The author shares their experiences with Amway, a multi-level marketing (MLM) company that has caused significant damage to their relationships and business. They have tried counseling and family counseling, but the author still credits Amway as a positive force that helped them when they were down. Their father, who owns a landscaping business, has been involved in Amway for about six years, investing heavily in the company and attending events.
The author also shares their own experience of being recruited into Amway by her senior and how it affected their relationship. They have faced challenges in finding an IBO Sponsor to sign up with in their area and dealing with the negative consequences of their involvement. They have also faced criticism from their mentor and mentor, who reprimanded them for associating with friends not part of Amway.
The author advises others to wait it out and hope their husband is able to find a resolution. They have also faced challenges in getting a family member or friend out of Amway, as they have had to confront their mother and family for being part of the company for five years. They also mention that Amway Insider offers answers to common questions and myths about Amway and direct selling, and provides advice on applying for individual or full family coverage.
The author also discusses the importance of not talking to family members about Amway, as it can only make matters worse. They encourage discussing the company with everyone they know and letting them know they may be approached.
The author concludes by expressing their frustration with Amway and its impact on their marriage and family. They highlight the need for more transparency and understanding in the MLM industry, as well as the potential for negative consequences if someone is involved in an MLM scheme.
| Article | Description | Site |
|---|---|---|
| Loved ones have been lured in by Amway. What can I do to … | Simply ask innocent questions,such as these: “Hey, great! So how much product have you sold this month to consumers?” “Cooool! How many others did you sign up … | quora.com |
| They’re perfectly legal, but these business ‘cults’ should be … | Ask a friend whether they’ve ever lost someone to the cult of multi-level marketing and there’s a pretty high chance they will answer “yes”. | smh.com.au |
| Amway Business | Since Januray 2020, Amway Hong Kong has launched the online signup for ABOship and Privileged Customer membership. You can sign up on our 7 x 24 business … | corp.amway.com.hk |
📹 Amway Scam Stories: I Was Raised In A High Level MLM Family
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Do People Make A Lot Of Money Doing Amway?
Amway offers individuals the opportunity to earn money through various avenues. Many people find success in this business model as Independent Business Owners (IBOs), often characterized by their sincere aspirations and commitment. Earnings can be generated through retail product sales and recruiting others to join the business. While Amway's Income Disclosure Statement indicates the average income for participants is relatively modest—about $766 per year—tens of thousands in the U.
S. reportedly earn from it. The company claims to have paid over $73 billion in bonuses and incentives to its distributors. However, most individuals struggle to earn substantial income, primarily due to high hidden costs associated with maintaining IBO status. Realistically, substantial earnings often come from selling products rather than solely recruiting. Many participants are drawn to Amway for additional income alongside their primary jobs, capitalizing on the company’s revenue potential, which reached $8.
1 billion in 2022. Success stories showcase the possibilities, but the reality is that few reach significant earnings, as the bulk of profits can be concentrated among those selling training materials or operating at higher levels within the organization. Hence, while making money is possible, it often requires exceptional effort and results to truly succeed in Amway.
How Much Do Amway Diamonds Make?
Amway’s Independent Business Owners (IBOs) can achieve significant earnings, especially those in the 99. 9th percentile, who receive the diamond pin. A diamond-level IBO can earn approximately $9, 683 monthly, which includes base profits, bonuses from direct groups, and an average diamond bonus of $2, 061. Earnings potential as an IBO depends on factors such as customer base, experience, and the effectiveness of their sales team.
Income is generated primarily through product sales, personal sales bonuses based on volume sold, and team growth incentives. The business relies on selling Amway products at retail prices, allowing IBOs to set their own margins.
Data from U. S. IBOs in 2023 indicates that only a small fraction (0. 01) achieved the Founders Diamond level. Historical statistics show the average diamond can make around $150, 000 annually, but earnings vary widely and often depend on personal efforts and additional revenue sources like tools and motivational materials. Despite potentially high earnings at the diamond level, average earnings for IBOs generally remain modest, with many reporting low annual incomes.
