People, please don't fall for this. It'll cause problems between you and your spouse if you're not both involved because of the conflict. It's a dream that is promised that will never come true. My wife spent money we didn't have investing in this crap and put us in a hole of debt with nothing to show for it. Did Amway come help her financially? No way. Avoid these companies, trust me, they're only out to get your money or get you to make them money.
We should also note that Kyritsis lives in Greece, a country just coming through the other side of an intense financial crisis (see: "targeting desperate people", above). Amway is based in Michigan, but they do about 90% of their business outside of the United States. It's not hard to see why: Amway is increasingly well known as a scam in the U.S., and American citizens have an easier time suing the company for unethical business practices. In 2010, Amway settled with disgruntled American customers for $155 million.
Amway is unethical way of making money. Their representative lure you to this smartly designed plan. Amway’s representatives misguide and misinform like any other business or a product’s sale representatives. which is attractive to listen for the first time with the ‘Entrepreneur” motto. But it is another way of making money leaving you frustrated in the end. I advise every one not to join this unethical product promotion. Parent company is becoming richer,leaving you as ”partner” (as it’s trained representatives claim) in total despair in the end. It is your hard earned money,think smartly before lending it to someone’s hand.

I HAVE ALWAYS WONDERED HOW A NETWORK MARKETING COMPANY SUCH AS AMWAY COULD BE ACCUSED OF BEING A PYRAMID SCHEME. I'M A PLATINUM IN THE BUSINESS AND ONE OF MY DOWNLINES JUST QUALIFIED SAPHIRE(HIGHER LEVEL THAN ME /COMPENSATION A LOT HIGHER) 2 MONTHS AGO. SHE DID THIS BECAUSE SHE WORKED HARDER THAN ME. IN THIS BUSINESS YOU GET WHAT YOU PUT INTO IT. END OF STORY. BUT I HAVE REALIZED THAT ONLY PEOPLE WITH BALLS CAN DO THIS BUSINESS. THE MEDIOCRE WILL NOT THRIVE IN THIS BUSINESS. AMWAY GIVES PEOPLE HOPE. AND ANYONE WITH COMMON SENSE KNOWS THIS IS THE BEST NETWORK MARKETING COMPANY.
The compensation plan is called a “stairstep breakaway,” which requires the business rep to effectively rebuild a leg once it has reached what’s called Platinum status (7500 points). Basically, legs break off once they qualify and the commissions turn into 4% royalties instead of commissioned payouts of ~30%. I asked a former Amway emerald once what it was like having his first leg break-off and his reply was: “it’s awful, you really know how to ask painful questions don’t you.” He went on to explain his commissions dropped by at least 80% when they turned into “royalties.” It should be noted that the royalties technically disappear if the volume in the leg drops below 7500 points, so it’s not really a “permanent” royalty unless you maintain your volume. It is in essence a “punishing” compensation plan that forces you to rebuild a leg once it reaches this trigger volume, effectively causing you to “not” want others to pass you up.
Than please do enlighten us, what the difference is between Amway, Avon, Oriflame, etc. and the few other 1000 MLM "businesses" out there? All you can see, read, hear if you attend a meeting or not is the same script. Everyone is selling the best products, everyone is making tons of money, everyone is the amazing 2% who are smarter than other people on earth. (Oh and most of the time it turns out they have the same owners, or the name just changed :O suprise) And do not even start with sales. Topshop is one of the biggest TV and online sellers of 90% crap and useless stuff. Is it a business? Yes. Do they make money? Yes. Do they annoy, scam and rip people off? Yes. They have horrible reviews, lawsuits, complaint masses. Something running and some making money out of it does not make it a proper business nor legit. And please do not use the word meeting or training word regarding any of these companies. Getting some random people talking about how their yacht looks like is not a business mindset. Ever tried to make a project? Ever had a project plan and completed it? How many business models can you tell us? And in how many of those have you achieved anything? Please feel free, we would love to see. And having a degree has nothing to do with any business model. A person who was milking cows for a living for 40 years can have a successful business without having finished primary school. And "so to finish up", a real business with real products does not need people to run around and harrass people with their products. And I am not talking about coca cola and friends here. Everyone can find a product they need which is good and for a proper price. Noone needs someone to hold hands while shopping.
Bottom line: If you have an entrepreneurial spirit, Amway may not be the place for you due to the company politics. Sort of ironic, since the Amway business thrives on the entrepreneurial spirit of the distributor force. But, if you are looking to just go to work every day, maintain the status quo, get paid fairly, and live a balanced life, than Amway is great!

