The DeVos family is Dutch, thoroughly so. All four of Richard DeVos’ grandparents emigrated from the Netherlands, and today, the family continues to observe the tenets of the Christian Reformed Church, a Calvinist denomination. Calvinism believes in predestination—that God has decided whether our souls are saved before we are born—and emphasizes an “inner worldly asceticism” in its practitioners. Historically, in avoiding ostentatious displays of wealth, Calvinist Protestants have instead turned their economic gains into savings and investments. One of the bedrock texts of sociology, Max Weber’s 1905 Protestant Work Ethic and the Spirit of Capitalism, is expressly about the links between Calvinism and economic success. (“In the place of the humble sinners to whom Luther promises grace if they trust themselves to God in penitent faith,” Weber wrote, “are bred those self-confident saints whom we can rediscover in the hard Puritan merchants of the heroic age of capitalism.”)
According to this article, “The way that you’re actually going to make residual income is by sponsoring people into a downline. Yes, this means that you are going to need to get really good at recruiting your friends and family into the business to become an active distributor just like you.” This means that if you’re looking to make it to the top of the Amway hierarchy, you’re going to need to create a large network of IBOs underneath you, and earn a commission off of each sale they make. In other words, creating recurring monthly income occurs not necessarily by selling Amway products, but by recruiting others to sell them for you. And this simply can’t be avoided, because in order to begin selling Amway products, you’ll have to sign up under an existing IBO, who will make money off each of your sales.
My husband and I tried Amway, and here's the story: My husband's BEST friend and his wife started asking us to hang out a lot, which was cool because we enjoyed their company. I thought she was my best friend at the time, stupidly enough. It didn't take long for them to tell us about this "amazing" opportunity. We thought we would give it a try since we sincerely trusted our friends. We would go to their house for a "meeting" in their basement with a bunch of strangers and two guys in suits. The guys would talk about how nice it is to work from home, make tons of money and generally just talk about nothing to do with the actual business. After every meeting I would think, okay but what is the business all about!?!?!? So eventually they set us up as "business owners" and we purchased a ton of crap from Amway totaling over $1,000 because, "that is what you do." Eventually, we decided that we would not continue with the business. There was nothing wrong with it, but we knew it wasn't for us. We didn't want to approach complete strangers in coffee shops and present them with an "opportunity"; we didn't want to stay home on the weekends to attend meetings instead of spending them at the lake; we didn't want to choose Amway partners over friends and family like you are taught (yes, there is a "tier"); we didn't want to spend thousands of dollars on products and guilt-trip our friends and family if they didn't want to buy our products (yes, this was also taught). All in all there was nothing very wrong with it, it's not a scam, but it's definitely NOT for everyone. I am writing this not to bash anyone but to give anyone an insight if they are wanting to be part of Amway. Oh, and as for the "friends"... they now completely ignore us. And I mean, I'll see them in public and they'll turn away from me when I wave; they will talk to anyone BUT us. And this was my husband's long-time highschool friend; they were even in eachother's WEDDINGS. So to be quite frank I will talk everyone out of doing Amway and it's their fault. If that is how they will treat others for simply not continuing with the business then I will tell NO ONE to join.
Renata tells us about the best local attractions, recommending particular farm-to-table restaurants and yoga studios as my husband and I make slow, opposing circles around the room. We meet in front of the master bathroom. The shower is wide enough for three people with three showerheads, a knee-high tawny-colored tile wall, and the rest of the walls completed with glass. The whirlpool bathtub could easily accommodate three.
Sometimes we brought along a camera and took pictures of one another walking around the houses. We saw two or three in a day and then took the film to be developed. Back in our three-bedroom, we looked at the photos together, then stored them in fresh albums. In the photos, we wore the same outfits while the houses around us changed. We were the proud owners of three beautiful homes, the photos said – or this was one big home. One monstrous behemoth of a home comprised of three mansions smashed together.
It’s not because we’re better or entitled to more money; we have been entrusted with it, and therefore need to be especially responsible. We just make sure personal spending doesn’t become a priority over the giving side. Once you learn the budgeting process of setting aside for giving first, then what you have left you can allocate elsewhere – including a home or an airplane or a boat. One could always argue that these things aren’t necessary and that you could give away more, and that’s always true. But if you look at it that way, you’d never do anything more than take the bus.