Importantly, Amway requires significant investment in events and promotional materials, affecting net earnings. Overall, while many globally earn through Amway, it is crucial for prospective IBOs to understand the variability and challenges in achieving high income levels.
Is It Safe To Use Amway?
Amway offers nearly 400 health, beauty, fitness, and home products, and concerns about their safety and effectiveness often arise. The key takeaway is that all Amway products are safe when used as directed. Amway emphasizes quality, effectiveness, and safety, ensuring that each product complies with regulatory standards in various countries and meets international quality benchmarks. The safety evaluation includes testing for compatibility, absence of harmful substances, and rigorous reviews for toxicology, skin sensitivity, and pH balance.
Amway products are independently recognized and award-winning, which reflects their commitment to product quality. They contain only natural, organic, and low-glycemic ingredients, avoiding banned substances or artificial additives. Despite controversies surrounding Amway's multi-level marketing model, the products themselves are deemed safe; many people, including past users, attest to their efficacy.
The company's adherence to current Good Manufacturing Practices (cGMPs) further ensures product safety. Therefore, for those considering Amway products, rest assured they can be used safely without concern for harmful chemicals. In summary, Amway maintains a strong focus on safety and quality in all its offerings, garnering positive feedback from users globally.
How Is Amway Legal?
In 1979, the United States Federal Trade Commission (FTC) recognized Amway as a legitimate direct selling business, stating that no income is earned without selling products. Despite facing controversy over its multi-level marketing (MLM) model, Amway continues to operate in the U. S. and internationally. Founded in 1959 in Michigan, the company has been linked to legal issues, including allegations of running a pyramid scheme, particularly in India, where authorities registered cases against it under relevant laws.
Amway's compensation structure is based solely on product sales and does not reward distributors for merely expanding the network, thus differentiating it from illegal pyramid schemes. Procter and Gamble once filed a lawsuit against former Amway distributors for libel, but the case was dismissed. The FTC has maintained that Amway is not an illegal pyramid scheme under the Koscot standard due to its compliance with rules and regulations.
Although Amway operates legally, potential distributors should be cautious about expectations for income, as many may find it challenging to replace a full-time salary through this model. Overall, while Amway remains a legal business, its viability as a reliable source of income is debated.
What Is Amway'S Response To The ED Action?
Amway has responded to the Enforcement Directorate's (ED) action, emphasizing its cooperation since 2011, during which it shared necessary information. The ongoing investigation, initiated by a police FIR in Hyderabad, pertains to a money-laundering case involving the attachment of assets worth ₹757. 77 crore. The ED has accused Amway India of operating a pyramid scheme disguised as a multi-level marketing (MLM) model, which allegedly siphoned off over ₹2, 859 crore from its members.
Amway has faced numerous legal challenges and complaints related to fraudulent activities between 2006 and 2014 in Hyderabad and Kerala. The ED's findings suggest that the company's focus centers on recruiting members for profit rather than selling products, which underscores its pyramid fraud allegations. In a formal complaint filed under the Prevention of Money Laundering Act (PMLA), the agency asserted that Amway's structure promotes wealth accumulation through membership rather than through legitimate sales.
Amway reiterated its commitment to regulatory compliance and has claimed it would continue to cooperate with the authorities throughout the investigation, which has been ongoing since 2011. As the investigation unfolds, the ED has highlighted the seriousness of its allegations against the multi-level marketing operations of Amway India.
What Celebrities Use Amway Products?
Amway has collaborated with a number of high-profile celebrities, including movie stars Alan Ladd, Sandra Bullock, and Teresa Palmer, international footballer Ronaldinho, NBA legend Shaquille O’Neal, and NFL Super Bowl MVP Kurt Warner. Notable ambassadors for Amway's Nutrilite health and wellness products include NFL quarterback Drew Brees and former tennis star Anna Kournikova. The company's top-selling brands are NUTRILITE vitamins and dietary supplements, ARTISTRY® skincare and cosmetics, and eSpring® water treatment systems.
