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IS AMWAY A GREAT BUSINESS OPPORTUNITY?

mlm150.jpg(Top New Franchises) AMWAY or SCAMWAY?

With a brutally tough economy, record high foreclosures and widespread personal financial woes, many are looking for additional ways to earn some cash or start a new business. That means it’s boom time for those who are hawking business opportunities and multilevel marketing schemes. But what is MLM fact and what is MLM fiction?

AMWAY is arguably the most successful (or at least best known) “direct sales” organization in history. Yet there is so much negativity around the AMWAY name that much of the AMWAY website is dedicated to dispelling “What you may have heard” from AMWAY detractors.

WHAT DO YOU THINK? IS AMWAY A LEGITIMATE DIRECT SALES ORGANIZATION HELPING INDIVIDUALS REACH THEIR POTENTIAL – OR A BIG SCAM? HAVE YOU EVER SOLD AMWAY? WHAT WAS YOUR EXPERIENCE?

COMMENTS – PRO & CON – INVITED BELOW.

78 Comments

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  1. By Steve
    219 days ago

    I always hear about how Amway fols are retired. They aren’t. They just work the night shift. These higher up Amway diamonds or whatever are still busy running around trying to rebuild their business because the retention rate in Amway is miserable. Also, has anyone actually seen the financials of these diamonds? Amway reports that an average diamond earns less than $150K per year, before taxes and business expenses. At that rate, they are middle class at best.

    Reply

  2. By Blake
    181 days ago

    If You actually take a look at Amway you would see how great an opportunity it actually is. Negative people are always quiters or uneducated. If you think Amay is a scam you are on of those people who will never succeed in life because your too comfortable living a broke lifestyle.

    Reply

  3. By Tito
    101 days ago

    Actually, do your research. Amway Global has over 1100 business partnerships with countless Fortune 500 companies, many of which you probably shop at. Also, AG distributes, sells, or leads consumers to well over 3 million products. Some partners are:
    Best Buy
    Bass Pro Shop
    Disney Store
    Nascar Store
    Cabella’s
    Dell
    AT&T
    Dick’s Sporting Goods
    Barnes & Noble
    Office Depot
    Avis
    Pacson
    Ace
    Kodak
    Petco
    Franklin Covey
    and many more…

    Why would these companies affiliate themselves with a scam? Why did Microsoft put about $40 million of seed money into AG to help it grow even better? If it’s a scam, why risk it?
    Robert Kiyosaki endorsed Amway Global and even wrote a book that makes a point along the same lines of what AG stands for. I mean, even the Social Security administration has admitted that following the traditional method of making money is a BS plan that was designed to fail. The Federal Trade Commission is currently backing Amway Global 100%. It even stated, in open court, that AG is 100% legitimate. It’s on the FTC ’s website if you want to take a look. So is the court ruling.

    Reply

  4. By Tito
    101 days ago

    It does help, but he’s just being sour. It really depends on the person/people working on building the business.

    Reply

  5. By Tito
    101 days ago

    If you were truly Christian, you would support her and help her make something of this unique opportunity, instead of tearing her down. What the heck kind of brother are you? If my family was like yours, I wouldn’t have time for you either. I remember when I joined the Marines, my family was tearing me down and being negative. They said that I would lose everything like many young Marines did. So, I separated myself from them and started to ignore them. Then, they realized that what they were doing was wrong and apologized to me. It took me a while, but I found the compassion to forgive them. You don’t know how much it hurts to know that what you are doing is for the best, but not to have your family support you. I guarantee that she prays to God every night hoping that you will see the truth. I know I do. I know that my business team encourages me to pray to God and bear faith in myself and what I believe.
    Do your research. Amway Global has over 1100 business partnerships with countless Fortune 500 companies, many of which you probably shop at. Also, AG distributes, sells, or leads consumers to well over 3 million products. Some partners are:
    Best Buy
    Bass Pro Shop
    Disney Store
    Nascar Store
    Cabella’s
    Dell
    AT&T
    Dick’s Sporting Goods
    Barnes & Noble
    Office Depot
    Avis
    Pacson
    Ace
    Kodak
    Petco
    Franklin Covey
    and many more…

    Why would these companies affiliate themselves with a scam? Why did Microsoft put about $40 million of seed money into AG to help it grow even better? If it’s a scam, why risk it?
    Robert Kiyosaki endorsed Amway Global and even wrote a book that makes a point along the same lines of what AG stands for. I mean, even the Social Security administration has admitted that following the traditional method of making money is a BS plan that was designed to fail. The Federal Trade Commission is currently backing Amway Global 100%. It even stated, in open court, that AG is 100% legitimate. It’s on the FTC ’s website if you want to take a look. So is the court ruling.

    Reply

  6. By Tito
    101 days ago

    Lol, way to put it, but they are highly respectable people. Do your research. Amway Global has over 1100 business partnerships with countless Fortune 500 companies, many of which you probably shop at. Also, AG distributes, sells, or leads consumers to well over 3 million products. Some partners are:
    Best Buy
    Bass Pro Shop
    Disney Store
    Nascar Store
    Cabella’s
    Dell
    AT&T
    Dick’s Sporting Goods
    Barnes & Noble
    Office Depot
    Avis
    Pacson
    Ace
    Kodak
    Petco
    Franklin Covey
    and many more…

    Why would these companies affiliate themselves with a scam? Why did Microsoft put about $40 million of seed money into AG to help it grow even better? If it’s a scam, why risk it?
    Robert Kiyosaki endorsed Amway Global and even wrote a book that makes a point along the same lines of what AG stands for. I mean, even the Social Security administration has admitted that following the traditional method of making money is a BS plan that was designed to fail. The Federal Trade Commission is currently backing Amway Global 100%. It even stated, in open court, that AG is 100% legitimate. It’s on the FTC ’s website if you want to take a look. So is the court ruling.