Amway’s original product, Liquid Organic Cleaner (L.O.C.™), was one of the first concentrated, biodegradable and environmentally sensitive cleaning products on the market. Since then, with a similarly pioneering and purposeful spirit, Amway has gone from selling simply home products to become a global leader in health and beauty, too. For decades, the company has focused on environmentally sensitive and biodegradable products.
eSpring was the first commercial product which employed Fulton Innovation's eCoupled wireless power induction technology.[56] In December 2006, Amway sister company, Fulton Innovations, announced that it would introduce eCoupled technology in other consumer electronic products at the 2007 Consumer Electronics Show.[57] Companies licensing this technology include Visteon, Herman Miller, Motorola and Mobility Electronics.[58] Fulton was a founding member of the Wireless Power Consortium which developed the Qi (inductive power standard).[59]
“Our family story inspires others to build legacies of their own,” he said. “They see success through the generations and the impact it has on your family and community. The opportunity is open to anyone, but it really suits those who are hungry for something more. You have to have goals and be willing to do the work in order to achieve your dreams.”
Days after the 2012 election, Dick DeVos picked up the phone and rallied Republican lawmakers to pass right-to-work in lame duck while they still had the votes, reportedly promising financial support to those members who would find themselves facing tough reelections and suggesting he would back primary campaigns against those who didn’t step in line. “There’s one family who gets these people elected, and consequently, you can assume they can get them unelected, too,” says Gretchen Whitmer, who was the state Senate’s Democratic leader at the time.

I like the healthy products and various selections offered on their website. Amway has been around for long time and also offers way to start your own business and spread the word on their wonderful products. I really enjoy their skincare line and XS energy drinks and snacks. The energy drinks taste great and give you the extra boost of energy to get my day going. The products are way over priced and are not priced for individuals who are lower income people. I think if they find ways to cut prices it will allow a wider range of people to shop with them.
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.[115][116][citation needed] 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."[117]

This is so sad. My boss came into my office “today” telling me his sister is selling something new – his divorced sister with two kids that lives with his mom and occasionally needs help making her car payment – it’s not Avon, it’s not Mary Kay – Its Amway. I let out a huge groan. He said she is really pumped and is planning to attend an industry conference or should I say family reunion. I just hate to see people be taken advantage of especially those who need every penny.


The official ribbon cutting ceremony and dedication took place on September 29, 2010 at 10:01 AM. The general public was invited to enter the building where Orlando Mayor Buddy Dyer gave his annual State of Downtown address. The first ticketed event was a Vicente Fernández concert on October 8. The Orlando Magic hosted their first preseason game at Amway Center on October 10 against the New Orleans Hornets when they won by a historic margin of 54 points, while the 2010–11 regular season home opener took place on October 28 against the Washington Wizards.
High-ranking Amway leaders such as Richard DeVos and Dexter Yager were owners and members of the board of Gospel Films, a producer of movies and books geared toward conservative Christians, as well as co-owners (along with Salem Communications) of a right-wing, Christian nonprofit called Gospel Communications International.[74][85][87][88][89] Yager, interviewed on 60 Minutes in 1983, admitted that he promotes Christianity through his Amway group, but stated that this might not be the case in other Amway groups.[90][need quotation to verify]

"We were warned never to use the name Amway on the phone; even while showing the business plan, the name would be one of the very last things mentioned. The explanation from our 'sponsors' was that people in the past have misused the name 'Amway,' and people should get a chance to know the 'new Amway' without being prejudiced from things they might have heard."

