Ever heard of Amway? It’s been a major player in the MLM scene for over 60 years, spanning the globe.
Chances are, you know someone who’s dabbled or had a long-lost pal suddenly pitching a “stellar” business gig after a decade of silence – a classic Amway move.
But is Amway a scam? That’s often the skeptical question that comes up. However, let’s not rush to conclusions.
That’s usually how it starts. And guess what? They’re likely knee-deep in the MLM world, with Amway shining as a heavyweight – it might even be the champ.
But let’s be real – how’s life for these distributors? Can they really rake in decent cash? What’s the success rate? Those are the real questions.
Hold tight, because we’re about to uncover a less-than-gleaming truth: fewer than half of these distributors stick around, pocketing around $200 monthly – definitely not living large.
Now, here’s the kicker – do folks end up losing big in Amway? Does this slap a “scam” label on Amway? Or is it that notorious pyramid scheme? Let’s dissect the facts before passing judgment.
Jump to:
- What is Amway?
- Is Amway a Pyramid Scheme?
- How much to join Amway?
- Products, That Amway Offer
- How to Make Money with Amway?
- Amway Income Disclosure – Not Fully Disclosed?
- Amway Compensation Plan
- Any Other opportunities to generate income online?
- Amway Pros & Cons
- Conclusion
Disclaimer
I am not associated with Amway, I am not a distributor. This review has been researched with information available in the public domain.
Any kind of conclusions and/or recommendations are opinions and may not agree with all persons.
Amway Overview
Name: Amway
Website: www.amway.com
Price to Join: $100 + Price for products
Recommended: No as a primary source of income (It is probably OK as a hobby).
What is Amway?
Amway is a direct selling company, or in other words, an MLM company that focuses on selling health, beauty, and home care products.
It holds the distinction of being the largest MLM company globally, boasting a network of over 3 million independent business owners (IBOs) spread across more than 100 countries.
Amway, short for “American Way Association,” was established in 1959 by two high-school friends, Jay van Andel and Richard DeVos. Prior to founding Amway, both of them worked as distributors for a company called Nutrilite. Together, they managed to build a team of over 5,000 distributors.
Later on, Jay and Richard departed from Nutrilite and, armed with their top-notch recruiting skills, ventured into launching a new enterprise known as The American Way, which we now recognize as Amway.
Sadly, both of them have since passed away, with Jay’s passing occurring in 2004 and Rich’s in 2018.
Today, the company is headquartered in Ada, Michigan, and the current CEO is William S. Pinckney.
(Interestingly, MLMs often have their headquarters in Utah, similar to 4Life or Rain International.)
As of 2018, the combined revenue of Amway and its sister companies under Alticor stood at $8.8 billion.
It’s no small feat that Amway employs around 20,000 individuals and, as mentioned earlier, boasts a distributor network of over 3 million spanning the globe.
The complex you see above serves as the Amway headquarters, encompassing a staggering 80 buildings and a vast expanse of 3.5 million square feet (equivalent to 0.325 square kilometers or more than 80 acres), accommodating both office spaces and manufacturing facilities.
Impressively, the Amway World Headquarters employs a workforce of 4,000 individuals.
In addition to its headquarters, Amway also maintains a presence in major cities worldwide.
As per the official Amway page, they boast more than 750 physical locations across the globe.
Notably, Amway’s top ten markets comprise:
- Korea,
- China,
- the USA,
- Japan,
- Thailand,
- Taiwan,
- India,
- Russia,
- Malaysia,
- and Italy.
Amway’s growth has reached such heights that they even own a hotel known as the Amway Grand Plaza.
Is Amway a Pyramid Scheme?
Let’s delve into the distinctions between a legitimate MLM and a pyramid scheme. The crux lies in the presence or absence of a tangible product within the business model.
In a legitimate MLM, a portfolio of products takes center stage.
The company generates its revenue through the actual sale of these products.
On the flip side, a pyramid scheme operates differently – it lacks any viable product offering and relies solely on recruitment to generate income.
It’s worth noting that all MLMs have their origins in pyramid schemes, as expounded upon in the article “MLM vs.. Affiliate Marketing“. The driving force behind this association is that recruitment tends to be the most lucrative avenue within any MLM framework.
This is where the confusion stems from.