    Reply

  7. By Tito
    101 days ago

    Can you do that Steve? Doing what you’re doing now?

    Reply

  8. By Tito
    101 days ago

    Of these “sources” you speak of: what the hell are you talking about? What do you think is more credible? A pissed of Diamond who got kicked out for breaking the rules, or the Federal Trade Commission, Robert Kiyosaki, Donald Trump, Bill Gates, and the over 1100 small business and Fortune 500 companies that we have partnered with? You have know credibility. Your argument holds no juice. Stop while your ahead. Your losing at every turn, lmao.

    Reply

  9. By Steve Howarth
    85 days ago

    Fair Enough. This is what Amway SHOULD be about. Good Luck.

    Reply

  10. By Brian Allan
    49 days ago

    To me Amway does create wealth . All I can say is check it out for yourself, & just do it.

    Reply

  11. By Shekhar
    458 days ago

    Hi Phil,
    Kudos to you. YOu hit the nail on the head.
    People think Amway is “get-rich-quick” scheme. Once they realize it involves hard work – they back out and lash out at Amway.
    It is like any other business with IMMENSE opportunities. Whether we should grab that opportunity or let it pass is entirely up to us….

    Cheers/Shekhar

    Reply

  12. By Sachin
    437 days ago

    Hey Phil,

    Thanks!! That was the most apt answer there could be. And to the point that the amway guys brainwash people, I would say that if you are not being brainwashed to be successful you are being self-brainwashed to be a failure. I love being brainwashed to be able break free. I daily witness so many directionless and lost men and women finding their dreams and fulfilling through this business and truly as you said, it applies to any business. I find the training organizations great for they even turn housewives into successful entrepreneurs.

    Regards
    Sachin

    Reply

  13. By Brad
    377 days ago

    So many times have we all read posts from those who claim to be CEOs, heads of corporations, multi-millionaires, billionaires, etc. yet can’t get a simple point across or insist on bashing and finger-pointing.

    The bottom line is that it is not something for nothing, or pie in the sky, as L-Dub calls it, but the success can be very real if you are willing to put in the work. If you do not like doing some of the things that will help your business grow, such as attending meetings, attending team callings, functions, reading books, listening to the CD’s and things of that nature, I would implore you to ask yourself whether you would prefer to wake up at 6 A.M. every day, sit in bumper to bumper traffic, have to ask your boss for a raise vs. creating one for yourself, work 5 days a week to have 2 off, get 2 weeks of vacation a year…I think you can see where this is going.

    It’s a matter of priorities. At first I didn’t see the value in reading books, attending meetings or listening to CD’s, but as I did those things I found myself learning, and growing as a person and developing the skill set I need to lead a large team. As time went on, I found that my upline/crossline beleived in my wife and I even at the times that we didn’t beleive in ourselves…and we are pretty motivated.

    However everybody has moments of weakness at times. I look forward to doing the things that the PROVEN team teaches me so that I may look forward to a lifetime of success. Also, for those that are on here to find answers to questions and gain some clarity…meetings, books, CD’s, functions….they are all optional.

    Amway distributors are self-employed and may operate their business how they see fit. If you do find benefit in such things, the cost is negligible. The books are common books that you can buy at any bookstore for $10-15 a piece. The CD’s are $7.50 a piece. The weekly meetings are $4 for admission, and that is simply to cover the cost of renting the building, not to turn a profit. We aren’t talking about high dollar acquisitions here, and the value of the knowledge that you gain from that $10 book will far surpass what you paid for it.

    Does it cost money to start up your business? Yes…my initial investment was appx. $175, and there is a $50 annual renewal fee. You may liken that to annual dues that warehouse club-type stores charge for the “privelige” of shopping with them.

    Are the products overpriced? Not hardly. Popular energy drinks that stores sell cost around $2.25 per can. Amway’s brand costs $1.85. Amway’s laundry soap costs less on a cost-per-use basis than the major brand most people use, and outperforms it to boot.

    In closing, I would like to say that I paid $300 for an Xbox 360 and I’m pretty sure that when I beat the final boss on Rainbow Six Vegas that the console won’t spit out $75,000. My $175 initial investment for an Amway IBOship however? Well, not yet, but the potential is there at least. And that’s more than most people can say for what they are doing.

    Reply

  14. By steve howarth
    346 days ago

    PS “Birdie Yager Speaks to Amway” is the specific U-Tube listing.

    Reply

  15. By Christopher Chenet
    344 days ago

    wow what an overstated, highfalutin, retarded comment, made by a person who works 70 hours a week. It is okay, while you are there working and typing your essays online you just lost yourself 1 hour that you could have used making money or doing something productive. I wrote this in 2 minutes. I wasted 2 minutes as opposed to your 1 hour of jibber jabber that nobody probably even read. Good job, too bad you lose money not making it doing so. Don’t take advice from this steve howarth guy, he is just one of the very many HARD CHARGERS, that make average money.

    Reply

  16. By Jeff Knight
    345 days ago

    You can start a business in China as Amway is now in China.

    Reply

  17. By Christopher Chenet
    344 days ago

    And that is why you would never listen to most of these people in this forum as they are nothing but failures at what they did so they have nothing but negative things to say. Like the saying goes, environment affects the people that are in it, and a negative environment like a lot of these ignorant people are a part of, is holding them back. You know how the greats made it, they didn’t listen to the negative people who were poor, or working 40+ hours to make ends, they listened to the people that were sitting on their asses while their initial input compounded a large interest in money. In every business you put in 10 years of good work and it will cost time and money but it will live on for years without as much work.