Amway allows me to buy health, beauty, and home care products in a fashion that no other site does. It provides multi level marketing which builds a relationship between buyer and seller. However, the thing I would change about this company is to make their service more user friendly. As of right now it is extremely difficult for me to navigate their site to search for items I want. My overall experience for using this company has been rather well thus far. In terms of product selection, there are a large catalog of products that I can choose from. The purchasing process is as streamlined as any other site and the customer service has been impeccable too.
Pyramid schemes have nothing to do with real commercial activity or product sales. Pyramid schemes are a form of financial fraud based on recruiting new people to make investments into a business, and then using those investments to pay the people who joined earlier. In Amway, distributors (Amway Business Owners) make money from the sale of our products – not from recruiting others to join.
Rich DeVos and Jay Van Andel initially founded the Ja-Ri Corporation, a multi-level marketing distributorship for Nutrilite products, in 1949. Ja-Ri was incorporated in 1959, and changed its name to "Amway" (American Way) in 1963. As of 2012, Amway operates in more than 100 countries around the world. In 1999, the founders of the Amway corporation launched a sister Internet-based company named Quixtar. The Alticor corporation owns both Amway and Quixtar, plus several other concerns. Quixtar replaced the North American business of Amway in 2001 after the majority of the distributors moved to Quixtar, with Amway operating in the rest of the world.
Quixtar also markets through their website products from partner stores whose list can be found at Quixtar website. Quixtar utilizes the Employee & Affiliates Purchase Program discount pricing structure for purchases from most of these third-party partner stores. Purchases from some of them (generally called discount-only partner stores) may not gain the P/V & B/V (measures of sales volumes, used for calculating bonuses to be paid) normally associated with an IBO's purchases.[7]
In looking at U.S. respondents’ abilities and attitudes regarding starting and running a business, the majority (88 percent) perceive themselves as socially supported (compared to 64 percent globally). When it comes to taking risks, 74 percent of U.S. respondents consider themselves to be risk-takers, compared to 47 percent of respondents globally.
One Republican who caught the DeVos family’s ire was Paul Muxlow, a realtor and former educator elected to the state house in 2010, representing a mostly rural district in southeast Michigan. Muxlow was a dependable conservative, but disliked the idea of eliminating the cap on the number of charter schools. While he was fine with charter schools in underserved communities, he said he couldn’t support them in rural areas—“It would kill those districts,” he explained to the Detroit Free Press in 2014. When the cap elimination came before the state Legislature in 2011, it passed with Muxlow voting against it. The following year, when he ran for reelection, he faced a blitz of attacks from GLEP, which didn’t even need his district, but spent just under $185,000 to take him out in the primary. Muxlow won by just 132 votes.
The recently published book, No One Would Listen, by whistle blower, Harry Markopolos, dramatically describes how SEC regulators ignored his alerts and allowed the Bernard Madoff Ponzi scheme to grow to enormous proportions. Their failure to act caused harm to thousands more people, despite his written and detailed warnings, which he brought to the agency five separate times over an eight-year period of investigating the scam. Additionally, the news media such as the Wall Street Journal and Forbes magazine also failed to respond to his evidence which he offered them. Madoff was apparetnly treated as “too big to expose.”
I also had doubts about the business of The Business. Amway products didn’t seem to be winging off the shelves. Sherri complained that she couldn’t even get her own family to buy from her business: Her mother preferred to go to the local Costco. (“A communist store! Gee thanks, Mom!”) Relying on intimates wouldn’t be enough, she explained; the real way to build The Business was to “make casual acquaintances out of strangers.” The techniques for doing this, which often resembled pick-up lines, were an important part of Dreambuilders’ curriculum. Josh spoke of his admiration for Diamond Distributor Randy Sears, who had come up with all sorts of “ice-breakers”: He’d pretend to know someone, for instance, and they’d often pretend to know him right back. Or he’d walk right up to somebody and say, “I like your belt!”[6]
Prior to Downtown Master Plan 3, the Orlando Magic's ownership, led by billionaire Amway founder Richard DeVos and son-in-law Bob Vander Weide, had been pressing the City of Orlando for a new arena for nearly ten years. Amway Arena was built in 1989, prior to the recent era of technologically advanced entertainment arenas. With the rush to build new venues in the NBA (and sports in general), it quickly became one of the oldest arenas in the league.

Products have flaws sometimes, please let me rephrase; people have problems with products and you will never have the perfect product that will suit everyone’s needs. You will have to deal with product issues and returns, obviously, a happy customer will give you a happy business, and it does require some skill and stress control to keep people happy.
Amway conducted a four-month evaluation of different IoT platforms, ultimately choosing AWS IoT. AWS’s scalability, global presence, maturity in the IoT space, security, and outstanding professional services were the deciding factors for Amway. “We do business in more than 100 countries and territories, and we had no idea how much data-center capacity we would need from an IoT perspective,” says Mike Gartner, senior IoT platform architect at Amway.
Athletes who have promoted Quixtar or its products include Jamaican Olympic sprinter Asafa Powell, American pole vaulter Jennifer Stuczynski, American Olympic sprinter Sanya Richards, U.S. Olympian Shaun White, Cinematographer Wes Anderson,Chinese Olympic hurdler Liu Xiang;[25] Brazilian soccer player Ronaldinho, heavyweight boxer Evander Holyfield, and Heisman Trophy winner Ron Dayne. Tim Foley, a member of the undefeated 1972 Miami Dolphins, is a Quixtar Founders Crown Ambassador.[26]
People who sell for Amway literally have no idea what they are getting into because the training system bends over backwards through hoops of fire to try to keep any useful information out of the hands of their representatives. It's actually incredibly hard for most users to know where actual "Amway" begins and ends, because a cottage-industry of other scams have leapt up around Amway's business model like hallucinogenic mushrooms on cow shit. Kyritsis received all of his training through a group called Network Twentyone, who make a tidy profit charging people to teach them how to sell Amway:

