Is Amway Business a Scam? – All 2019 Details Exposed!

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Be informed that this is going to be a comprehensive review of Amway business opportunity and I am going to talk pretty much about everything that you would need Is Amway Business a Scam? - All 2019 Details Exposed!to know to make an informed decision about joining the business opportunity.

This review will tell you a little bit of Amway history and more detailed info on how to get started and the income potential of the business.

Let’s get rolling..

Amway History

Amway is an established company that has been in direct selling business for about 60 years now. The head office is located in Michigan, USA and they claimed to currently operate in more than 120 countries while helping more than 3.5 million Independent Business Owners (IBOs) worldwide.

The company was founded by Rich DeVos and Jay Van Andel after they lost interest being a distributor for Nutrilite Products Corporation. Amway was coined out of  American Way Association in 1959 and as of 2018, the company earns about $9 billion revenue annually.

Amway offers a very large and exclusive line of different products, extensive business training opportunities and holistic customer support services etc. It is a muilti level marketing (MLM) company that sells health products, nutritional products, home care products and beauty products.

The company has an A+ rating with the BBB (Better Business Bureau). During our research writing this review, It was discovered that Amway has a generally negative reputation among the Independent Business Owners and the most common complaints from them was the difficulty of making money, high product prices and false-hearted recruiting tactics.

Is Amway Business a Scam? - All 2019 Details Exposed!

Amway Products

  • Nutrition products: These includes – Weight management products, sports nutritional supplements, vitamins & supplements, energy bar & drinks etc.
  • Beauty products: These includes – Skincare products, makeup, lip stick etc.
  • Body & bath products: These includes -Body care, hair care, tooth care etc.
  • Other domestic products: These includes – Surface care, dish washer detergent, laundary soaps, cookware etc.
  • Jewelry & accessories: These includes – Watches, rings necklaces, bracelets etc.
  • Fragrances: These includes – Various perfumes, selections from Personal Accents etc.
  • B2B products: These includes – Various industrial & agricultural cleaning & laundry products etc.

Is Amway Business a Scam? - All 2019 Tricks Exposed!


How Does Amway Work?

I had came across this question severally on the social media and I finally decided to answer it in this Amway review. Yes, people that want to join Amway business truly deserve to know how the business works and everything.

If you are interested in starting out an Amway business, you will first need to register to become an Independent Business Owner popularly called IBO, and you will then have access to the various products that Amway carries.

The Amway IBOs can choose from over 500 different products that the comapany carries and the IBO’s buyers are guaranteed 100% satisfaction, so if you are a buyers that is unhappy with any of the Amway products, contact your seller (IBO) as Amway is ready to make it right with you their consumers.

Amway supports their IBOs by training them to develop various e-commerce business skills that would help build up their Amway business. Once a person register as an IBO with Amway to sell their product, the person would gain access to the Amway online and offline learning plus business tools and resources.

At the time of writing this article, there were not much information as to what these learning plus business tools and resources contains. However; Amway website proclaims that IBOs would be able to learn practical skills that will assist them in scaling up their Amway business.

I want to assume that the learning plus business tools and resources contains information on how to sell the various Amway product line. It should help IBOs to learn about the best sales tactics, e-commerce business operations and similar topics that will help IBOs to create a solid foundation for their Amway business.

Is Amway Business a Scam? - All 2019 Details Exposed!


 

How much Does Amway Cost?

To join Amway as an Independent Business Owner (IBO) is relatively inexpensive and there are two business kits available to choose from.

  • Amway Literature Kit: This IBO business kit cost $62 and it does include a step by step guide on how to start the Amway business. Also included in the package are information about Amway’s bonus programs, product brochures and specialized training programs for the business.
  • Amway Product Kit: This IBO business kit cost $83.99 and it does include all the welcome kit plus additional $150 worth of Amway products.

As you can see from above, intending Amway IBOs would be spending less than $100 for the business startup. From the information garthered during this review, the annual Amway fees were said to be less than $100 as well – about $60 to be precise.

If you joined Amway and you are dissatisfied with your Amway business opportunity within 90 days of your IBO purchase, you can receive a 100% refund of your invested money by simply contacting customer service at +1 800 253 6500 or customer.service@amway.com.

After you signed up as an IBO with Amway, here listed below are other things you would expect to get.

  • Virtual office
  • Product marketing materials and support
  • Direct sales support
  • Business management tools
  • Online and offline business training materials
  • 24/7 customer service support

Note that there does not seem to be any additional costs implication to joining Amway IBO but you will need to buy the various products that you want to sell for profit and the costs would vary depending on the type of products that you choose to market in your Amway business.

