2. Amway is notably owned by author and owner of Orlando Magic basketball team Rich Devos and Chairman of US Chamber of Commerce, Steve Van Andel. Pretty sure the government would not have the owner of an illegal pyramid scheme as their Chairman and could definitely find Mr Devos Courtside at a game to arrest him for his 11 billion dollar illegal business.
Before we get into a detailed discussion on whether Amway is a Ponzi scheme or not, it is important to understand how Amway and other multi-level marketing(MLM) companies go about their business. An MLM company like Amway appoints independent distributors to sell its products. Amway sells products like diet supplements, toothpastes, shampoos, multi-purpose liquid cleaners, soaps, grooming products etc. These distributors are not employees of the company. They make money by selling Amway products.
Amway business owners span the globe, from the Americas to Europe, India and Africa to Greater China and the Asia-Pacific region. The company’s low-cost, low-risk business model sets IBOs up to reach their goals. It quickly and efficiently addresses the needs that may vary according to geography and culture. Details large and small, from navigating local selling regulations to product sizes and brand preferences, are coordinated in conjunction with local governments, business owners and consumers.
Methodology: Source Euromonitor International Limited. Claim verification based on Euromonitor research and methodology for Amway Corporation conducted from April to May 2012. Euromonitor studied ten leading direct selling companies in Brazil, as provided by Amway, and through interviews with company distributors and company employees Euromonitor tried to determine if any of the companies had implemented an internal Facebook page exclusive to distributors that provides tools for customization, retailing and content management. None of the ten leading direct selling companies had this capability at the time of the research. To the extent permissible, Euromonitor does not accept or assume responsibility to any third party in respect of this claim. Further information is available upon request.
Best way to deal with these kinds of people is to throw all of your own rationality out the window. Make up the most ridiculous arguements and stick to them even when they give rational responses. Explain that aliens came to you last night and specifically told you that selling such a product would result in the destruction of the galaxy. Then put THEM on the defensive after they keep pushing while clearly not caring if trillions of lives are extinguished just so they can make a buck.
How do they sell those products? Not in retail stores – Amway distributors can only sell their products directly to the public, or to other Amway distributors. This may not seem so bad until one considers that the price point for many Amway products has been reported to be about twice that of similar products found in retail stores. Or that in blind tests, Amway products often score poorly.
Occasionally, though, it can be useful to mention poverty in a certain context. Inspired by the personal and business philosophies of DeVos and Van Andel, Cross spent the ten years after writing Commitment to Excellence researching the two men, culminating in his 1995 self-help book Choices with Clout: How to Make Things Happen – by Making the Right Decisions Every Day of Your Life. Much of the book is compiled from interviews with the Amway founders and top-level distributors. In a passage about excellence, Van Andel outlines the proper way for an Amway distributor to rationalize the issue of poverty:
Thanks to the DeVoses, Michigan’s charter schools enjoy a virtually unregulated existence. Thanks to them, too, the center of the American automotive industry and birthplace of the modern labor movement is now a right-to-work state. They’ve funded campaigns to elect state legislators, established advocacy organizations to lobby them, buttressed their allies and primaried those they disagree with, spending at least $100 million on political campaigns and causes over the past 20 years. “The DeVos family has been far more successful not having the governor’s seat than if they had won it,” says Richard Czuba, the owner of the Glengariff Group, a bipartisan polling firm in Michigan. “They have, to some degree, created a shadow state party. And it’s been pretty darn effective.”