Amway’s Sales Force to Pitch Energy

Amway Corp.’s door-to-door sales force of more than 1 million will soon be selling natural gas and electricity along with household products.

Amway agreed to add Columbia Energy Group’s natural gas to its product list starting next month in Georgia, one of the largest gas and electricity markets offering customers a choice of suppliers. The Columbia-Amway alliance will compete with 18 other marketers for 1.4 million customers in the state, the companies said.

The two companies will expand sales nationwide and add power and other energy products and services as deregulation advances.

The move is an attempt to use Amway’s trademark army of distributors to piggyback energy, a low-margin product for residential sales, onto the direct marketer’s traditional list of more than 450 nutrition and health, personal-care, home-care, home living and commercial products.

“Amway and Columbia Energy will be among the first out of the blocks to reach the residential consumer in an innovative, new way,” said Ken McDonald, vice president of Amway North America. “Up to now, most of the benefits of energy deregulation have gone to big businesses and industrial clients.”

Amway distributors in Georgia will receive $15 for each gas customer they sign up, plus additional credit for bonuses based on how much the customer spends, an Amway spokesman said. Columbia will foot the bill.

Further details of the market service agreement between the two companies are confidential, an Amway spokesman said..

Amway said it chose Columbia Energy because the company offers quality service.

Closely held Amway, based in Ada, Mich., is one of the world’s largest direct marketers.

Shares of Herndon, Va.-based Columbia Energy fell 25 cents to close at $58.44 on the New York Stock Exchange.