Founders: Steve van Andel and Doug DeVos
Training and Support: 4
Earning Potential: 2 out of 5
Business Model: MLM( Multi-Level Marketing)
Overall Rating: 2,5 out of 5
For Who is Amway for?
For end-user searching for some particularly high-quality product, that can help solve the long-lasting issues.
For Business seekers, who are fine with working in the MLM industry.
- Some Great Quality Products
- Variety of Products
- Customer Service
- Sustainable Business- Long History
- High Price of the Products
- MLM/Pyramid Scheme Business Model
- Required to Buy the Products first
- Company Lawsuits
- Low Incomes unless Being On the Top of the Pyramid
- Training Upsells
What is AMWAY anyway?
Amway, or AM-erican WAY, was found by Doug DeVos and Steve Van Del.
Amway is a company selling a wide selection of products. Their main operation is in nutrition, health, wellness, and skincare. They work as MLM Business Model. The company was founded in 1959 and their headquarter is in the U.S., precisely in Michigan.
As a starting point, the company took over the Nutrilite. This company is responsible for nutrition products, including vitamins, diary supplements, and wellness snacks.
Until this point AMWAY’s portfolio consists of several companies already:
- BodyKey by Nutrilite™ weight-management products
- XS™ Sports Nutrition drink, snack and performance products
- Artistry™ skincare and makeup products
- Satinique™ haircare collection
- eSpring™ Water Purifiers
- Atmosphere Sky™ Air Treatment System
- Amway Home™ environmentally sensitive home-cleaning products
- iCook™ cookware, with its advanced design, and knife ware
Their revenue in 2019 was estimated at around US$ 8.4 Billion. They have 16.000+ employees worldwide.
(These are actually pretty awesome numbers for an MLM company. )
The company is regularly listed as the number 1 direct selling company.
According to the company website, as of 2011, the company’s operating in more than 100 countries.
Here are the positive facts over.
Because guess what?
The money inside of the company goes to the people highest on the ”scheme’ (I guess you know which name you can put here and it will fit better) and the one being lowest will not get much.
Because in theory, MLM distinguishes it from the Pyramid( for the bright ones, yes this was the word you could use in the previous line) by the way of earning.
While MLM’s main income is through selling the product and earning a commission by that,
Pyramid Scheme’s main income is through the people you recruit.
As you can see there is a fine line between those and is hard to judge if the model is MLM or Pyramid Scheme.
Is Amway Pyramid or MLM?
I don’t think it matters.
The side of business owners is claiming it’s legit MLM, but their structures are showing something else. (Obviously, as Pyramid scheme is illegal in many places.)
Anyway, in general, I see it more as a game of words.
Truth is, that AMWAY lies somewhere on this verge and if it is 35% Pyramid and the rest MLM, is not that important.
The recruiting strategy of many MLM companies is principally important if you want to make money within the business. The problem becomes when you have to push the people into staying with the company.
But AMWAY has brought this ‘recruitment’ similar to brainwashing to a whole different level, which some described as a CULT.
How does AMWAY work?
After you’ve been introduced to the model probably during some hotel room meeting or local coffee1 on 1 meeting with your future upline, you are required to pay a $100 fee to start your being one of their IBOs.
After that, you have several options on how to earn, see the message from the Amway website below.
To became successful IBOs you will be encouraged to visit training seminars or purchase further Sales Tools.
Those expenses can add up to hundreds of USD a month.
Here is the breakdown of how much you can earn.
When you are going to purchase products for your own consumption, in the volume of $800 (not sure who is in need to buy shampoos and household products in this amount tough) you will get back $72 if you have 4 people in your downline.
Counted the win out of those 4 people, you will get an additional $192.
But where is the $536?
To be serious, if you understood the video, I know it can be hard tough, it will take a huge effort and a huge downline to make money with AMWAY.
That’s the reason that just 48% IBOs( Independent Business Owners) are still active with an averagely netting of just over $200/month.
Why Did I Give Amway 2,5 Overall Rating?
It is very simple…
Because of the MLM or Pyramid Scheme Business Model
If you are without experience with this business type, it is just good for you.
Let’s take it from the man who was there, from me -:)
Break it down, this business model is operating that you have to recruit other people in order to earn. This you are going to do in-person face-to-face, but as well online.
The problem is many people are scared when you just going to mention the words Multi-Level Marketing. (It has a bad reputation as selling insurances had in a certain time)
Plus, you are not going to search for ”potential business partners” just randomly, you are encouraged( or pushed in other words) to start among your closest people.
That being obviously friends and family.
To be completely honest with you, there are some people I never talked to anymore since the moment I showed them my ”irresistible offer”..;
I am not joking!!!
Not, that the products were s+++y, people just didn’t feel comfortable being pushed by their friend to buy something.
The price of the product is just too high.
That must be like this, where would be the profit coming from otherwise…?
Again the products might be of great quality and some of them as well is, but from my own experience, it is still too hard to find enough people who will regularly buy those products.
That being told, you have to be earning money on recruiting, and there is the circle again.
Get more people, who are going to become your down line in order to make more money.
When do you want to use the Anway products?
