Is Amway a Scam? The Grandfather of MLMs on The Spotlight!
Welcome to my Amway review!
This is an MLM company that needs no introduction. You've probably seen one of their products in your household at some point your life.
Your parents may have even engaged in their business opportunity. I am talking about Amway!
First of all, I must Congratulate you for taking your time to do your own research before buying into any "seemingly good" product.
That's the way to avoid scams and find the legitimate way to make money online!
Let me be completely transparent with you, I'm not associated with Amway in any form.
So, rest assured that I'm not here to pitch or sell anything to you.
Instead, I'm here to reveal the secrets of Amway's success and what drives them to be one of the most dominant companies in the MLM industry.
Is Amway a scam?
Read more and find out.
Amway Review Summary
Product Name: Amway
Founder: Richard DeVos and John Van Andel
Product Type: Health and Wellness, Household Products MLM
Price: $69 for Registration Fee (one-time) + $99 for Starter Kit (Optional)
Best For: People who are good at recruiting and direct sales.
Summary: Amway is as legitimate as you can get. After all, it's nearly 50 years old and yet one of the strongest MLM companies out there. But even with its reputation and product lines, I cannot recommend their business opportunity to anyone. First, the income potential is really low (and I'll show you the evidence). Second, there are hidden costs that aren't revealed to you when you first sign up. Lastly, Amway has a history of legal trouble, and it's difficult to build a store around a company that's spent a lot of time in courtrooms.
What is Amway?
Amway, or American Way, is one of the oldest MLM or multi-level marketing companies that still operates to this day.
After releasing its first product in 1959, founders Richard DeVos and John Van Andel were determined to become a global leader in the health and wellness, and beauty industries.
The Michigan-based company believes that its distributors can achieve happiness through financial success.
With nearly 50 years in the MLM industry, Amway has expanded into these countries:
- Australia in 1971
- Europe in 1973
- Asia in 1974
- Japan in 1979
- Latin America in 1985
- Thailand in 1987
- China in 1995
- Africa in 1997
- India and Scandinavia in 1998
- Ukraine in 2003
- Russia in 2005
- Vietnam in 2008
Amway, being the grandfather of them all, has a ton of product and a global brand.
Amway Product Line
Amway has a wide array of products under every category – from health to beauty to cleaning materials.
They are even known to have more products in distribution than any other MLM company in operation.
To date, Amway sells over 450 products, with new product lines added weekly.
Here are some of the products that Amway is known for, and what prospective IBO’s or Independent Business Owners, can sell:
1 – Nutrilite
Nutrilite is one of the first products that Amway started distributing.
This product line was first introduced to both DeVos and Andel and formed Amway around it.
Artistry is Amway’s makeup line and is still one of their strongest products.
This cosmetic product line consists of makeups, lipsticks, anti-aging, and other skin-care products.
Amway’s XS is their energy drink product line, which is one of their newest product lines.
The energy drinks come in different flavors namely Summit Blast, Citrus Blast, Cranberry-grape Blast, and the Rootbeer Blast.
4. Legacy of Clean
Legacy of Clean is Amway’s cleaning product and kickstarted the whole biodegradable product in the company.
Like Nutrilite, Legacy of Clean is one of the first few products that started out since Amway was created, and it’s not going anywhere any time soon.
These are just some of their flagship products. To view all of their products, please go to their website here.
Do The Products Work?
When a company has been around for nearly 50 years, it’s bound to have its fair share of positive and negative reviews.
But what I found that Amway’s products garnered positive reviews from different websites.
On the topic of positive reviews, people seem to like their products. Praises ranging from the wide product lines to the natural ingredients can be read on their Consumer Affairs review page.
On a more honest note, I wouldn’t expect anything less from Amway and their products. For a company to survive this long, they’d need to have great products and great service.
Their BBB or Better Business Bureau profile is also proof of their products and service. Amway has been a BBB-accredited business since 1991 and has maintained a rating of A+.
They closed 4 complaints in the last 12 months and only 11 complaints in the last 3 years.
It's probably safe to assume that their products work and are probably more decent than most of their competitors.
I Created My Own 4-Figure Monthly Passive Income at just 21 Years Old!
How To Make Money With Amway?
Like most of the other MLM companies, Amway comes with good old-fashioned ways for making money.
Amway provides you with the following options:
- Selling products for commissions
- Bonuses from recruiting and building a team
How To Get Started With Amway?
Amway claims that their business opportunity has a “low start-up cost”.
Here are the costs of the kits that IBO’s can avail of:
- Registration fee – one-time fee of $69
- Starter Kit – one-time fee of $99 (optional)
Amway’s Starter Kit is composed of
- $245 value of products – for demo or for retail
- 10 mini catalogs with product and business information
- In-class training materials
- Quality brands
- Marketing support
For a starter kit, this isn’t really a bad start and it’s quite reasonable.
The products alone are worth almost 3 times as much as the fee, so that’s going to get you a good start on your profit stream.
Amway Compensation Plan
Amway’s compensation plan is old and elaborate, so instead of me covering every tiny detail, I’ll just go over the most important ones.
- Personal Consumption - By going out and purchasing products you would normally buy from traditional retail, you save money and get money back through the Amway system.