To clear the air regarding pyramid schemes, you might find it insightful to watch the following video that elucidates how to identify such schemes:
While Amway isn’t technically a pyramid scheme, I get why people often label it as such. The similarity stems from Amway’s substantial emphasis on recruitment.
Amway boasts a rich history, and its top-tier management has crafted an effective process, training, and techniques to mold individuals into adept recruiters.
Naturally, the effectiveness varies based on personalities and approaches. However, it’s worth noting that when it comes to recruitment, some methods might tread a fine line…
It’s a known fact that IBOs are often “encouraged” to immerse themselves in motivational literature and leverage such resources to achieve their goals. It’s almost as if they exploit these self-development materials.
In certain scenarios, the upline assumes an almost regal status, where members are subtly guided to abstain from questioning their authority. The doctrine seems to be that the upline is always in the right, and members are expected to follow their lead unquestioningly.
This environment isn’t everyone’s cup of tea and extends beyond Amway. The culture even takes a turn where those who exit Amway become targets of mockery within the community. It can certainly give off a cult-like vibe.
That being said, even though Amway isn’t technically a pyramid scheme, it was embroiled in a class-action lawsuit back in 2007. The outcome saw Amway agreeing to shell out $56 million.
How much to join Amway?
The registration fee amounts to $100, applicable irrespective of your location.
This fee is recurring annually.
In the US, an additional charge of $62 is levied, covering the starter kit with marketing support.
The registration fee varies by country but never exceeds the mentioned $100.
Each IBO has the option to purchase a product kit priced at $100 (specifically, $99.99). In fact, newcomers are often persuaded to invest in this kit due to its offering of $245 worth of full-size products for testing, alongside numerous samples for sharing. Additionally, the kit includes:
- 10 small catalogs featuring business and product information
- Training materials
- Quality brands
- Marketing support
These resources empower you to commence offering the products immediately.
An advantageous aspect is that this fee is refundable within 60-180 days, should you find that Amway doesn’t align with your preferences.
Products, That Amway Offer
Generally speaking, their products are not bad. People like these products even though many of them are a bit more expensive than their competition available in regular stores.
Amway offers a lot of products and they are divided into 4 major categories:
- Home
- Personal Care
- Beauty
- Nutrition
Each category has its subcategory so let’s just mention a few of them.
1) Nutrition
In this category, you find a bunch of vitamins and supplements, weight management, energy products, and so on.
For example the Nutrilite Double X.
It is said that this is a multivitamin of the future.
This is packed with minerals, and vitamins to support a healthy heart, brain, bones, and immune system.
It contains natural plant ingredients “from every color on the phytonutrient spectrum” (phytonutrient = a substance found in certain plants, which is believed to be beneficial to human health and help prevent various diseases).
Ingredients:
- Vitamin A, C, D, E, B6
- Thiamin
- Riboflavin
- Calcium
- Iron, Zinc, Selenium, Copper,
- etc.
It is recommended to consume 1 multivitamin tablet, 1 multimineral tablet, and 1 phytonutrient tablet twice a day with meals.
Note:
The statements have not been evaluated by the FTC and it is not intended to diagnose, treat, cure or prevent any disease.
The price for Nutrilite Double X (which is for 31 days) is $71.00
2) Beauty
There are 3 subcategories you can choose from:
- Fragrances
- Makeup
- Skincare
Let’s take the Artistry brand – Artistry Hydra-V Fresh foaming cleanser
This cleanser leaves skin refreshed and comfortable so it looks healthy.
It is a soap-free foaming gel that removes excess oil, makeup, and dirt.
It is suitable for all skin types, including sensitive skin. This product is dermatologist and allergy-tested.
Use twice a day – in the morning and evening.
The price for 4.2 fl. oz (125ml) is $25.
3) Personal Care
In the personal care department, you have 3 sections:
- Bath and Body Care
- Hair Care
- Oral Care
We can have a look at the G&H Protect+ Concentrated Hand Soap – 1Liter.
This soap is developed and manufactured using an exclusive technology that helps neutralize strong odors and besides cleansing, it also leaves hands hydrated and smooth.
- Dermatologist and allergy-tested
- Dye-free, sulfate-free, and wheat-free
Soap protects skin with a blend of white tea, natural minerals, and extracts from bilberry.
1 liter of this soap (33.8 fl. oz.) costs $26.
