Welcome to the Amway MLM review.
A company that needs no introduction who have been around for over 60 years, and a household name for many. In fact, just look in your kitchen and you are sure to find an Amway product. No seriously…
Amway if you didn’t know is the most successful MLM out there leaving Avon and Herbalife behind in its wake by around 3 billion dollars in yearly revenue.
I know what you are thinking, not another MLM, right?
If selling home, beauty, and care products to your family and friends appeal to you, where you are in control of the working schedule and you can earn a living from then this might be what you have been looking for.
Don’t worry, I am not here to sell you Amway products or their business opportunity but if this company doesn’t float your boat then I do have an alternative, but we’ll get to that a little later.
So, what is Amway about? Are their products worthy of buying? Is there a business opportunity and can you really make a living from Amway?
All these questions and more will be addressed to give you a better handle on this company so that you can decide for yourself whether this is a great company or just another one to brush under the floormat.
So, let’s get right into this Amway MLM review and see what you think…
[Affiliate Disclosure: This Amway MLM Review may contain affiliate links which means I may earn a small commission if you purchase anything through one of the links. However, this will not affect what you pay!]
Amway MLM Review – Summary
Product: Amway
Location: Ada, Michigan, US
Founders: Jay Van Andel, Rich Devos
Founded: 1959
Website: www.amwayglobal.com
Product Description: A multi-level-marketing company manufacturing a range of products covering nutritional, beauty, personal care and items for the home.
Cost to join: Free
Price of products: $2.50 – $2,087.00
Best For: Network marketers with plenty of experience.
Recommended: Not recommended for newbies looking for a way to earn a living online.
Summary:
Amway MLM Review – TOC
- What is Amway?
- Is Amway A Pyramid Scheme
- Let’s look at Amway Products Range
- Amway Business Opportunity – What You Need To Know
- What Others Say About Amway
- What We Like – Amway MLM Review
- What We Don’t Like – Amway MLM Review
- Is Amway A Scam?
- Is Amway A Worthy Business To Get Involved With?
- Amway MLM Review – FAQs
- Amway Lawsuits And Legal Issues
- Feedback, Follow and Subscribe
What Is Amway?
Amway is a
multi-level-marketing, direct selling company, that was founded in 1959 by two close friends, Jay Van Andel, Rich Devos and headquarters are in Michigan, US.The largest of all the MLMs with an estimated $9 billion revenue in 2018, that far exceeds their closest rivals.
Manufacturing and distributing nutritional, personal care, beauty, and household products through their network of IBOs or Amway ABOs across over 100 countries worldwide.
From an early age, they both had entrepreneurial minds, starting with a hamburger stand, followed by an air charter service and then a sailing business.
They were introduced to the MLM business model by a close friend who recruited them into Nutrilite Products Corporation in 1949.
In the 10 years, they were with Nutrilite, they had recruited around 5,000 distributors and quickly realized the potential of this business model.
As the story goes, they saw instability with Nutrilite and decided to protect their team by starting the Americal Way Association or AMWAY as it is known today and to expand the product range.
A few years later in 1972 Amway actually bought a controlling interest in Nutrilite and became sole owners in 1994.
Amway now operates in over 100 countries worldwide, including UK, Canada, India, Japan, amongst others with a controlling interest in China, with over 17,000 employees.
Check out this short promotional video.
Interesting to know that in 1998 there were riots in China due to illegal pyramid schemes which forced the government to take action and ban all direct selling businesses including Amway.
Eventually, companies like Amway, Mary Kay, and Avon were allowed to continue their businesses but through a network of retail stores.
They also made it illegal for sponsors to receive commissions through team members who had been recruited.
Is Amway a Pyramid Scheme?
Whenever a multi-level-marketing business
is mentioned the term Ponzi or Pyramid scheme always crops up.Type Amway into Google and you are sure to see those terms appear in the search query.
People automatically assume that this is a pyramid scheme due to the business structure set up to pay their members, even though all businesses are set up in this manner.
Over the decades there have been numerous investigations and fines through the likes of the FTC and it will continue.
Very briefly, a pyramid scheme would be paying members some sort of bonus for recruiting others, but the way around this would be to hide behind a bunch of products that really had no value, which is sometimes hard to establish.
Amway, as we know, has a massive products range with well over 500 products to their name, so I think we can safely say that they aren’t hiding behind a bunch of crappy products.
and…
They haven’t been closed down “yet” and therefore I think we can safely assume that Amway is not a pyramid scheme.
Amway Products Range
At the last count, I found 530 active
products with some products only a few bucks to some well over $2,000.What I did notice was the range of energy drinks (very popular) that they currently sell is down from 41 to 21.