Amway has leveraged celebrity partnerships to enhance its product visibility. For instance, Sandra Bullock endorsed ARTISTRY’s anti-wrinkle cream, highlighting its moisturizing benefits. Additionally, many celebrities share their skincare secrets, often linking their radiant skin to the products they promote, while neglecting to mention lifestyle influences like diet and professional skincare assistance. Amway's efforts to engage celebrities extend to its premium brand range, introducing plant-based botanicals in its skincare line.
The recent signing of actor Farhan Akhtar as the face of Nutrilite protein products aims to boost sales further. Amway's strategy of aligning with celebrities helps position its products favorably within a competitive market, drawing attention to the effectiveness and allure of its wellness and beauty offerings.
How Did The Investigation Against Amway Begin?
On September 6, 2006, an FIR was filed against Amway in Andhra Pradesh, India, initiating investigations that included raids on their offices. This followed an earlier FIR in Chandigarh, which went unaddressed. The investigations into Amway's practices involved allegations of fraud and money laundering, particularly regarding their multi-level marketing (MLM) model, which has been likened to a pyramid scheme. In 2011, the Enforcement Directorate (ED) launched a probe into Amway India based on multiple FIRs from Telangana Police under the Indian Penal Code.
The investigation revealed proceeds of crime exceeding Rs 4, 000 crore, leading to claims that Amway operated a fraudulent scheme misrepresenting profitability to its distributors. Despite facing numerous complaints and lawsuits between 2006 and 2014 concerning unfair practices, Amway has repeatedly maintained that its operations are legitimate. Although the U. S. Federal Trade Commission had previously determined Amway was not an illegal pyramid scheme, ongoing legal issues continue to challenge its business structure and ethical practices.
Who Is The Current Owner Of Amway?
Amway, founded in 1959 by Richard DeVos and Jay Van Andel, is the world’s largest direct selling company and a privately owned family business under Alticor, the holding company for several enterprises, including Amway, Fulton Innovation, and Access Business Group. DeVos and Van Andel, lifelong friends and business partners, originally aimed to empower individuals through entrepreneurship, revolutionizing the direct selling model. The company's first product was Frisk Liquid Organic Cleaner.
Amway has maintained its family structure with Doug DeVos and Steve Van Andel serving as co-chairmen of the Board of Directors. Key figures at Amway include Milind Pant, recently appointed as president, along with other executives like Asha Gupta and John Parker. Richard DeVos passed away in September 2018, while Jay Van Andel passed in 2004. Its leadership has extended beyond their founding legacy, with an enduring commitment to free enterprise and community values.
Amway also supports initiatives for conservative Christian audiences through partnerships in organizations like Gospel Communications International, reflecting its founders' values and vision. The company officially entered the European market in 1973 and continues to grow as a global leader in direct sales.
Do You Actually Make Money With Amway?
If you're exploring the direct selling industry as a supplemental income source, you may be curious if you can earn money with Amway. The answer is yes; many individuals in the U. S. do make money through Amway. Amway Business Owners (ABOs), also known as Independent Business Owners (IBOs), have several avenues to earn, including selling products for retail profit and recruiting others. However, earnings primarily stem from product sales, as sponsoring alone does not contribute to income.
Notably, Amway has allocated over $73 billion in bonuses and incentives to its distributors globally, yet statistics indicate that the majority do not make substantial profits. In 2022, Amway's sales totaled $8. 1 billion, affirming the demand for its products. While earning potential exists, actual success often requires significant effort in retailing and recruiting. ABOs can profit from product markups and earn bonuses based on their sales performance and the sales generated by their recruited team.
