Welcome to my Amway MLM review. What is it about? How does it work? Can you make money with it? And most importantly, is Amway a scam, pyramid scheme, or a legit way to make money through multi-level marketing?
Amway is a US multi-level marketing (MLM) company that focuses on selling health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan.
Interestingly, Amway has been investigated in various countries and by institutions such as the Federal Trade Commission (FTC) for alleged pyramid scheme practices.
It has never been found guilty, though it has paid tens of millions of dollars to settle these suits. So is Amway a pyramid scheme in disguise? Is Amway a scam?
I have just finished long research to find the answers and help you to learn more. Finally, I’m ready to share my review.
But before we get into this review, and answer those questions, let me introduce myself…
Hi, I’m Ivan and I’m an online marketer who went from losing my time waiting tables to running a thriving online affiliate marketing business.
In the meantime, I have actually tried and reviewed 600+ courses, scams, and even pyramid schemes to find the very best way to generate income online.
In this Amway review, I’m going to show you what exactly this company is all about. Moreover, you will get a chance to learn what is inside, how it works, and whether Amway is a scam, pyramid scheme or legit MLM!
Shall we get started?
Amway MLM Review – Overview
- Type: MLM
- Owner: Jay Van Andel
- Price: $62 registration fee + $99 for starter kit
- Money-Back Guarantee: 90 days
- Recommended?: No…
Overview: Amway is an MLM company that has been around for decades. In fact, it is the most popular MLM in the history of this business model.
The company sells cosmetics, cleaning products, water purifiers, and other types of products via their business. They also offer you to join the team as a representative and earn an income by reselling their items.
However, according to many resources, Amway’s main goal is to sell you expensive starter kits and train you to keep recruiting other sales reps. Therefore, they have been under suspicion of being a pyramid scheme.
In other words, by joining Amway MLM, you get an opportunity to build a team of salespeople through which you can earn additional compensation from their sales.
Because of this fact, Amway has been accused to be a pyramid scheme by many. Is it true? Well, technically, Amway is not a pyramid scheme. It is legit MLM.
But like every other company that uses this model it has problems. Keep reading my Amway MLM review to learn more before you make your own decision.
Alternative: If you’re a newbie who is looking to earn passive income online, there are other, more beginner-friendly, and cost-effective alternatives. My top-rated affiliate marketing course has helped me to go from earning $0 to $100’s per day!
What is Amway?
Amway is a long-standing company that markets cosmetics, supplements, water purifiers, and a whole lot of other products to its consumers. Maybe you have bought some of them as well.
Amway is a company that’s taken a lot of flack in recent years. Unfortunately for people who are thinking about joining, a lot of the flack comes from people who are actually involved in the business or in other similar types of business.
Amway is actually one of the most disputed MLMs that you can join and is commonly attributed to being a pyramid scheme. Some people go as far as to say that Amway is a scam!
Whether or not this is actually true is a matter of definition and debate – more about this later in my Amway review.
This brand mostly has a bad name because it had some trouble with the FTC. But pretty much any massive MLM company like this will encounter at least some problems with the FTC because they don’t like MLM.
To learn more about the business opportunity, play the video below…
Anyway, Amway has been around since 1959 and was born in the minds of Rich Devos and Jay Van Andel.
They were long-term dreamers and hoped to open a successful business, which they certainly did: it has survived for more than 50 years and has branches in more than 100 countries.
In fact, it’s the highest-grossing network marketing company in the world.
They operate under their 4 marketing principles: freedom, family, hope, and reward. It’s a good message to live your life by. But this doesn’t do much to explain how the company works.
So is Amway a scam? Should you join? Is Amway a pyramid scheme? Read my Amway review to find out a bit more about that!
Related: Is Cutco a Scam or Legit?
Who Founded Amway?
Amway was founded in 1959 by Jay Van Andel as well as co-founder Richard DeVos. Van Andel and DeVos met while attending the Grand Rapids Christian Institution and found a comparable attraction with the business and sales.
Prior to Amway’s beginning, both DeVos, as well as Van Andel, had actually already been business partners in other endeavours, the majority of which fell short, including a job in a business called Nutrilite.
Nutrilite was different from the majority of businesses of its time due to the fact that it used both compensations from sales as well as motivations for joining other people as suppliers.
In other words, Nutrilite focused on offering nutritional supplements and later on included cleansing products, like Fluid Organic Cleanser, in their business line.
Jay Van Andel and Richard DeVos had lastly found a company model where they can succeed.
Amway was developed when its owners chose to begin their very own multi-level marketing firm. They left Nutrilite and started Amway, which is short for American Way.
Nearly promptly, the business became a global sensation. However, in the USA, Amway’s online reputation swiftly began to tarnish as people started associating Amway with Pyramid schemes.