    Reply

  18. By steve howarth
    342 days ago

    Well Christopher, seems you “read it” so you have just destroyed your own argument.Hopefully others will too. Even though I may not “earn” anything from my online efforts (not unlike Amway incidentally) I will have at least pointed out that I have been there, done that and been fortunate enough to see behind the smoke and mirrors without massive penalty. And yes,I consider this a constructive use of my time, evenif only one “prospect” is warned off. I repeat, the true facts behind this opportunity are fully documented and freely available. If you have to “check Upline” for permission before seeking it out, or acting on it, I guess you are too far assimilated anyway, and you have my heartfelt sympathy. Remember: “Merchants of Deception” free copy to download. Can’t repeat this too often fellas!!!
    And, Kilgore, Birdie is the wife of Dexter Yager, a multi millionaire racketeer, glorified by gullible downline distributors and effectively endorsed (and obscenely rewarded) by Amway who leaches off “plugged in” Ambots by ripping them off mercilessly for “system” tools, ie tapes,books, CDs, Videos and seminar tickets. He has a captive audience and a “tools” Factory..good deal eh?, and most of his income is generated this way. They use “Christian” teachings to mask this deception, and Yes, she is quite Mad, if this performance is typical.

    Reply

  19. By Steve Howarth
    319 days ago

    Actually Prakash, I am not promoting any alternative products, Just saying it like it is with regards to the Amway deception. You forgot the “P” in Psycho incidentally…no offense intended. Nor am I in any way “desperate”. I am simply passing on the benefit of specific experience and knowledge in the hope that I give others pause for thought and reflection.
    I can state with no ego (to quote Hattori Hanzo) that there is not a single Amway distributor in the UK to whom I am unwilling to engage in honest and open debate. My premise and belief being that none of you are actually earning any money WHATSOEVER (discounting what you plough back into the system)and that you ALL believe that your material rewards are in the future. This is my point precisely…

    Reply

  20. By Steve Howarth
    269 days ago

    Hi jon.
    I just revisited this forum and saw your recent post. I know this will sound incredibly condescending and patronising, but I would, ideally, like to have a long chat with you over a pint about how you are selling yourself so desperately short. It never ceases to amaze; however much compelling information is out there to inform, enlighten and advise, some people simply INSIST on being shafted rather rudely and shamelessly by cynical, exploitative vested corporate interests. (I.B.O = “I’m bending over” incidentally) No offense intended.

    How can I simplify this 4u ???

    1) Download and read “Merchants of Deception” by Eric Scheibler, an Amway Emerald “loser” who could not be more specific nor informative across 1000 or so pages of painful direct experience. Are you at this pin level yet? If not read and learn from a person who wasted 10 years entertaining the same delusions that you are still buying into.
    2) Obtain the true stats on Amway Distributors annual earnings after expenses. Pitiful. This info is in the public domain.
    3) Understand that the “system” you advocate (sorry, that you are TOLD is CRUCIAL to your success is the real key to earning megabucks. Sadly, not for you however. This peripheral industry has a MASSIVE captive audience of people like yourself. Do your own research. Treat it as a worthwhile business investment. Start with Dexter Yaeger…This synergistic relationship between SYSTEM and Amway moves billions of pounds worth of product via self-consumption (NOT SELLING….)You will see LITTLE of this revenue, probably NONE after product and SYSTEM expenses. Tell me I’m wrong…Double Dare You!
    4) Also understand that there IS such a thing as an insidious, pervasive, ASSIMILATION through constant reinforcement into a cult-mindset. You are already developing signs that you are losing the facility for rational judgement, going by the endlessly recycled on-message Amway tripe that you are spouting. I heard the same self-justifying garbage 20 years ago, especially the Plumber analogy. Why so defensive? Is it because you are scared to contradict your upline, or demotivate your downline? Cant you SEE that this is the very mechanism that misinforms, negates sound judgement and allows the Amway myth to perpetuate over decades?
    5) Understand that I have NO alternate MLM product or “opportunity” to promote. I would not touch any MLM based distribution system in this life or the next. My time is too precious to me. This is your frankly pathetic response to a well-intentioned attempt to inform and educate, and buddy, you need to be educated OUT of Amway.
    6) Also understand that, once again, this 15 minute response based on FACT and EXPERIENCE constitutes my Good Deed for the Day. If it gets you thinking (freely) it will be worth it. Lay off the CD’s for a few days to gain some clarity!
    7) Have a great Christmas and take some time over the break to rethink your life.

    Reply

  21. By Barry
    133 days ago

    Blake, that has got to be the most ignorant statement I have ever seen. Go learn economics.

    Reply

  22. By TruthSayer
    122 days ago

    The majority of the comments I hear about Amway are of the extreme variety: from the devoted IBOs, it’s the best thing since the wheel; to the others, its a total scam. The truth is really something in between. I’ll give you the truth here from my personal experience, an insider’s perspective, and you can decide.

    My husband and I were in for many years and reached a decent level of success by the Amway standards. I had been ’shown the plan’ before when I was single, and was not interested. But this time, my husband wanted to try it. He dreamed of being able to exit the military without having to find a job. The Amway products themselves are not all worth the money, but many of the cleaning products are very economical and earth friendly, and the coffee is very good. The start up kit costs around $125 if I recall, and includes some core products. If you like the products already, you could just join to buy at a lower price as a distributor. The makeup and skin care line is OK, similar to Avon or Mary Kay. Someone who focuses on being a beauty consultant can expect about the same profit as those other MLM cosmetic outfits. Unfortunately, here is where the good ends. Because even a good beauty consultant who COULD make a decent income selling cosmetics will end up spending her profits plus personal job income on everything else unless she somehow isolates herself from the rest of the Amway machine.

