Is Amway A Pyramid Scheme Or Best Way To Be Your Own Boss?
Owners: Richard DeVos & Jay Van Andel
Price: $100 registration fees
Overall Rating: 6 Out Of 10
You may have seen tons of “Be your own boss” or “Make millions of dollars working only one hour a day” Ads or other promises from the so-called gurus on the internet.
Nothing can be further from the truth like earning a million dollars working from home within one month, they are all pure scams.
Amway involves “Selling their product from your home and be financially free!” services, the mouth-watering offer from Amway which promises millions within a few time by encouraging their members to get new members.
Looking at it from the outside sound promising, but the best way to know if a company will deliver anything good to you it to check how they make their money.
What Is Amway
Amway (American Way) is a billion-dollar brand that uses multilevel marketing (MLM) strategy to sell different products mostly household and makeup products.
The company was established in 1959 by Richard DeVos and Ray Van Andel out of Ada, Michigan.
Now, Amway is conducting business all over the world and it is one of the most successful multi-level marketing company in this planet.
Amway Product Overview
Amway offers a variety of products ranging from vitamins to home care products.
Its primary products include :
Nutrilite- is a vitamin, mineral and dietary supplement brand that helps supplement general nutrition needs and weight management. This category includes others 60 vitamin and mineral related products. The Nutrilite brand is one of the most popular and best-selling Amway’s products.
Artistry– is Amway’s cosmetic line. It consists of makeup, lipsticks and skin care products.
XS– This is Amway’s energy drinks. This energy drinks primarily made of Vitamin B and caffeine and now it distributed more than 38 countries in the world. Every year this brand brings in more than $ 150 in revenue.
The legacy of Clean- is a cleaning product that helps you clean messes on your clothes, dishes, floors, and more.
Other Products- Along with these big name products, there are so many other products you can buy through Amway. From electronics to snacks and healthy eats.
Amway Business and Compensation plan
Amway enable you to earn income from selling a wide range of products and registers others as Independent Business Owner (IBO) who do the same.
You have three ways to make money with Amway.
Retail Margin- You buy the products at a special IBO prices and sell them to customers at a price you determine. You keep the difference.
This is your immediate income- the difference between the cost at which you buy the products from Amway and the price at which you sell to customers.
Performance Bonus-Just like other multilevel marketing company out there you can make money as IBO through points you accumulate.
Theses bonus are based on the overall sales volume generated through selling products to customers and through the business organization you develop by registering others as IBO.
Incentives- This includes Fast Tracking Incentives Program which rewards you for your key achievements in extraordinary growth and helping others to succeed, trips, and one-time cash awards and a lot of more.
Pros And Cons of Amway Business
Here are some of the good and bad about Amway.
- Make Money by selling products
- Some quality products
- products are 180 -days money back guarantee
- Million of people promoting the products
- You have more than 450 of products to promote
- Low-cost, low-risk way to make extra money
- Work from home
- More flexible
- Amway’s products are expensive
- Spends money on podcast, books, and seminars
- A $100 registration fee
- Amway’s turn you to its customer
- Recruiting others
- Hound families and friends
- Multilevel is not for everyone
The Training and Supports
Once you become Amway’s Independent Business Owner, you will have your starter kit to guide you through the presentation.
You will get access to their leadership training which will give you a better knowledge of products, business leadership, and training courses.
They have a plenty of educational videos focus on topics like making money, selling and business essential.
They also offer you mentoring program a step by step guide for the self-development and you can also take advantage of training at Amway- sponsored events.
You will get help and support from your sponsor as well as other IBO members and Amway’s customer service if you ever need a hand.
You can also get additional support from Amway’s Approved Providers for conferences, literature, material, and more.
A lot of people are complained about their business model and even term them as a pyramid scheme.
Because in one way or the other you would have seen someone you are related to or a friend that has been involved in Amway.
A cousin of mine was involved in Amway a few months ago.
He brought into their tactics and he was sold the idea of different testimonial of people who made it with Amway.
He even tried all possible to attend all their conferences and seminars which cost a good amount of money.
We all try to discourage him from getting deeper into Amway, but they must have probably brainwashed him of the get rich promises.
You can get tons of stories similar to my cousin if you search on the Yahoo search and other search engines.
Perhaps Amway has a potent recruitment strategy and cycle-like practices. So, there has been a lot of controversies about them and have been sued on many instances.
My Final Opinion: Is Amway a Pyramid Scheme or Not?
In my opinion, Amway is not a pyramid scheme because they have over 450 products to back up their business and most products are backed by a 180-day money back guarantee. These products are favorite by millions of people worldwide.
The company is ranked no.29 among the largest private companies in the United States by Forbes and ranked no. 1 in the multi-level marketing industry.This means that Amway is a legit work from home business.
However, with the experience of my cousin and many other people who have been a victim, in my opinion, I think Amway go after people that want quick fix solution to their financial mess.
Do members make money with Amway?
I will say yes. If you do put in some hard work and effort then you may see the results. It will not make you rich overnight.
In fact, direct marketing is not for everyone.
A couple years ago I gave up the multi-level marketing and joined a training program where they offer step by step training that teaches you how to set up your business.
Ideal for newbies, you can join for free and often a few days, you will have your own free website and build your own online business foundation.
So, if you really serious about earning money or want to build your very own business, I recommend to check out My # 1 Recommendation below!
Have you been involved or do you have a family member that have subscribed to Amway or another multi-level marketing? Or want to offer insight about direct marketing, please leave a message below and I love to hear about it.
Thanks for reading.
All the best!