Could this be down to claims that these drinks would allow people to be able to drink and drive?
Just one of the sales tactics that Amway IBOs have used at main events!
Amway most popular product range
The Amway product range can be found within the categories listed below…
- Nutrition
-
- Vitamins and supplements (83)
- Weight management (31)
- Sports nutrition (51)
- Energy drinks (21)
- Beauty
-
- Skincare (84)
- Makeup (142)
- Fragrance (4)
- Personal care
-
- Bath and body care (17)
- Haircare (29)
- Oral care (5)
- Home
-
- Air treatment (5)
- Cookware (18)
- Dish (5)
- Disinfectant (2)
- Laundry (9)
- Surface cleaners (9)
- Water treatment (15)
For a closer look at the extensive Amway products range with current prices…
Too many products to start researching individual ones and therefore feel free to check out the full range here.
Amway Business Opportunity – What You Need To Know
A few years ago, Amway IBOs or Amway independent business owners, would have been stomping the streets knocking on doors, but those days are well and truly in the past now thanks to the internet.
With a vast number of products to choose from with great reviews to back them up, it is always the business opportunity that lets this type of business down.
A top business they might be amongst the 1000s of MLM type businesses that are currently active, but is it really a business for you?
How to become an Amway IBO or Amway ABO
Firstly, you would have to sign up through an Amway sponsor.
Preferably someone you know well otherwise one will be appointed for you.
Finding the right sponsor is essential as it is the responsibility of the sponsor to guide and train you how to work this type of business.
You would need to purchase a range of products to show and demonstrate to your prospective customers. Something in the region of $100-$150.
Should be enough to get the ball rolling!
How to Make Money With Amway
There are many ways that you could run your business but the 3 basic ways would be to…
- Purchase products for yourself and family at discount.
- Sell the products to customers.
- Recruit others into your team and make commissions on what your team sell. This is essential if you want to build the business!
Of course, there are many other ways to attract customers which are basically limited by your imagination.
Such as…
- Home parties.
- Events like shows and fairs.
- Social media, Facebook, Instagram, YouTube etc
- A dedicated website, separate to the Amway website which would be used to take customer orders.
A personal website is essential to get out amongst the prospective customers searching for Amway products.
In a nutshell, this would entail writing content about what others are searching for regarding Amway. Get this right and it could save you a lot of hard work!
Here you can check out the Amway Compensation Plan for yourself
Are Amway consultants actually making money?
Unfortunately, when it comes to income disclosure regarding MLMs, this is usually very thin on the ground.
I am not going to bang on and break down what Amway ABOs are making because all MLMs pretty much come out of the same book, but feel free to read this pdf that I managed to find.
To be successful in any MLM requires you to recruit others and lots of them.
The theory is “the more people you can recruit the more money you will make”. Well, that’s the theory although it doesn’t really work out like that.
Some hard facts you have to take on board when thinking about joining any MLM.
Around 98% do not make a full-time living.
60-65 per cent of members will have left before their 2nd year with massive debts.
Yes, massive debts?
Well, simply to try and maintain a certain status on the Amway ladder (each month) people purchase the products themselves hoping to sell on, and end up with $1000s of stock at their disposal. Crazy eh?
What Others Say About Amway
With plenty of bad press, with continued lawsuits and investigations, Amway just seems to be able to ride straight through them and get stronger.
What We Like – Amway MLM Review
Amway products overall are received very well by their customers and some very loyal ones they have too.
- Accredited with the Better Business Bureau since 1991.
- Extensive product range with over 500 to choose from.
- Products can be found in over 100 countries across the globe.
- Refunds… You have up to 180 days to decide whether Amway is for you or not and this is the cut-off point for asking for a refund.
What We Don’t Like – Amway MLM Review
It’s not all about the products that make a great company.
- No income disclosure – Considering Amway has been at the top of their game for a number of years I find it strange that there isn’t an income disclosure worthy of reading.
- Expensive products – the internet is our best friend if used correctly and should take too much effort to find similar products that are as good or even better and of course much cheaper.
- While MLMs are always going to be extremely hard to work out it doesn’t help matters when Amway themselves are selling the products through Amazon.
- About 98% of Amway IBOs don’t make a full-time living.
- Around 65% will have left Amway before their 2nd years will have started.
- Not for newbies trying to make a living online.
- Shipping costs you will have to pay for, so you have to factor that into your profits.
- FTC investigations and ongoing lawsuits do not help Amway’s cause.
Is Amway A SCAM?
Throughout the years Amway as had there fair share of problems, with numerous FTC investigations.
There are various ways that you could declare a business a scam and many who join and leave without success (and they are many) would be the first to get on the Amway scam bandwagon.