4) Home
This last major section has 7 different categories:
- Air Treatment
- Cookware
- Dish
- Disinfectant cleaners
- Laundry
- Surface Cleaners
- Water Treatment
Let’s check the last one – the eSpring Water Purifier.
This water treatment system can be attached to the standard kitchen faucets using a device that just screws onto the existing faucet.
It has been constructed from safe materials and claims are backed by test data. It allows the beneficial minerals to pass through (such as magnesium, calcium, etc)
It supposedly improves taste, odor, and water clarity.
This U.S. patented carbon-block filter and UV light effectively remove more than 140 potential impurities.
This particular model costs on the Amway site $1,250.00.
I have found very similar models (also Amway products) on Amazon for a cheaper price.
Officially it is not allowed to sell Amway products on Amazon.
But, in my opinion, the IBOs who bought it to distribute it could not find anyone who would buy it, so this IBO just decided to sell for a lower price to get at least some of the money.
It probably happens quite often, even it is against Amway rules.
Here is another example from a different category.
It is always suggested to check other sources for example Amazon since you can find the same product for a much lower price.
For example, this Artistry Exact Fit costs $40 at the Amway site whereas on Amazon you can get it for almost half of it.
This is not always the case and many products are cheaper directly on the Amway site. Nevertheless, there is no harm in doing a bit of research first.
How to Make Money with Amway?
Success is very rare with any MLM and unfortunately, that applies to Amway as well.
There are 3 ways of how you can make money.
1) Retail
Your earnings depend on how much you sell. This means you buy products from Amway and resell them for retail price. The difference is your earnings.
2) Bonuses
This is also called a performance bonus.
It is a combination of the point value and business volume. Every Amway product has a certain number of points.
To get a bonus you must qualify for it. The minimum number of points is 100. On top of it, you must get results in a 3 percent business volume bonus.
3) Build your team/downline
All MLMs have fancy words for recruiting.
The bottom line is that there is no way to make money unless you recruit people who will recruit other people, so your earnings come from the sales of all the people below you.
Amway Income Disclosure – Not Fully Disclosed?
The truth is that the majority of IBOs are not making any money and a big percentage also lose money.
Unfortunately, Amway does not reveal the earnings of their IBOs. The Amway US only reveals the average monthly gross income for active IBOs.
It is something over $207 per month or CA$186 in Canada.
The full income disclosure is available in Amway UK only (and only from 2015 as this document is issued in March 2016). It is called the Amway earnings disclosure statement.
Let’s do a little comparison.
Here is a graph comparing all US workers vs. the Amway representatives:
From the graph, it is obvious that 99% of Amway representatives earn under the US poverty guideline.
Only 0.01% earn over $66,000.
Many IBOs have started with the illusion of a side income.
They do not sell enough to make a profit, so they attend seminars and training which they pay themselves out of their pocket.
The seminars cost thousands of dollars, so here is one of the reasons why many of the distributors lose money.
Amway Compensation Plan
Navigating the intricate details of the Amway Compensation Plan can be quite a task.
With its complexities (more than 20 pages), it’s no surprise that understanding it thoroughly might require a bit of effort.
That’s why I’ve distilled the essentials into a concise version, offering you a clear glimpse into the key components of how Amway rewards its Independent Business Owners (IBOs).
Earning Income
The Amway Compensation Plan enables IBOs to earn income by selling high-quality products, both through customer sales and by building a business organization by registering others as IBOs.
Eligibility to Sponsor
New IBOs must achieve $300 in Verified Customer Sales before they’re eligible to sponsor others.
Continuation Requirements
To continue their IBO contract, those who registered before January 1, 2022, need to generate VCS equal to 60% of their PV in five consecutive months. For those registered on or after January 1, 2022, need to do this in the month following registration.
Income Levels
IBOs earn income through immediate income (retail markup) and Performance Bonuses, which are based on sales volume, measured in Point Value (PV) and Business Volume (BV).
Performance Bonus Schedule
The Performance Bonus is determined by PV totals, and higher PV totals result in higher percentages (up to 25%) for calculating bonuses.
The Amway Compensation Plan (as part of their Business Reference Guide) can sometimes feel like solving a puzzle with missing pieces, allowing key details to slip by unnoticed.
The plan’s twists and turns might pose a challenge to securing a stable income.
Jumping into 2022, the Amway income scene sports a new look.