As its Sales & Marketing Plan demonstrated, there were two ways to make money in Amway. You could buy products cheap (at wholesale costs reportedly 30 percent below retail) and sell them dear; or, more lucratively, you could share The Business with others, and build your own empire of “downlines.” Since Amway awards bonuses to its distributors based on their wholesale volume, and since each distributor’s wholesale figures includes the sales made by his or her “downlines,” each convert to the Amway cause would enlarge his or her own incomes. To see how this worked, we were told to imagine recruiting six distributors, each of whom would bring in four more, who in turn would each net an additional two. Our downlines, according to this “6-4-2” formula, would then have seventy-eight members. If each of our underlings did $100 a month in sales, we’d be making an extra $2,000 a month in bonuses.
Yes! MLM is not the same as “pyramid scheme” . In every business the people at the top make more. In an MLM anyone can work up to the top, unlike in a pyramid scheme. Some of what is described in the article is very cult-like if it’s true, but I would imagine it is like with any business: it depends on who your upline is. If your upline is a creep, the whole team is going to be creepy. If you have a good upline, the whole team will reflect that. Any business, MLM or otherwise, can isolate people from friends and family. It’s called being a workaholic.
As his wealth increased, so did Mr. DeVos’s prominence as a political strategist and donor to the Republican Party and conservative organizations. He supported the Heritage Foundation, the Federalist Society and Focus on the Family, and he was a member of the executive committee of the Council for National Policy, which, starting in the early 1980s, pushed to propel Christian values to the center of Republican activities nationally.
Well Amway... I want you to know that even though your system may be very manipulative, you won't be able to mess with me and my friends. You can try all you want to tell my best friend to forget his friends, but you won't have the control to tell his friends and tell them to stay away from your loyal IBO. I hope you burn in hell for being responsible for ruining other powerful friendships due to your greediness. It's never going to work on me or my best friend. I'm an electrical engineer who'll do my best to provide him 20 times better advise than you'll ever give him. So go ahead and try to tell him different, I don't mind handling a challenge.
You need life insurance if people depend on you financially - and for no other reason. The only real reason for this is because you have children. A lazy spouse isn't a good enough reason, an adult can be expected to find work. If you must pay someone money to bet that you'll die, it should be because your children are dependent on you, or because you care for someone at end-of-life. They make very cheap term-life policies to cover this, for like 1-5x annual salary - 20 years, depending on whether you smoke. Getting a similar policy for on a spouse that's taking care of the kids is also important to consider.
The Dream is “sort of about pyramid schemes,” as host Jane Marie says at the beginning of the new podcast series, but it takes a moment to figure out just what that means. In the beginning of the first episode, which you can listen to exclusively here, Marie dives into a classic pyramid scheme of the 70s and 80s, the “airplane game,” a trend that became so prevalent among a certain subset in New York and South Florida that The New York Times caught on, calling it “a high-stakes chain letter.”
Thank you very much for your review. I would do this perhaps in my spare time outside of work hours. I would of course find it difficult as you said going to all these house parties as such as it does chew up alot of time. Yes I have done some studying into pyramid stuff and mlms. What I am finding with network marketing nowadays and residual income is the point of making actual money and it takes an awful lots of work to get to where you want to be knowing where the founders where before you. It often feels depressing and that you are just paddling nowhere fast. Anyways, I find internet marketing somewhat similar but different from network marketing. Or is it the same thing? Anyways, I’m not sure where to turn as Different network marketing things i read reviews of people who paid this or paid that and got no refund ect ect. I like amway drink and bars and personally i would not want to keep any stock as some people do as I would have no place for it but i definatelly feel different after taking it for some reason. Its giving my body what it needs and what most people dont get daily. I feel that i need more when i drink the drink and eat the bar. Anyways, I still would like to do it but the problem i am facing in not wanting to do it is not that it is scam or anything it is all the work. I am not scared to talk to people i done public speaking many times and acted in school plays. It’s all the work of going to this party or that party house part ect ect. Lots of running around and stuff. Anyways, Thanks for your comments
But The Dream’s real concern is far from the key-party-and-polyester image conjured by the airplane game. Marie and her producer had, like many people, noticed her Facebook feed filling up with friends from high school selling leggings, or makeup, or handbags, asking their friends to buy them and sign up as salesmen themselves. They’re all participating in multi-level marketing (MLM) schemes, which anyone involved will tell you are not a pyramid scheme, because pyramid schemes are illegal.
