwayfamilydoesn'talwaysextendtohisown.

He'sestrangedfromhisbrotherLeonardYagerandsister,Lillian
Peck.HeremainscloseonlytobrotherRichard.

"Whenhegotmoneyhechanged,''saysPeck,51,wholivesintheback
rowofTuxedoTrailerParkinRome,N.Y."Theymoveddownthereandhe
gotintoAmwayandallofasuddenIdidn'thearanymorefromthem.''

SaysLeonard,57:"IfyouwereinvolvedinAmwayhespentthetime
withyou.Ifyouweren'tinvolvedinAmway,heavoidedyou.''

Ofhissister,DexterYagersays:"Lillianisasweetperson,butwhen
...ImovedtoCharlotte,howmuchamIgoingtoseepeoplebackin
Rome?Iloveher.''

HisrelationshipwithLeonardbrokeoverafailedbusinessventure.

LeonardYagermovedtoCabarrusCountyin1986torunaconstruction

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companywithhisbrothers.By1989thepartnershipsoured.Leonard
Yagerwasfired.Hesayshisbrothersfoughteffortstogain
unemploymentcompensationandremainsbitter.

Healsoblamesthemforpreventinghimfromvisitingtheirmotherina
Charlottenursinghome.A1991lettersignedbyDexterandRichard
YagerandtheirmotherwarnedLeonardthatanyattemptedvisitwould
beconsidered"willfultrespass.''GertrudeYagerdiedlastJuly.

DexterYagersaysthewarningwashismother'sidea.AsforLeonard's
firing,hesays,"Sometimeswhenyou'retryingrealhardtohelp
somebodyelseitdoesn'tworkoutandyou'rethebadguy....

"Ihaveahardtimewiththebreakdownintherelationship,''headds.
"ButIfeelthat'sfamilyandit'spersonalandthereisnogainfor
metoattacksomeone.''

>Box<
"Theroadtosuccessisnotwellpaved.''"Don'tLetAnyoneSteal
YourDream''
>Box<

Yager'sexperiencewithhisbrotherLeonardhasn'tstoppedhimfrom
doingbusinesswithhisownfamilyorhisAmwayone.

AseriesoffamilyventuresincludestheDexterandBirdieYager
FamilyLimitedPartnershipandDexterYagerandFamilyEnterprises.
SonDoyleisCEOofInternet;Jeff,president,andSteve,avice
president.Afourthson,DexterJr.,providessecurityforrallies.

BrotherRichardYager'scompanybuildsYager'sapartments.Membersof
theAmwayfamilyalsohavebecomebusinesspartners.

AtonepointYagerwasinvolvedinatleast30partnerships,according
toMecklenburgCountyrecords.Mostinvolvedrealestate.Aloneor
withothers,heownsatleast590acresinMecklenburgandYork
County,S.C.Thetotaltaxvalueis$45million.

AftertwoMecklenburgbusinessesinwhichhehadminorityinterest
wentbankrupt,Yagerbegantoparehispartnerships.

"Ifitain'tfamily,ifitain'tthekids,nobody'sgoingtotakecare
ofyourhouselikeyoudo,''saysYager.

DonHevener,apartneroncesuedbyYager,suggestsYagercanplay
hardball."Unfortunately,alotofverysuccessfulpeoplearevery
headstongpeople,''hesays."Andhe'scertainlythat.''

Afewyearsago,YagerjoinedsomeAmwayfriendsinagroupthat
acquiredinterestsinanOhiohotel,abank,atravelagency,aMiami
arearesorthotelandachainof"Dexter's''subshops.Allwere
eventuallydumped.

"Welearnedthatweshouldstickwiththegoosethatlaidthegolden
eggs,''saysinvestorJodyVictor."Ithinkwefoundthatourareaof
expertisewastheAmwaybusiness,notthebankingbusiness.''

>Box<
"Webelievethere'saGodinheaventhatwantsustoachieve.''An
undatedmotivationaltape
>Box<

BrigHarthadjustjoinedAmwaywhenhewenttoaYagerrallyyears
ago.ThatSundayhefoundhiswaytoitsoptionalreligiousservice.

"Itwasn'tlikeanychurchI'dbeento,''saysHart."Isawpeople
professingtheirfaithinJesusChristandnotashamed....I
didn'tseeonepersonwhoreachedhighlevelswhodidn'tacknowledge
theLordandgivehimcreditforthesuccess.''

