Amway breaks down its commission by PV and BV. The PV is your total point value for monthly sales, while your BV is percentage cash value based on the PV. There are possible bonuses at certain PV levels. The actual cash value of your downline is predictably complicated and, like credit card points, cleverly encourage more spending on Amway’s products.
Scott spent the first hour explaining America’s economic crisis, which is rooted in a betrayal stretching back to the late nineteenth century. See, that’s when big corporations, with the help of government-run public education, first convinced Americans to abandon their entrepreneurial instincts and accept jobs. Before that, everyone was either a small-business owner or apprenticing to be one; afterwards, it was all about benefits packages. Emasculated by wage slavery, Americans had muddled along fairly well until, as stagflation rent the land in the 1970s, we realized in horror that mere wages were helpless against “exponentially expanding” costs.
1, no inventory loading? Hebalife distributors are re-evaluated for their qualifications every January. Based solely on how much products they purchased. Distributors can claim the products are for their own personal consumption any time they need to make up the volume points they needed for the qualification. 2, way over priced products : 2-10 times of equivalent products in the market. Why would a real consumer pay such premium for products that are available everywhere? 3, the refund policy. Herbalife distributors make purchase through their uplines. Uplines get rolty override payment on every purchase their downline made. This policy only encourage focus on recruiting, push unwanted purchase, and in factual denied refund.
The Products are Expensive; well personally, I think they are a bit overpriced, which obviously is understandable because they have to pay you and your down line. However, it is a struggle to sell a bottle of $80 vitamin pills when there are other products with the same quality for a lot less. We are not exactly living in the old days anymore and people are cautious now when it comes to spending, meaning you will have to work double time to sell products at a higher price.
I met with them the second time, and of course, they wouldn't tell me right there what the company was or what it did. I mean, why would they, they knew I would go online and read all the crappy reviews. They said "hey, tomorrow is this meeting, I don't know if we can get you in there but I'm gonna talk to my mentor and see if we can reserve you a seat," (yeah right, like that would be hard to do, but they have to make it seem like only a select few get in). The next morning he confirmed with me that he had pulled some strings and got me that seat and that he was going to introduce me to some people so told me to go early.
While that is true (and I know nothing about Amway, so I won’t offer an opinion on the company), it doesn’t mean much, because a tax write off isn’t worth anything unless it’s enough of a write off to put you in a lower tax bracket. Say you have $1000 in business expenses – that $1000 is tax deductible. That doesn’t mean you pay $1000 less in taxes. It means you don’t have to pay taxes on $1000 of your income.
Studies of independent consumer watchdog agencies have shown that between 990 and 999 of 1000 participants in MLMs that use Amway-type pay plans in fact lose money. According to The Skeptic's Dictionary, "In the United States, the Federal Trade Commission requires Amway to label its products with the message that 54% of Amway recruits make nothing and the rest earn on average $65 a month."
Such pandering to heartland values has (along with record-breaking donations from Rich DeVos) endeared Amway to the Republican Party. But the company has also had its share of critics. In the seventies a succession of defectors charged that The Business (as the faithful call it) was a pyramid scheme, a fraudulent enterprise that made money by recruiting new members and channeling their fees to higher-ups in the organization. A 1979 Federal Trade Commission investigation concluded that Amway was not in fact a pyramid scheme—only that some of its claims to prospective distributors were overly optimistic—because most of its revenue came from sales of actual products. But that didn’t end the company’s troubles. During the Reagan years, Amway was the butt of jokes and the target of exposes. Senior distributors set up private “distributor groups,” organizations dealing in motivational materials and notorious mass rallies. Dexter Yager, founder of the Yager Group, was known to leap around stages brandishing a giant gold crucifix.
Actually the company pays us directly not the wealth from those on our team. What the team makes is their money and none of it goes to other team members. The govt collects money through taxes and pays its bills and helps those that are less fortunate. Not this company; you eat what you kill basically. Just my thoughts. And as far the education of the members on my team, I posted that below. Just my thoughts.
One night, after he had taken me out to dinner (we went Dutch), Josh told me that there was a price list in the back of his car—sealed in an Amway Starter Kit. I could have it right away; I just had to give him the $160 fee to officially join Amway. Uncertain about taking the plunge, I claimed my checking account couldn’t cover $160 that week. That was all right, he insisted: I could write a post-dated check that he would hold until I gave the O.K. to deposit it. I still resisted, and he got out of the car with me, opening the hatch to show me the sealed white box within. Eventually, he settled for giving me a book called Being Happy, which he could later retrieve.
Once Amway has their claws in, they get their new recruit to switch everything over so they essentially become their own customer. By ordering household and beauty products through their own online store, they pay a premium for everyday items and get a small kickback which they try to sell as this amazing perk, but I don’t see why you wouldn’t just choose something else.
Even so, among the DeVoses’ skeptics, there are those who strike a hopeful, if cautious, tone. “I think Mrs. DeVos could potentially be a really good secretary of education if she allowed parents and school districts to make policy at the local level,” says Daniel Quinn, executive director of the Great Lakes Center for Education Research and Practice, a nonprofit that receives a portion of its funding from the National Education Association. “But at the same time, I’m concerned.”