- Retail Sales – You earn money via direct sales at retail pricing.
- Networking – Residual income earned when your team orders and sells product
- Bonuses – Different bonuses like trips, watches, and other products are rewarded to top performers.
This video should go into more detail about their compensation plan:
Amway Ugly Truths Revealed!
#1 - The Income Potential Is Really Low
According to their income disclosure statement from 2016, the average gross monthly income for their active users is $207.
That’s a daily income of $6.9 for a 30-day period, or $0.87 per hour.
That’s way too low even when you compare it against the current federal minimum wage of $7.25 per hour.
That’s pretty low, considering this is from one of the oldest MLM companies around.
Their average platinum member earns about $55,000 per year, but they only comprise 0.26% of Amway’s distributors.
Note that this average only comprises of the active users, or those who’ve made sales that year. But if you include the non-active users into the computation, that gross monthly income could be lower.
#2 - Tons of Hidden Costs
Do you know why it’s enticing to get into business with Amway? It’s because people think they only need to pay the sign-up fee or for the starter kit, and they’ll be good to go.
What they don’t know, and what the company doesn’t tell them, is that there are hidden costs to starting an Amway business.
For example, going online means that you’d need a functional website and other marketing materials.
Then there are other Amway-related expenses, like the Amway Inauguration Bundle, which is a kit containing marketing materials that costs $338!
There are also fees associated with attending their official Amway meetings and conferences, so you’ll need to factor those in as you’re starting your own business.
In short, there are hidden fees that aren’t revealed to you until your account has been created.
#3 - Amway And Its History Of Legal Battles
It’s hard to do business with a company that’s riddled with legal issues. Here are just some of their biggest legal battles.
In 1979, Amway won a landmark case that involved the legality of MLM’s after 4 years of litigation.
In 1982, Amway settled a case with the Canadian government and paid $25 million in fines for alleged tax fraud. This was after Amway created a system of false product lists and prices.
In 2010, one of Amway’s Subsidiary, Quixtar, settled a class action lawsuit for $150 million. This is the largest settlement of its kind for an MLM-related court battle.
#4 - Lots of Face-to-Face Selling and Recruiting
Amway relies on the most traditional way of building an MLM business.
And that involves a lot of face-to-face selling and recruiting.
I remember not too long ago when I got pitched about Amway.
The presenter asked me to come up with a list of 100 people to contact, adding that family members and friends were the preferred contacts.
Of course, I didn't subscribe to their business opportunity. I wasn't really a big fan of recruiting nor face-to-face selling.
Now, I'm not saying this is illegal or anything. We are now living in the digital age.
This traditional way of building a business is ineffective compared to modern marketing via digital means. .
Plus, it's also really difficult to market MLM to your family and friends.
If you're not willing to talk to new people every day or even do a business presentation in front of a crowd, then Amway might not be the best for you.
Thanks to the Internet, I'm constantly getting at least 20 leads per day for my business without doing any cold-calling, hard-selling or recruiting.
And I've already achieved financial independence at just 21 years old earning 4-figure monthly passive income.
What I Like About Amway?
#1 - They Are Established
Amway has survived and thrived as one of the oldest MLM companies in existence.
From 1959 to 2018, they're a year away from celebrating their 50th anniversary.
And that’s very enticing for people who want to get into MLM.
Even after being branded a pyramid scheme (to which they aren’t), a lot of people still see Amway under a positive spotlight.
I mean, why would you settle for anything less than the grandfather of all MLM companies?
#2 - They Have Diverse Product Categories
Amway’s product lines are just as established as the company itself, to the point that they’ve become a household name.
Amway has over 450 products to promote as of this writing, and some are niche products that don’t even have a lot of competition – both from the MLM side and the commercial side.
On top of that, I've already mentioned that people do like their products, so it shouldn't be that difficult to sell the brand.
Is Amway a Scam?
Amway is one of the oldest MLM companies that still continues to operate to this day. With nearly 50 years under its belt, it’s pretty hard to compete against a company like Amway.
However, with everything that I have explained above, I cannot recommend their business opportunity to anyone.
First, the income potential is really low. You’re looking at earning an average of $207 per month, and you have to be selling by volume to make it worth your while.
Second, there are hidden costs as you sign-up. While it’s enticing just to pay the one-time fees, IBO’s will still be faced with other fees as their account is created.
Lastly, Amway has a history of legal trouble, and it’s difficult to do business with a company that spends a lot of time in the courtroom.
While they do win or settle their lawsuits, it's still not a very good thing to be associated with.
How I Make A Living Online?
I'm not a fan of MLM, not because it's illegal or not profitable, but because of all the restrictions and the expensive costs involved.
Instead, Affiliate Marketing is my top recommended business model for anyone to make money online.
The reason is simple...
- You don't have to recruit anyone to make money
- You have the freedom to promote any products you want and not being restricted to only promote the products from one MLM company
- It's Free to get started
In fact, with affiliate marketing...
I've personally created a 4-Figure Monthly Passive Income Stream and become financially independent at just 21 years old without any College degree or working experience!
Through my own hard work, I went from a broke restaurant waiter to living my dream laptop lifestyle in less than a year's time...
If you want to discover the secrets of how I did it at such a young age, click here!