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.
But there is one thing that we need to understand here. Like in an MLM scheme which is a Ponzi scheme, the business that an Amway distributor does, depends on finding new distributors and then hoping that these new distributors sell Amway products and at the same time are able to appoint newer distributors. If a distributor is successful at this he makes more and more money. The trouble is that we go along it becomes more difficult to appoint new distributors. Lets try and understand this through an example. Lets say the first distributor that a genuine MLM company appoints, in turn appoints five distributors.
Amway can't be a scam if the FTC uses it as a benchmark for all network marketing companies. It was probably a person that you had an experience with that wasn't a good person. I have encountered some myself outside of working with amway. Some were my friends, some were my coworkers, and some were even my family. Be careful about some of the people you work with!
In 2011, Nutrilite brand of vitamins and dietary supplements led Amway's sales, totaling almost $4.7 billion. According to Euromonitor International, in 2014, Nutrilite was the world's No. 1 selling vitamins and dietary supplements brand. In 2015, it was reported that according to Euromonitor International, Amway was the largest vitamin and dietary supplement vendor in China, with 11% of a market that generated 100 billion yuan ($15.6 billion) in annual sales. In 2015, it was reported that according to China Confidential consumer brands survey, Amway Nutrilite was the most popular vitamin and dietary supplement brand in China.
In this, Dick and Betsy DeVos’ familial roots serve as an object example. Dick is the eldest son of Richard DeVos, who co-founded Amway in 1959, and grew it from a meager soap factory into a multinational colossus with $9.5 billion in annual sales, enlisting his children to manage and expand the company. Betsy hails from a dynasty of her own. In 1965, her father, Edgar Prince, founded a small manufacturing company that came to be worth more than $1 billion on the strength of Prince’s automotive innovations, which include the pull-down sun visor with a built-in light-up vanity mirror.
The 12-step shtick was a ready justification for the cult-like regimen of World Wide followers. Like alcoholics, wage junkies had to attend frequent meetings, supplemented with books and tapes, to keep on track; they had to dissociate themselves from bad influences, i.e. “broke” friends and relatives who would try to keep them down; they had to follow “Eight Core Steps” (four of which involved buying stuff from either Amway or World Wide Dreambuilders); and they had to let go of their ego and overcome their fear of change, to open themselves to the counseling of their upline “sponsors.” Sponsoring, as in Alcoholics Anonymous, was an act of love and healing. Your uplines would never mislead you, even if their wisdom might seem strange to your still job-addled mind.
While the whirlwind of meetings and events were great for cultivating denial, they seemed to do little to help distributors develop “strong and profitable businesses.” Nor were they much good for attracting new blood into The Business. With the exception of First Looks, their extreme cultishness was distinctly off-putting to newcomers. Still, Josh, Jean, and Sherri continued to make the mistake of indiscriminately taking prospects to whatever meeting was going on. Even a Second Look (described ominously as more “motivational” and less informational than a First Look) was inadvisable for outsiders, as Sherri discovered when she took her friend Elizabeth to one.
eSpring was the first commercial product which employed Fulton Innovation's eCoupled wireless power induction technology. 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. Companies licensing this technology include Visteon, Herman Miller, Motorola and Mobility Electronics. Fulton was a founding member of the Wireless Power Consortium which developed the Qi (inductive power standard).
It’s a myth that’s hard to resist—insofar as the exchange floor and the casino offer dramatic visible spectacles of people getting rich while real wealth-creation is the arcane stuff of productivity figures and efficiency studies—but it has tragic consequences for people like Josh and Jean. Perfectly capable of leading enjoyable lives, they nonetheless surround themselves with Amway propaganda, subsist on Amway food, immerse themselves in Amway culture, think in Amway jargon, and siphon their income to Greg Duncan in the hopes of learning the “secret” of his wealth.
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.
Imagine that you’ve struck a deal with a company to give you discounts for buying in bulk: If you buy $100 worth of stuff, they’ll send you a 3 percent rebate. For $300 or more, it goes up to 6 percent, $600 or more, 9 percent, and so on up to $7,500 and 25 percent. Now, let’s say you’re unable to spend more than $100 a month, but manage to get seventy-four other people to go in with you. Together, you spend $7,500 and divide up the 25 percent rebate. Everyone saves money, and the rebate is shared equally. That’s the idea behind a consumer co-op or wholesale buying club.