To combat this image, in 1999, the firm was re-named Alticor, and the sales divisions were altered to Quixtar Brand.
Today, Amway is the most prominent multi-level marketing firm in the world. On the surface, they show up to supply a plausible path to a wide range.
That said, keep on reading my Amway review to learn how it works, how you can make money with it, whether Amway is a scam, pyramid scheme, or legit MLM, and more…
Is Amway a Pyramid Scheme?
Amway is not a pyramid scheme. As I said in the previous part of my review, they have had problems in this area, but objectively speaking, it is a legit business operation.
In other words, it is a direct marketing firm that uses the network marketing (Multi-level marketing) business model to market its products to a consumer through its significant base of Amway Distributors and Independent Entrepreneurs.
What Is Pyramid Scheme?
A pyramid scheme is a fraudulent system of making money based on recruiting an ever-increasing number of “investors.” The initial promoters recruit investors, who in turn recruit more investors, and so on.
To learn more about pyramid schemes, and whether or not Amway is one, see the video below…
As Amway does have various products and it is possible for employers to make money by marketing these items it is not a pyramid system.
If the only method for them to generate income was by hiring new members after that it would 100% be a pyramid system.
Is Amway a Pyramid Scheme in Disguise?
The main factor that Amway is not categorized as a pyramid scheme is the fact that some people in politics got together and said that it could not be called one based on trivialities.
So technically, Amway MLM is not a pyramid scheme. They promise you commissions based on the sales made by you and others you register.
To put it simply, the company sells real items for people to consume and bonuses from sales of your team.
And since there are no straight repayments just for getting them to sign up, there is no shady activity. That said, Amway, once more, is not a pyramid scheme.
The bottom line is that in pyramid systems you are forced to hire others in order to generate income from that firm. While in a multi-level advertising firm, you can earn money by hiring or marketing some physical items to prospects.
That said, Amway does not straight pay those who get others to join.
Although, anyone who’s been around multi-level marketing long enough, specifically Amway, recognizes the only means you can ever make a large buck is by hiring brand-new distributors.
Related: Secret MLM Hacks Review
Is Amway a Scam or Legit?
Amway is not a scam in my review. The business was founded in Ada, Michigan by Jay Van Andel and Richard DeVos in 1959 and promotes its cleaning (and many other) products to hundreds of nations around the world.
Amway has reported sales of over $8 Billion in 2020!
In 1979, the FTC said that Amway is not a scam because it does sell physical items and pays for recruitment. Generally, United States legislations only ban structures when no services or products are sold in a network marketing service version.
Nonetheless, this does not indicate Amway is completely legit in my review.
In 2010, clients and former representatives won a class-action suit for $150 million against Quixtar, the new name for Amway.
In the class-action legal action, the complainants affirmed that Amway exists generally to make money selling inspiration and training products.
On top of that, it was declared that the business is no more in conformity with the 1979 ruling from the Federal Trade Commission. Quixtar/Amway was also accused of cable and mail fraud, in addition to racketeering.
Indeed, many people who join to earn additional money quickly discover that the only actual way to do so is by hiring new distributors.
Regardless of this, the company has handled to remain in line with the letter of the law, in the USA at the very least.
All that being said, it is evident that Amway is not a scam. It is, in fact, a legitimate MLM company that anyone from all over the world can join, represent, and use to earn an income.
Alternative: On the other hand, if you’re looking for the best business model to earn passive income online as a beginner, there are other, more suitable, and cost-effective alternatives.
My top-rated course has helped me to go from earning $0 to $100’s per day!
How Does Amway Work?
You have to spend your own cash to join market Amway. Along with paying fees to be part of the “direct marketing association,” you are additionally asked to buy the products.
Not only you should be seen using their items, which have a tendency to be far more expensive than their Target equivalents, but you also must have stock on hand to offer to interested people.
Distributors get a tiny commission per cent of all of the items they market. There’s only so much soap that you can sell a day…
So the real cash originates from the charges of individuals that pay hundreds to end up being an “independent company owner,” which Amway calls it when individuals sell for you.
As new individuals register below you and begin recruiting brand-new representatives, the money moves upwards to you.
The only way to make any kind of substantial amount of money is to get individuals helping you, and afterwards individuals working under those people, and so on – – hence the MLM (or even a pyramid model).
While Amway is not practically an illegal pyramid scheme, it definitely frameworks itself in a distinctive pyramid shape, unusually comparable to traditional pyramid schemes.
They call it direct selling instead of MLM and you can learn more in the video below…
Are Amway Products Any Good?
A number of individuals have actually experimented with Amway’s nutritional supplements and have advantages to claim concerning it. Since I don’t use these products at all (!) I can’t really say anything here.
One of Amway’s claims to fame is that they really grow, collect, and refines the plants for these supplements by themselves on organic farms! Also, Amway claims to make use of unique Egyptian worms to help feed the soil.
