The way they sell it is by leveraging people with wide networks of friends (people who are good at creating new acquaintances) who are also sociopathic enough to put a dollar figure on their relationships. You might make a living wage in such a career. You might get a pink cadillac from mary kay. It's a maybe. You might end up out on your ass if you can't make enough money doing this and you sink all your money and time into it.
Rallies begin with a ritual called “crossing the stage,” in which distributors who have attained a new bonus level go up to receive their commemorative pin and shake hands with a Diamond. From the crowd of about five hundred, two couples “crossed” at the 1,000 PV level (the lowest warranting a pin) and received a standing ovation from the audience. From the stage, the host then called out all the levels from 1,500 PV to 7,500 PV. Nobody emerged from the audience—which, nonetheless, remained on its feet applauding. The host kept cajoling, “C’mon, there’s plenty of room up here,” as if it were shyness that was keeping people away. It was the archetypal Amway moment: a crowd giving a standing ovation to nobody.
We exit onto the back patio. It overlooks the pool on the lower level and the golf course, bordered by houses of the Bayou Club community. It’s begun to rain lightly, but the sun is still out. We pass through an outdoor dining area and reenter through the fitness center: a room the size of a small apartment with mirrored walls, two rows of exercise machines, and a flat-screen TV mounted in the corner. A man and a woman exercise separately.
But the problem with “public franchises” like McDonald’s, Scott noted, is that they only allow one person to enjoy this enchanted income. “Private” or “multilevel” franchises, on the other hand, allow people at all levels to duplicate themselves. Everyone begins as a grit-teeth franchise operator, but by “sharing their business with others” they would come into an exponentially expanding avalanche of wealth large enough to outrun the ballooning costs of twentieth-century life.
You WILL be cornered and they WILL try to convince you. Their biggest obstacle is people who have heard a bit about it and don't want to join and their biggest desire is that you join under them. They spend a lot of time practicing this and anyone remotely successful at it will be very difficult to get away from. They'll have all their arguments sorted out, answers to any reason you give, defences to your accusations and will try to flip it around and put you on the defensive, making you have to explain in detail why you won't join shooting each reason down as you try. But it's all BS.
The Amway Corporation was founded in 1959, ostensibly as a small-scale manufacturer of “biodegradable” detergents (beginning with Liquid Organic Cleaner, the patent for which Amway acquired from a struggling Detroit scientist). It has since grown into a $6 billion-a-year consumer-products behemoth selling everything from groceries to lingerie to water filtration systems. These products aren’t available in stores, though. The key to Amway’s success is its curious distribution system: Instead of using retail outlets and mass-media advertising, Amway licenses individual “distributors” to sell its goods from their homes. The distributors are independent franchisees; they buy products from Amway at wholesale and resell them at the “suggested retail” price, pocketing the difference as profit. Distributors are also paid a percentage of their sales (from 3 percent to 25 percent) by Amway itself. But the detail that distinguishes Amway’s “multilevel marketing” scheme is that it rewards distributors for bringing new recruits into the sales force. Distributors get a cut not only of their own sales revenues, but of sales made by their recruits, their recruits’ recruits and their recruits’ recruits’ recruits, a branching pyramid of lineally descended Amwayers known as a distributor’s “downline.”
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.”
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.
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!
"The worst thing that happened was the 'list.' My parents are both members of a nonreligious spiritual organization, and they volunteered to keep the other members up to speed regarding upcoming events and meetings. So, they had an extensive list, with hundreds of names and phone numbers. I had asked my mother for that list, and she understandably said no. A while later, having exhausted my personal list, I went behind her back, made a copy of her list, and started cold calling them. When my mother found out, she was furious. This led to a huge fight, and soon after I left home and went to live with my grandmother. More than a year passed before I spoke again with my parents or sisters."
You don't have an entrepreneurial mind. If you really think the products are overpriced and equal to what you can buy at Walmart - then keep buying at Walmart. I know that many of their products are way above the average. Amway is not unethical. They are offering you that opportunity of selling top products to people you meet. But if you have no sales skills, you will not be able to make it in direct sales. This is not Amway's fault.
Sustainability is a core principle, as well, and has been for decades. Amway controls much of the process, from where ingredients are sourced (some come from nearly 6,000 acres of Amway-owned certified organic farmlands), to where they are manufactured. In addition, 50 percent of the energy powering Amway’s world headquarters in Ada, Michigan, is wind-generated. These are best practices in the industry and they have been a part of Amway’s DNA from day one.
