Is Amway a Scam?

Amway Review | Is Amway A Scam?


Name: Amway

Website: https://www.amway.com/

Price: ~$100/year (registration only)

Owners: Founded by Jay Van Andel and Rich DeVos in 1959

Overall Rank: 25 out of 100

Amway, Product Overview | What is it? 


What Is Amway? Is Amway Legit and Whether you Should Join

Amway is self-proclaimed as the world’s largest direct selling company ($8.8B reported sales, 2018). They manufacture and distribute nutrition, beauty, personal care and home products—which are sold through Amway “Independent Business Owners (IBOs)”. They have been around for more than 50 years.

If you’ve already heard of Amway, then most likely you’ve been invited to join Amway. Maybe you’ve alrady been to one of their large “IBO” meetings. Personally I have been recruited by a lovely couple who I still am somewhat connected to online but more to come on that below.

According to Amway, once you join there are 3 ways to make money:

  • Retail margin from every Amway™ product you sell AKA you get a portion of money from each of their products you sell directly to family and friends
  • Bonuses calculated from your business growth AKA the more people you recruit to work under you, the higher “bonuses” you get
  • Incentives rewarded as you reach key milestones in your business AKA the more the people below you sell, the more “incentives” you get

This is a picture of how it works. If you sell $300 or more, you make 3% commissions ($9+), if you sell $900 or more, you make 6% commissions ($54+), etc.

How is it possible to sell enough products to actually make money?

With a lot of people beneath you selling a ton of products. So if you have 10 people in your “downline” and in total they sell $22,500 worth of products, all of that “volume” is translated up to you and you get 25% commission ($5625+) on that money that month.

If you’ve been sold on Amway before, a large “selling point” that they rely on is that if you don’t want to recruit others, you can still earn cash back on Amway products. So everything you buy, you get back your commission that month and since they have a lot of household items, you get cash back on those at the end of each month.

The Good, the Bad & the Ugly


PROS

Pro #1: Amway is entirely legal

Pro #2: It is theoretically possible to make money using Amway

CONS

Con #1: It has been shown time and time again that <1% of people in multi-level-marketing make any profit at all from their membership fee. This means <<1% actually make their income using this strategy.

Con #2: Amway products are significantly more expensive than your average household items

Con #3: Feeling pressured to recruit family and friends into joining

Con #4: Hidden costs of buying Amway products

Who is Amway for?


Amway is targeted at people who are looking to start their own full-fledged selling business.

It is NOT suitable for people who:

  • are looking for a side-hustle
  • for those looking to build a business from their laptop, and it is not suitable for those who
  • are looking to be independent.

If you choose to become an Amway IBO, you are starting your own mini company. You have to register it and everything. Then, you have to start recruiting “employees” in an environemnt where anyone who goes online is likely to find plenty of reveiws just like this one that calls Amway out on all of it’s questionable claims.

Next, Amway cannot be done from your laptop. You have to actually sell physical products which means you have to learn a lot about selling stuff. Amway also loves to get large groups of people together for big meetings. It is expected once you join that you will attend your local meetings. This is where you bring your “potential recruits”.

For all of these reasons and for the reason that you can not make money without having at least 10+ recruits, there is simply no way that you can do this alone. The only thing that will happen if you join Amway on your own is that you’ll spend a ton of money on their products, get some cash back and loose money on the yearly registration fee.

Amway Tools & Training | What’s the Education Like?


Amway has a step-by-step training platform online that you can work through once you register as an IBO.

The training in a nutshell teaches you the following:

  • Details on incentives and bonuses that you get based on “monthly volume” of your business and how many people you recruit
  • Education about all their different product lines
  • Lessons on how to properly “recruit” people into the program and exactly how to pitch Amway to others in way that it doesn’t seem like a pyramid scheme
  • How to teach your “downline” AKA the people underneath you to do the same

Amway Support | Who do I Complain to?


The support offered with the product is actually great. There is 24/7 support for any questions you might have as an IBO, or any questions about Amways product.

By definition there a community around Amway because you have to have someone invite you in order to become a business owner. From that perspective, you have a community because you are at the lowest point in the pyramid at the moment you join and everyone above you will “support” you because they’ll want you to make money for them.