Few other cost that you might incure for your Amway business are:

  • $30 for voicemail
  • $25 for website fees
  • $50 for a standing order for the CD or cassette subscription
  • $120 plus for quarterly seminars/functions
  • $15 for the monthly open meeting

Note that the above listed fees may vary as they are not directly from Amway but from the IBO that sponsored you to joining the business.

Is Amway Business a Scam? - All 2019 Details Exposed!


How To Make Money With Amway

Our research shows that there are few ways to make money with Amway e-commerce business.

Watch the below video that breaks down the compensation plans.

Amway Direct Selling

One of the ways that Amway utilizes to get their products out to the masses is called direct selling.

Here, the Amway products are only available through Amway IBOs and they sell it to individuals who then resell to consumers to make some profit. The individual usually buy the products at a reduced price from IBOs before selling them. Their profit is generally the difference between the final selling price and the price they bought the products from IBOs.

An example would be buying $ 500 worth of Amway products each month and then sell them for $1,500, this means that your immediate income for that month is $1,000.

Amway Independent Business Owners Recruitment

Here is how and where the main money is made with Amway business. Typically as an IBO, you can make money by recruiting other IBOs which will lead to building a huge network of amway product distributors. The upline IBO will make a certain percentage of the whole network of distributors that he or she helped to recruit.

If you are interested in Amway business and you have talent in forming a quick and meaningful relationships with people then this is a good business opportunity for you.

The about scenario is what is called MLM (Multi-Level Marketing) and it is the reason why Amway business is being referred to as MLM business. Even though that this Amway business structure is pyramid in nature, it is not a pyramid scheme.

Why is Amway not a Pyramid scheme?

In a pyramid scheme business, the seller typically promises to pay the buyer for registering others into the business scheme without suppling no tangible product or service whatsoever.

But in the case of Amway there is a product exchange and you as a seller would have products to sell in order to to grow the Amway business. The business is to sell products, bring in new people to buy and sell products, and then help more people to do the same thing.

Amway Bonus Compensation

As an Amway IBO, you are able to earn bonus for your overall business sales volumes and the amount of money you would make as an Amway products distributor or IBO would be dependent upon the combination of what Amway terms “an immediate income” plus additional income earned through your performance bonuses.

The bonus would be calculated from your point value (PV) and business volume (BV) and help in determining your monthly performance and which bonus bracket you will belong for that month.

Note that you as an IBO would earn more bonuses by recruiting more IBOs than just focusing on the sales of products.

Summary of total monthly PVs and the corresponding percentage bonus:

  • 100 – 299 PV: 3% Bonus
  • 300 – 599 PV: 6% Bonus
  • 600 – 999 PV: 9% Bonus
  • 1,000 – 1,499 PV: 12% Bonus
  • 1,500 – 2,499 PV: 15% Bonus
  • 2,500 – 3,999 PV: 18% Bonus
  • 4,000 – 5,999 PV: 21% Bonus
  • 6,000 – 7,499 PV: 23% Bonus
  • 7,500 PV and up: 25% BonusIs Amway Business a Scam? - All 2019 Details Exposed!

Other Amway Bonuses

You can even earn more bonuses as you progress in the busines and earn ranks and awards.

  • 25% Sponsor: 25% performance bonus volume.
  • Silver Producer: 25% performance bonus and a Silver Producer pin.
  • Gold Producer: 25% performance bonus and a Gold Producer pin.
  • Platinum: 25% performance bonus, a Platinum pin, invitation to the New Platinum Conference, and Growth Incentive Program participation.
  • Founders Platinum: 25% performance bonus, a Founders Platinum pin, and Growth Incentive Program participation.
  • Ruby: 25% performance bonus, a Ruby pin, the monthly Ruby Bonus, and Growth Incentive Program participation.
  • Founders Ruby: 25% performance bonus, a Founders Rub pin, a monthly Ruby Bonus, and Growth Incentive Program participation.
  • Sapphire: 25% performance bonus, a Sapphire pin, and Growth Incentive Program participation.
  • Founders Sapphire: 25% performance bonus, a Founders Sapphire pin, and Growth Incentive Program participation.
  • Emerald: 25% performance bonus, Emerald bonus, and a pin*.
  • Founders Emerald: 25% performance bonus, Emerald bonus, and a pin*.
  • Diamond: 25% performance bonus, Emerald and Diamond bonuses, and a pin*.
  • Founders Diamond: 25% performance bonus, Emerald and Diamond bonuses, and a pin*.
  • Executive Diamond: 25% performance bonus, Emerald, Diamond, and Diamond Plus bonus, and a pin*.
  • Founders Executive Diamond: 25% performance bonus, Emerald bonus, and a pin*.
  • Double Diamond: 25% performance bonus, a pin, and a $48,000 cash bonus*.
  • Founders Double Diamond: 25% performance bonus, a pin, and a $64,000 cash bonus*.
  • Triple Diamond: 25% performance bonus, a pin, and a $80,000 cash bonus*.
  • Founders Triple Diamond: 25% performance bonus, a pin, and a $96,000 cash bonus*.
  • Crown: 25% performance bonus, a Crown pin, and a one-time cash bonus of $128,000*.
  • Founders Crown: 25% performance bonus, a Founders Crown pin, and a one-time cash bonus of $160,000*.
  • Crown Ambassador: 25% performance bonus, a Crown Ambassador pin, and a one-time cash bonus of $192,000*.
  • Founders Crown Ambassador: 25% performance bonus, a Founders Crown Ambassador pin, and a one-time cash bonus of $224,000*.

