Amway MLM: Is it a Legit Way to Make Money or a Scam?

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. 

Sadly, as tempting as it can be to do this, there are drawbacks to the MLM business model. There are drawbacks to Amway. Let me run you through them in this Amway MLM review.

What is Amway?

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?

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.

In fact, I am willing to bet that the main reason you stumbled across this article today is that somebody tried to recruit you into Amway, right?

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.

Sadly, not many people realize that they are losing money. They are constantly being told that there is a light at the end of the rainbow and they should stick with it.

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?

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 a 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.

This much is clear. Their commission structure is convoluted and difficult to wrap your head around, but this applies to most MLM companies. The commission is there if you are active in the system, though.

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

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.

Of the people that are using the system actively, the average income is $200 per month. Yep. You read me correctly. People are earning LESS than you can earn in a part-time job in a week. Remember, this is an income.

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 and 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 by clicking "get started" up top or in my mobile menu if you're on your phone..

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.

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