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!”
In his memoir Simply Rich, Amway cofounder Rich DeVos tells the story of Amway’s origins. The country was in the last gasps of the Great Depression. Rich was fourteen. He was walking two miles through the snow to his high school each day, in his hometown of Grand Rapids, Michigan: wool collar popped high, galoshes squishing, wind in his face. Occasionally he would take the streetcar or city bus – but allowing time for the city bus meant having to rise long before the sun came up. ‘I needed more efficient transportation, and already being an enterprising type, I had an idea,’ he writes.
Like my friend, I was struck by the fairy tale numerology that invested even tennis shoes with a mythic charge. In Amway, extravagant desire is the motive force: To desire what your upline has, even those things that nobody could realistically hope for, is what keeps the scheme in motion. Josh and Jean’s wish list, as well as the many other “visualization” exercises involved in dreambuilding, was simply part of their training to ever more expansively want. But to what end? What desire had propelled them into Amway in the first place?
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.
Clockwise, from upper left: Amway cofounders Jay Van Andel (left) and Richard DeVos (center) meet in the Oval Office with President Gerald Ford, who is holding a copy of Richard’s book, “Believe!”; former Florida Gov. Jeb Bush and Richard DeVos during a 2009 event at the Scripps Research Institute; an aerial shot of Dick & Betsy DeVos’s primary residence in Ada, Michigan; Dick & Betsy enjoy their courtside seats at an Orlando Magic game—an NBA team owned by the DeVos family. | National Archives; AP; Getty Images
While this marketing strategies are great, and yes that does work at times, but the conversion rates are very low. And lets face it…is it working for you? No. Do you like chasing around or harrasing your friends, family, and even strangers to join your business or buy you Amway’s products? People who call your business an Amway Scam? No. Is it fun? HECK NO lol
In 1983, Rich DeVos, one of Amway's founders, made recordings which, among other things, communicated his displeasure with several issues regarding some of the high ranking distributors/IBOs. These recordings are entitled "Directly Speaking" and were addressed to Direct Distributors (now called Platinums), who are considered leaders with various responsibilities for their downline group. In January 1983 Rich DeVos announced that Amway would pay Business Volume (BV) on Amway produced tapes. He expressed concern about the level of income from the sale of Business Support Materials (BSM; tapes, CDs, books, and business conferences/functions) compared to the income the high level distributors were making from Amway products. He stated his legal team was concerned if the tool income exceeded 10% of their Amway income, and stated that BV payouts on tapes can never exceed 20% of the distributor's total Business Volume.
I have a friend that I met at Uni and we're very close (met him on my first day which was last year this time). Just yesterday he was approached through a networking website and attended a meeting for a company named "Amway". I did a bit of research and what I've gathered, it's another pyramid scheme. But how? Aren't they illegal? He literally spilt out everything they said in the meeting about "investing in products, marketing it and gaining huge profits eventually", and seemed genuinely excited. He then wants to bring me in as a mentee, because he thinks I'll really like it. I don't believe he would try to bring me in, if he knew it was something along the lines of a pyramid scheme, (since we're close mates and all). So what does Reddit think of Amway? Is it an obvious choice to run?
The move unified the various Amway companies worldwide. "We're now reintroducing our brands in North America, moving away from Quixtar and going back to the Amway name", said Steve Lieberman, managing director of Amway Global. "We decided there were a number of roads we had to go down in order to recreate awareness for a brand that, quite frankly, a lot of people felt had gone away."
For those talking about Amway (alias Quixtar) not being scam or fraud should actually gather some knowledge before talking about it, does not matter if from inside or outside of the "business" as you like to call it. If you wish, please just type in Amway lawsuit, Quixtar lawsuit just in Google if you do not want to bother searching too much. Oh, bot companies have been sewed several times for what exactly? Hmhm, how strange, fraud, pyramide scheme, violating laws, and we could go on. One of their biggest payouts was around 150 million dollars. So stop lying to people and yourselves. These are not beliefs, these are facts. Rather study business, read a book, improve your skills, make your own business or be a part of a business that actually is not just about a few overfed money preachers stuffing themselves with your time. Think, learn, read.
After years operating behind the scenes, Betsy DeVos is set to become the public face of education policy in America—an advocate of private Christian education helming the largest public-education agency in the country. Most education policymaking happens at the state and local level; the Education Department administers financial aid and collects and analyzes educational data, but doesn’t set state standards or school curricula. Even so, the position is a considerable bully pulpit, one with the ability to define the national discussion on education.