However, most participants join Amway to supplement their primary income, and only a minority reach considerable earnings, with the top 1% achieving the most significant success. Thus, while it is possible to make money with Amway, success demands diligence, strategic selling, and effective recruiting.
Why Was Amway Banned From The US?
In a 1979 ruling, the U. S. Federal Trade Commission (FTC) determined that Amway was not an illegal pyramid scheme based on the statutory definition but ordered the company to halt price fixing and misleading representations regarding financial success for its distributors. The case, In re Amway Corp., stemmed from earlier accusations in 1975 that it violated the FTC Act. Amway, founded in Michigan in 1959, has faced frequent scrutiny but continues to operate legally in the U. S. and many other nations, with its products remaining available for purchase. Despite common myths, Amway is not banned in the U. S.; its reputation is tied to its controversial past. However, it is banned in countries like China, Bahrain, and Vietnam, where pyramid scheme laws are stringent. While it has encountered legal challenges, including investigations and charges concerning pricing practices and misrepresentation of profit, it has successfully sustained operations across various markets. The FTC's ruling confirmed that Amway's business model is legal, aligning with direct selling and network marketing business strategies. Amway states it embraces regulatory measures that help differentiate between legitimate direct selling and fraudulent schemes.
How Much Do Amway Reps Make?
The average salary at Amway varies significantly based on position, ranging from approximately $35, 000 per year for a Sales Associate to about $99, 937 for a Senior Sales Specialist. Sales Representatives earn around $35, 000 annually, which is notably below the national average. Amway Business Owners (ABOs), or Independent Business Owners (IBOs), can earn income through product sales and recruitment. However, earnings largely depend on factors like customer base, experience, skills, effort, and the sales team’s performance.
Many IBOs report minimal income, with average earnings reported at just $766 per year in Amway’s 2021 Income Disclosure Statement. Hourly pay rates at Amway vary, with estimates of approximately $16 for entry-level positions to around $136 for higher executive roles. The total pay for Sales Representatives estimated between $67, 000 to $103, 000 includes base salaries and additional earnings. While some top earners may report annual incomes in the range of $60, 000 to $90, 000, the majority earn significantly less, with average earnings for most IBOs being less than $100 monthly. Overall, Amway salaries span from $33, 000 to $112, 000, with an average hourly wage around $29. 56, reflecting diverse roles within the company.
Do People Still Use Amway?
Amway, founded in 1959 by Jay Van Andel and Rich DeVos, remains a prominent direct selling company in the U. S. and globally, with nearly 290, 000 independent business owners (IBOs) in the U. S. and over 1 million worldwide. They distribute high-quality products across more than 100 countries. Approximately 11% of U. S. beauty and health online shoppers express a likelihood of repurchasing Amway products, showcasing 79% customer loyalty based on its 14% usage share.
Despite facing competition from brands like Mary Kay, Avon, and Tupperware, Amway has maintained its operations for over 60 years. However, skepticism surrounding its multi-level marketing (MLM) structure persists, with accusations of being a pyramid scheme arising due to its reliance on recruiting distributors for income. Critics question whether IBOs can realistically earn profits through this model. Nevertheless, Amway continues to adapt and innovate in the digital space, sustaining its extensive product range and presence.
The company employs over 3, 300 Americans in Ada, Michigan, and invests in strengthening its domestic operations. Amway is described as a giant enjoying billions in revenue, although its growth rates have slowed compared to a decade ago. Overall, Amway remains a viable business opportunity despite ongoing public scrutiny and market challenges.
📹 The Truth Behind Why I Left Amway
The Truth Behind Why I Left Amway ✓ #1 recommendation for making money online …
You talk about how leaving a “community” has consequences. The only thing people leave is the job, not their friends. People leave their jobs all the time without their friends cutting them off. I’ve switched jobs many times and I still kept my friends. I’ve yet to meet someone who’s attitude was ” Well, you left the job we both share so, I’m cutting you out of my life.” My friends were all like “We’re going to miss you, but, let’s get together next week and you can tell me all about how it’s going.” If people are going to distance themselves because you choose another job, then they weren’t really friends to begin with. To them you were business partners, and since you’re no longer in the same business, and can’t provide anymore connections, you don’t have value anymore so you’re kicked to the curb. “You’re my friend as long as you have the same job as me”, isn’t a friend.