I see that you can profit from the Anway products when you have some health issue and you find that their product is helping you out. As an end-user, you can solve an issue you were struggling with for a long already.
Except for that, there is very little value.
The company itself is offering a good working atmosphere and good pay if you work as a scientist, in-office manager, or picker.
But as an Online Business Seeker, there is not much value for you in it.
Why you should go for something else?
If you are searching for an Online Business you are lucky.
It has been bever easier to start online than now. With website building done for you in a matter of minutes, WordPress accounts, and the right training you can start your money-making website just overnight.
The problem is when you are being trapped into a bad model or a bad program.
This Business is not the right model, because…
You have to recruit others to be selling for you.
Even Amway says you won’t, but you will. Trust me all MLM Business is made that way.
99.9% failure rate!
Although I agree that not everyone can experience online success, this tiny chance you are going to make money with Amway is just too tiny…
You are going to be spending more as you will earn.
In 2008 in the UK, out of 30 000 ISO of Amway, just 90 were making enough money to cover their business expenses.
Where are you going to be spending most is the training (speaking about training, this is the best training all in, you need when you want to start online) and the seminars.
The company had fraud officially in Canada alone $28 million from 1965 to 1980.
If the first 3 reasons didn’t stop you from thinking to become one of the IBOs of AMWAY, this should have. What perspective you can have working with a company being accused of a federal crime?
The complicated and confusing pay model. See below left the PIN levels inside of AMWAY…huh?
So many levels? Why is it this complicated?
I am 100% sure you can make money online.
And I am 99.99% that AMWAY is not the right tool.
I am not saying it’s not working, but the pitfalls are obvious.
If you don’t want to put your finances, reputation, and relationships on a gamble, I would recommend you evade this opportunity.
If you are interested in what I am doing, you better check this out.
If you read towards the end I want to take you that you took your time to read my Amway company review, first of all, secondly, I would like to ask you to share this article with your network(if you find it valuable of course)
Lastly, I want to assure you I didn’t want to blame Amway or MLM, this company has some significant achievements, like revenue of $8 Billion.
I just wanted to point out, how dangerous it could be if you are trapped in an incorrect way of earning money.
Thank you so much for doing such a great review. About once a year someone hits me up to view the Amway presentation. I sat through one 20 years ago and it really is sad that what you dug up is the same I’ve heard about for decades. I would have hoped that they would have put a little more integrity into their plan and be more generous to their IBO’s. So sad that they haven’t changed.
I’m sure your review will save hundreds of people from being suckered into the scheme.
I’m going to look into your plan and take it to heart. It sounds much more promising than Amway.
Thank you for sharing your experience. That is indeed sad, that they are using those techniques for decades already. With the all bunch of curt charges, like this one in Canada, it surprise me that U.S. government still allows them to operate( in China they were forbidden for a while).
On the other side, if it might be profitable to the government in any sense, for instance like building a hotel whose taxes end up in the government, they seem to close one eye. It’s really sad tough for the new unwarned, naive business seekers. If I could only help some people not to join, I would be really satisfied. Thanks for stopping by.
I knew AmWay been around for a long long time but I did not realise they have been around since 1959. Wow, this must be one of the longest lasting MLM businesses around that I know of, so somehow amongst all the bad they must have been doing something right.
This business model reminds me a lot of a MLM business my brother was involved with, called, Golden Products. I have no idea what has become of them but they also had vey good quality products, however in order to earn you also had to have in place a monthly auto ship subscription and the amount of money you had to spent each month did not justify the products you needed, and as a result you ended up having to buy a lot of products you did not need.
Although, as you pointed out, AmWay is not a great business model at all, but at least they are much better than so many other MLM scam businesses I read about that do not even have any products offered in the mix.
Thanks for your comment. I agree that Amway offers some great quality products, (that could be one of the reasons they are so long in the game). The truth is that you would need to buy a lot of products on regular basis to see some money floating in, plus you would have to recruit people who oftentimes just don’t trust these MLM anymore. Statistics here are clear, just 48% IBOs who have once signed in are still active and out of those the average income is 200$ a month. That is not a very good perspective for someone who wants to join. Not saying they don’t mention the people who ended up in debt and destroyed their relationships because of the brainwashing they were exposed to. I love doing Affiliate Marketing, as I can start almost for free and promote other people’s products. This platform offers unbeatable training, support with a FREE website and it is just awesome.
You can indeed make money with Amway only if you sit on the highest level of the ranking, while the rest fail to recoup the investment, let alone make profits. The worst part of it is that you need to do lots of recruitments to keep the business going smoothly, which seems like what I am not good at. So, I will prefer to be its customer instead of an independent business owner.
Thanks for sharing today. I appreciated your honest review!
Hey Matt. Indeed if you see their properties like the Amway centrum, GrandPlaza, or their sponsorship to San Jose Earthquakes( MLS soccer club) then you’d be thinking they are sitting well with their business. The problem is that that money is going to owners, or people high on the Scheme, that’s the purpose of the pyramid indeed. Totally missing the transparency, while for instance Wealthy Affiliate is working on a completely different level and you can basically be earning what the owners in a matter of months.