Amway is one of the most popular MLM companies in the world.
It is active in pretty much all countries, and a lot of people have bought into the system.
This is probably because people have bought into the allure of selling health & beauty products to their friends and family.
What is Amway?
Amway got started back in the 1950s. It was actually born out of a company called Nutrilite, one of the other more popular MLM companies out there.
The company went from strength to strength in the 60s, before it was finally launched on the international market in the 1970s where it only got bigger.
Despite being subject to several lawsuits, which Amway is often keen to keep hidden, the company is only getting bigger. It is now one of the largest privately-owned companies in the world.
It generates billions of dollars in revenue every single year, and the bulk of this income comes from the people that buy into the Amway MLM scheme.
Although, I am going to discuss that in the next section!
How does Amway MLM Work?
Amway works pretty much the same as any Multilevel Marketing (MLM) product. Let me run you through the process.
Amway starts by not actually telling you what the main way of making money is. They bill themselves as a company where you can sell their products and collect a commission on them.
Of course, they encourage you to sell the products to your friends and family. This sounds like a brilliant business opportunity, right? Well, it is. It is for somebody, but it certainly isn't going to be a brilliant business opportunity for you.
You see, what MLM schemes like Amway do not tell you is that the bulk of the income that you will be making doesn't come from the selling of their products at all. In fact, you will probably find it difficult to sell them. Instead, the bulk of the money comes from recruiting your friends and family.
The idea is that you recruit people, and when the people you recruit buy products, you get a commission from them.
If the people they recruit generate sales, you will get a commission from them too. If you look at the structure of Amway, then it actually looks like a pyramid. More on that in a couple of sections, though!
The thing with Amway is that in order to collect commissions, you have to continue to buy products from them. If you don't, then you won't gain any income for a month.
This includes from the people that you have recruited into the system. So, a lot of people will end up losing a lot of money chasing those commissions.
Trust me. There is no light at the end of that rainbow.
I know this from personal experience. When I was 18 I was approached by someone who gave me something to listen to, sparked my curiosity then before you know it I was in one of the seminars.
I bought into it, and ended up annoying my friends and family by either trying to sell them products or recruit them. 🙄
What Products Can You Sell with Amway?
Amway originally got started with cleaning products. They still have an extensive cleaning product range to this day. However, they have since diversified their product offering and you can now find the following on offer from Amway:
While I cannot speak for every single product in the Amway product range (there are a lot of them), the reviews I am seeing do paint Amway products as decent products.
Some people find them a little bit overpriced, but I suppose that is Amway overpricing them in order to ensure that they can pay out those hefty commissions.
Is Amway a Pyramid Scheme?
No, and the FTC has stated as such.
As I said before, the business model of Amway does look like a pyramid. The people at the top of the pyramid are making money, and the ones below them are making less.
The further you go down the pyramid, the less money you make.
This sounds like a pyramid scheme, right? Well, yes. However, the definition of a pyramid scheme in the United States is pretty precise. In order for something to be classed as a pyramid scheme, the ONLY way to be making money from the system is if you recruit somebody.
This isn't the case with Amway. Because they allow you to make money from selling their products, even if it is not that much money, they are not technically a pyramid scheme, and unless the definition changes (highly unlikely due to all of the MLM lobbyists), then their business model will remain legal.
Is Amway MLM an Scam?
Amway MLM is not a scam, although I can see why people think it is.
If you have read my previous reviews on this website, then you will know that I class a scam as something where you hand over your money and get nothing in return.
If you hand money over to Amway, then you are going to get a product in return. If you do recruit people, then you will be able to collect a commission on any sales that they make for you.
The reason why many will class Amway as a scam is because they lie about how much you can potentially earn with their system. In fact, when the FTC decided that they were not a pyramid scheme, they also ruled that Amway is overstating how much you can earn.
So, if you are considering signing up for Amway, do not believe anything about how much you can earn from the system. it is a lie. This leads me neatly onto the next section.
Amway Success Rate
This is where I am going to try to tell you just how much you can earn from Amway.
Amway keeps stats from those that are active in their system. This means that the person has made a purchase of Amway products in the last year. However, this does not mean that these people are collecting a commission.
In order to collect a commission, then you need to be making a monthly purchase of a certain amount.
The people that you recruit should also be purchasing a certain amount too if you want to gain a commission from their purchases.
Now, 50% of people that have signed up to Amway in the last few years are not regarded as active. This means that 50% of people have tried out the system and have found that it hasn't worked for them.
This is bad. If 50% of people are failing with a business model that claims it is a brilliant way to make money, then it isn't a good business model, right?
Now, I do not have stats for all of the people that have dropped Amway over the years. This company is over 60-years old. I am positive more than 50% of people have dropped the system.
This does not account for the fact that you now have to spend a ton of money on their products too. I wouldn't be surprised if the bulk of people that are active are making a loss with Amway.
So, what are your chances of making something that resembles a viable income?
Not very high. Disclosures from Amway during their FTC investigation stated that 0.26% of the 50% of people that are active are making the same amount of money that you would in a full-time job.
This means that if you are buying into the system now, your chances of making any money with Amway are zero.
Pros & Cons
Alternatives to Amway
The fact that you are considering or have considered Amway in the past shows that you are looking for either job replacing income or at least something on the side.
That is a great way to think. 😉
However, if the Amway thing turns you off, I have some good news for you.
Starting an online business is something that will bring you a lot more money than "doing Amway" if it's done right. You can do affiliate marketing, dropshipping, lead generation, email marketing or even Amazon FBA.
I have a write up on these business models that you can check out on my article ➡️ I want to start my own business but don't know what to do.
It's a good read and worth your time, trust me!
These are all newbie friendly and anyone can learn.
If you have any questions, feel free to contact me as i'd be happy to answer them.
I never suggest starting a business using an MLM, particularly one that has been around for as long as Amway.
While I can see why they are attractive to some people, the real money in the world of business is starting up your own company.
It is more difficult, but I promise that you will make a lot more cash in the long term.
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