    Read through the glowing comments and I can tell you, as an insider, that these are verbatim statements, spoon-fed repeatedly from the upline and are drilled into the IBO’s head at every opportunity. The reality of life as an IBO is one of intense pressure to buy ONLY Amway to ’support your business’, meaning you must buy everything possibly available regardless of whether the brand or style is something you like or desire, regardless of whether the price is much higher than elsewhere, because any other purchase is ‘negative’. Upline will even come to your home, go through your cabinets, and throw out your ‘negative products’! So, your teenaged daughter asks for a Juicy Couture tracksuit for her birthday… but uh oh, Amway doesn’t have that in their catalog or through any affiliate store, so what do you do? If you are ’serious’ you will disappoint your daughter for now by giving her some other brand that none of her friends wear, and explain that when you ‘go Diamond’ she can shop at Juicy! I’m serious, this is the way they think! But the biggest pressure comes from the ‘tools and meetings’ that are supposedly optional yet so strongly encouraged that the IBO believes (and often rightly so) that no assistance from upline will happen unless the IBO shows they are ’serious’ by not just ’supporting their business’ with product purchases but also by purchasing books and recordings EVERY WEEK, and attending every meeting (and staying until the last IBO leaves). And every possible moment will be filled with meetings and other business activities.

    Some meetings are informal (and free), but the pressure is on to attend. Every week the products come in, and the IBO typically has a set time to go get them from their Direct Distributor (who receives all of the products for the group, and makes a little profit by buying cases to break down into units for each IBO). Here is where the ’serious’ IBO will also pick up their ’standing order’ tools, which will consist of one or two recordings (typically from seminars) and perhaps a recommended book. There will also be more books and recordings that are strongly encouraged to purchase. Reselling the tools later is strongly discouraged, and you will find out eventually that this is where the big money is really made for the higher ups in your group. They won’t tell you this, but here is the truth: let’s say you buy this week’s recorded seminar for $10; your Direct Distributor upline only paid $8 (pocketing $2); her upline Emerald only paid $5.50 (pocketing $2.50); and so on. See why this is so important to them? Sure, make a little cash selling products if you can, and get a little commission check from the upline for all of the product sold in the group, but as a Direct you’ll earn $1000/month just from the tools. That is the secret, real money.

    Back to the meetings (how many do you have time for? the only answer if you are ’serious’ is ALL of them!) There are group ‘contacting’ meetings, where several IBOs meet at the mall or some other public place for the sole purpose of approaching strangers to try to spark their interest in the business enough to get a name and phone number out of them. Next come the phone nights, once or twice per week when IBOs meet at someone’s house to make phone calls to the people they have met while ‘contacting’ and anyone else they know to call. (This may be one of the last times you speak to that former friend or relative, if they are not interested, as those people will be labeled ‘negative’ and besides, you won’t have much time for anything or anyone outside of Amway. Anyway, the purpose of the phone call is to get the person to agree to either meet with the IBO to see the plan one-on-one, or attend a formal presentation (usually at a local hotel, but sometimes in an upline’s home.) This is where the expenses (other than the gasoline) begin.

    These meetings COST MONEY to attend for the IBOs — please note, if an IBO is married, the husband and wife are both expected to attend alll meetings and both must pay the fees: weekly presentation & training meeting (typically $5-10 per IBO; monthly group training and achievement recognition meetings (typically conducted by the upline Direct or Ruby, cost to attend $5-$10/IBO), monthly seminar/rally meetings (held on Saturday, $10-15/IBO per session, for a total of $20-$30 each – so up to $60/couple), and 2-3 day conferences 4-5 times per year in big convention centers or arenas ($70-$100 per person, plus transportation and at least 2 nights lodging). Most of the people who get into the Amway business are doing so because they have dreams of living well and giving their children a better life, but right now they are not rolling in money, and these little expenses begin to add up. I’m an accountant, and the reality of the Profit & Loss (emphasis on the LOSS) did not escape me through Amway’s rose colored glasses!

    We did not have any children during our Amway years, but what about those parents out building their businesses? Children must be left at home, night after night, weekend after weekend, with relatives or babysitters. The Amway orphans. How ironic that Amway dangles the dream of being able to spend more time with your children by building a successful business, but instead the parents lose all of those childhood years that are gone forever, while they are out prospecting, attending meetings, away at conferences…

    So what happens at these meetings? The weekly presentation consists of a once/week hour or so meeting at a local hotel (typically held at 8pm on a week night) to bring in potential new IBOs and ’support the team’ even if you have nobody to bring, then the guests leave but the meeting continues for about another hour filled with level achievement recognitions, speeches, and IBO training. Is that it? NOOOO, we’ve only just begun the night! At this point it is about 10 pm, and instead of going home to bed, everyone drives to some local late-night eatery for the ‘night owl’ which supposedly gives the serious ones some secrets to success not revealed anywhere else (but is mostly just more pep talks and putting people on the spot to stand up and make speeches), followed by the unofficial parking lot rally for the ‘really serious ones who are ready to really grow’ with the Direct or higher level uplines, filled with plenty of the rah-rah statements you will hear repeated over and over, and these little gatherings often did not end until 1, 2 or even 3 a.m.! This madness happens after every meeting, after every seminar, and every night of every conference. The bigger the meeting, or the higher up the talker, the later the parking lot meetings will go. At out-of-town conferences, after an entire day and evening filled with the same speeches and pep talks and success stories, you will hang around the convention center listening to some Diamond give tidbits until security kicks everyone out, then go to a waffle house to drink coffee and hear more rah-rah, then comes the parking lot meeting, and then, after all of that, the Directs will ‘invite’ a few of the higher level downline IBOs back to their hotel room for even more of the same from their upline Diamond. Even if you are not at the last little gathering, you will have had about 2 hours sleep at best before you have to get up and go back to the arena to hear more of the same all day and night, again! And yes, the IBOs (both husband and wife) are strongly encouraged to attend and stay for every possible meeting, every informal gathering, even when they have a long drive home and both have to get up at 6 a.m. to go to work at their jobs. This exhaustion, among other things, helps to reinforce the desire to get ‘free’ from that job since of course that bad old job is why you are not getting enough sleep! Meanwhile though, you will be encouraged to spend lots of money on Nutrilite, Amway’’s vitamin and nutrition line, in order to have the energy to keep up with all of this. This particular product line is heavily promoteed at many of the meetings, and though it is all organic and high quality, it is also some of the priciest suppliments that you can buy. BTW, I currently get a better selection, high quality, and very low price from Swanson Vitamins.