*All the ranks above “Emerald” include a 25% performance bonus and participation in the Emerald Profit Sharing Bonus and the Growth Incentive Program. Note that additional bonuses may apply.

Is Amway Business a Scam? - All 2019 Details Exposed!


Some Amway Complaints

Amway Lawsuits

Just like most other big businesses around the world, Amway’s time period in business has not been dispute free. The multi billion e-commerce company is accustomed with dealing with number of action lawsuits. One of the class action lawsuit actually resulted in Amway paying $56 million to settle the case alleging her to be operating a pyramid scheme.

Among several of such class action lawsuit, Amway agreed to the $56 million deal just to close the 2007 class action lawsuit.

Listed below are some of the famous allegations that Amway received from a number of lawsuits in more than 60 years that the business has been existing:

  • Allegation that Amway’s IBO recruiting tactics are part of an illegal pyramid scheme.
  • Allegation that Amway criminally contravenes the federal racketeering law.
  • Allegation that Amway flout California’s “endless chain” law.
  • Allegation that Amway deliberately ticks people to register in the pyramid scheme in which they would inevitably suffer financial loss.
  • Allegation that Amway commits wire fraud and mail fraud.

Amway Compensation

Even though that Amway promise people to gain financially freedom through her multi level marketing business model, the number of independent distributors who are able to create a reliable full time income are far lower than the IBOs that are struggling to grow their Amway business.

Below are some facts that we garthered during our research:

  • Only 10% of all Amway IBOs in the USA work full time and are the highest earners
  • Only 3% of all Amway direct sellers in the USA earn more than $50,000 per year
  • Only 60% of 1% of all Amway IBOs in USA  make more than $100,000 per year. That means only 6 IBOs makes more than $100,000 out of 1000 IBOs in a year.

We also found that Amway’s level of retaining IBOs is less than 40% and that is really small and discouraging. One source mentioned that Amway’s payouts to IBOs show that more than 99% of all IBOs that registered for the business never break even to earn a profit.


Amway Review: Final Verdict

My final verdict is that the Amway business is not a scam but it is recommend with caution. Also, there seem to be no Amway pyramid scheme and the Amway review do not indicate anything scandalous about Amway.

However, it is crucial for me to mention that this Amway business opportunity would not be an easy one and it will most likely not be able to replace a regular 9 – 5 income from a job for most people.

Do I have an alternative way for people that are genuinely looking to sustainable income working for themselves from home?

YES I do, Read below


Amway Better Alternative

Now this section of the article is for someone who is seriously interested in make good money working for themselves.

First and foremost, I am currently a member of the platform I am about to introduce, and I am currently making my entire living wage using this platform that I am about revealing to you.

Be informed that I started with this platform part-time doing it in my free time but today I am doing this full time from home working for myself.

Also, I am an Engineer by trade so if I can do this and succeed, anyone can as well succeed as long as they are ready to learn something new and fun with all the tools and support available on the platform.

And you can get started for FREE just like I started out.

If you are interested in learning more about that program, click the below to read on.

Is Amway Business a Scam? - All 2019 Details Exposed!

4 Comments

  1. This is great Tony. Honestly, I did not hear about Amway so far and I regret that. I have a website related to making money online and I could actually recruit people to Amway through my website. Most important for me is that Amway is legal and trusted so, in my opinion, it is definitely worth the try.

  2. This is a really comprehensive review. You cover all the topics in detail and show an impartial view. I tried another well known nutritional company and their start up package was several hundred dollars. I ended up selling the leftovers on eBay after I quit. These are all based on the fact that if you are a good salesperson you can make a profit. Also you have to bet able to run a business, although the platform they give you helps a lot. I think the program I am with at Wealthy Affiliate has so much more flexibility. I can pick whatever niche i want and then create a new website for a totally different niche. The support and community is great to guide me. Most of all it’s not just about “sell, sell, sell.” It’s about creating and passionate about what It’s about attractive as well as promotion. Of course they do provide fantastic training for sales from both the program and from other members.

    This is really a great review and hope everyone considering starting a business of their own reads this. 

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