Products are legit and there are plenty of them that come with some great reviews.
You are not forced to recruit others. Not forced to sell to customers either.
Many become Amway IBOs just to purchase the products for themselves, family and friends at discount.
However, if you are hoping to make some serious money in this type of business you are going to have to seriously work hard and remember its only .2% that make the real money.
All said and done, they are the biggest MLM and whilst many will say that Amway is a scam, I for one certainly can’t.
Is Amway A Worthy Business To Get Involved With?
After what you have read in this Amway MLM
review you should be able to decide for yourself whether this is a great company or not.Over the years Amway has built their reputation on household needs and whilst many are raving about them; due to the advances in technology, we can find alternative products just as good and better and at a fraction of the price.
So, is Amway a worthy business?
Even the experienced network marketers are going to struggle and besides you better have some unique way of recruiting if you want this to be a success.
Due to my experience with MLMs, I would not recommend this type of business to a newcomer looking to replace an existing job.
More of a hobby I would say!
There are better options and one in particular that I wish someone would have told me about right at the beginning is Affiliate Marketing.
Finding the right training at the right price was difficult but I eventually found what I believe is the best training platform online and that’s Wealthy Affiliate.
They specialize in Affiliate Marketing but don’t take my word for it, why don’t you try it out for free.
Amway MLM Review – FAQs
- What Is Amway?
Amway is a global multi-level marketing (MLM) company founded in 1959, offering a variety of products including health, beauty, and home care items.
It operates in over 100 countries and territories.
- How Does Amway’s Business Model Work?
Amway operates on an MLM model where independent distributors, known as Amway Business Owners (ABOs), earn income through direct product sales and by recruiting new distributors.
This model allows for earnings based on personal sales and commissions from the sales of their recruits.
- What Types Of Products Does Amway Offer?
Amway’s product range includes nutritional supplements, beauty and skincare items, home cleaning products, and personal care products.
Popular brands under Amway include Nutrilite, Artistry, and eSpring.
- How Do You Become An Amway Distributor?
To become an Amway distributor, you need to sign up through the official Amway website or through an existing ABO.
The process typically involves purchasing a starter kit and attending training sessions to learn about the products and business practices.
- How Do Amway Distributors Make Money?
Distributors earn money by selling Amway products directly to consumers and by recruiting new distributors.
Income is generated from the retail margin on products sold and from performance bonuses based on the sales volume of their downline (recruited distributors).
- What Are Some Common Criticisms Of Amway?
Critics often point to the challenges associated with the MLM structure, such as the heavy emphasis on recruitment and the potential for market saturation.
Some also argue that the income potential is lower than advertised, with many distributors earning minimal profits.
- What Support Does Amway Provide To Its Distributors?
Amway offers extensive support to its distributors, including training programs, marketing materials, business tools, and access to online resources.
The company emphasizes personal development and provides mentorship opportunities to help distributors succeed.
Amway Lawsuits And Legal Issues
Pyramid Scheme Allegations
Amway has been accused multiple times of operating as a pyramid scheme. One significant lawsuit was filed in California in 2007.
Alleging that Amway’s business model relied more on recruiting new distributors than on selling products.
The plaintiffs argued that the focus on recruitment over sales was indicative of a pyramid scheme.
The case was settled in 2010 for $56 million without Amway admitting any wrongdoing.
False Advertising and Business Practices
In 2013, Amway faced a lawsuit accusing it of false advertising and deceptive business practices.
The plaintiffs claimed that Amway misrepresented the income potential for its distributors, leading many to invest significant amounts of money with little return.
This lawsuit highlighted the challenges and financial risks faced by many distributors.
Environmental Violations
Amway has also faced legal issues related to environmental regulations.
In 2008, the company agreed to pay a fine for violating the Clean Water Act.
The violation involved the improper disposal of waste, which had environmental implications.
This case underscored the importance of compliance with environmental laws in manufacturing operations.
Foreign Corrupt Practices Act (FCPA) Violations
In some instances, Amway’s overseas operations have come under scrutiny for potential violations of the Foreign Corrupt Practices Act (FCPA).
These investigations typically involve allegations of improper payments to foreign officials to secure favorable business conditions.
While specifics can vary, these cases generally emphasize the need for strict adherence to anti-corruption laws.
These lawsuits highlight various challenges Amway has faced, from allegations of pyramid scheme operations to issues with advertising practices and environmental compliance.
Despite these legal battles, Amway remains one of the largest and most well-known MLM companies globally.
Potential distributors and customers should consider these legal issues when evaluating their involvement with the company.
Feedback, Comments and Subscribe
I guess then as you are reading this Amway MLM Review that you are interested in maybe their products or could it be the business opportunity that as caught your eye?