Wow! I don’t know how I ended up perusal this article,YouTube just recommended it. I watched the article and then read a few of the comments which is probably what I shouldn’t have done. Because it’s a lot of back and forth about very general stuff and for what?… I will say that I actually enjoyed this article it’s refreshing to watch a article of someone who is very intelligent and interested in facts. I don’t believe you’ve discounted this guys story at all you seemed very neutral over all. I completely understand what you were saying and I appreciate you and the content your posting.
Also I am a Christian as well. I don’t believe in cutting people off just because they aren’t in the same business as me etc. Amway doesn’t want you associating with anyone you can’t profit from financially. That is not Christian at all. Also, straight up lying to people about the name of the company or what you do in order for them to show up to info session was also morally wrong.
Guys, there is no “dream job”, only pathways to getting what you want. You can’t invest your dreams in anything except yourself. And when you do that, you stop funneling your power into a system; rather you draw power from the system. Dude, Coca-Cola used to have cocaine in it. While it’s still legal and if you’re not investing your dreams in it, then join an MLM. If you want something to fulfil you, join a charity organisation and donate your time.
Hey man could we set up an interview? The team I happen to be in they actually preach only investing 10 hours a week at max and spending the rest of the time on work and family, i believe some bad mentorship groups or bring bad light on the company as a whole but I believe it is a legitimate business, never have I once been told to remove family because they don’t support
Your response is so strange, I don’t think you’re understanding the reasons this persons dad got out of this business, the writer was obviously talking about the people IN the business that were going hungry probably because they were investing all their money into amway which left them with no money for their own necessities. Someone attempted to recruit me and I went to the meetings and the group meetings only to find out they wanted me to pay about 250 dollars to start and then 120 to 130 dollars every month just for the app the audios and the whatever else and this was aside from what I would be expected to spend on the actual products which is about 450 to 900 dollars a month… a lot of people don’t have the money to spend like that, it’s part of the reason why they’re looking for new avenues of income. It makes sense that his dad left I couldn’t in good conscience ask someone to join an organization or what they deem a “business” that expected them to comply with all their demands spend who knows what percentage of their pay check every month and basically become engrossed in it completely without seeing any real money back in their pocket other than some chump change
Hello Lance, I am from overseas and due to lack of legislation, Amway reps do not even bother to fake some customer sales. They do promote “do your monthly points and teach others to do the same”. There are hardly any sales to the customers out of network of distributors. And this is promoted by IBOs themselves as well as by the highest pin in the country, who says that it does not make sense to sponsor anyone who is not making his points monthly – it does not make sense to invite anybody to the business where we all do buy and the newcomer is not buying anything. That is how it is promoted in Czech republic. I believe behaving like that in US openly, Amway would be long gone as product based pyramid scheme. Do not want to start an argument, but that is what it is and honestly, there are some MLM companies I believe really focus on the real customers – Avon for example, but Amway really operates a pyramid scheme here and is not even hiding it.
I agree with you. There is a lot of discernment that goes into deciding if a company is right. Namely if you don’t believe in the product that company probably isn’t one that should be invested in. Once greenhorns loose their initial excitement and thoughts of instariches they run for the hills yelling “scam” the whole way. Its a little sad because there are riches to be made with networm marketing.
I am soon to become in IBO. This is a nice Twist on the story I was hoping to see whiners and complainers complaining about Amway which is nice to see the twist that you put in here. this is something that I have prayed on and I’m convinced that Amway can help me to be a better Giver. I will go diamond and I will be in 5 years or less
Yeah but the head count is what makes the large sum of your money, the selling of products keeps you finically stable and most of the product is usable for health or convenience so I agree it’s not a pyramid scheme in that regard, but it is a hierarchy based on a head count. The people beneath you account for the money you make depending if they themselves are recruiting or selling IE a pyramid.