The latest update reveals that the average income for U.S. IBOs at the Founders Platinum level and below has bumped up to about $852 before expenses.
This new insight reminds us that unraveling the compensation plan’s intricacies might not yield instant significant returns.
Remember, income isn’t the only player here.
Expenses play a part too, potentially affecting your net earnings as an IBO. These costs include:
- registration fees,
- shipping charges,
- taxes,
- other expenses tied to samples, travel, and optional training or support from Approved Providers.
It is not always about money, right?
Well, that is right.
I have found out that Amway suggests ending the relationship with people who criticize Amway. One would think that many of the IBOs are brainwashed.
If you do some research you will learn that people lose friends because of Amway.
They just “disappear” (not literally but from their former life; they burn the bridges behind them).
In Many MLM meetings and conferences, one can feel almost a cult-like atmosphere and without doubt, a lot of former IBOs claim that there is cult psychology behind the MLM and that includes the Amway.
Any Other opportunities to generate income online?
I think this is not for everyone, only a tiny percentage of people make a decent living.
The reason is it is pretty hard to sell the pricey product ( that is everywhere) and on top of it- building your downline is time-consuming and rarely works.
There are better ways to earn income. Especially in this day and age, where the internet is everywhere and there are more than 4.5 billion people connected.
I am not saying that one can become rich overnight, just because of the internet.
The thing is that unfortunately, the online world opened a door for scammers promising big bucks in no time and for no effort. But it does not work that way.
What I would like to say, the Internet is a great opportunity to start an online business. It does not require buying or renting land/building.
One of the advantages of such an online business is a low investment, compared to the offline world.
If you want to open a franchise restaurant, you need hundreds of thousands, in some cases more than 1 million dollars.
To buy a domain and build up a website, requires only a few bucks, but it definitely requires your time (especially in the beginning, like 6-12 months) and ideally a couple of hundreds of investments into education.
What I like about Amway
- Amway is the largest MLM company in the world.
- This company provides its IBO’s with good training. That includes training conferences (although these require additional budget)
- A huge variety of products which are mostly a good quality
What I don’t like about Amway
- Earnings within Amway rely heavily on recruiting
- Additional fees for training materials and conferences
- Several lawsuits and FTC investigations
- Already mentioned the cult-like company
Some Thoughts at the End
Direct selling demands skill.
Very rarely do individuals possess these skills inherently, and I personally question if anyone is truly born with them. My belief is that the upbringing and environment shape this ability during childhood.
One can absorb these techniques, making it appear later in life as if this individual was naturally born a salesperson. In reality, they’re simply replicating what they witnessed as a child.
Some individuals diligently put in the effort to close a sale, often honing this skill through hard work. The challenging route often involves going door to door.
The pivotal insight is to perceive rejection as an opportunity for growth. Becoming a proficient salesperson might span years of development.
Now, MLMs, including Amway, offer the chance for everyone to sell. However, the catch lies in the percentage who truly excel in sales. Many newcomers lack experience, viewing rejection as defeat, which contributes to the low success rate.
Another issue arises from people doubting what they sell. With products readily available online or in stores, why would your friend choose to buy pricey detergent from you? Their options are numerous, be it a regular store or Amazon – wherever they prefer to shop.
Numerous factors shape the operation of MLMs, rendering sales a Herculean task. Moreover, your enroller often doubles as your competitor. How many others work for the same person?
People prefer avoiding pushy sales tactics; they lean towards researching online, making informed choices before buying.
Imagine having a website where sales occur without your active involvement – ideal, right? But how can one build such a website? Is it attainable for a novice? Surprisingly, it’s simpler than mastering door-to-door sales.
While it’s easier, it’s not instantaneous. From my experience, it generally takes 5 to 8 months for the first sale to happen. The delay is because Google needs time to recognize your website.
Around the one-year mark, a website of this nature tends to accumulate sufficient traffic, initiating the generation of a four-figure monthly income.
As the second year concludes, the website’s earnings can escalate to $4,000 or more. Naturally, these figures vary according to the niche.
While it’s not a walk in the park, at least you control the pace of your work. Engaging in affiliate marketing offers a slew of advantages over MLM. For more insights, refer to the article delving into the AM vs. MLM comparisons.
Conclusion
There are certainly better opportunities available in today’s landscape.
