Amway is one of the most popular and highest earning MLM companies, but is Amway a scam or is Amway legit? Continue reading to find out.
Company Name: Amway
Cost: Initial cost is around $100, but products and tools will cost hundreds or thousands more
Summary: I do not recommend joining Amway. They will try to tempt you with motivational talk but end the end you will spend more on their products than you will ever make.
What Do I Recommend?
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Amway was founded by Jay Van Andel and Rich DeVos in 1959. They wanted to show people that owning a business could help you reach your full potential and provide a better life for you and your family.
Today they do over eight billion dollars in sales of products they manufacture and distribute. These include nutrition, beauty, personal care and home products. All of which are exclusively sold in 100 countries through Amway Independent Business Owners (IBOs).
In my opinion Amway is a scam. I've personally known several people who were convinced that Amway would make them rich, but end the end none of them ended up making enough money to continue in the company.
It's very probable that you too know somebody who has tried their hand at Amway. This is a well known company and they are very skilled at working their way into the circles of unsuspecting recruits and selling themselves as a great way to own your own business. Maybe somebody asks if you'd like to have a drink and then tells you they need you to help them run their business. You might have just found yourself being recruited for Amway.
Just remember though, Amway is actually a certain kind of scam called a pyramid scheme.
How Is Amway A Pyramid Scheme?
The company is worth many billions of dollars and they employ multi level marketing tactics to sell products such as beauty, nutrition, personal care, and more. Their recruiting can be extremely aggressive and some have even described them as being like a cult. These people are very slimy and face many lawsuits for their actions, but they somehow still find a way to sway people into thinking Amway is going to make them lots of money and retire early!
What makes Amway a pyramid scheme is what makes any pyramid scheme a pyramid scheme, and that is that they teach and encourage members to put all their efforts into brining in more people and selling those people with a fancy lifestyle instead of the actual Amway products.
Although they do actually sell products and several home goods and cosmetic products could be purchased at Amway, they mostly focus on recruiting people to be "under" you to increase your personal downline and not on selling the items that they claim to be all about sellling.
Webster's dictionary gives the definition of pyramid scheme like this:
“a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants”
Since participants of the business must pay certain fees to remain active and they then receive a part of the fees that the recruits under them, Amway fits this definition exactly. There's just no other way to say it.
How Is Amway Still Allowed To Be In Business?
To find out why this company has not been stopped from operating due to their clearly illegal business practices we will have to take a deeper look at the company's history. Amway is wealthy and influential in the realm of politics and has used that wealth and influence many times to have rules changed in their benefit.
Amway is short for “American Way”. As I said before, the company started in 1959 by Jay Van Andel and Richard DeVos. You might recognize the name DeVos. Richard's daughter Betsy DeVos served as Secretary of Education under president Trump. This is just one example of how high up the members of this family run business go in the US government.
They also donate large sums of money to republicans. Richard DeVos died on the 18th of September in 2018, but not before becoming one of the richest people in America. Due to his extreme wealth and well connectedness he has been able to keep Amway from being shut down for its pyramid scheme activity.
There is a podcast called The Dream which has done an amazing job of exploring the illegal tactics of Amway. I suggest trying this podcast to hear more about the politics and business dealings of Amway.
How Does Amway Work?
Amway looks for financially weak people and plays on their emotions, tempting them with talk of riches and early retirement.
If these people are strong willed and believe in themselves and their interpersonal relationships, they probably will not be swayed by Amway's angle of portraying themselves as a family in order to pull them in. Also, if they are making a good living already they will not be so quick to jump at this "amazing opportunity" for them to "build a company" that will free them from their boring 9 to 5.
This is the long proven technique of taking advantage of weak people. They aggressively encourage friendship, mentorship, and the community aspect of working at Amway. It's no wonder why a lonely person who may be unhappy in their career will see Amway as a great time and fun to be a part of while also falling for the promises of making lots of money.
Self Help and Life Coaching Used To Brainwash
Amway teaches its recruits the advantage of a clean diet and lots of exercise. Shocker: if you take care of your health and wellness you'll feel better and your life will improve. But if you've been in a life rut and are just now getting this life advice from the good folks at Amway then you will probably give them much of the credit for your newfound self-esteem and will really love being a part of this new group.
Next you will be taught to create goals for yourself. You will make a vision board. And you will be sold on the fact that if you stick with Amway you could retire in less than 5 years. You won't even realize you're entrapped in a pyramid scheme because you will be brainwashed by all the wonderful changes that Amway has brought to your life.
Now that you're fully on board Amway will get you to make them the center of your life, even convincing you to buy and use their products yourself. By buying household products and beauty products in your own store online you will be paying for high priced items that you could get cheaper at your local grocery store and only getting a small commission. Amway will make this seem like a huge benefit of working with them.
There Are Better Ways To Make A Side Income
I have nothing against looking for a way to make more money. Actually I believe there are good ways to make money online. The best way I have found is through affiliate marketing. I started with Wealthy Affiliate in 2018 and was making extra income within a few months.
I've continued to build this to the level of a full-time income, with many successful income producing affiliate websites. And the best part was I started my first website and the Wealthy Affiliate training completely free. No expensive fees or products to buy. I just followed the training step by step.
Amway Can Cost People Relationships
In my college days I had a best friend who became involved with Amway. At first it was just an innocent side business, but slowly it became an obsession that I couldn't get him away from.
He kept saying he was building an asset for himself. His room was covered with books on Amway and their strategies for selling. He was listening to CDs of positive affirmation that Amway was giving him. He even went to their international conferences. It was costing him thousands and he still was making any of this money back.
I tried to convince him that this was a scheme, but he insisted that he would be retiring in 5 years. It became a big issue between us and was a big part of ending our friendship. Eventually he moved into some sort of Amway house with other IBOs who were bought into this system and we fell out of touch.
Amway Encourages You To Avoid Anyone Who Is Concerned
After he left, my friend proceeded to avoid every one of us who did not participate in Amway and would not listen to anyone who tried to tell him it was a scam. I have no idea how he's even doing or if he's still with Amway.
This behavior is actually taught at Amway. Terminate relationships and completely avoid interacting with anybody that isn't supportive of you being in the company. People who refuse to buy your products, and especially anyone who is critical of Amway, is considered dead weight.
Prior to my friend cutting me out, he attempted to recruit me as well. A high level person from Amway met with us at my friend's apartment and gave a presentation to several of us on the benefits of the company. I painfully endured this strange meeting and heard this person continually claim that this wasn't any pyramid scheme.
But of course if they have to keep telling me that it isn't a pyramid scheme, then it probably is. He said that saving money and investing it was a waste, but in reality I was the only one actually making money.
Does Anybody Succeed With Amway?
Of course there will be some people who can actually do well with a company like this. Most of them are good at tricking their stupid friends or family members to fall for the scheme.
There seems to always be someone that will insist that he knows somebody that made lots of money from Amway, but there are a lot more critics. They claim this person only took three years with the company to retire and now they live a luxurious life in Hawaii. But in reality almost everyone at Amway is spending thousands and thousands of dollars and never making it all back.
Amway will try to lure you with cult like friends and promises of good times and lots of money, but don't be a fool and become another member of their scam. You'll regret it in the long run.
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