    The upline and most other IBOs are always very friendly and seem to genuinely build relationships with you. Are these friendships real? One way to find out is to see how they react when you are unable to attend meetings, or can’t buy every product and tool that is expected. Do they keep in touch, invite you over for dinner, hang out with you? Well, we were friends with a ‘cross-line’ IBO couple who were very active and loyal Amway IBOs. Then they suddenly stopped coming to the meetings. We found out that he was diagnosed with a sleep disorder that caused him to fall asleep uncontrollably. He could not work or drive, and his wife had to support the family. Did this large ‘family’ of Amway distributors, people who were supposed to be friends for life and care so much, come to help them? Nope, just us and their sponsor. Did the Amway business that they had built thus far do anything to sustain them financially? Nope. But selling junk discarded by others did. (We were forgotten by all of our Amway “friends” too, except for our sponsor, when my husband was out of work for 5 months and we had to choose to cover basic living expenses over Amway expenditures; we were completely turned off when we were ’strongly encouraged’ by our Diamond to continue buying the tools and even pressured to attend an expensive conference even if it meant we didn’t pay our mortgage!) After that, I was done with Amway. I chose to focus my time on eBay selling, and with very little time and effort, in an amazingly short time, I built a profitable eBay business. At the time it cost $40/month for an eBay store; within 3 months, my store’s gross sales were about $7000/month and more importantly, after all expenses, I was already PROFITING over $2500/month. Understand that when Amway IBOs tell you they got X dollars commission, most of that money goes THROUGH them to their downline distributors. What little is left is already sucked up by tools and meetings expenses. Gross Income is not the same thing as profit!

    So, is Amway a scam? Depends upon your expectations. For most people, it will be a big time-sucker that will cost you more than you profit. For a few people who are good at selling products, it can offer earning potential comparable to Avon or Mary Kay, but you will need to avoid the tools and meetings machine. To a very very few people, the dream that is dangled in front of every IBO will be achieved. I can’t comment on what it is really like for them beyond the glitz and lifestyle that they portray, as we didn’t care to get there on the backs of thousands of dreamers who will leave their kids 90% of the time with babysitters and rack up credit card debt just to be a part of the machine.

    ——

    The majority of the comments I hear about Amway are of the extreme variety: from the devoted IBOs, it’s the best thing since the wheel; to the others, its a total scam. The truth is really something in between. I’ll give you the truth here from my personal experience, an insider’s perspective, and you can decide.

    My husband and I were in for many years and reached a decent level of success by the Amway standards. I had been ’shown the plan’ before when I was single, and was not interested. But this time, my husband wanted to try it. He dreamed of being able to exit the military without having to find a job. The Amway products themselves are not all worth the money, but many of the cleaning products are very economical and earth friendly, and the coffee is very good. The start up kit costs around $125 if I recall, and includes some core products. If you like the products already, you could just join to buy at a lower price as a distributor. The makeup and skin care line is OK, similar to Avon or Mary Kay. Someone who focuses on being a beauty consultant can expect about the same profit as those other MLM cosmetic outfits. Unfortunately, here is where the good ends. Because even a good beauty consultant who COULD make a decent income selling cosmetics will end up spending her profits plus personal job income on everything else unless she somehow isolates herself from the rest of the Amway machine.

    Read through the glowing comments and I can tell you, as an insider, that these are verbatim statements, spoon-fed repeatedly from the upline and are drilled into the IBO’s head at every opportunity. The reality of life as an IBO is one of intense pressure to buy ONLY Amway to ’support your business’, meaning you must buy everything possibly available regardless of whether the brand or style is something you like or desire, regardless of whether the price is much higher than elsewhere, because any other purchase is ‘negative’. Upline will even come to your home, go through your cabinets, and throw out your ‘negative products’! So, your teenaged daughter asks for a Juicy Couture tracksuit for her birthday… but uh oh, Amway doesn’t have that in their catalog or through any affiliate store, so what do you do? If you are ’serious’ you will disappoint your daughter for now by giving her some other brand that none of her friends wear, and explain that when you ‘go Diamond’ she can shop at Juicy! I’m serious, this is the way they think! But the biggest pressure comes from the ‘tools and meetings’ that are supposedly optional yet so strongly encouraged that the IBO believes (and often rightly so) that no assistance from upline will happen unless the IBO shows they are ’serious’ by not just ’supporting their business’ with product purchases but also by purchasing books and recordings EVERY WEEK, and attending every meeting (and staying until the last IBO leaves). And every possible moment will be filled with meetings and other business activities.

    Some meetings are informal (and free), but the pressure is on to attend. Every week the products come in, and the IBO typically has a set time to go get them from their Direct Distributor (who receives all of the products for the group, and makes a little profit by buying cases to break down into units for each IBO). Here is where the ’serious’ IBO will also pick up their ’standing order’ tools, which will consist of one or two recordings (typically from seminars) and perhaps a recommended book. There will also be more books and recordings that are strongly encouraged to purchase. Reselling the tools later is strongly discouraged, and you will find out eventually that this is where the big money is really made for the higher ups in your group. They won’t tell you this, but here is the truth: let’s say you buy this week’s recorded seminar for $10; your Direct Distributor upline only paid $8 (pocketing $2); her upline Emerald only paid $5.50 (pocketing $2.50); and so on. See why this is so important to them? Sure, make a little cash selling products if you can, and get a little commission check from the upline for all of the product sold in the group, but as a Direct you’ll earn $1000/month just from the tools. That is the secret, real money.