“A successful Magic team is good for everybody,” Martins said. “It’s good for downtown Orlando. It’s good for our community, it’s good for our fans, it’s going to be good for this development. Having said that, this development is being programmed in a way that it will not rely upon this building. We want it to be a destination 365 days a year. A successful development will be such that it will attract people downtown regardless of what is going on in the building.”
People think in terms of excellence, including success, wealth achievements, and gracious living. We feel uncomfortable about things at the lower end of the scale. We become anxious about peoples and nations in the grip of poverty. It makes us uneasy and often guilty to think of starving children and realize what bounties we have in America. Yet we should always bear in mind that poor people cannot help poor people. What we can do, however, is to condition ourselves to speak out and stand up for those things in which we believe. To do this effectively, we must first have faith – faith in self, faith in God, faith in our convictions. Once these conditions are met, you will be amazed at how easy it is to speak out.
From that point forward it became more demanding and more exhausting. Our lives had been taken away. There were Thursday meetings, Saturday events, Sunday night meetings, conferences, etc. We just lost control of it all. And on top of everything else, we were losing money, not gaining money. Finally, in mid-December, I told our mentors we couldn't do it any longer. Their first response was to blame my father who I had mentioned was skeptical (like any normal person would be). They immediately assumed he had forced us to quit when it was honestly our own decision. My dad was supportive. The next day we were cut out of their delusional lives completely. We were de-friended and blocked on social media and never to speak a word to us again.
The Recording Industry Association of America (RIAA), as part of its anti-piracy efforts, sued Amway and several distributors in 1996, alleging that copyrighted music was used on "highly profitable" training videotapes.[145] Amway denied wrongdoing, blaming the case on a misunderstanding by distributors, and settled the case out of court for $9 million.[146] In a related lawsuit initiated by the distributors involved, the Court established that Mahaleel Lee Luster, who had been contracted to make the videotapes, had violated copyright without the knowledge of three of the five of those distributors.[147]

It is rare to see poverty mentioned in Amway’s literature. When it is, it’s usually in the context of an Amway distributor having escaped it. Success is equated with wealth. With wealth is promised an enhanced way of life, one crafted of your own dreams – and Amway gives you The Plan to achieve that life. To let your attention stray from The Plan is to invite doubt and negative thinking, which can only result in failure. ‘As successful distributors tell people they are recruiting, the pursuit of excellence can be achieved only when they discipline themselves to tune in the positive dialogues and tune out the negative ones,’ says Cross. Poverty makes us feel bad. Feeling bad is negative. Negativity causes failure. It makes poverty feel contagious. So don’t think about it.


