Amway MLM. Scam or not?

Amway is a private company that represent the idea of MLM. In many sources claimed that it’s a scam. But it’s not scam or not yet proved. The Company established in 1959 and became popular by involving customers to became independent business owners. It’s really hard to make money in multi-level marketing company like Amway (I know it’s for sure because I’ve being “independent business owner” for one year and I spend more money than I’ve earned).

According to company’s webpage Amway is not a pyramid because:

Amway is not a pyramid scheme. It is a direct selling organization where IBOs (independent business owners) make money through the sale of products. Amway IBOs don’t make any money by bringing more people in – not a single cent. They make money when products are sold, not from recruiting. On each product sold, Amway sets aside a portion of the product cost as a “bonus.” This is shared by IBOs who work together in sales groups, according to their contracts with Amway. In addition, the risk to IBOs and their customers is low: IBOs are not required to purchase products. Any products that are purchased are backed by a 100 percent satisfaction guarantee. And the $62 registration fee is fully refundable upon resignation in the first 90 days.

Amway official webpage.

Independent business owners (fancy words for hiding “merchant seller for commission” reality). Multi-level marketing companies selling lies and misuse the concept of partnership.

Amway is guided by six enduring values: partnership, integrity, personal worth, achievement, personal responsibility and free enterprise. 

Amway official webpage.

Let’s speak about six enduring values. Partnership is misused. Questionable integrity. No personal worth if you don’t make sales. Achievements are based on monetary gains. Personal responsibility stands for “you are responsible for not making money in MLM”. Free enterprise based that there’s nothing free in this world. As more sales independent business owner generate, as more income. And vice versa. Oh, let’s not forget high prices…

Business owners receive education materials and free online training available 24/7 on mobile devices and in multiple languages. Educ and training topics include product information, how to sell them, how to earn income, how to grow a business, and how to be a leader. In addition, Amway offers business tools, including a personalized, mobile-friendly website, apps and customer service support (from real people, in six languages). Compared to the cost of starting almost any other kind of business, the cost to become an Amway IBO is minimal and low-risk.

Amway official website.

It’s easy to understand whe MLM used to be popular in pre-internet era and why it’s rapidly loosing popularity. Before independent business owners could not check anything about the company. Sellers must rely heavily on properly filtered information published by MLM company. Now everything could be checked. And in time of Amazon why would anyone order from MLM web?

Amway claims that customers have a strong desire to support small & independently owned businesses. I don’t this that’s anymore true.

Amway has been investigated in a few countries and by institutions like Federal Trade Commission for alleged pyramid scheme practices.

Of course there’s many successful MLM stories but no one speak about failed attempts. So, I’ve tried to became successful MLM independent business owner and I failed miserably. Please, don’t repeat my mistake. Go for legitimate business and don’t waste your time for multi-level marketing.

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