    Back to the meetings (how many do you have time for? the only answer if you are ’serious’ is ALL of them!) There are group ‘contacting’ meetings, where several IBOs meet at the mall or some other public place for the sole purpose of approaching strangers to try to spark their interest in the business enough to get a name and phone number out of them. Next come the phone nights, once or twice per week when IBOs meet at someone’s house to make phone calls to the people they have met while ‘contacting’ and anyone else they know to call. (This may be one of the last times you speak to that former friend or relative, if they are not interested, as those people will be labeled ‘negative’ and besides, you won’t have much time for anything or anyone outside of Amway. Anyway, the purpose of the phone call is to get the person to agree to either meet with the IBO to see the plan one-on-one, or attend a formal presentation (usually at a local hotel, but sometimes in an upline’s home.) This is where the expenses (other than the gasoline) begin.

    These meetings COST MONEY to attend for the IBOs — please note, if an IBO is married, the husband and wife are both expected to attend alll meetings and both must pay the fees: weekly presentation & training meeting (typically $5-10 per IBO; monthly group training and achievement recognition meetings (typically conducted by the upline Direct or Ruby, cost to attend $5-$10/IBO), monthly seminar/rally meetings (held on Saturday, $10-15/IBO per session, for a total of $20-$30 each – so up to $60/couple), and 2-3 day conferences 4-5 times per year in big convention centers or arenas ($70-$100 per person, plus transportation and at least 2 nights lodging). Most of the people who get into the Amway business are doing so because they have dreams of living well and giving their children a better life, but right now they are not rolling in money, and these little expenses begin to add up. I’m an accountant, and the reality of the Profit & Loss (emphasis on the LOSS) did not escape me through Amway’s rose colored glasses!

    We did not have any children during our Amway years, but what about those parents out building their businesses? Children must be left at home, night after night, weekend after weekend, with relatives or babysitters. The Amway orphans. How ironic that Amway dangles the dream of being able to spend more time with your children by building a successful business, but instead the parents lose all of those childhood years that are gone forever, while they are out prospecting, attending meetings, away at conferences…

    So what happens at these meetings? The weekly presentation consists of a once/week hour or so meeting at a local hotel (typically held at 8pm on a week night) to bring in potential new IBOs and ’support the team’ even if you have nobody to bring, then the guests leave but the meeting continues for about another hour filled with level achievement recognitions, speeches, and IBO training. Is that it? NOOOO, we’ve only just begun the night! At this point it is about 10 pm, and instead of going home to bed, everyone drives to some local late-night eatery for the ‘night owl’ which supposedly gives the serious ones some secrets to success not revealed anywhere else (but is mostly just more pep talks and putting people on the spot to stand up and make speeches), followed by the unofficial parking lot rally for the ‘really serious ones who are ready to really grow’ with the Direct or higher level uplines, filled with plenty of the rah-rah statements you will hear repeated over and over, and these little gatherings often did not end until 1, 2 or even 3 a.m.! This madness happens after every meeting, after every seminar, and every night of every conference. The bigger the meeting, or the higher up the talker, the later the parking lot meetings will go. At out-of-town conferences, after an entire day and evening filled with the same speeches and pep talks and success stories, you will hang around the convention center listening to some Diamond give tidbits until security kicks everyone out, then go to a waffle house to drink coffee and hear more rah-rah, then comes the parking lot meeting, and then, after all of that, the Directs will ‘invite’ a few of the higher level downline IBOs back to their hotel room for even more of the same from their upline Diamond. Even if you are not at the last little gathering, you will have had about 2 hours sleep at best before you have to get up and go back to the arena to hear more of the same all day and night, again! And yes, the IBOs (both husband and wife) are strongly encouraged to attend and stay for every possible meeting, every informal gathering, even when they have a long drive home and both have to get up at 6 a.m. to go to work at their jobs. This exhaustion, among other things, helps to reinforce the desire to get ‘free’ from that job since of course that bad old job is why you are not getting enough sleep! Meanwhile though, you will be encouraged to spend lots of money on Nutrilite, Amway’’s vitamin and nutrition line, in order to have the energy to keep up with all of this. This particular product line is heavily promoteed at many of the meetings, and though it is all organic and high quality, it is also some of the priciest suppliments that you can buy. BTW, I currently get a better selection, high quality, and very low price from Swanson Vitamins.

    The upline and most other IBOs are always very friendly and seem to genuinely build relationships with you. Are these friendships real? One way to find out is to see how they react when you are unable to attend meetings, or can’t buy every product and tool that is expected. Do they keep in touch, invite you over for dinner, hang out with you? Well, we were friends with a ‘cross-line’ IBO couple who were very active and loyal Amway IBOs. Then they suddenly stopped coming to the meetings. We found out that he was diagnosed with a sleep disorder that caused him to fall asleep uncontrollably. He could not work or drive, and his wife had to support the family. Did this large ‘family’ of Amway distributors, people who were supposed to be friends for life and care so much, come to help them? Nope, just us and their sponsor. Did the Amway business that they had built thus far do anything to sustain them financially? Nope. But selling junk discarded by others did. (We were forgotten by all of our Amway “friends” too, except for our sponsor, when my husband was out of work for 5 months and we had to choose to cover basic living expenses over Amway expenditures; we were completely turned off when we were ’strongly encouraged’ by our Diamond to continue buying the tools and even pressured to attend an expensive conference even if it meant we didn’t pay our mortgage!) After that, I was done with Amway. I chose to focus my time on eBay selling, and with very little time and effort, in an amazingly short time, I built a profitable eBay business. At the time it cost $40/month for an eBay store; within 3 months, my store’s gross sales were about $7000/month and more importantly, after all expenses, I was already PROFITING over $2500/month. Understand that when Amway IBOs tell you they got X dollars commission, most of that money goes THROUGH them to their downline distributors. What little is left is already sucked up by tools and meetings expenses. Gross Income is not the same thing as profit!

