At the end of the day, they deliberately do not keep records to show if they earn more money from recruiting or from sale of products. People that are recruited are mandated to buy products and how do we tell the difference between people who joined Amway for the discounted prices and those who joined for the income opportunity but were unable to recruit? Everyone is bundled together so we will never know.
Amway gives some idea of real chances for success in its “Amway Business Review” pamphlet, which the FTC requires it provide to all prospects. The “Business Review” is an ingenious mixture of mandated honesty and obfuscatory spin: The average monthly gross income for “active” distributors, for instance, is revealed to be a meager $65 a month; but the “Review” leaves out the median income and the net profit, both of which would probably be negative. Likewise, it states that “2 percent of all ‘active’ distributors who sponsor others and approximately 1 percent of all ‘active’ distributors met Direct Distributor qualification requirements during the survey period.” From this, it derives the optimistic conclusion that “once again, the survey demonstrates a substantial increase in achievement for those who share the business with others.” Increase implies that there are some non-sharing distributors who succeed; an alternate reading of the statistics would be that all distributors try to share, none succeed without sharing, but only half are able to share. It’s also a measure of Amway’s PR savvy that every article I’ve seen (even the critical ones) that mentions the number of Directs uses the 2 percent, rather than the more accurate 1 percent, figure.
Ironically, the people who quit Amway and claim to be experts at it probably never even really understood the business. This is apparent by their complaints, the top complaint I hear being “Oh you have to buy a bunch of product every month…” So lets clear that misconception up. .. Think about a mall for a second…. Malls have stores in them right??? Lets say you OWN a mall. And lets say that I own Best Buy. I go to you and say “hey can I put a Best Buy in your mall?” You say “yeah, sure”… So because YOUR mall sells MY product does that mean that YOU work FOR ME? Of course not, it just means that I am a supplier of your business… Now,..lets use logic here...IF you owned the Mall...and you needed to buy a TV...where would you buy it from?.....Well if you're capable of thinking like a business owner, the answer is you would buy it from YOUR MALL..Because a business owner supports his own business, always. When you own a business you never support your competitors. So how does this tie into what Amway does.. Amway supplies you with a business that is really like an online mall. This mall is filled with stores that Amway networks with such as Nike, Best Buy, Nutrilite, Forever 21, Banana Republic, XS Energy Drinks,..(many more). So if you use your head hear and think about it, AMWAY is an excellent business model. It creates the most loyal consumers in the world. Because these consumers are also owners! They are owners of their own online mall, and within this mall are stores that THEY WERE ALREADY SHOPPING AT. And the stores within your mall don’t even have to advertise to you, because you’re already incentivized to shop through them…because you OWN a mall that sells their stuff!! So ,.. when you are an AMWAY Independent Business owner…no, there is no REQUIREMENT for you to spend a monthly quota on AMWAY products…..But you’re not very smart if you don’t spend money through your business ....because they are YOUR products…You OWN a business..and you’re not even supporting your own company…. The key is not to just haphazardly purchase Amway products…its to SHIFT your purchasing to stop buying from other stores and support your OWN store…NOT spend EXTRA. I can supply my own home with my Amway business,.. I used to buy Tide Detergent, now I buy Legacy of Clean because its MY product…I used to take GNC vitamins, Now I only buy Nutrilite because its MY product…I used to drink Red Bull…Now I drink XS because its MY product… And in addition, you do not have to be great at sales…You don’t need a lot of customers! This industry is not about getting 100 customers…its about getting 1 to a few customers …and YOU being YOUR OWN best customer. You teach someone smart how to do the same thing. Duplicate that a few times. And you’re retired. Not easy. But what sounds better to you (speaking to Generation Y and younger),…working for 30, 40, 50 years and never being able to retire because our generation WILL NOT be able to retire the same way our parents did… or building the Amway business for 2 – 3 years and never having to work again. Read “Business of the 21st Century” by Robert Kiyosaki” if you want to know more about the industry and why it’s the PREFERRED business model of our times.
It may come as a surprise to Jessica and Richard, but 50% of all people are below average. IBOs are successful only if they exploit those that are feeble minded enough to buy Amway's crappy products: i.e cleaning products loaded up with salt. No ethical person would consider doing this. If the average IBO income is only about $200 and the median a lot less ~$30, then the scam is obvious! Perhaps Richard and Jessica always load up on Lotto tickets because the potential return is huge. Richard loves to focus on the good stuff and gets blinded by the false hope. Don't be a sucker, MLM is a scam.