Perhaps you’re intrigued by the journey of starting an online business – the kind where you have your own website and the potential to monetize it.
Once you grasp the ropes of driving organic traffic, financial struggles might become a thing of the past.
Of course, this path also requires time and dedication. Consider where you stood just two years ago. Now, envision where you could be two years from today if you begin diving into the world of internet marketing now.
You can explore a plethora of free resources on platforms like YouTube or other websites, conducting your independent research.
Allow me to share my journey and the avenue through which I learned internet marketing, specifically affiliate marketing.
This review encapsulates the fundamental insights about the training course I heartily recommend.
I trust you’ve found this article valuable. I’d like to hear from you – Have you had any experiences with Amway or do you know someone involved with it?
Let’s keep this dialogue open. Should you have queries about Amway or wish to explore other opportunities, please don’t hesitate to leave your thoughts in the comment section below.
I’m more than delighted to provide you with answers.
Thanks for reading,
Mike.
About the Author
Mike is an affiliate marketing analyst, content creator, and the founder of SetAffiliateBusiness.com.
Consistently producing in-depth and insightful articles. 📚💻
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Amway is a company most people have heard of. It’s great that it’s been around for over 20 years. Your review gives very concise information on how it all works. I have been looking to do something online for a few months now and this seems to be what I’m looking for. Thank you very much.
Glad you like the article.
Yes, Amway is a very well know MLM company.
Still, I am sure there are other ways how to create consistent income online, especially these days.
Thanks a lot for your comment
Mike
Thank you for this review about Amway. If I got the point, I am glad to know that you don’t consider this company as a scam. But I don’t really like MLM models, and mainly for the reason you mentioned: they focus more on recruiting than on selling their products; if you are not at the top of the “pyramid”, your work is not going to bring good results. Finally, the negative points are more than the positive ones.
I don’t like the MLM business models either.
But I wanted to show both pros and cons of Amway, so a person who might like the MLM structure is not misled.
You and I are on the same page, I also see more Cons than pros, with Amway.
Thanks a lot for leaving the comment
Have a good one
Mike
Hello Mike, I am really excited to have come across this article and it means so much to me because I have been hearing a lot about this business from other people and I was really considering going into it fully. However , I will take your advise not to take it as a primary means of income. Its really nice to be here.
Glad you find the article helfpful.
If you have any further questions let me know
Have a good one
Mike
I actually thought there was another updates about Amway. Amway is a worldwide known mlm company that actually has been around for quite some times. I think they were among the very first few companies I learnt about them when I started with network marketing. Good overview you have given here. However, it was not easy at all to earn all these compensations. It took extra bit of work
Yes, Amway is one of the biggest MLM companies in the world.
Thank you for sharing your experience with Amway. I am sure a lot of readers appreciate it.
Cheers,
Mike
Hello there!
That is avery commendable review you have there. Amway has actually been one of the top MLM company in the world that sells health beauty and home care products. The popularity of the company has made it difficult to tell if they are scam or not as there will definitely be negative news and positive news about them. This wonderful article has just helped to know how legal they are.
Thanks.
You are welcome
Glad you find the article helpful.
Yes, Amway is a legit company but I don’t recommend it joining it, especially if intended as a primary source of income.
I can imagine people are having fun within the Amway, but if you want to do this full time, you need to have certain skills.
And based on the graph above, it is obvious that the majority of members barely make a living.
Hello Mike Bahno Mudesi,
Thank you for allowing me the opportunity to comment on this article. This “Is Amway a Scam? Unbiased Review of the Biggest MLM Company” article you created is very detailed, and it kept my attention the whole time I was reading it. You are a very detailed creator, very great and informative, educational research is evident in this article. Great Job!
I would have never questioned, “Is Amway a Pyramid Scheme?” because I have known of it’s existence of the decades. It is very clear from the research that you have provided, it is not a pyramid scheme.
Thank you again for allowing me the opportunity to comment on this article.
Blessing To You My Friend,
Jerry
You are welcome Jerry,
thank you for your comment.
Mike
Hi Mike, Yes I have heard of Amway and understand this is a MLM company. Thank you for explaining the differences between Pyramid and MLM schemes. It helps clarify Amway is a legitimate business.
My question is how can anyone be successful in this business? Are there any steps or programs to help anyone keen to join?