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YagerdisplayshisreligionasopenlyastheChristianflagsthat
flutteroutsideInternetoffices.

HerunsaChristiancampforchildrenoftopdistributors.Since1991,
thenonprofitYagerFreedomFoundationspent$212,000onreligious
servicesatrallies.Yageroncewrote:"Thebesthugyoucangiveyour
childrenisarelationshipwithJesusChrist.''

YagerdonatedroyaltiesofanearlybooktoPTLTelevisionNetwork.
AndwhenJimandTammyBakkerfellonhardtimes,heleasedhishome
asabroadcastcenter.

GeraldHarteis,anAmwaydistributorfromPennsylvania,says"astrong
faithandbeliefinGodandtheprinciplesofourfoundingfather''
is,alongwithfollowingyourdreamandsupportingyourassociates,a
tenetoftheYagerSystem.

"Whatwedoistrytomakeitavailable,''Harteis,48,saysof
religion."Idon'tthinkwe'reattemptingwhatsoevertoforcethison
people.''

AmwayCorp.CEOTomEgglestonsayscompanyguidelinesguard"against
anyimplicationthatcertainviewsarerequiredforsuccess.''

ButCraigBranchoftheWatchmanFellowship,anationalChristian
countercultministry,callsYager'sbrandofreligion"prosperity
theology.''HecallsAmway"cultic''withitshighlyemotional
meetingsandeffortstocontrolthelivesofitsdistributors.

"Godwantsyoutoberichandhealthyandallyou'vegottodo...
istoclaimitwithpositivethinking,''Branchsays."Godisa
celestialbellhop.''

AdmirerssayYagerissimplyprofessingwhat'sworkedinhisownlife.

"BeingaroundDexterisseeingasermonratherthanhearingone,''
saysdistributorDeweyTobias."Wouldn'tyouratherseethebiblical
principlesofhowtotreatpeopleandhowtogetalongwithpeople
practicedratherthantalkedabout?''

>Box<
"Ifyoureallyunderstandbusiness,you'reeitherworkinghardtomove
forwardoryou'reslidingback.''Observerinterview
>Box<

DexterYagerhaslittletimeforrest.

Afewyearsagohetookareporterononeofhisnocturnalexcursions.
At2a.m.,theyhoppedintoYager'scustom4wheeldrive,spotlights
mountedonthesidepanels,andwentlookingatrealestate.

LastmonthheflewintoCharlotteaboardhisprivateplaneforanother
interview,andthenflewontoRhodeIslandforanotherAmwayevent.

He'saworkaholic,asconsumednowwithsellingdreamsasheoncewas
sellingsoda,carsorbeer.

"It'stheonlylifeIknowandIloveit,''hesays.''...You
can'tsucceedinsomething(if)youhaven'tmadeupyourmindthat
you'regoingtopaythetotalprice,whateveritis,tosucceed.''

ForYager,thetotalpriceisalwaysonemorerecruit,onemorerally.

"IplantorunashardasIcan'tilthedayIdie,''heoncesaid.
"Andmaybethedayafter.''

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NEXTSTOP,CHINA:GLOBALREACHFUELSSALES

Chancesaregoodthatyou'vesoldAmway,boughtAmwayorheardan
Amwaydistributor'ssalespitch.

AmwayCorp.,istheMichiganbasedgranddaddyofnetworkmarketing.
Its400productsmostlyhouseholdandpersonalcareitemsand
6,500catalogueitemsarenotsoldbystores,butbyvastnetworksof
distributors.

Itsgrassrootsmarketingstrategydistributorsrecruitingfriends,
relativesandacquaintancesintoendlesslyexpandingcirclesof
salespeoplehasbuiltaglobalarmyof2milliondistributorsknown
fortheirfervorandhighenergysalesconventions.

Thesuccessfulformulahasopenedlucrativeforeignmarketsinrecent
yearsandpushedretailsaleslastyeartoarecord$5.3billionin60
countries.

LastmonthitmovedintoChile.NextmonthitopensChina.

MuchofAmway'ssalesactivityisrootedinCharlotte,whereakey
distributor,DexterYager,hasbuiltaworldwidenetworkof1million
independentsalespeopleandahugemotivationbuildingsideline.

