[1]The FTC’s ruling that Amway is not a pyramid scheme is based partly on the “70-10 Rule”: To qualify for Performance Bonuses based on downlines’ sales, an Amway distributor is required to sell, according to Amway’s Business Reference Manual, “at wholesale and for retail at least 70 percent of the total amount of products he bought during a given month”—this is supposed to prevent “inventory loading,” the forced purchase of unsalable merchandise. Amwayers are also required, for the Performance Bonus, to sell to at least ten retail customers in a given month, which ensures that real business is being conducted.
‘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.’

In July 1996, Amway co-founder Richard DeVos was honored at a $3 million fundraiser for the Republican Party, and a week later, it was reported that Amway had tried to donate $1.3 million to pay for Republican "infomercials" and televising of the GOP convention on Pat Robertson's Family Channel, but backed off when Democrats criticized the donation as a ploy to avoid campaign-finance restrictions.[73][76]
[9]The Amway Business Reference Manual itself gives the lie to the 30 percent figure. It calculates the Basic Discount by subtracting a product’s wholesale distributor cost from the suggested retail price (both denominated in dollars) and then dividing them by the BV price, which is set by Amway for each product but which is usually smaller than the U.S. dollar price. If the calculation is done solely in dollars, the Basic Discount shrinks to about 17 percent. And when I did a real price comparison, that 17 percent came down to about 4 percent.
The above analysis is an ideal case. Not everybody can afford to become a member and not everyone who can afford would wish to become a member. So, such schemes collapse by the time it reaches 18th level itself (if each member is allowed to refer 2 friends), or 8th level itself (if each member is allowed to refer 6 friends). i.e It is not a sustainable model and is bound to collapse. Dreams are shattered and friendships are broken.

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: 

We follow her up the stairs. There are two large bedrooms separated by a bathroom and a linen closet – the children’s rooms. I step into the one on my left, which is smaller than I expected. It has wood floors and a closet with sliding mirror doors. Out the window, the neighboring house is less than ten feet away, and the space between is filled with broad-leafed palm trees. I hear the faint twang of the radio on the pool deck, playing ‘Sweet Home Alabama.’
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.”
An iconic sports and entertainment venue located in downtown Orlando, the Amway Center is home to the NBA’s Orlando Magic, and the NHL’s Orlando Solar Bears. The center opened in 2010, and the Orlando Magic played its first preseason game at the center against the New Orleans Hornets on October 10. Since then, Amway Center has hosted a number of events including NCAA basketball tournaments, Olympic ice and track trials, professional bull riding and rodeos, ultimate fighting and professional wrestling matches, indoor soccer tournaments, extreme sports and motorsports exhibitions, family events, ice shows, and live concerts by legends in the music world.
Year by year, cycle by cycle, the DeVoses built a state Legislature in their own image. By the time Democrat Jennifer Granholm was term-limited in 2010 and Republican Rick Snyder was elected governor without any political experience, it was the DeVoses, not Snyder, who knew how to get things done. Unlike the Engler years, this time, they had more sway than the governor.
Usually in such sophisticated and well orchestrated system, all the investors & family members of the organizers (forerunners) place themselves into the tree such that they form the initial 7 or 8 levels at the top. With just 200 members, their tree is already 8 levels complete. Next, they start referring friends who form the 9th level. The 9th level requires 2^9 = 512 members. Now the exponential function starts showing its real colors. For the 10th level, you need 1024 new members. By the time it reaches your neighborhood, it might be in the 15th level and that level alone has 32,768 members. To add another level into it, it needs 65,536 new people. Just to give you an idea, in order to add the 25th level, you need 33 crore (330 million) new members into the system and you already have 33 crores (330 million) inside the system (number of nodes in a tree of height N is 1 less than ‘2 power N+1’).
Its funny that you should say that because, in my opinion I don't think MLM is going anywhere and the Amway Corporation definitely isn't going anywhere. since the depression in 2008 amway has increased its annual revenue by 1 billion dollars a year, and today stands at 11.8 billion dollars. Now your entitled to your opinion but there are some little facts that all people should be informed of. such as the fact that if your between the ages of 18 and 32, by the time you reach retirement (working a job) you have an 80% chance of being dead, disabled, broke, or financially dependent upon the government to subsidize your income. also by that time statistically you will have changed jobs 32 times. how much do you really think your 401k is really going to worth then. Im just a messenger her but I think a company like Amway is really the best shot any average Joe has of creating financial independence. I love when people say its a pyramid scheme. lets look at the typical job. (trading time for money) who works harder, stock boy at A&P or the CEO at A&P who's probably sitting in his hot tub right now? Obviously the stock boy but no matter how hard the stock boy works he will never out earn the CEO. that in my mind is a pyramid scheme. at least in Amway if you do more work you get more money. But the fact still remains it is not a get rich quick scheme. Its going to take hard works. Lots of hard work. but take it from someone who has worked his way through this system. it is well worth the effort. the ends justify the means because once you make to the top of that system Amway provides you with a life that is unparalleled by any other lifestyle. Its not easy but it does work.

