Well that's all fine and dandy but I am not lazy, I like talking to people. But I am not going to persuade people to get into a so called business when in al actuality this is like a Sam's Club membership except everyone you get to join, you get a piece of their profits and any profits of their offsprings and so forth and so on. I can do that, but not full time. It's not something I enjoy. You have to have passion for that and I don't have that type of passion for selling Sam's Club memberships to folks. I am a nurse and that's my passion No this is not a scam. Just say no it's not for you and move on. No need to bash the company.
A money circulation scheme is essentially a Ponzi scheme. A Ponzi scheme is a fraudulent investment scheme where the money being brought in by newer investors is used to pay off older investors. The scheme offers high returns to lure investors in and it keeps running till the money being brought in by the newer investors is greater than the money needed to pay off the older investors whose investment is up for redemption. The moment this breaks, the scheme collapses.
Nowadays, nearly all Amwayers identify with a “distributor group.” Dream Night, in fact, was arranged not by Amway, but by World Wide Dreambuilders LLC, which is constituted by the downlines of Crown Ambassador Bill Britt. These groups, which do the heavy lifting of building and inspiring downlines, have no legal connection to Amway (as indicated by the disclaimers on the back of tickets for Dream Night and every other World Wide function I attended: “This event is produced and offered independently of Amway Corporation and has not been reviewed or endorsed by Amway”). The corporation uses the legal independence of distributor groups to its advantage. In a class-action lawsuit brought by former Amwayers charging Amway Corporation, World Wide head Bill Britt, and Dexter Yager with fraud and price-fixing, Amway claimed that it was itself, in effect, a victim of Britt and Yager’s tactics—and thus not liable. (The case has since been settled out of court.)
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.
I got sucked into this program only to find out to get started you have to spend $300 in your store each month. This wouldn't be so bad if I wasn't stuck part-time at Wal-Mart. I could flex my schedule to fit my mentor's just fine, I already thought the way they want you to in the first place, and I welcomed learning new things but I just couldn't afford it and no one is going to help you because they're all trying to make their own business succeed. Then I tried talking to my mentor and he seemed more selfish than anything. I would have to starve myself on perfect water and protein bars and he only thought about how me leaving would affect HIM. I hate people, always will and this just made my social seclusion worse. If you are reading this to because you just got dragged into too, don't follow through with it unless you have extra money to throw around. I was also learning nothing I didn't already know. And you'll always hear people saying "Well if you knew how, why aren't you successful like us?" Well my answer is because I haven't tried yet. Every meeting you hear the exact same things. I even had the infortunity to go to this year's Spring Leadership. The most interesting part of it was the band at the very beginning. Every person had the same thing to say, the only diversity is how they got to where they are now. My mentor is extremely unequipped to teach anyone. He may have been mentored by the most famous Diamonds in Edmonton but in two years he's not even Eagle.
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.
Remember Income is not profit. Even if a business consultant earned 21,048 in commission for 2013, this figure does not include the cost of being an Amway member. Remaining active is not cheap. Our own analysis of the numbers estimated that after expenses the average Amway IBO lost $1,176 per year. Our calculations used data from Amway USA from 2010
Under terms of the settlement, Amway will be restating its “income disclosure” to reflect that the figure offered to consumers is a “gross income” not net, meaning that it is not profit and does not reflect costs that consumers incur when they pursue the scheme. (It should be noted that Amway’s advertised “average income” is also a “mean”, not a median, average, so it factors the high incomes of the few at the peak of the pyramid, skewing the “average” upward. Such a skewed “average” can also mislead consumers to think that the “average” participant actually earns a profit, masking the reality that the vast majority earn no commissions at all or no net profit.)
The family is also heavily invested in right-wing politics, earning comparisons to the Kochs for the enthusiasm with which they back Republican candidates like Newt Gingrich, Rick Santorum, Jeb Bush, Scott Walker, and Marco Rubio, and their sizable donations to ultraconservative organizations like Focus on the Family and the Family Research Council, both of which promote Christian value-based public policy such as anti-abortion legislation and bans on same-sex marriage. In 2014, the DeVoses donated in the six figures to Michigan-based conservative think tanks including the Acton Institute for the Study of Religion and Liberty, which promotes free market economics within a Christian framework, and the Mackinac Center for Public Policy, also a supporter of free market economics. Elsewhere, conservative organizations that received DeVos funding of over a million dollars each include the American Enterprise Institute, another free market think tank; the Alliance Defending Freedom, the right’s preeminent legal defense fund; and the Heritage Foundation, which promotes free market economics and ‘traditional American values.’
In September 2006, following a public complaint, Andhra Pradesh and Telangana state police (CID) initiated raids and seizures against Amway distributors in the state, and submitted a petition against them, claiming the company violated the Prize Chits and Money Circulation Schemes (banning) Act. They shut down all corporate offices associated with the Amway organization including the offices of some Amway distributors. The enforcement said that the business model of the company is illegal. The Reserve Bank of India (RBI) had notified the police that Amway in India may be violating certain laws regarding a "money circulation scheme" and the IB Times article writes that "some say ... Amway is really more about making money from recruiting people to become distributors, as opposed to selling products". In 2008, the state government of Andhra Pradesh enacted a ban on Amway media advertisements.