Andmorethan12,000"Amwaynians''willrallyinfoureventsthis
monthattheCharlotteConventionCenter.

They'lltalkaboutexpansion,especiallyinChina,whereAmwaywill
entertwoprovincescontaining95millionpeople.

ForeigngrowthespeciallyinJapanandSouthAmericahaspushed
salesfrom$2billionto$5.3billioninjustfouryears,saidTom
Eggleston,thecorporation'schiefoperatingofficer.

Butclosertohome,Amwaystillfacessomeimageproblems.

Sinceitsfoundingin1959,thecorporationhasfoughtregulatoryand
legalbattlesstemmingfromitsnetworkmarketingtechniquesandsome
ofitssalespractices.

TheFederalTradeCommissioninvestigatedwhetherAmway'srecruiting
oflayersofsalespeopleconstitutedanillegalpyramidscheme.The
federalagencyeventuallyruledin1979thatitssalestoretail
customerskeepAmwayalegalventure.Promotersofpyramidscamsget
moneyfromrecruitsinsteadofsales.

TheAmwayCorp.anditsCanadiansubsidiarypleadedguiltyin1983to
chargesofdefraudingtheCanadiangovernmentofmorethan$22million
incustomsdutiesandwasfined$20million.

In1989,thecorporationpaid$48milliontosettlecivilpenaltiesin
Canadastemmingfromthesamecase,saidColetteGentesofRevenue
Canada.

AnAmwayofficialsaidthecorporationhasgoodrelationswiththe
CanadiangovernmentandhealthygrowthinCanada.

TheFTCalsoinvestigatedAmway'ssalespitches,allegingthatitwas
disseminatingmisleadinginformationtorecruits.Ina1986
settlement,thecorporationpaida$100,000civilpenaltyandagreed
todiscloseinformationonaverageearningstonewrecruits.

Amway'ssalesandmarketingplansaysaveragemonthlyincomeforall
activedistributorsis$65.About920,000aredeemedactive.

Theplanalsosaysonlyabout1%ofallactivedistributorsreachthe
directdistributorlevel,thestartingpointforincentivebonuses.
DirectdistributorsbuytheirproductsdirectlyfromAmwayin

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Michigan,paycommissionstogroupsof75to300recruits,andcan
earn$40,000ormoreayear,saidofficials.

ThegreatbulkofAmwaydistributorswhopayabout$135fora
starterkitsimplyearncommissionsontheproductstheyorderfor
themselvesandcustomers.

AtarecentmeetinginCharlotte,the$65amonthaverageearningswas
notmentioned.Instead,thespeakerfocusedonnewcars,vacation
homesandotherpossibilitiesfromlargeincomes.

Somedosucceed,butmanyothersgetdiscouragedanddropoutfairly
quickly.DexterYagerestimatesthedropoutrateat50percent.

SomeAmwaydistributorsinviteprospectiverecruitstomeetings
withouttellingthemthey'regoingtohearanAmwaypresentation,a
tacticthatcorporateofficialssaytheyhavetriedtodiscourage.

"Westronglyencouragedistributorstodisclosethatthebusiness
opportunityiswithAmway,''saidEggleston."Whenwereceivereports
ofafailuretobetruthful,wehaveimposedpenaltiesfollowing
repeatedwarnings.''

In1991,Procter&Gambleobtaineda$75,000judgmentagainsttwo
Amwaydistributorsforspreadingfalserumorsthatitstrademarkis
linkedwithSatanism.

Inrecentyears,Amwayhasbecomemorevisibleinitsmarketing.
CurrentadvertisementsinmagazineslikeNewsweekshowfamiliesin
roomsfilledwithAmwayproductstoemphasizethebreadthofitssales
offerings.

SomeformerAmwaydistributorsarguethatmostAmwayproductsare
consumedbythesalesforce,whichEgglestonsaysisdifficultto
proveordisprove.

Hesaidthecorporationhas"highretailpenetration''forits
cataloguesthatsellAmwayproductsandotherbrandnameitems.

Butbecausedistributorsorderproductsforthemselvesandtheir
customers,hesaidit'sdifficulttopinpointwho'sconsumingthem.

"Itcontinuestobearelationshipsellingbusiness,notoneofcold
calling,whichwediscourage,''hesaid."Mostdistributorsspendfour
hoursaweekonAmway.''