Interesting claim, isn’t it?
However, nutritional supplements are not the only product Amway succeeds in. Remember their cleaner “L.O.C.”? The “legacy of tidy” is in fact completely biodegradable.
So what’s this all mean? Basically, Amway was natural prior to natural being mainstream! Oh and don’t forget about Amway’s Creativity line with cosmetic as well as individual treatment items.
This is an additional line that generates Billions of bucks per year!
Among their most remarkable products is called the Espring. This is a tap water purifier. Among the general folks, it receives lots of good reviews and has also earned an “outstanding” score from customer records!
If you go into this Amway product a little bit more, you’ll see that the purifying is completed by integrating a UV light along with a carbon block filter.
Nobody wants to be burnt out with the clinical details, so put simply: “It makes the water preference truly good!”
One of the Amway items that have actually been known to be the most habit-forming is their XS power drink of which independent business owners market over 100 million dollars worth yearly.
Once more without boring you way too much by noting off every product of their 450+ product, this multilevel marketing company have no scarcity of products and their quality is not questionable.
Related: iHub Global Review
Why Are Amway Products Expensive?
Amway claims that its products are a lot more costly because they transcend. They claim that the items are exceptionally focused and developed to be much more reliable and safer than other items, so you get more value for your cash.
Nevertheless, Amway products have actually not thrived in consumer screening. Customer Information has actually checked their recipe detergents and other cleaners and concluded that they do not work in addition to traditional brand names.
That said, much from being superior, the products are typically not as good as what you’ll discover for much less cash in your neighbourhood big box shop.
So why are their product so expensive? Amway products are expensive since the business wishes to make more money.
The amount paid to representatives is a pittance contrasted to what a lot of shops have to pay in overhead and staff members. The business must be profitable with a very low markup as the majority of its staff members pay the firm for the benefit of marketing.
How to Make Money With Amway MLM?
There are 2 methods you can make money as an Amway MLM promoter:
- Earn a payment from marketing items
- Employ people and make an income from their sales
It is essential to keep in mind that you do not get paid straight for hiring individuals. But rather you get bonuses for the items that they buy or market.
Therefore, to earn anywhere close to a full-time income, you will have to get busy and start recruiting people.
Amway Compensation Plan
The Amway compensation plan is not really that difficult to understand. Essentially, the company is “by-passing” traditional advertising and retail in order to pass that money on to their own customers or IBOs (independent business owners).
This means that Amway products are not sold in stores like most traditional corporations distribute their products.
Instead, they use a concept known as “buzz marketing” to spread the word and distribution their products.
Watch the video below to see how the Amway compensation plan works.
Can You Make Money With Amway MLM?
It’s not a stretch to say that when a firm is bringing in $8 Billion a year that its top suppliers will certainly be bringing in a ton of cash each year themselves.
If you ever meet anyone that is at the “Founders Emerald” or “Founders Diamond” levels…it’s safe to say these guys are making the lion’s share of the dough with Amway.
Additionally, if you occur to meet a person at any one of the “Crown” levels, they make so much residual income monthly it’ll make your head spin! But as you can envision, that’s not the norm.
It’s fact that a very little portion makes that much money with Amway.
So what’s the type of income you can expect as an Amway local business owner?
According to Amway.com, you’ll learn that just 48% of their independent suppliers are in fact really profitable and active. And of those that are active, most only make $200 a month!
So why does the average Amway local business owner makes so little cash?
Well, the sad truth is, for any person involved in straight selling, it’s a constant uphill battle in the beginning. Therefore, it is extremely hard to get the snowball rolling.
Moreover, among the reasons people discover it so hard to succeed in Amway is that they do not have the time needed to dedicate to it. They treat Amway like part-time work.
Unfortunately, this part-time work needs you to invest hundreds of dollars and a ton of your time to turn a decent revenue.
Can You Sell Amway on Amazon?
Although Amway forbids selling their items online with websites such as Amazon, it is not illegal. There is no restriction on Amazon to sell any legal item.
However, as I said, Amway does not allow its distributors to market its products on various on Amazon or ebay.com. Even so, many suppliers ignore the guidelines and sell there anyhow.
Their hope is that the company will not determine that they are doing it so they can reach a larger target market to sell the things.
Online sales can be an eye-catching method to increase your chances since there is really little money to be made offering $40 containers of soap face-to-face.
Related: Leveraged Profit Systems Review
How Does Amway Make Money?
Like its representatives, the business does not make a substantial quantity of money from selling cleansing supplies and eye shadows. Instead, it generates income from 2 key sources:
- Fees from items that are marketed when people join as independent entrepreneurs.
- Organization materials which are the tapes, meetings, and various other educational experiences.