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.

Inspite of it, several new schemes have again mushroomed and they try to target freshers from the software industry by tempting them to spend Rs 5-10K, which is a relatively lesser amount compared to GoldQuest (Rs 35K). So, the next time a friend comes to you and says “Dude, I am working on a part time business for additional income” and talks about such Multi Level Marketing schemes, explain these concepts to him on a piece of paper and advise him also to stay away from such schemes. Losing money is bad, losing friendship is worse and being part of a fraudulent system is the worst..
There are some one and a quarter million Amway members in the United States, roughly one for every two hundred of the rest of us, all of them eager to spread the gospel of salvation-through-selling-Amway-products. Considering Amwayers’ penchant for compiling long lists of names, accosting strangers, and generally striving to collapse the degrees of separation between them and other humans, the chances of an American being asked to an Amway meeting are quite good—somewhere between having a condom break during sex and being dealt a straight in a hand of poker. For a certain segment of the struggling middle class, where there’s a magic mixture of disposable income and status insecurity, the odds are nearer those of catching a cold. And for someone like me, a post-collegiate pre-professional with a solid future in temping, Amway is more or less a mandatory rite of passage.

The reason some people received $84 was because they didn’t work hard enough to earn more. This business isnt for everyone. Just try the products and of you dont like them then return them you have 6 months to return them. Just dont start stating facts that aren’t true just because you lost a friend. They probably left because they trying to be with people who were trying to succeed. Take it from me im 16 years old and this business has not failed me yet.

The 12-step shtick was a ready justification for the cult-like regimen of World Wide followers. Like alcoholics, wage junkies had to attend frequent meetings, supplemented with books and tapes, to keep on track; they had to dissociate themselves from bad influences, i.e. “broke” friends and relatives who would try to keep them down; they had to follow “Eight Core Steps” (four of which involved buying stuff from either Amway or World Wide Dreambuilders); and they had to let go of their ego and overcome their fear of change, to open themselves to the counseling of their upline “sponsors.” Sponsoring, as in Alcoholics Anonymous, was an act of love and healing. Your uplines would never mislead you, even if their wisdom might seem strange to your still job-addled mind.