The size of the settlement astonished some observers and the news is spreading fast. It was reported on the front page of the USATodayAmway11.05.10. About $55 million of the total is in actual cash and products as restitution for victims and legal fees. Other elements of the settlement include substantial price reductions to make retail sales feasible, and major changes in the infamous “tools” business that will require Amway to take greater responsibility. These schemes are run by some of Amway’s top recruiters and have been allowed to function as arm’s length, rogue operations, though highly beneficial to Amway.
But judging by the Herculean efforts made to seduce me into The Business, the Plan couldn’t be quite as effortless as it sounded. Josh and Jean, who had now thrown themselves into signing me up as one of their “downlines,” had adopted a strategy that consisted mainly of driving me, at untold inconvenience to themselves, to as many meetings as possible (they were all in far-flung suburbs, so I needed the rides). My attempts to find refuge in the back of the car being firmly rebuffed by Jean, I sat captive in the passenger seat while Josh tried out the various small-talk friendship-building techniques he’d learned from World Wide. Our trips always ended with Josh proffering a Sample Kit, a large white box filled with detergents and propaganda, including Promises to Keep, a book by the suggestively named Charles Paul Conn, as well as xeroxed articles explaining why Amway was the most “misunderstood company in the world.” I resisted Josh’s offers; I was reluctant to take the Amway plunge and knew that the real purpose of the kit was to give him an excuse to drop by my house and retrieve it.
America is too skeptical! The Federal Trade Commissions ruled in 1979 that Amway is NOT a Pyramid Scheme but reather a multi-level marketing company. I’m not an Amway rep nor do I buy their products so I don’t have any skin in the game here. I just did my research. Folks that believe this crap don’t realize that 90 plus % of all the negative comments on the net actually come from true Pyramid companies to make legitimate multi-level marketing companies look bad. Pyramids are illegal. Multi-level marketing companies are very legit. Other than Amway, Avon, Tupperware, Home Interiors, Pampered Chef and Kirby Vacuum just to name a few. By the Way, Warren Buffet owns Pampered Chef and has stated on more than one occasion that he would own more for them if he could talk the owners into selling. Home based business’s will make you more money than any other occupation you can be involved with. All legitimate multi-level marketing companies have to be members of the DSA (Direct Selling Association – http://www.DSA.org). If a company is found to be a Pyramid Scheme they cannot be a member of the DAS. Also, all multi-level marketing companies have to have 100% approval all State Attorney’s Generals in all 50 states (again do your research). Stop and think about where you work. There’s most likely a manager, then assistant managers, and on down the line. Put it on paper and see what it looks like. Kind of shaped like a pyramid isn’t it. You probably worked your butt off to convince somebody to hire you at a job you hate. Ans then, you work your butt off everyday to make those above you “rich”. All you do everyday is tread hours for dollars. Don’t place your belief on what others tell because they’ve most likely are just repeating what somebody told them and have no experience. Look at a third party website such as http://www.successfromhome.com and go to the store and buy one of there magazines.
On August 6, 2011, Kerala Police sealed the offices of Amway at Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and Thiruvananthapuram following complaints. In November 2012, the Economic Offences Wing of Kerala Police conducted searches at the offices of Amway at Kozhikode, Thrissur and Kannur as part of its crackdown on money chain activities and closed down the firm's warehouses at these centres. Products valued at 21.4 million rupees (about US$400,000 at the time) were also seized. Later, Area manager of Amway, P. M. Rajkumar, who was arrested following searches was remanded in judicial custody for 14 days.
Directly across the state from my family, on Florida’s Atlantic coast, is the Windsor country club. Home architecture here is strictly regulated. Residents drive around on golf carts, on and off the eighteen-hole course. There’s an equestrian center, tennis courts, a concierge, and a gun club. Occasionally Prince Charles pays a visit. This is where you go when you bypass Palm Beach on your way to vacation – there’s no kitsch in Windsor, only the highly refined. Among its residents are retail billionaire W. Galen Weston, the Swarovski clan – and the DeVoses, who own three houses here and spend eight weeks a year or more on the waterfront.