I work in the car business. Most people in the US can't reasonably afford the vehicles they drive. People are getting more and more upside down in cars. Terms are getting longer, down payments smaller, most trades have negative equity and inflation is increasing the cost of cars while wages aren't rising proportionately. I have money but I avoid paying bills or interest. I could pay cash for a lot of new cars today but I drive a 2000 year model family sedan I payed $1900 for. I have good ac, comfortable seats, it's reliable, I have aftermarket Bluetooth, it's all power etc, good stereo and a very low cost of ownership. I pay less than $40/month for insurance.New cars just aren't the best investment. New cars are rapidly depreciating status symbols. I'm well off but don't care to advertise it. If you have so much money that you can afford it go for it but the truth is that most people can't afford what they have. I'm not just talking about poor people with new Sentras or Rios but mostly middle class people. If they make $24,000 they buy a $20,000 car, if they make $48,000 they buy a $40,000 car and if they make $80,000 they buy two $50,000 vehicles.
Of the Amway distributors who testified in the case, Rich says, ‘I have nothing against someone who tries Amway and concludes the business is not for them. But I wish they would take responsibility for their own actions instead of trying to blame the business.’ Likewise naysayers and disgruntled former Amway distributors simply do not understand how business works and are at fault for their own failures because they lack faith in their ability to succeed, and thus the necessary determination.
In Amway's eyes, your friends and family are all potential cash cows you should be milking -- you're trained to go after the people closest to you first (to rack up those sweet pity sales). "I was thinking that every friend that didn't join my network didn't want success for himself or me, that he was somehow against me." This crazy train of thought led Kyritsis to harass his loved ones in an attempt to better their lives. Desperate to convince someone of the amazing untapped Amway potential, Kyritsis pushed the Amway rhetoric on anyone who would listen, especially his girlfriend. He would tell her that her studies were pointless when she could be making so much more money, dragging her to seminars and showing her the Amway tapes like a really boring version of The Ring.
William Keep, dean of the College of New Jersey’s School of Business, and a pyramid scheme critic, told Bloomberg earlier this year that “in terms of sending clear signals to the industry, the F.T.C. has done worse than nothing since 1979. It sends confusing signals that have in no way helped us understand how to identify a multilevel marketing company that may be a pyramid scheme.”
I absolutely agree with this post! I was recently approached by a friend to attend a “business meeting” regarding a “great business opportunity on the Internet” but he did not wanted to say anything until the meeting happened with him and his friend, who supposedly was the owner of this business venture. When I arrived to the “meeting” Suprise! I saw other friends there and about 300+ other unknown people. Immediately warning bells started ringing and I knew it was a pyramid scam anyhow, I stayed for the meeting and indeed by the end my suspicions were confirmed and it became quite obvious that the my friend’s friend was the recruiter. A few days later I heard back from a very close friend of mine who had also been approached and attended a separate meeting, she questioned me about it because the recruiter told her that I was “very excited at joining this venture” which of course was an absolute LIE and an obvious attempt to manipulate and pressure her to join! After two weeks, the recruiter contacted me ACCUSING ME of stealing a USED lip gloss from his wife the day of the so called meeting and then proceeded to ask me why hasn’t he heard back from me?!?! Could you imagine? The freaking nerve of these people!!!! Of course I put him in his place and hope that he never, ever dares to contact me again because if he does I will file a complaint for harassment!!
Scott confidently reprised decades’ worth of conservative alarmism, invoking inflation and national debt and other flat-earth bugbears in a doomsday routine as charmingly archaic as it was fatuous. An accurate narrative of the last few decades—growing productivity, GDP, and per-capita income, accompanied by a massive upward redistribution of wealth—would hardly have packed the millennial portent Scott was looking for. The Second Wave, like Communism, like all the works of man, was destined to decay and collapse, making way for the coming entrepreneurial kingdom—which, for those who lacked faith or zeal, would bring a day of reckoning. Were we ready? To prove he “wasn’t making this crazy stuff up,” he littered the floor with copies of Fortune, Money, and Forbes, citing the relevant disaster stories. I felt like I was back at ENTERPRISE 2020.