Q: Why join to begin with if the culture was bad? A: How often are you able to gauge the entirety of an individual or company’s true character immediately? Sure, it may be easy in extreme circumstances, but in real life, once that initial glimmer has faded after a time, that’s when you begin to understand a person or company’s true culture and values. Q: Why not be a part of the solution? Why complain? Why not Be the change you want to see? A: How is one man supposed to change the entire mission, structure, and culture of an established corporation of such a size where the leadership benefits directly from the practices put in place? Companies only react to regulation and competition- you don’t hope to appeal to their “better nature”. I’m not entirely sure if you are being intellectually dishonest, or if you truly believe what you’re saying; in either event a man was made apostate by nearly all of his “friends” because he no longer wished to work for a company. Amway is nothing more than a golden calf wrapped in a Dale Carnegie seminar.
Me and my wife have been doing this for about 13 month now and we could not be more happy with the outcome, and im happy to say our up line or mentors have become some of our best friends. I understand what people are saying but I urge you to spend some more time with is and see where it goes. most of these people really just want to see you do better in life.
Amway is like the NFL. They have different teams with different methods to the same model. The way one team functions and operates is not how they all operate. Some teams even formed due to differences in methods on how to build and train IBO’s. Regardless, these are people issues, not issues with the business model itself. Even though it’s open to anyone, not everyone can build this business or any MLM. But, college is not for everyone either. Traditional business is not for everyone. Heck, some people shouldn’t even be parents. Just because someone else sucked at parenting, dropped out of college, bankrupted a business, I wouldn’t tell the next person that those paths don’t work. That kind of thinking is like telling highly competitive kids that their odds of going pro is slim to none statistically, so just don’t bother pursuing those dreams.
Nice to hear your in your own NWM company, no wonder AMWAY gets all the bad rep and your does not. Selling Amway products don’t require all these extra negative things that people create. Not the Amway corporation but people should get the negativity.AMWAY only provides products. Blame the people which could be anyone who can access Amway products.
Amway is a predatory pyramid scheme. how difficult is it for people to understand. Be in denial for as long as you want, it doesn’t takes away the fact that you have to literally be a con artist to succeed and such business. Folks, I did Amway, I know several others who did it. it is of no benefit. You will lose lots of money. Doesn’t worth the time. You are guaranteed to succeed selling water and candies in traffic than joining Amway. The books and audios are informative, but the monthly subscriptions are not worth it. It will drain your pocket. Invest in your own business, begin with small businesses. Do not let them brainwash you with the 4 quadrant. Joining amway do not give you an equity. You are just buying, Recruiting and selling (not so much) to make others more wealthy. Most IBOs are losers who are constantly in denial about their shitty life. They can only imagine the life they want to live. Amway and BWW sells them dreams that will never come to pass. Do not Quit your job for such BS.!!
You are right. It is not a pyramid. But know the learning system is an option. Uplines need to stop 🛑 with the IOUs when they guilt trip their downlines with purchasing their tickets not having a go on their end and they end up not going to a rally. Good product though, but the repetition of information in the night owls gets older than dirt quick.
Kind of a horrible thing to say if you “associate yourself with people who aren’t entrepreneurs, vegan, or Christian is going to lower your average”, like these people are lesser than, or below you somehow. And it isn’t a very Christian thing to say. Very disgusting comment. Was about to sub, then decided against that idea. We’ll agree to disagree
Lance I am gonna propose something to you. If you join a zoom meeting with college professors and legit business owners and present a solid argument as to why MLM’s business plans are not pyramids or scams. I will gladly give you 1,000 bucks of my own money. But you have to convince the professors and business owners that MLM’s are legitimate businesses.