There is no support outside logistical issues however. When it actually comes to recruiting members, you have to offer up friends and famiy. When it comes to buying products for your “monthly volume”, you have to fork over the money and buy the products.

Your “upline” AKA the person who recruited you will rely on you to bring in monthly volume for them and in return they may help you with recruiting but it’s your job to find potential candidates.

Amway Price | Is Amway Worth the Money?


In order to join as an IBO, you have to pay a registration fee of about $100 per year. After that, Amway doesn’t really have upsells but they do have hidden costs.

Hidden costs that you weren’t expecting when you joined Amway: 

  • Expensive Amway products to create “monthly volume” for your new company
  • Meeting fees for each meeting that you attend where you can bring your recruits

I will say that there are no huge upfront fees that you see in some programs. Programs that charge 5k+ and have 3+ upsells while you go through their funnels. You won’t find that in Amway which is nice because usually by the time that you find out your’re not making any money, you also haven’t lost a ton.

My verdict on this one though is that it is still not worth the money even though it is not expensive to join.

My Final Opinion of Amway | Is Amway a Scam?


Full disclosure – I ended up joining Amway for short time years ago. I had never encountered MLMs before and I was curious. My vague understadning of MLMs at that time was that they were illegal and a company that had been around for 50+ years could not be illegal and therefore could not be a “bad” MLM. Furthermore, the couple who introduced me to it was very nice and I’m actually still freindly with them to this day.

I was not a member anywhere close to close to long enough to lose any real money and also I did not recruit anyone because it didn’t feel right to me to recruit other members before I started making money myself using the method.

Amway is entirely legal but it is extremely difficult to make any money at all. The “cash back” that you get from buying household items is negligible unless you are buying for an entire household of family members. Even then, there are a ton of cash back programs (credit cards being a prime example) that are more legitimate, less of a headache, and apply to almost all products that you buy rather than a handfull of ultra-expensive specialized products.

Amway does offer you cash back on almost all products at larger chain stores as well but it’s so negligible that it’s simply not worth it. You can use “Honey” the chrome extension that finds discounts and do better.

At the end of the day, even though Amway is legal I would say that it is a scam

It is impossible to make money unless you are able to recruit at least 10+ members that are excellent sales people and your whole group is able to move 22.5k worth of Amway merchandise.

Amway at a Glance…


Name: Amway

Website: https://www.amway.com/

Price: ~$100/year (registration only)

Owners: Founded by Jay Van Andel and Rich DeVos in 1959

Overall Rank: 25 out of 100

FINAL VERDICT: NOT LEGIT

Want to learn how to actually build an online business?

My #1 Recommended Affiliate Blog Training (Phase 1 is FREE)

Did you have a personal experience with Amway? Do you know someone else that did? Or would you like to share  personal opinion on the matter? Is so, please add your experience below!

-Martina

P.S. Pin this article for later:

Is Amway a Scam? What Exactly is Amway & Should you Join read our review

 

 

 

Amway

$100
3.4

Tools & Training

0.3/10

Support

7.5/10

Overall Quality

2.5/10

Pros

  • Legal.
  • Theoretically possible to make money.
  • Have good support and community within your team.

Cons

  • <1% make money in MLM.
  • Products are significantly more expensive than other standard household and beauty products.
  • You feel pressured to recruit family and friends.

4 thoughts on “Is Amway a Scam?”

  1. I’m appreciative of the information support you provide to the online community. I don’t know whether you can accept the fact that your articles are helpful. 

    Sincerely speaking, this my first time hearing about Amway, I don’t where the world has left me because it seems it had already got some strong roots in the online market. But I am happy that I have got to know about it and be warned in advance

    Reply
  2. Hello Matina, I love your clarity in this review on Anway and I’m impressed. So many online businesses are out there with similar programs and it’s only normal to read reviews before joining. Personally, i am not in line with their means of earning which is determined by how many people I bring into it. Any form of MLM scheme is competently a bad idea to me. Although they have good products that can make sales fast, still a lot needs to be corrected in their business 

    Reply
    • Hi Benson, I agree. If the only real way to make money is to recruit family and friends…I’d stay away! Also, I don’t want to be selling products that I don’t use myself. For instance, I prefer Green Works cleaning spray to anything Amway offers so why would I try and sell my family and friends on something i don’t even use? 

      Reply

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.