Amway: The True Story of the Company That Transformed the Lives of Millions reads like an extended advertisement. Its author, Wilbur Cross, became acquainted with Amway cofounders Rich DeVos and Jay Van Andel when they commissioned him to write the first ‘official’ history of the Amway Corporation, Commitment to Excellence, published in 1986. In Amway, Cross repeatedly references the work of Shad Helmstetter, PhD, a ‘motivational expert’ specializing in ‘programming’ yourself to change negative self-talk into positive self-talk. Negativity is expressly verboten in the world of Amway, as it breeds doubt – distributors are advised to get rid of any negative people in their downline as soon as possible if they can’t train them to be positive.
‘As long as you’re a golf member, you’re open to playing all the tournaments and games,’ Dale says to me. ‘There’s something for the ladies, and then if couples play together, we have a couples’ golf on Sundays. We have a senior group, and then a young under-forty-year-old guy group.’ He shows me a schedule pinned to a corkboard near the door. ‘These are kind of the core golf groups. And then we have a formal Men’s Golf Association as well, one tournament per month. If they win that tournament, there are parking spots up for grabs, if you want a nice parking spot – or some trophies. You know, when you love a game and you watch it on TV, to be able to still play it and go out there with a large group of guys, and then win a tournament? These guys are having a blast. They feel like they’re on the PGA Tour. That’s what it’s all about.’
WHAT IS YOUR DREAM? demanded a booming voice. The ballroom went dark and the audience settled in for a fifteen minute video catalogue of the stuff dreams are made of: a blur of luxury cars, sprawling mansions, frolicking children, pristine beaches, hot-dogging jet-skiers, private helipads, and zooming jets—all set to caffeinated, John-Teshy instrumental music. The voice returned: “It’s about family!” (A shot of kids collapsing on an oceanic lawn, love-tackled by Dad.) “It’s about security!” (A shot of a palatial house.) “It’s about you!” (A close-up of toes, gently lapped by the incoming tide, wriggling in white sand.)
As its hands reached “midnight,” the Rolex dissolved into a series of video montages depicting the consumer Shangri-La that our own forthcoming Amway success would open for us. We leered as a day in the life of a typical jobholder—all alarm clocks, traffic jams, and dingy cubicles—was contrasted with that of an Amway distributor, who slept in and lounged the day away with his family. We gawked hungrily as real-life Amway millionaires strutted about sprawling estates (proudly referred to as “family compounds”) and explained that such opulence was ours for the asking. We chortled as a highway patrolman stopped an expensive sports car for speeding—only to ride away a moment later with an Amway sample kit strapped to his motorcycle. Our laughter became a roar of delight as the camera zoomed in on the sports car’s bumper sticker: “JOBLESS … AND RICH!”
So why do we see so many scam reviews and unhappy members that smear Amway in a bad way? Quite simple – MLM is one of the most difficult methods of earning, and you will have to do some hard work and teach yourself some proper marketing skills in order to go far in this industry. Many people find it difficult to communicate with other people face to face or voice to voice. Cold calling is necessary with MLM if you want to make money. If you have a fear of that then the opportunity is simply going to waste your efforts and money period.
When it comes down to it, Amway has been in business for more than half a century, and they pay according to their compensation plan. As such, despite their negative general reputation, they do not fit the traditional definition of a scam. However, if you’re thinking about becoming an Amway Independent Business Owner, there are several things you should keep in mind.
Interspersed with Dream Night’s audiovisual assaults were six Castro-length harangues, which toggled along in a sort of good coach, bad coach routine: One youngish Amway Diamond would assure us that we could do it!, after which an older, sterner Diamond hectored us to stop making excuses for not doing it. The evening closed as we all held hands and sang “God Bless America”—and then broke into a triumphal cheer.
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.