Amway, the machine that built the DeVos fortune, is among the best-known multilevel-marketing companies in the world, relying on independent salespeople to start their own businesses selling Amway-produced goods and to recruit other independent salespeople to work underneath them. Over the past half-century, the company has attracted a healthy dose of criticism. In 1969, the Federal Trade Commission alleged that Amway was a pyramid scheme, launching a six-year investigation that failed to prove the charges. In 1982, the government of Canada filed criminal charges against the company, alleging that Amway had defrauded the country out of $28 million in customs duties and forged fake receipts to cover its tracks; in November 1983, Amway pled guilty to fraud and Canadian prosecutors dropped the criminal charges against Richard DeVos and other company executives. Amway’s direct-sales model—which it has exported to more than 100 countries—has become a ubiquitous part of the modern economy. (Among those who've experimented with the approach is the president-elect, whose Trump Network in 2009 used an Amway-esque sales pitch to recruit sellers of nutritional supplements, snack foods and skin-care products.)
Mr. DeVos and Mr. Van Andel left college to serve in the Army Air Corps during World War II. When they returned, they started Wolverine Air Service, their first joint venture. Several more businesses followed, including a failed charter schooner service, which almost led to their drowning, as well as a drive-in restaurant and a distributorship for a California-based marketer of vitamins and nutritional products.
After four years of litigation Amway won a landmark case in 1979 concerning the legality of MLMs. Because distributors can make an income on direct selling in addition to their downline, the Federal Trade Commission (FTC) ruled that Amway was a legitimate business and could continue to operate. This decision has only led to other MLMs adopting similar loopholes and has done little to protect the millions of people scammed into giving their time and money to Amway and other MLMs.
In the canonical 6-4-2 pyramid, the “Direct Distributor” on top receives a 25 percent “Performance Bonus” on the entire group’s spending. The Performance Bonuses that go to his six “legs” (12 percent of their sub-groups’ spending) are deducted from his own, leaving him with a 13 percent profit. In turn, they payout 6 percent bonuses to their four “legs,” who payout 3 percent bonuses to their two. Those bottom forty-eight distributors, in other words, get back 3 percent of everything they spend while the top distributor gets 13 percent of everything they spend. (The amount of all checks are calculated, incidentally, by Amway’s central computer and distributed by Amway; uplines don’t actually write checks to their downlines.) It would amount to the same thing if the distributors at the bottom were to receive the 25 percent rebate—and then pay fees directly to their uplines equal to 3 percent, 6 percent, and 13 percent of their purchases.
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.
To understand the choices, you have to understand the business. He explained that the products developed to be sold for the direct sales model need to be different from any others on the market. “We develop products with specific deliverables that are unique. These products, what they are and how they work, needs to be explained by someone who knows the product. A good product for the store shelf is not necessarily a good direct sale product.”
Some friends of mine are into Amway & are showing it to me. I am skeptical, but as I look into it things are looking good. There's some points in one of the first books you read that appear to contradict what the uppers are saying, but that's where that "Ask Questions" part comes in. Anyone can make a company look bad, either by accident or for lolz. Those that only buy their own product aren't necessarily doing it wrong, but they won't make as much as thewy would 'hiring' a 'team'. Essentially the distributor gets points for product sold, then paid on total point value (PV). Anyone can surpass their mentors, so not shaped like a pyramid :)
Josh felt that duplication worked in the other direction as well. If he emulated the multi-multi-millionaires (“multi-multi’s” for short) above him—and did exactly what they said they had done—he would succeed as they had. In his mind, his interests were already merged with theirs. He would boast of their accomplishments, tell me how their bonuses just kept “getting better and better all the time!” For him, of course, bigger bonuses for uplines simply meant a more powerful drain on his income. But that kind of self-defeating “stinking thinking” missed the point, as far as Josh was concerned. By “visualizing” great wealth, by worshiping great wealth, and by imitating the consuming habits of the great and wealthy, he would somehow obtain great wealth.
Let us not underestimate the power of ideas. Cross provides examples of distributors who let nothing stand in their way. Just listen to the story of the Upchurch family, who persisted in Amway, making any sacrifices necessary, even after Hurricane Fran destroyed their home. Or the Janzes, who were desperately poor new parents with another child on the way when they learned that Amway was bigger than making money; it was a way to overhaul your lifestyle and live your dreams. Or Dexter Yager, who didn’t let a stroke stop him from achieving success with Amway and continued to operate his business at the same level even as he was learning to walk and speak again.