Many of the top Amway partners additionally earn money marketing the desire for wealth rather than the sale of products. They might appear rich, but the majority of this wealth does not come from the Amway straight marketing association.
They market books and other materials that promise to motivate and teach you how to make a ton of money just like them. However, a lot of their customers eventually do not experience monetary freedom with Amway Global.
Therefore, lots of people out there have said that Amway is a scam – more about this soon in my review.
The truth is, although individuals are informed that they will be Amway entrepreneurs, in truth, they will be Amway consumers.
In other words, the vast bulk of independent business owners will spend their cash on Amway training materials such as seminars and the desire for wealth and unlimited income potential. Only to learn that it’s all just a hoax…
Do Some Countries Ban Amway?
Amway is not prohibited in the US. Nevertheless, it is outlawed in the UK after being established that Amway makes more money by marketing to their distributors than by direct marketing of their products.
It is also under hefty examination by the law forces in India. They have actually apprehended some higher-up representatives for being involved in a prohibited pyramid scheme.
Currently, Amway is leaping through legal difficulties all over the place to keep operations going in the US. It is most likely though, similar to India and also the UK, that Amway’s days of service are definitely numbered.
So what is the deal then? Is Amway a scam? Read the next section of my review…
Related: Crowd1 Review
Amway MLM Review Pros
- The starter kit is covered with a decent money-back guarantee
- They are partnered with companies like Microsoft and Lego
- The company has pretty solid ratings online
- They are quite reliable and honest as far as this type of business goes
- There is a potential to earn big money with Amway
Amway MLM Review Cons
- There have been some legal problems associated with Amway.
- They ended up paying $56 million in a case that accused them of being a pyramid scheme
- Not a lot of people are able to make money with their compensation plans
- Only about 3% of members earn a living wage
- Some people still say that Amway is a scam or a pyramid scheme
What Are Amway Reviews and Complaints?
One of the best ways to learn whether Amway is a scam or legit is to read some testimonials online.
Thankfully, the majority of internet sites that include collective reviews on Amway reveal that it’s a good firm. The ordinary scores for them are between 3.5 and 4.5 stars, which is impressive for an industry of this nature.
On TrustPilot, for instance, there are 20 reviews of Amway. They hold a strong 4.1 stars on the site. Many comparable MLMs are rated between 0.5 and 2.5 stars.
On SiteJabber.com they have a solid 3.0 rating from 23 reviews.
Below are some of the most common positive and negative Amway reviews…
Most Common Positive Reviews
Most positive reviews are directed toward Amway product quality and customer service. I didn’t find many positive MLM participant reviews.
Most Common Negative Reviews
On the other hand, most negative reviews of Amway are directed toward their business model. Some people even say that Amway is a scam or a pyramid scheme…
Most Popular YouTube Reviews
But despite these good and bad reviews, there are a few YouTube videos from former distributors where they speak the truth about this MLM company from first-hand experience.
Amway MLM Review – Conclusions
Regardless of having some encounters with the law, Amway appears to be a pretty legit business.
They are recognized for offering high-quality items and treating their consumers, as well as their representatives, with honesty. They offer some one-of-a-kind things, such as the chance to return your starter kit if you’re not enjoying the firm.
Things like this suggest that Amway is truly committed to making your experience with them a good one.
I can’t really tell you what to do, but with any luck, after reading this review you’ll have the ability to make a far better decision about whether you’ll join Amway or not.
So, what is your Amway review? Would you buy it or not? Is Amway a scam? Share your comments in the box below!
Is There a Beginner-Friendly Alternative to Amway?
If you do not want to lose your time or risk your tough-earned money, you may ask yourself if there is a better model than Amway MLM. And the answer is, YES!
It’s called affiliate marketing and it is the best way for newbies to get started online.
The reason why it is great for newbies is that you can run your service virtually at no expense. Most importantly, you do not need to invest in creating and creating any products.
For all those reasons, people who are just stepping into the world of online advertising, are discovering affiliate marketing and are jumping on board!
But you might be asking yourself, is affiliate marketing profitable? Or even, where can you start?
Well, keep reading to learn more…
How I Make Money With Affiliate Marketing
I earn online by creating simple affiliate websites that I use to connect people with products they are already looking for.
It requires no special skills or previous experience, which makes it the best way to start online.
The best thing about affiliate marketing is that it is passive in terms of results and income.
In other words, you could be earning an income from your affiliate website for years and years to come, even when you sleep.
If you want to learn more about how you can start making money online with affiliate marketing, click the button below!
After evaluating over 700+ programs on the web, my conclusion is straightforward. This is the best way to start earning passive income online.
And if you’re looking for the very same, I’ll see you on the next page…
And don’t forget to share the Amway scam review with your friends and family!
All the best, Ivan. Founder, and CEO @freeaffiliatemarketingbusiness.com
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