Amway was founded in 1959, so could the Amway scam be one of the longest running scams in U.S. History? As a former Amway distributor, I’ll explain why people make the Amway scam claim. I’ll also explain why the Amway business model is legit and if the Amway scam is real or not.
How People Get Into The Amway Scam
My experience with Amway started when I was approached by a friend about a great new business opportunity he had joined. He was very excited about this opportunity and truly believed he was going to make big money. He explained how network marketing worked and how we could make big money. At this time, I had never heard of network marketing, multi-level marketing (MLM), Amway or the Amway scam. He talked me into attending an Amway presentation by his up line.
If it sounds too good to be true then it probably is!
The Amway presentation was a big sales pitch about how network marketing was the greatest way to make money. There was lots of “Ra Ra” on making big money by recruiting people into your network. It sounded easy. They said all I had to do was make a list of my family and friends. They would do all the real work. All I had to do was get people from my list to attend their presentation.
Of course I joined Amway, how could I miss out on such a great opportunity when they were going to do all the hard work. Both my friend and I were very excited about this opportunity. We were sure that in very little time, we would be rolling in the cash. We believed all our friends and families would also easily see that this was a great business opportunity. Over the next several weeks, I had talked with everyone that I knew and no one wanted to see the presentation. My friend ran into the same thing. No one else he knew would attend the Amway presentation. We were not given any other training to find people to join our network so our business faded away quickly.
The Amway Scam Reality
What happen with my friend and I is the reality of a lot of people that join MLM’s like Amway. With a little research online, you’ll find claims that 97% of people that join a MLM will never make any money. The up lines at Amway and many other MLM’s are selling the dream of big money with the knowledge that most will never make money. With the low cost to get into Amway, most people don’t have the same commitment as some one that pays many $1,000’s to start a small business. Also MLM’s don’t provide the business model or training that would come with a franchise. For these reasons, the failure rate with MLM’s is much higher than with starting a small business or a franchise.
How Is The Amway Scam Legal?
(Hey, I’m not an attorney so this is not legal advice. If you need legal advice about Amway or any MLM please contact a real attorney.)
MLM and Pyramid scheme look the same
Many people confuse the MLM business model with a pyramid scheme. They are very similar but they have a very important difference. They both have you recruiting people into your down line and the more people you recruit the more you make. The problem with the pyramid scheme is that each layer down the pyramid will make less money or even lose money. At the bottom of the pyramid there is no one else left to recruit so you lose money. MLM’s have a very important difference. They have a product that is sold by the members. This means even if you are at the bottom and can’t recruit any one, you can still make money by selling the product.
Amway has a product. Actually, they have many products. I could have made money by selling the products. I didn’t have to recruit anybody to make money with Amway. I was aware of the products because I had to purchase the products monthly to maintain my membership. Here’s the problem with my Amway experience. Never did my up line stress that I should be selling the product. The presentations were all about recruiting and how to make money with a large network of distributors. Selling the Amway products would have been difficult because I had no interest in the products. I felt the products were over priced and of average quality at best.
This was my experience with Amway a few years back. I know Amway has settled a few lawsuits over the years and may have taken some steps to improve their business model. Considering that their products have not changed, I can’t imagine things have really changed at Amway.
My MLM Advice:
I’ve now been a part of 3 different MLM companies. If you are considering joining a MLM, (Amway or any other MLM), this is my advice for you.
1. Join an MLM that focuses on the product and it’s a product that you love
There are many great products being sold through the MLM business model. Here is the ideal scenario: an independent distributor sells you a product. You fall in love with the product. You go back to the distributor to buy more of the product. The distributor presents the business opportunity to you. In this scenario, your up line is interested in selling the product, your primary interest was in the product so you’ll be motivated in selling the product. In the process of selling the product, you’ll find others who love the product and motivated to sell the product like you.
2. Get Training In Marketing And Selling
Educate your mind, Inspire your soul, Energize your body!
Marketing and selling are essential elements to most businesses. If you join a MLM, your marketing and selling skills will be key to your success. If you have no background in marketing or selling, then you have little hope of succeeding without some training. Many MLM’s do provide some training but I would recommend going above and beyond what they are offering. You are here on the internet doing your research like so many other people so learning internet marketing can really help to boost your business. Check out my review of my top rated internet marketing training. This program has a free membership, no credit card required and provides a free website that you build as you like.
Final Thought On The Amway Scam
Technically there is no Amway scam. Amway is a legit MLM business. With the overpriced yet average products, I do not recommend joining Amway. Please provide your experience with Amway in the comments below. Let me know in the comment’s section your thoughts about the Amway Scam.
Ey there Steve, I was once in Amway also. My organization was Dream Builders on the west coast and my upline was a little different in that they may have promoted the products a little more than yours. Ultimately though, having to purchase X amount of products to maintain my membership is what caused me to drop out. It was during a period of time that I was barely getting by and my “legs” weren’t producing enough nor recruiting and I simply couldn’t afford it.
Product wise, there were a few products that were superior for that time era, but again, ultimately they were just too expensive.
My first experience with an MLM was fantastic. There were only two or three products and the main product was derived from herbs and was physically noticeable 15 minutes after ingesting… an absolute awesome product! It not only sold like pancakes but people would ask me how to become a distributor. Unfortunately, the company was forced to change the formula and ultimately minimized the effects of the product which caused all my customers to look for something else.
To this day, I absolutely love good, quality MLMs and would be involved with one if the products actually worked and the cost of the product was conducive to selling the product. I’m still looking but getting tired of spending money on the product just to be disappointed.
Great post on Amway… what do you think about their migration into the internet?
Randy
Thanks Randy for your perspective on Amway. I believe a MLM can be a great business opportunity when the individual is matched with a quality product.
I don’t know anything about Amway’s migration to the internet. I do know that the internet is a great place to market products and business opportunities. Some one with internet marketing skills can do very well with a quality MLM online.
Hi Steve, I’ve heard of Amway but never actually knew what they sold. I’ve been involved with a few MLM companies. worked my butt off and spent a lot of money but never made a dime, so it’s fair to say that I’m not a fan of any MLM company. To me the only ones that make money are the founders and the ones who get in at the beginning. Great review.
Thanks Jazmin, it’s very difficult to make money with a MLM company. One of the things that holds you back in a MLM is that many people consider MLM’s to be a scam. So to sell this business opportunity you have to overcome this stigma even if your MLM is perfectly legit with a great product. I personally prefer to find a great product and sell it using internet marketing skills and not bother with MLM’s at all.
That was a very good review I got into Amway and this was way back before the internet. This review was very good informative and laid out good. I will be back to read the rest of your reviews.
Willie
Thanks Willie, I hope you enjoy the other post on my site as well.
Hi Steve,
I’ve never been in any mlm’s , but know a lot who have. Most usually get all fired up and then quit. I’ve been wanting to do something for a long time and then I joined Wealthy Affiliate in December 2014. Haven’t gotten rich just yet, but I made the only money I ever made online already! It was about what I expected and I was very pleased! I know this is something that is challenging but do-able. And you can see the results of your efforts over time!
Great Site!
Marant
Wealthy Affiliate is the first place and only place that I’ve been able to earn a consistent recurring income. I’ve been earning for over a year now.
Hi Steve, I have never been in any MLM. I have been reading a lot about it lately to find out if it is anything I would like to be involved in. Your article about Amway was very clear and informative, so thank you for posting. The more I read about this, the more I feel that this is not for me. Thank you
It’s very difficult to make money with an MLM. I would advise starting your own business in an area where you have a passion.