Yes Ethan, It is good to hit lots of nerves...especially this poor fella Richard Gaston who attacked you after you made an opinion. Umm, how professional eh? lol If he was in Amway and i wanted to get involved without the knowledge of Amway and how it works and I meet up with Richard, i bet he would be full of smiles and he would pump me up, encourage me to go out there and beg my family, relos and friends to come and join me in this wonderful scam I mean business....I would be in dire straits with my family and friends if they joined with me who eventually avoid me when they see me coming towards them after they realized the work they had to put into it to make 40 dollars per month AFTER buying about $600.00 worth of products is not their kind of business. I got 3% from each person on my downline. then I had to lie about this fantastic business AS LONG AS I DONT MENTION THE NAME AMWAY and if the prospect keeps asking me what is it and i keep saying...come and find out and not tell him. Who is a liar then? It is a scam where the uplines make all the money and the little rats/sheep is way down below buying and trying to sell products and then when 30 days is up they get a cheque for 20 bux, maybe 50 bux or nothing at all. It is like a constant merry go around. You have better luck playing slot machines then to work for AMWAY to keep the top dogs rich. It is like hiring on another Government into your life and you work your blood, sweat and tears to make a measly 20 bux. Amway should be shut down. Yes I was in Amway for a long while and my eyes opened up in time to realized it was like kicking a dead horse. Richard Gaston, you should read a book on "How to be a professional businessman."
Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner). They subsequently formed the Amway Sales Corporation to procure and inventory products and to handle sales and marketing plans, and the Amway Services Corporation to handle insurance and other benefits for distributors. In 1960, they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964, the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form the Amway Corporation.
“Across the United States, the spirit of entrepreneurship is alive and thriving, from coast to coast,” said Dr. David B. Audretsch, professor and director of the Institute for Development Strategies at the Indiana University School of Public and Environmental Affairs. “This year’s AGER confirms Americans continue to view entrepreneurship in a positive light and are open to the idea of starting their own business. Compared to the global average, attitudes towards entrepreneurship in America are sustaining momentum from previous years and are on track to experience continued growth.”
The Amway approach supposedly avoids impersonal door-to-door sales, as each distributor need only sell directly to a small customer base of friends and family. Business “growth”—and an ascent to the flashier “bonus levels” (Ruby, Emerald, Diamond, Executive Diamond, Double Diamond, Crown Ambassador)—comes mostly through expanding one’s downline. In theory, this odd marketing system ensures that benefits accrue not to Madison Avenue slicksters, but to ordinary folk capitalizing on their close-knit community ties—a scheme that seemingly reflects the small-town, Protestant populism of Amway’s co-founders, Rich DeVos and Jay VanAndel.
‘You can see we’re getting the screens fixed,’ the Realtor says, pointing to the men working beyond the glass. She has piercing blue eyes. Processed blonde hair. She has French-tipped nails, diamond rings on all fingers, and a gold-and-diamond necklace. She wears a white semi sheer shirt, black-and-white-printed leisure pants, black eyeliner and heavy mascara. ‘We’re just putting some finishing touches on the place.’
Amway sells real products. They have cosmetics and regular household products. They also offer CDs, motivational material and other stuff to IBOs. There is a whole lot of purchases that go on involving IBOs, none of this is free for anybody. Some IBOs are able to make regular sales to people who take the products but have no affiliation to the company. IBOs that recruit people still have to sell stuff to the people they are recruiting. Some people become IBOs just to get the “discounted” prices.
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.)
Such pandering to heartland values has (along with record-breaking donations from Rich DeVos) endeared Amway to the Republican Party. But the company has also had its share of critics. In the seventies a succession of defectors charged that The Business (as the faithful call it) was a pyramid scheme, a fraudulent enterprise that made money by recruiting new members and channeling their fees to higher-ups in the organization. A 1979 Federal Trade Commission investigation concluded that Amway was not in fact a pyramid scheme—only that some of its claims to prospective distributors were overly optimistic—because most of its revenue came from sales of actual products. But that didn’t end the company’s troubles. During the Reagan years, Amway was the butt of jokes and the target of exposes. Senior distributors set up private “distributor groups,” organizations dealing in motivational materials and notorious mass rallies. Dexter Yager, founder of the Yager Group, was known to leap around stages brandishing a giant gold crucifix.
In 1982, Amway co-founders, Richard M. DeVos and Jay Van Andel, along with Amway's executive vice president for corporate services, William J. Mr. Discher Jr., were indicted in Canada on several criminal charges, including allegations that they underreported the value of goods brought into the country and had defrauded the Canadian government of more than $28 million from 1965 to 1980. The charges were dropped in 1983 after Amway and its Canadian subsidiary pleaded guilty to criminal customs fraud charges. The companies paid a fine of $25 million CAD, the largest fine ever imposed in Canada at the time. In 1989 the company settled the outstanding customs duties for $45 million CAD. In a 1994 article authored by DeVos, he stated that the guilty plea was entered for technical reasons, despite believing they were innocent of the charges, and that he believed that the case had been motivated by "political reasons".
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".
Engler was opposed to the idea—the timing was off. “I was pretty certain that it was premature to go to the ballot in 2000,” Engler says, “because if you’re going to go to the ballot, you want to win.” The DeVoses had counted on his support, and when it didn’t materialize, things soured. (“[John Engler] would have a hard time being a first mate even on the largest ship in the world,” Betsy DeVos later wrote. “I think he’d sooner be captain of a smaller boat than the first mate on a much bigger ship.”)
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.