Marc
Hey and thanks for your comment.
In order to become successful with Amway, one must be able to recruit new people in it.
He must build his team – in other words, his downline must be able to recruit new people, over and over again.
Because the real money is in recruiting. It is hard to make living solely from selling the products.
With that being said the successful person within Amway must
– deal with rejection
– be persuasive
– believe in products
– work hard
– be active within the “cult-like” company culture.
Not many people are like that and therefore success is extremely rare within the MLMs.
Hello there, thank you for sharing this remarkably insightful and in-depth article on Amway.
I already heard about the Amway a few years ago and was wondering what has changed.
After reading your article I can tell it has been a real big bonus for me.
I think it’s important to be cautious dealing with most sites – especially the MLM, even though Amway is pretty famous.
It works just any other MLM and all of the so-called Independent Business Owners – are just customers forced to buy the stuff each month.
Glad you like the article.
That is absolutely right – members at the very bottom of the pyramid are the ones who lose money.
Most of them are not experienced in direct selling and that is why only a fraction will make to the 2nd level where they might get even.
Thanks for your support
Mike
Amway is a pyramid scheme for the same reason all pyramid schemes are
pyramid schemes: the focus is on recruiting new members and selling a
lifestyle, not actual products.
Amway does sell some products, of course. You can by a number of
household goods and cosmetics through their store. However, the main
focus of the business isn’t selling stuff: it’s on finding people to
work for you so you can grow your downline.
You the nail on the head!
Thank you Lucas for your comment.
Hello There, Just read your review “Is Amway a Scam?”. Many thanks to you for sharing such an excellent article with us. Amway is a great company. Though their core business model is MLM, they have some of very good products. As any other marketing activity, You need to put all efforts to succeed in Amway. Only very few people are able to do this full time.
You always need to be prepared for rejections.
Absolutely.
The majority of people don’t like rejection and they tend to give up.
That is why I recommend internet marketing as it is not that stressful and people do have results within a year (or a bit more).
Amway was probably a good opportunity 10, 15 years ago, but we see that majority of companies go online.
That is why if someone wants to start a business – the internet is the best place.
Thank you for posting this Amway article. I have many friends in the MLM business. I have a cousin who makes $4mil quarterly selling essential oils. I envy her hard work and passion but I have learned that I need to make my millions in another way. I had a manufacturing business that I recently sold because of the repetition. I find the MLM is a lot of the same thing over and over and over and over. I seek more variety in my life, so I’m taking a different route along the same concept. I think people should do what they love and find a way to make money at it. I feel the MLM business is great for many and I love to listen and learn from them. Marketing is marketing and it’s always evolving, and I feel the MLM structure of selling will be the majority of our future. People selling not Advertising Dollars.
Waw, it is great that the MLM business model works out for your cousin.
I wonder how many years she has been in his kind of business.
You are absolutely right that people should do what they love. For some, even the MLM works, but unfortunately, it is less than 1%.
The rest struggles and I believe they should check other opportunities.
Anyways, thank you for your thoughts.
I appreciate it
Mike
Hi, thanks for a great review of the Amway. This is a well known MLM, and I was wondering whether there is any news regarding the opportunities within the Amway.
I am pretty sure that this company operated in Serbia about 15 years ago and that I participated in one of the meetings (presentations) where they offered me to promote their beauty products. Is there any possible way to find out if they ever reached Serbia as I am not 100% sure?
As an affiliate marketer myself, I’ve been searching for affiliate programs and online business opportunities.
One small comment on MLM. I don’t like it anymore. I used to like it a lot, but then I think I got fed up with being pushed to push people.
I would rather promote as an affiliate marketer, and improve my skills from day to day and leave a free will to others to join 🙂
Thank you Sunny for your comment
Yes, Amway is the largest MLM company in the world. I am almost positive they were operating in Serbia 15 years ago.
They seem to be still active in Serbia – according to one Facebook Group it is based in Kragujevac. Or at least there is a branch.
Internet marketing (and that includes affiliate marketing as you mention) is the future, so you are on the right path.
It does not make sense to get involved with any MLM, and that applies to Amway as well.
Amway products are expensive comparing to others – available online.
The real magic of Amway was the personal contact, the interaction with people.
But more and more people do purchase stuff online and therefore it is not recommended as a business opportunity anymore.