    So, is Amway a scam? Depends upon your expectations. For most people, it will be a big time-sucker that will cost you more than you profit. For a few people who are good at selling products, it can offer earning potential comparable to Avon or Mary Kay, but you will need to avoid the tools and meetings machine. To a very very few people, the dream that is dangled in front of every IBO will be achieved. I can’t comment on what it is really like for them beyond the glitz and lifestyle that they portray, as we didn’t care to get there on the backs of thousands of dreamers who will leave their kids 90% of the time with babysitters and rack up credit card debt just to be a part of the machine.

    (PS – my comments posted here are my intellectual property; do not copy, quote, or reprint anywhere without my prior written consent. Requests will be forwarded via your follow up comments. Please do not contact me with any rebuttals or any other offers. Thank you.)

    Reply

  23. By Steve Howarth
    131 days ago

    More deluded Amway tripe from a pitiful loser-in-waiting.

    Reply

  24. By Tito
    101 days ago

    Actually, Barry, If you really know about economics, then you know that he is correct for the most part. If you know anything about economics, you the know that Robert Kiyosaki endorsed Amway Global and even wrote a book that makes a point along the same lines of what he said, just not as offensively. Blake might have been rude about it, but he is right. I mean, even the Social Security administration has admitted that following the traditional method of making money is a BS plan that was designed to fail. The Federal Trade Commission is currently backing Amway Global 100%. It even stated, in open court, that AG is 100% legitimate. It’s on the FTC ’s website if you want to take a look. So is the court ruling.

    Reply

  25. By Steve Howarth
    131 days ago

    Yawn !

    Reply

  26. By Steve Howarth
    121 days ago

    Excellent and wholly honest exposure of Amway. You are to be thanked for your considerable efforts in highlighting the finer detail.
    I was involved almost 20 years ago, and my experience was IDENTICAL, as are my conclusions to your own. “Merchants of Deception” by Eric Scheibeler goes into even more forensic detail, but he only expands on the same basic pattern of (lets be brutally honest…) bait-and-switch recruitment methodology, cult-assimilation and gradual cognitive dissonance as brought about by the tactics you fully outline, and the insidious “system” that you are TOLD is crucial to your success. (The system is “optional” but so is Success…Right? etc,etc..)

    I do believe that the Amway Global scam has long-since reached critical mass, with the self perpetuating balance being struck between people BADLY wanting to believe that they can be “FREE” as endlessly rammed down their throats, and defined by the AMO’s, (Amway Motivational Organisations) AND the ruthless attrition rate and attendant cost/loss experienced by all, with the possible exception of the “Tools Scammers” at the high pin levels (Fred Harteis/Dexter Yager etc..) who were around when I was involved.

    Again, thanks for your truthful and valuable comments. I think if one “prospect”is warned accordingly then you have personally saved him/her possibly thousands of hours of time that could be infinitely better spent. Good Luck and Best Wishes.

    Reply

  27. By Tito
    101 days ago

    Sorry, I didn’t feel like reading the WHOLE thing, but I have to correct you. Based on what little I picked up as I skimmed, you are inaccurate. You see, IBOs are not obligated to do anything at all. It just depends how the individual teams are run. That is also assuming that the IBO even belongs to a team. He/She may just be on her own and recruiting people. Also, IBOs don’t have to be good at selling anything. We don’t do presentations anymore if we don’t want to, because we have adopted the internet. We don’t even interview people directly. We just call them, lead them to a site, have them watch a video, and then lead them to a live group session at a set location. It’s so easy, it’s lazy. I can be swimming, boating, paint balling, bowling, or even having sex and I can still be doing business. It’s that simple. Things have changed a whole lot over the past six months alone. I don’t know how long ago you where involved with Amway, but it’s changed a great deal. And more is to follow.
    Robert Kiyosaki endorsed Amway Global and even wrote a book that makes a point along the same lines of what he said, just not as offensively. Blake might have been rude about it, but he is right. I mean, even the Social Security administration has admitted that following the traditional method of making money is a BS plan that was designed to fail. The Federal Trade Commission is currently backing Amway Global 100%. It even stated, in open court, that AG is 100% legitimate. It’s on the FTC ’s website if you want to take a look. So is the court ruling.

    With all due respect,
    Tito

    Reply

  28. By TruthSayer
    121 days ago

    Thank you, Steve, for your kind remarks. I’m not sure why my comment posted twice, not intentionally, so I apologize for that!

    Another thing worth pointing out: to my knowledge, despite all of the ‘training’ that takes place, nobody in Amway ever teaches the IBOs about accounting, about how important it is to set up and maintain an accurate bookkeeping system, and how to prepare and understand financial reports on their ‘business’. This should be a big red flag to anyone who has any real business experience.

    BTW I had a lovely child a few years AFTER getting free from the Amway machine. I’m so grateful that I was no longer involved, so that I could truly give my child the time and attention she deserves. I sincerely hope that I have helped someone out there to see the truth.

    Reply

  29. By Steve Howarth
    121 days ago

    You are very welcome TruthSayer, and your response is much appreciated. That point was well made regards the accounting. Looking into the finances was definitely not “promoted” and for very good reason…ask any Amway distributor what they are earning in the here and now (as opposed to the dim and distant future)they dont need a balance sheet so much as a tin cup.

    I cant imagine the billions? of man (and woman) hours wasted across decades and time-zones in perpetuating this massive deception. Amway are worth trillions, and are in a position to influence governments and stifle political will. Their modus operandi is a fascinating study into mass psychology, geared deception and cultic assimilation. They are good people to get away from.

    I am sure that your honesty will guide others to make a quality decision, as you have done. Very best wishes my friend.