I really hope he does break up with you if you can’t support his dreams. You are going to ruin someone who is going to be a great leaders for his family one day. He understands that if he doesnt own, he will be owned by his job. For you to believe more in your 4 year, no guarantee, probably have student loan debt education will really help separate you from the masses but question his partnership with an 11 billion dollar corporation that is #1 online and has given him something he can own is sad. If he were studying to be a doctor and hung out all day at the hospital with other doctors and went to medical seminars and studied audios or videos from physicians that came before him, you’d probably say he was focused or determined. But because his dream is different from the masses and you can’t understand it, you condemn him on a blog ran by faceless people who don’t give a damn about you or him. Macy’s is closing over 200 stores and capitalizing on online marketing and sales. Walmart also. Your boyfriend decided to put himself in the way of that online traffic. I believe he will be successful in 5 years if he keeps working hard and not let you steal his dream. Stop trying to get him to join you on the 40hours for 40years plan.
Maria you must be committed to the business and do what the business tells you to do. Many people leave Amway simply because their upline wasn’t a great leader for them and eventually they lose confidence in themselves. The business requires you to buy their products monthly and recruit people into the business for PV. The amount of PV determines your level in the business. There is too much to explain. Speak to an IBO about the plan. All I can tell you is that the business is great, they offer you bonuses once you begin succeeding your way through, but it is up to you how far you go in the business. Just like any business, you must invest. One man made it to the Emerald level (around $10,000/per month +bonuses) in ONE YEAR. It all depends on how much you want to succeed. I am in Team Vision and I am glad I found this gem of a company. Good Luck to you if you apply!
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.
In 2004, Dateline NBC featured a critical report based on a yearlong undercover investigation of business practices of Quixtar. The report noted that the average distributor makes only about $1,400 per year and that many of the "high level distributors singing the praises of Quixtar" are actually "making most of their money by selling motivational books, tapes and seminars; not Quixtar's cosmetics, soaps, and electronics".
Quixtar relies primarily on person-to-person referral rather than advertisements for sale of products; however, Quixtar has recently announced the launch of a multimillion-dollar ad campaign. A large part of the marketing budget is spent on paying bonuses to distributors. IBOs were paid more than $370.1 million in bonuses and incentives in fiscal year 2006.. Bonuses are paid for individual sales and sales generated by people one sponsors but not for sponsoring itself.
Betsy’s campaigning earned the attention of the Ford team, which tapped her to attend that year's Republican National Convention in Kansas City as a participant in the “Presidentials” program for young Republicans. The budding politicos attended training on campaign strategy and political techniques, and were divided into groups based on geography so that they could get acquainted with potential allies from their home states. There were also more practical desires for a squadron of young volunteers at a contested convention: “Anywhere there needed to be noise, there were always kids,” Betsy Prince told a reporter for the Holland Sentinel in 1976 (“Betsy Helps Cheer Ford Through in Kansas City,” read the headline, beside a photo of a T-shirt-clad Betsy sporting a feathered, Farrah Fawcett-lite hairdo).
That fucking guy tricked me to go to their zombie meeting, I got there and it looked like a little family meeting, I was lost as I kept asking the guy what’s the business is about and what am I going to do, what’s the description but he kept avoiding my questions. He gave me his website the day prior but I could not see what it was about. He kept saying that he was going to help me to have financial freedom as they have a strong network where they deal with professionals who work with Bestbuy, lululemon, etc. I can’t believe I actually went there, please slap me, I deserve it! That’s the dumbest shit I’ve ever done, I spent two hours of my fucking time to go listen to blood suckers. I feel like I deserve a good slap by allowing myself to go there. I’m so fucking pissed off.
In July 1996, Amway co-founder Richard DeVos was honored at a $3 million fundraiser for the Republican Party, and a week later, it was reported that Amway had tried to donate $1.3 million to pay for Republican "infomercials" and televising of the GOP convention on Pat Robertson's Family Channel, but backed off when Democrats criticized the donation as a ploy to avoid campaign-finance restrictions.
‘We’ve got a little bit of surge here,’ he says. ‘Water levels are high. This is the Bayou Crossing Waterway. That way would take you out to Boca Ciega Bay, and eventually the Gulf of Mexico. When there’s a huge tidal surge, these live bodies of water, the Bayou Crossing Waterway, feeds into, and overflows into, all these lakes and bayous around the course. And then when the water recedes, any fish and the water that gets in there gets trapped in there and can’t get out.’
Some people can still see through all this that Amway is a pyramid scheme but the FTC needs income statements to close the company down. This is how the company has been able to operate for the past 50 years. The FTC does not help either. Because they do not have an explicit definition of a pyramid scheme, they are leaving the model of a lot of MLMs up for debate.
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.”