Amway is still doing pretty good though.
Many thanks to you for sharing such an excellent article with us.
Amway is one of the largest companies in the MLM industry. But it is definitely not a great way to make some money.
My girlfriend used to work for Amway many moons ago, and she barely made a few bucks on the side. It was not worth it.
I have talked her out of it and based on that experience we both avoid the MLM companies.
But recently I was curious about the Amway and I have stumbled upon your article. Based on your research, nothing changed – things only have gotten worse.
Definitely there are better ways how to make money these days.
Hey
I agree – it’s not worth joining the Amway anymore. As I said it is probably a good hobby for women who do not have this an income source.
But when someone is searching for a business opportunity, no MLM is worth trying; and that applies to the largest MLM company as well.
Thank you for your comment.
Should you have more questions, let me know.
Mike
“The bottom line is that there is no way to make money unless you recruit people who will recruit other people, so your earnings come from the sales of all the people below you”
Don’t uplines earnings come from what downlines purchase, not what they sell? Most MLM pyramid schemes don’t keep a record of sales to people outside the scheme by their distributors. It relies on the recruitment of customers (distributors) coming in at the bottom. The fact that if 5 people recruit 5 people each and those then recruit 5 each and so on, that cycle of recruitment only has to continue for 15 layers before you run out of world population – that demonstrates it is unsustainable.
In terms of outcomes for people, it’s been shown that more than 99.7% of people lose money in MLM and in the words of Robert FitzPatrick, “that’s not an opportunity, that’s a scam”. And the veneer of product shouldn’t fool anyone!
Hi Emma,
You are absolutely right. I agree with you.
As soon as the products are pushed to the bottom level of the structure, and money flows upwards (to the top levels), no one really cares if the products are sold to end customers. Eventually, these end customers are asked to join and that is exactly what you are saying: it is not sustainable in the long run.
Thank you for your comment
Mike
Hi thanks for this article.i haven’t bought any product from Amway.before I purchase any product from a company,I make sure I takeout time to do through research.i had heard of Amway from a friend who did Amway for 3months then crunched numbers and got out.and later found out he would be loosing $2,000 per year instead of gaining.personally I’m doing affiliate marketing through the wealthy affiliateiate website and I think the best way to make money online is affiliate marketing.
hi there,
thanks a lot for your comment.
Also, I appreciate you share the story of your friend.
Did you tell your friend about affiliate marketing? I am sure he would never lose $2Gs with affiliate marketing.
I agree with you. Affiliate marketing is probably the best way how to generate revenue online. Sure it requires some time and effort, by at the end of a day is worth it.
Thank you for taking out time to share such an awesome article with of the public.
for me Amway is not scam, it’s a legit online platform, Their packages and product are cool but am not just cool with their joining fee I think it’s way too much and their earnings relies heavily on recruiting which also not too cool with me. But the system is not a scam.
thanks for your comment.
Yes, the recruiting part can be annoying for a lot of people.
That is why the success is so rare within the Amway.
This is a great insight to what Amway is all about and it is really good to see. Though I never gave it much thoughts but to be honest, this is really good. Well! My friend has been an Amway distributor for quite sometime now and has built a worthy down line team. Though I was planning to join them too soon but I discovered some truths here that may curb my desire to join them. However, it is still good to know of
Thank you for stopping by
I appreciate your comment,
Your friend probably knows a lot of people and actually it is a good thing to know that it works for him (at least for someone)
But building a downline is not my cup of tea and probably the same for a bunch of other people. That is why I wanted to unveil the other side of Amway.
People should be informed about the MLM, how they really operate.
Because if you speak with an Amway representative, you only hear the “success” stories and you don’t get to see the whole picture.
Yes, I have heard of Amway before and k do not think that anyone who truly wants to make money online should give a platform with a network marketing a try because it doesn’t really come in very well, especially because more emphasis is made in recruiting and referrals rather than actually selling the products. Interestingly, this company has been in business for a very long time which is good.
I agree with you.
The focus is on recruiting.
And even at the beginning (when a new member joins), it may not look like, but sooner or later this new member is “advised” to ” grow his/her team”
This is the whole idea – to find people who will find other people.
That is the reason why many people call it a pyramid scheme – even though, technically it is not.