For many people, family and friends are the first place they start to recruit in network marketing. Even if you don't want to sell them anything you can practice your pitch in their presence. Just be sure that you're asking for honest critique and no false pats on the back. Trying out your sales approach will help you grow. If you give them proper information about the company, the odds are they will not suspect any sort of Amway Pyramid Scheme.
Texas A&M 167; Cincinnati 116; South Florida 87; Michigan State 48; Wisconsin 41; NC State 40; Northwestern 40; Miami 38; Georgia Southern 32; Oklahoma State 31; UAB 24; Stanford 21; Auburn 21; Oregon 20; San Diego State 16; Buffalo 14; Army 13; South Carolina 11; Iowa State 6; Florida International 6; Virginia Tech 5; Pittsburgh 3; Duke 3; Boise State 2.
A 1998 analysis of campaign contributions conducted by Businessweek found that Amway, along with the founding families and some top distributors, had donated at least $7 million to GOP causes in the preceding decade.[76] Political candidates who received campaign funding from Amway in 1998 included Representatives Bill Redmond (R–N.M.), Heather Wilson (R–N.M.), and Jon Christensen (R–Neb).[74]
Another reward of the Gomez family’s success was flexibility. Vicky credits their involvement with Amway for enabling the couple to be present in their kids’ lives, while instilling the importance of working hard and giving back. Their example has influenced the next generation, inspiring their eldest son, Adam Jr., to found a nonprofit organization called The Road to Help, which provides blankets to the homeless in the Los Angeles area.
We drove our teal ’88 Oldsmobile Delta to the Bayou Club Estates for our requisite ‘dreambuilding’ and toured the brand-new houses: big mansions with tall, echoing ceilings and screened-in pools, shiny state-of-the-art kitchens, garages big enough for three Mercedes, a golf course in the back, vanity mirrors and crystal fixtures in every bathroom. We drove to the yacht dealer and toured the Princesses and the Prestiges, lying on cabin beds and ascending the wooden stairs to stand on pulpits, gazing toward imagined horizons.
The only other way that one could argue the merits of an Amway Pyramid Scheme is if the only person who made the most money was the first distributor to join the company, aka - "the guy at the top". The truth is that you could sign up today and sell more than your sponsor tomorrow. If so, you could pass him/her up and make more money. This completes negates the theory of an Amway Pyramid Scheme.
But there is one thing that we need to understand here. Like in an MLM scheme which is a Ponzi scheme, the business that an Amway distributor does, depends on finding new distributors and then hoping that these new distributors sell Amway products and at the same time are able to appoint newer distributors. If a distributor is successful at this he makes more and more money. The trouble is that we go along it becomes more difficult to appoint new distributors. Lets try and understand this through an example. Lets say the first distributor that a genuine MLM company appoints, in turn appoints five distributors.
Amway Center is one of the most technologically advanced venues in the world. Inside the building, a unique centerhung installation, manufactured by Daktronics of Brookings, South Dakota, is the tallest in any NBA venue.[19] It maximizes creative programming options by using high resolution, 6mm-pixel technology on each of the 18 displays, including two digital ring displays and four tapered corners. Additional displays include approximately 2,100 feet (640 m) of digital ribbon boards, the largest of which is a 360-degree 1,100 feet (340 m) display surrounding the entire seating bowl. These displays have the ability to display exciting motion graphics and real time content, such as in-game statistics, out-of-town scores, and closed captioning information.[20] Outside the building, a large display utilizes more than 5,000 Daktronics ProPixel LED sticks, each a meter long, which make up a 46 feet (14 m) by 53 feet (16 m) video display. This display will reach millions of motorists traveling by the Amway Center on Interstate 4.[20]
While the DeVoses campaigned on expanding educational choices for parents and students, their opponents reframed the issue. “When you really looked at it, the parents weren’t the ones with the choices; the parochial schools were the ones with the choices,” Matuzak remembers. “If all you do is transfer the money, you don't transfer any of the other requirements that are put on public schools. Public schools are required to take everyone who comes through the door. But private schools, parochial schools, get to pick and choose. … It’s not really the parents who have the choice, it’s the schools. And people ultimately understood that.”
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.
Products have flaws sometimes, please let me rephrase; people have problems with products and you will never have the perfect product that will suit everyone’s needs. You will have to deal with product issues and returns, obviously, a happy customer will give you a happy business, and it does require some skill and stress control to keep people happy.
In April 1997 Richard DeVos and his wife, Helen, gave $1 million to the Republican National Committee (RNC),[74][76] which at the time was the second-largest soft-money donation ever, behind Amway's 1994 gift of $2.5 million to the RNC.[74] In July 1997, Senate Majority Leader Trent Lott and House Speaker Newt Gingrich slipped a last-minute provision into a hotly contested compromise tax bill that granted Amway and four other companies a tax break on their Asian branches that totaled $19 million.[74]
"Thought our kids came out," Smart said after the win. "We were sloppy at times, organizational, as far as substitution on defense, and we got some stupid, silly penalties early on offense. But they came out fast, they came out physical, and they answered the challenge which was to understand that we challenged them and said 'hey, we are creating a standard here, that we play to this level, regardless of who you play.'  You have to go own the standard. I really thought the players really tried to do that. Sometimes holdings and things like that are an aggressive penalty. But that is frustrating and as an organization, we have to do a better job defensively of having the right people on the field."
Multi-level market (MLM) or network marketing is an American institution. Companies like Amway, Tupperware, Herbalife, Avon, Mary Kay and The Pampered Chef support huge networks of distributors and recruits who sell every type of product from dietary supplements to kitchenware to beauty products. Salespeople are called independent business owners (IBO) and generally work from their homes.