Hence, even in a legitimate MLM business like Amway, it is important to enter early. Those entering the business at the lower levels, find it difficult to get on new distributors and also end up with a lot of unsold inventory, thus leading to losses. Amway requires its distributors to buy back unsold inventory from the new distributors that they sponsor. But that is easier said than done.
Similar to previous years, the Amway Global Entrepreneurship Report features the Amway Entrepreneurial Spirit Index (AESI). Introduced in 2015, the AESI measures three dimensions that influence a person’s intention to start a business: desire, feasibility and stability against social pressure. The average for all countries slightly declined from 50 to 47. In the U.S., AESI score was 54, similar to recent years (2016: 56 and 2015: 53). Additionally:
High-ranking Amway leaders such as Richard DeVos and Dexter Yager were owners and members of the board of Gospel Films, a producer of movies and books geared toward conservative Christians, as well as co-owners (along with Salem Communications) of a right-wing, Christian nonprofit called Gospel Communications International.[74][85][87][88][89] Yager, interviewed on 60 Minutes in 1983, admitted that he promotes Christianity through his Amway group, but stated that this might not be the case in other Amway groups.[90][need quotation to verify]
So you say you are successful at it. What level are you at, how many down lines do you have, how many friends have you lost, how many hours per week to you put into it after you have worked your full time job. What $ amount do you spend per month on products for your up line which inevitably reduces any bonus you made that month. If everyone that says they are successful would please answer these questions I do believe the truth will come out. My sons up line make it to platinum in 7 long years of tireless long hours. His group consists of rather low class individuals, quite uneducated. He has been at Platinum 6 years. He also instincts no tv, no sports, no social media. He wanted everyone on the bus to make each 100 phone calls. I thought I was going to come unglued on him trying to dictate his orders. You tell me...Is it worth loosing your entire friendships you have had for many years, lost relationships with family, constant stress and demands from up line to boost his bonus, juggling a coaching job, putting all pressures on wife to micro manage everything and do to her stress after coaching all day she has list and enormous amount of weight to a size 00. My son only 28 had developed wrinkles, very noticeable in 2 years. At the cost of all that for $500 a month extra income but yet they spend over that in product each month. It's totally insane. Look to each there own. I tried it but the convention in Kentucky was what complet turned me off. Dead head from Dallas, one stop for gas. No sleep, run to Friday night meeting. Up till 3 then back up at 6:00. And it just wasn't me not getting any sleep. This is how they hook you because you can not think rational being sleep deprived. Packed weekend with meeting from Diamond leaders that had nothing intelligent to speak about. Then the Sunday morning sermon comes. So ok, I go along for a bit but the ploy to have people go down firth, he is not an ordained minister, started trying to sleek in tongue. I totally walked out went back to the hotel lobby and was angry. It felt like they were playing with my intelligence. Now where do you think those donations those poor suckers fave, why lined in his pockets of course. The tickets, bus, hotel cost over $400 plus snack, drinks etc. I wasn't stupid enough to buy into the KTD materials but if course son and daughter n law did. They go to 3 conferences a year. For what. Listen to a woman Brahe about her mansion, 7 bathrooms. $4000 pots on her front porch. Yeh the say they made it to the big time but in reality most don't. No way in gods green earth would I waste Moët that frigiously. Not to mention 7 Arabian horses. Who doesn't want to be rich. I just not a conformist to be dictated to what my religious beliefs should be. They twist every in the bible and demand the group(new family) to followvstrictsborders from Plat leader. All he does is warp people's minds, tear them down and mold them into mini Joel. That's brainwashing and it is against the law. Before its all said and done I'm bringing him down for the the turmoil he has put my son in and pain he had caused me. It's not suppose to be be like that but what I saw was nothing short of what a. I hope someone reapeobs
© 2018 Money After Graduation Inc. - All rights reserved. Money After Graduation, MAG, and coin logo are service marks of Money After Graduation Inc. Other marks contained on this website are the property of their respective owners. Money After Graduation Inc. is not licensed by or affiliated with any third-party marks on its website and they do not endorse, authorize, or sponsor content except as noted herein. Please read our Privacy Policy and Terms of Use.