Regardless of how it is called, the new distributor bothers his or her friends and family members and it happens quite often he ends up with 2 options:
1) climbing the pyramid and at the same time run out of the friends and the closest ones
2) selling just the products, and that is not lucrative at all (meaning losing money)
Many thanks to you for sharing such an excellent article with us .I’ve been working in the online world for a long time and i heard about the Amway company that sells health and beauty home care products .Before I work with a company’s product, I gain detailed knowledge and research about it .Amway is a scam and I did not manage my business with any product from here .Personally I’m doing affiliate marketing through the Wealthy Affiliate website and I think the best way to make money online is .Affiliate Marketing Training Course has provided me with various tutorial videos and digital technology to work on this place. And I’ve been able to make a lot of money through it in my business. It has helped to take my website to a good level .
Lastly I hope through your article everyone will know about this scam and will definitely share their new experience with you. I would definitely appreciate your proper advice. May I share your article on my social media?
Thank you for your valuable comment.
Really appreciate it.
I am also of the opinion that Affiliate Marketing is a much more sustainable business than Amway or any other MLM company.
Good for you.
As for your question – yes, feel free to share it.
have a good one
Mike
Dear Bahno,
For Amway to have survived 60 years and also have 3 million distributors over 100 countries worldwide and a revenue of over $8 billion, it must really look like a good business for one to join and become a distributor. However, as you have proven in your review, there is little to gain per month compared to the work one puts in, plus all MLMs have some roots in a pyramid scheme system. I’ll take your advice to not join. It’s better to do affiliate marketing.
Boniface
Hi there,
Yes, I agree.
It looks good from the distance, but once you look closer you see how it works and I know that for some former members that call the Amway as a “cult-like pyramid scheme”
I don’t blame them.
Only very few people are able to do this full time.
They don’t mind the rejection from others, they even lose friends…
But there must be straight line between doing business (making money) and maintaining healthy relationship with family and close friends.
Not mentioning that it is important to provide real value to people and not just overpriced products…
Yes, I have heard of Amway but I wasn’t aware they’d been around for such a long time. They seem to be like most MLM’s – recruit new members to sell products who in turn will recruit more members to sell more of the same products. Except you get it right when these exact same products – with maybe a differential in an ingredient or two – are exactly what you can get in your local store for a far better price. I’ve seen many similar companies like Advocare – I think they’re called, and others like Amway. I personally don’t think they’re worth it unless you’re a really, really good salesperson.
Thank you for your comment.
Yes, you are absolutely right – it is about recruiting, otherwise, a person can’t make a living out of solely selling the products.
And that is the worst part for the majority of people involved in Amway (or in any other MLM company).
That is why success is so rare (recruiting sucks)
But as you correctly point out, when someone is a good salesperson, why not try it.
In my opinion, though it is important to be aware of all the facts, including Cons and Pros.
Hi Mike,
Thanks for shining light on the subject.
I really appreciate the in-depth review, There are a lot of scams on the internet and, you are doing a huge service to the internet by dissecting Amway and make everyone aware of which are scams and which are not.
How do you know if a business is a scam or not?
Hello and thank you for stopping by.
Sometimes it is not easy to determine whether something is a scam or not – at least at first sight.
But there also a lot of systems/websites that are easily recognizable.
For example, it is always good to check the “Abot” page – what kind of information are there.
– How long they are out there. Double-check this information on a website called Whois.com where you can easily find out the registration date of the website.
Some products use fake testimonials, for example, actors hired on Fiver.com
Check the contact page – try to write a short message to find out if and when they respond to you.
You can also read this article, What is a Scam, to learn more.
Hope it helps.
cheers, Mike
Wow; I never would have thought this much against Amway. This is really in sighting and has surely given me enough reasons to reconsider everything I was thinking about Amway. Well, I feel it would be a lot better if I can just subscribe to anything else other than Amway. Though they seem well established but their business model is nothing to really invest into
Thank you for stopping by, Rodarrick,
Before doing the research about Amway, I didn’t have many expectations from Amway, but as soon as I started to dig in more, I was stunned.
It does not make sense to register with Amway. You might be dragged into their cult-like culture and I know many people have hard times to leave, even their numbers are in “red”.
I am sure there are a lot of better opportunities than Amway.
ts is essential to think in the long run though. 12 to 16 months of effort and with proper training, one can have a full-time income (about $30,000 a year) online from 1 website.