Let me share my experience. My son has completely been brainwashed by up line who has instructed him not to associate with his mother and father. His up line (the leader) gives the entire group instructions on what they have to do, when, how many meetings per weeks, hours of involvement. They also participate at conventions by the Diamond leaders who on the last day start preaching and have people go down forth to donate. Alan is a phony and fraud. Had no substance to his ramblings on stage then that pathetic sermon he entised sleep deprived individuals to donate. It doesn't stop there. My son and his wife have spent thousands of dollars in 2 years on Amway products and LTD products. They are instructed to do so. Sir, anyone who takes up for the cult like group should be ashamed. My son calls his Platinum leader his mentor whom he has ripped him apart through Identity Destruction. OMG...my son has a masters degree and this has ripped my heart completely out of my chest. I do not even know who he is anymore and I wish I could do something legally about this. You have no clue how they twist the bible, construe it into something they want the group to believe. Now my Christian son and daughter n law have stopped going to church and are worshipping the way the AMWAY LEADERS tell them to worship and their belief system. In the beginning I saw a drastic behaviour change, then a chill period. I even gave him my support, although against it, 100%. Helped their sales and reached out of o my friends who purchased. No more. I've not said anything hing about it to him but because my motherly instinct told me he was instructed to cut ties, that was confirmed today. His up line Joel should be sued for ripping our family apart. People like that are sinning and driven by money. The worship money and material things Of the world. There is only one God. I'm extremely upset and am just letting him go do it. He's under so much pressure stressed d out all the time. They are both coaches and thus side deal is killing them. The end
2 of my friends have recently become IBOs with Amway. They are still young in the business and are still buying the hype of being “business owners”. They really believe they can make money selling the products they themselves were made to buy. They have since been trying to sell us those products to no avail. This is what you will be reduced to if you choose to become an IBO with Amway.
On August 6, 2011, Kerala Police sealed the offices of Amway at Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and Thiruvananthapuram following complaints.[12][120][121] 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.[122] Later, Area manager of Amway, P. M. Rajkumar, who was arrested following searches was remanded in judicial custody for 14 days.[123]
The company offered plenty of learning experience but is all about what you put in, to get out. Good for friends to get involved with and also families to work on the side of other full-time positions. Otherwise, it can become overbearing if you are not an "on your feet" thinker and planner. A very competitive environment with teams all over the US.
Another reward of the Gomez family’s success was flexibility. Vicky credits their involvement with Amway for enabling the couple to be present in their kids’ lives, while instilling the importance of working hard and giving back. Their example has influenced the next generation, inspiring their eldest son, Adam Jr., to found a nonprofit organization called The Road to Help, which provides blankets to the homeless in the Los Angeles area.

I loved the days when we’d go to the Bayou Club as a family. We began going immediately after joining Amway, when I was in second grade. The development was new, still under construction. There was space between the houses and the far stretch of the golf course undulating luxuriously around them. Model homes rose from the landscape like castles, bigger than any houses I’d ever seen – and vacant. Never occupied. Empty dreams, waiting to be filled.
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.
The houses in Carlton Estates were a magnitude above those in our old neighborhood, where all of the concrete homes followed more or less the same design. These sat on larger lots and had deeper lawns, and each was entirely unique. There were second and third stories, and sloping, multilevel roofs. There were bamboo thickets obscuring homes from the street. Stone and wood exteriors. Stained glass windows. No sidewalks. No streetlights.
×