Whatever your interest I hope I have given you enough food for thought to make the right decision.
Maybe you have had a bad experience and would like to share it amongst us?
If you enjoyed this review then why not show a little love and share it on social media.
Until next time, stay safe.
Great review. I have heard a lot of negative things about them, but also a lot of good things. For me at all comes down, to whether it makes sense or not. Is it what I’m passionate about. I think this would be hard to have success in, but for sure possible if you want it as bad as air. Great info!
Alex, you nailed that on the head. You have to want it bad enough, just like many things in life.
Thank you for commenting, much appreciated.
I have heard about Amway for many years, but I didn’t know they had been around since 1959. They have a great track record for a MLM. No matter how good the business is, I have found that MLM is a hard business model to start with. Thank you for the insightful review. I thought they would rank better than they did.
Thanks, Greg for taking time out to read and comment on “The Amway MLM Review”
All MLM’s like you say are extremely hard work, but no harder really than starting any business.
People are not prepared for the amount of work that’s required and when things don’t start happening quick enough then they call it a day.
As you know any business will take time, so patience, dedication and hard work are required.
The rating I gave, whilst rating high for the products, I don’t see a business opportunity.
Thank you for commenting
Hi Mick,
Thanks for this introduction of Amway, it’s good to know your pros & cons to get a clear picture. I knew a friend of my mother who made lots of money through this MLM system. Some of the products are really good, to be honest!
But, if you ask me whether I will follow her steps to join Amway, I would say no. Based on your sharing, there is no income disclosure, 65% of Amway members quit the 2nd year, and many lawsuits against Amway. It just has much uncertainty and does not suit my personality, so I will consider your recommendation to build an online business when it’s free to try.
Cheers,
Matt
Hey Matt, your mother’s friend must have been blessed with the sales patter and yes, many of the products are good.
With there been well over 500 products I’m sure there are a few that aren’t so great!
Thank you for taking time out and commenting on this Amway MLM Review.
I really think you hit the nail on its head when you mention there are other
products out there (on the internet and elsewhere) you can find not only
less expensive but also just as good or better quality. Back in the day I joined
Amway. I was one of the 98% not making a full-time income. But in their
defense, I am not good with sales especially trying to sell to friends and family.
So as you mention, many of us ended up with a lot of Amway product and
nobody to sell it to. Chalked up as a lesson learned! I wouldn’t say it’s a scam,
but it’s a small percentage who find great success in it as you mentioned.
Affiliate Marketing is where it’s at!!
Hey Teresa, thank you for sharing your Amway experience which sort of clarifies everything and sort of tells my readers that I am not talking BS.
Very few are good at sales and I guess selling to family and friends is ok especially as the products are pretty good, but try and push a business opportunity and that’s when things can get a little tricky.
Thank you for commenting on this Amway MLM review.
Hi Mick,
Once again, another great review.
I’m very well aware of Amway, and indeed the products that they sell.
However, looking at this from a business perspective, it is not a company that I would want to get involved with.
I know you have mentioned many times before about the consistent lack of information when it comes to income disclosures with MLM companies, and this is always a worry for me.
I was initially astounded to hear of the crippling debts that many consultants walk away from the company with, but in truth it makes a lot of sense.
Amway may have been around for many years, they may even be the most successful company (probably in the history) of all MLMs, but the price of many of their products leaves a lot to be desired.
I guess we’re well and truly in the Internet age, or the information revolution if you will, and finding the same or similar products a lot cheaper isn’t really that difficult.
Not for me I’m afraid.
Thanks once again for your informative, frank and honest review – although I wouldn’t expect anything less.
Partha
hey Partha, always nice to hear from you and thank you for those kind words.
Before I’d started researching Amway, I thought of them like the UK version “Kleeneze”.
I had an actual experience with an Amway consultant at a friends house about 30 years ago and that left a lasting impression, so it was interesting to get to the bottom of who they actually are.
If people who got involved with these companies did their research first instead of listening to the BS then they wouldn’t be so successful.
Thank you for your support which is very much appreciated.
Hi Great review and very informative. I agreed with you that it can’t be called a scam based on the traditional definition of what a scam is, but the concept of portraying something that is not there, allowing novice that are looking for opportunities to fall into it , makes this business concept a scam.
You really exposed everything one need to make informed decision and I hope others get to see this review.
Thanks for sharing.
Thank you Benson for stopping by and commenting on this Amway MLM review.
Interesting and honest facts on Amway MLM review. I was an Amway distributor years ago and I have only positive to say. I also would agree its more of a hobby. Thanks for sharing.
Thank you Alyse for sharing