Do you want instant access to the #1 Attraction Marketing System in the world today for all network marketers/home business owners? If you want to start generating 10-20 + leads everyday, sign up more IBO’s, build a strong Amway Global team/organization, as you’ll learn how to become a 6 figure earner in the direct sales/network marketing industry… You need to Watch Video Below!
Amway conducted a four-month evaluation of different IoT platforms, ultimately choosing AWS IoT. AWS’s scalability, global presence, maturity in the IoT space, security, and outstanding professional services were the deciding factors for Amway. “We do business in more than 100 countries and territories, and we had no idea how much data-center capacity we would need from an IoT perspective,” says Mike Gartner, senior IoT platform architect at Amway.
Brad spoke in parables: There was Brad’s father-in-law, who, upon being given a brand-new souped-up truck, sat down and wept. After a few years, the “newness wore off,” so Brad again bought him the latest model. And again his father-in-law sat down and wept. (Brad’s own fluid dynamics were more spectacular: When he first saw the jazzed-up truck, he admitted, “urine streamed down” his pant legs.)
Amway is not a pyramid scheme. It's very tough to be successful because you have to become a leader and set the example for your downline. The reason why everyone has to attend the meetings and functions are because of 3 reasons: 1) It educates people into having a Business Owner Mindset 2) It keeps people motivated and positive because it's tough and people give a lot of hate 3) Money is raised so that people get paid. Even if there are cons to the the prices and meetings, thats how the business works. You can't change a business if you don't like it. You can't do what you want in regular jobs. You have to work with whatever you have. In addition, in every business there will always be people dominating at the top and people at the bottom. The difference between these people is that the ones at the top used a certain way to get to the top. Working hard doesn't necessarily mean you'll be successful. You also have to work smart. So to finish up, Amway is not a traditional business because you don't need a degree to do it. It is a business though, so you need to work at it the way it has to be worked (MLM) to be successful.
Top: Gubernatorial candidate Dick DeVos shakes hands while campaigning with wife Betsy and Arizona Senator John McCain. Bottom left: Betsy DeVos and President George H.W. Bush at a 2000 campaign fundraiser for George W. Bush. Bottom right: In 2004, Betsy DeVos campaigns with Representatives Mike Rogers and Candice Miller. | Regina H. Boone/TNS/ZUMAPRESS.com; AP Photos
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.
“These are volatile demand products,” Dr. Calvert stated. “If something like the Asian flu breaks out, there are huge spikes in demand – 100 to 200 percent spikes.”  Further, if made in the U.S., these become long lead time supply chains. To source the circuit boards from Asia, ship them to the U.S. and make them here, and then ship the products back to Asia requires 130 days in lead time. By making the products in Asia, the lead time shrinks to 25 days. This makes Amway more responsive to demand surges and means there are fewer lost sales. There are also tariff savings from making products, and sourcing components, from nations where the products will be purchased.
The next evening (Sunday because that's URA's phone session night) I received a call from the girl. I missed the call but immediately called her back thinking she was wanting to make dinner plans or something along those lines. She began talking about this cool business opportunity she has and felt like we would be perfect for it! The way she explained it made it sound legit. She said it was a company who endorses major brand products online, etc., etc. I was intrigued at first. They had us in the palm of their hands. When I hung up the phone, my husband immediately said "They're using us. This is some MLM scam." I believed him, but I had liked the couple so much I didn't want to lose their friendship, so we decided to just try it out. See if it's for us.

I was completely unsuspecting and was actually quite excited about this opportunity. I was supposed to have dinner with him and his mentor but we had to take a rain check on it due to my school commitments. His mentor ended up explaining some stuff to me via a Skype video call. He mentioned their “hub” where I could buy products I buy regularly anyway. Stuff like toilet papers, energy drinks, supplements, etc. He said I could save $600 just by purchasing this stuff through this hub.
I know the business can work for those who want to fully commit to it, but Amway businesses are full of fake people who are just using you for their own advantage. They like to claim they are not an MLM or a pyramid scheme, but they are still a scheme in a different way. They've just made the pyramid more like a circle and claim it's a totally new concept. Again, I'm not saying it can't work, but it is still a scheme for most people. Find financial peace and contentment in your day-to-day job income. Don't look for schemes to bring you that peace because most of the time you will never find that peace, even if it does work. Be cautious.
In the 1979 ruling In re. Amway Corp., the Federal Trade Commission determined that Quixtar predecessor Amway was not an illegal pyramid scheme because no payments were made for recruitment. In addition, Amway (and later Quixtar) rules required distributors to sell to at least 10 retail customers per month, or have $100 in product sales, or a total of 50 PV from customer purchases in order to qualify for bonuses on downline volume. Quixtar IBOs are required to report this customer volume on Quixtar.com or they do not receive bonuses on downline volume. Furthermore, an IBO must also personally sell or use at least 70% of the products personally purchased each month.[10] The FTC established that these rules help prevent inventory loading and other potential abuses of the marketing model.
The Amwayers who had brought me to Dream Night were flying high on the drive home, whooping occasionally just to vent their exhilaration. I felt as though I had just sat through a year’s worth of infomercials, with some high school pep rallies and a few Tony Robbins lectures thrown in. But to see all this as an exercise in mass hypnosis, according to Amway’s literature, would be to “misunderstand” what is, simply, “the best business opportunity in the world”—an assessment, strangely enough, with which the rest of world is starting to agree.
On August 9, 2007, a group of Quixtar distributors, including founders of the TEAM training organization, filed a lawsuit seeking to enjoin Quixtar from enforcing its distributor contracts, including the non-competition and non-solicitation provisions. The plaintiffs alleged that the company knowingly operates as a pyramid scheme, and prevents its distributors from leaving the organization through the aforementioned provisions.
×