    Reply

  30. By Tito
    101 days ago

    How about a highly informed group of successful, entrepreneurial-minded, motivated, teachable, engineers, Marines, Army Rangers, Dentists, and College students, just to name a few of the individuals on our team. You are the vermin that eats at the core of our society, Steve.

    Reply

  31. By Tito
    101 days ago

    Well, here’s some food for your thought, Steve. You and I just got personal. Plan to be spending a whole lot of time with me. The reason that so many of the individuals that get in Amway fail, is because they are lazy. Most people on the Planet, are like you. They have been taught for so many years to work hard and get an education. That doing such would earn them a high paying job and retirement, all within 45yrs of starting in your career. The fact is that the lie is in the 45yr plan. The government, the Social Security Administration, and the most highly educated and successful business people in the world have acknowledged that. Who are you to say any different? You are nothing more than some pathetic, sour, broke bastard. It’s also funny that, if you are as well informed as you pretend to be, you will know that the “billions” of “wasted” man-hours were put in by countless people that, if they were following the plan properly, were only putting in 5-10 hrs/wk(which would have probably been spent, counter-productively, watching TV, or some other stupid, way.

    Reply

  32. By Tito
    101 days ago

    Hahaha! You are suck a freakin’ liar! Look up the facts you bastard! There is one particular IBO that committed, after a near death experience, to be worth $100 million dollars after taxes and other deductions. He achieved that dream by following the plan. If he can do it, so can anyone else, who isn’t a lazy, arrogant fuck, like you.

    Reply

  33. By Tito
    101 days ago

    Oh yeah, the IBO s that made it big are only going around holding such rallies, cause they give a damn. Unlike your bosses in the traditional business world.

    Reply

  34. By Steve Howarth
    88 days ago

    Pitiful Tito….Pitiful.

    Reply

  35. By Steve Howarth
    88 days ago

    Hi Tito,

    Thanks for your response. I have no doubt that things will have moved on significantly since we were involved. You SHOULD have read “the whole thing” however, otherwise how can you formulate a credible response? I also doubt the considerable, informed and near-identical experiences of two former IBO’s can be casually dismissed as “inaccurate”
    I suspect that one constant factor remains the case however: Namely, that non of you are actually making any money whatsoever after attendant costs and expenses!
    Amway have no doubt “evolved” The level of negative exposure they correctly and rightfully recieved over decades can only imply a massive rethink of their methodology. It takes a special kind of Idiot, however, to overlook the long history of deception represented by this company, and imply that a mere shift in approach means that they are really OK guys. Try selling that altruistic concept to one of the millions who have been shafted by Amway in the past decades.

    Reply

  36. By Steve Howarth
    88 days ago

    Not Nice Tito, but I forgive your crass ignorance. Thought Marines had more class (another illusion shattered…)

    Reply

  37. By Steve Howarth
    88 days ago

    Getting as personal as you like my gullible friend!
    My views have been very fully disclosed on this forum, so I really can’t be bothered running it all by you again, you are too closely involved and too deeply assimilated, and are experiencing the resulting cognitive dissonance; that much is clear. Heres a little more food for thought however Toto (sorry, Tito…thought we were over the rainbow and in Oz there for a moment)
    So it’s Amway and it’s apologists versus the Rest of the World…Right? Sounds spot-on for a cult. Isn’t that what cults do? Everyone else out there is wrong/misinformed/deluded etc,etc, by your worldview…and you are amongst the Enlightened Few. …..I know. (Tell it to the Judge)
    Take a step back and listen to yourself. Do you truly believe that attending a f*****g seminar and being duped into buying a boxful of soap suds by another greedy, gullible munchkin makes you an enterpreneur? I may be wrong, but my understanding of the concept of enterpreneurial free enterprise includes the following: Freedom and independence of action, an individual unique vision,a free-thinking mindset, due diligence in researching your chosen market,the ability to think on your feet and react to change or circumstance and the drive and energy to fulfil your dream.
    Lets see how Amway stacks up?
    ALL individuality and creative free thinking is STIFLED and REPRESSED by a slavish adherance to a system that has a track record of near 100% failure (ie, poor business model as a prospective IBO)
    Any concept of due diligence is ignored in Amway, as its apologists prefer to employ the (only)argument available; ie, that everyone who fails in Amway is a loser. Tito, you are merely an Amway loser-in-waiting, currently locked into the system that has chewed up and spat out the likes of yourself for decades. That is not a slur on your individual drive or motivation, incidentally, but on the business you choose to align yourself with. Do some research… Be bothered!
    I doubt the likes of Richard Branson, Duncan Bannatyne, Peter Jones and thousands of other truly successful enterpreneurs would share your opinions. Attending a rah rah rally with thousands of other hopefuls who have been spoon-fed the endlessly recycled tripe that you and your Amway cohorts buy into on a wholesale basis is not a rational stance for a business decision. Have you NO sense of past at all. Don’t you KNOW that the stuff you come out with has been reiterated by gazillions of ex Amway “lazy losers” who regret their involvement, in most cases deeply and profoundly. What makes YOU different bro? (Tell me something I haven’t heard before Tito. Is that even possible for an Amway clone?

    First question: What if you’re wrong about the company you keep?

    Reply

  38. By Steve Howarth
    86 days ago

    That was harsh of me wasn’t it?

    To qualify the above, I would add that the intention to be your own person/boss with your own business in order to achieve financial freedom is entirely laudable…and who wouldnt appreciate taking the steps to achieve that dream. I am self-employed myself, and made the choice years ago never to defer to a “boss” My point is that Amway is possibly the worst route you could take to enable this happy outcome. It is also crucial to distinguish between The Amway Corporation and the entirely seperate IBO groups/networks (Motivational Organisations)with their own agendas. THIS is where the decades-long cult assimilation and organised deception stems from. Simply listing Amways list of associated companies to impart credibility is meaningless and disingenuous. It is inevitable that as soon as you are “recruited” you will be aligned with one of these groups.

    Reply

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