Amway’s founders also created a cult-like environment within the company and among its distributors. Combining evangelical undertones and self-help motivation, they have managed to sell their idea as much as their actual products. Distributors are strongly encouraged to attend seminars and events that can cost thousands of dollars. Both DeVos and Van Andel are best-selling authors and have inspired copycats across the country.
This is not the man who brought my dad in but a man somewhere above him. He was what The Business calls a ‘phony Emerald.’ To meet the criteria for the pin level, he’d force the people in his organization to order extra product in order to grow his volume and push him across the finish line each month – not that he turned much of a profit doing so, as he had to pass it all on to his own upline. ‘Well, the Emerald pin doesn’t mean anything unless your organization is solid,’ said my dad. ‘So you got a pin – you’re not making the money.’ Eventually, my dad says, Vincent was stripped of the Emerald pin because he couldn’t maintain the sales by force alone.
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.
As Parloff notes in his article, “The Siege of Herbalife,” there is no law defining a pyramid scheme, nor are there even any regulations on the books. The simple common-sense definition is that a pyramid scheme is a business in which recruits make a payment for the right to recruit others into the network, and whose revenues are more dependent on recruitment than on selling a product.
As much as Josh ignored the contradictions of his faith, he could always be counted on to express them. A typical Joshism (uttered while describing the photos of new Directs that appear in the Amagram each month): “People are amazed that there are that many new Directs each month—at first, they think it’s per year, but no!” The point apparently being the great odds of success. Then, in the very next breath: “I look through them every month to make sure there aren’t too many from Illinois. I’m worried that Chicago will get saturated. Last month, though, there were only two.” Now he was selling the poor odds.
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."
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. Amway denied wrongdoing, blaming the case on a misunderstanding by distributors, and settled the case out of court for $9 million. 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.
At the heart of Amway is the love of ‘free enterprise’ – an equal-opportunity system in which determination alone is the path to achievement. If you have a dream, Amway says, and you try hard enough to achieve that dream and let nothing stand in your way, then success is guaranteed. That is the promise of what Rich DeVos calls ‘Compassionate Capitalism’ – helping people help themselves.
Here is my experience from amway. (spoiler, not good) I was an IBO and part of a business team for 2 years. went to 6 big conferences and really did my best to sell and share the opportunity. I ended up getting like 5 or 6 people in under me and then some under them. some people quit but I was sold on the dream. after the second year and time to renew I went over how much I spent every month compared to checks received from the company. I was getting anywhere from $40.00 a month to $200.00 but usually under $100.00. after the two years I was thousands in the negative. I thought would I want to get somebody just like me in the business? someone to go to the conferences, buy from themselves. at first I said yes but then I realized I would of sponsored a lot of hard working people and made them go broke. my uplined usually pressured me to drive a long way for meetings, buying stuff. all the events were super late and I was really sleep deprived. all of these are cult techniques. look it up.. do it.. I found that most people who are emeralds and diamonds make way more off the cd’s and events than even the amway part. usually if they share income it is there one best month but most the time I find they make crap. I wont go into details but I really didn’t want to continue. I went back to finish my degree (which my upline convinced me to quit school!!!) I got my degree. now just 2 years later I have actually doubled my income, met the most beautiful girl, Ukrainian girl with a perfect accent. she too was in amway and quit. I am working in a job in my degree field (server administration) and she actually started her own business. Amway had good business principles but you are much better off to go start a real business not a multi level marketing business in which you do more buying than selling and if you actually do selling you will need to sell a whole crap ton to get any money, in fact you will make more money working part time at mcdonalds than actually just selling amway products and I am guessing that is even if you get 15+ customers. do your research on where the top dogs are making money, then if you are in business yourself please recap your spending vs income and then question did my upline push me away from friends, family, or choices I would of done differently. If you spent the time to read this thank you as I kinda went long, I am so happy now and was only acting happy in amway as they say “fake it until you make it.”
Amway's time in business has not been without controversy. The multi-level company is not new to dealing with lawsuits. One lawsuit in the last ten years resulted in Amway paying $56 million to settle a case alleging it operates a pyramid scheme. Amway agreed to the deal to close a 2007 class-action suit. Here are some of the accusations Amway has received in its more than 50 years of business:
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.