ThecorporationwasfoundedbyRichardDeVosandJayVanAndelofAda,
Mich.,whoseworthisestimatedbyForbesat$4.5billioneach.

TheAmwayCorp.isstillledbyVanAndelandDeVos'son,Dick.It'sa
privatelyheldcompanywithpubliclytradedsistercompanies,Amway
JapanLimitedandAmwayAsiaPacificLimited.

*AMWAY

WHATISIT?
AmwayCorp.,shortforAmericanWay,isoneoftheworld'slargest
directsellingcompanies.Foundedin1959byJayVanAndelandRich
DeVos,it'sbasedinAda,Mich.

HOWBIGISIT?
Amway$5.3billioninproductsin1994,an18percentincreasefrom
1993.Itmarketsmorethan400homecare,healthandfitnessproducts
madbyAmwayand6,500otherbrandnameitemsinitscatalogue.

WHOSELLSAMWAY?
500,000intheU.S.and500,000inothercountries,includingBritain
andAustralia.

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HOWMANYARESUCCESSFUL?
Amway'ssalesandmarketingplanshowsthattheaveragemonthlygross
incomeforactivedistributorsisabout$65.About1percentofall
theactivedistributorsreachtherankofdirectdistributor,the
firstlevelforincentivebonuses.Directdistributorshaveasmanyas
300distributorsintheirnetwork,generatingabout$15,000monthlyin
productsales.

WHATDOESITOWN?
AmwayrewardsitstopdistributorswithvacationstoPeterIsland
ResortandYachtHarbor,asecludedresortitownsintheBritish
VirginIslands.Italsoownsa160footyacht,theEnterpriseV.

DEXTER'SWORLD

AstheheadofAmway'sbiggestglobalnetworkofindependent
distributors,you'dthinkDexterYagerwouldhaveenoughtodo.But
he'salsofoundtimetobeanauthor,developer,motivator,selfhelp
guruandpoliticalfundraiser.

"Everythinginlife,''hesays,"isselling.''Andhe'sprovedthatif
yousellenough,youcanalsobuyafewthings.

HishomeonLakeWylie
The$1.6millionloghomehasmorethan15,000squarefeetnot
tomention2,400squarefeetofgaragespace.

Histransportationfleet
15cars,includingthreeRollsRoyces,fourMercedesanda'66T
Bird.
"FreedomSpecial,''a$350,000motorhome
Fourboats
OnesevenseatHawkerjet

Realestate
Ownsatleast$44millionworthofpropertyinMecklenburgandYork
counties.Includes:
CoffeyCreekapartmentsonN.C.49
EspritapartmentsoffW.T.HarrisBoulevard
Hamilton'sBayapartmentsonS.C.49

Religion
DexterleasedahometoJimandTammyMinistries.

Dexter'sAmwayconnection
Overseesmorethan1milliondistributorsaroundtheworld
Responsiblefor$2billioninannualsalesmorethanathirdof
Amway'stotal.
SitsontheexecutivecommitteeoftheAmwayDistributors
AssociationBoard.

Amwaysupport
Pioneeredsupportsystemofmotivationaltapesandbooks.
Ownstwocompaniesthatdistributemotivationalmaterials.
InternetServicesCorp.LocatedonSteeleCreekRoad,distributes$35
millionworthofmaterialsayear.
ICCA.Manufacturestapesandhasasatellitebroadcastserviceat
itsSouthBoulevardplant.

Dexterthewriter
Authororcoauthorof12booksincluding:
"Don'tLetAnybodyStealYourDream.''
"MillionaireMentality.''
"OrdinaryMen,ExtraordinaryHeros.''

Otherbusinesses

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BrotherRichardYagerrunsYagerConstruction.DexterYagerhashad
multiplepartnerships,andoncehadinterestinabank,travel
agencyandhotel.

Politics
Helpedraised$200,000forRep.SueMyrick,RN.C.Alsohelpeda
handfulofotherGOPcandidates,includingMittRomneyof
Massachusetts.ArrangedfornotableslikeGeorgeBushtospeakat
Amwayrallies.

YagerFreedomFoundation
RunbytheYagerfamily,itraised$563,000incontributionsfrom
199193andmade$18,000ingrants.Alsospent$212,000on
religiousservicesforYagerrallies.Foundationowns34acres
alongLakeWylie

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