Amway Corporation began in 1959 with a small range of products to sell along with a unique business model that enabled a workforce of independent distributors to move the products for them. This business platform is known today as MLM (Multi Level Marketing) and is still in practice a half century later. Now known as Amway Global, they have over 3 million distributors and their product list has grown immensely. According to Wiki, earnings are reported to be in the 8 billion dollar range per year.
The founders, Jay Van Andel and Richard DeVos, had a vision for their company and through hard work and dedication they succeeded far beyond what I'm sure even they envisioned. Amway is now one of the largest private companies within the United States and has become a colossal, worldwide retailer.
About twenty years ago I was introduced to a woman who was an independent distributor for Amway which soon became the dominant topic in each of our conversations. She boasted of her successes and often commented on how she could teach me to attain success as well. Being both broke and a bit of a dreamer, she maintained that even with my lack of business knowledge and capital I could become an entrepreneur. Early retirement seem achievable within a few years, maybe sooner if I worked really hard. The prospect of owning my own business actually seemed feasible!? Each question or concern I had, she negated with good but vague answers and hence I became an Amway rep!
Within two weeks I'd forked over a few hundred dollars which enabled me to join and purchase products. My new upline suggested that sampling various items will make them easier to sell and the learning tools would assist by giving me the necessary knowledge, so I believed them. Although difficult to scrape up the money it seemed like a small investment for the long term benefits that would be gained in the future.
By the end of my fourth month I'd found becoming involved with Amway was a huge mistake. I'd discovered that the products themselves were okay but not so easy to sell which meant my options were being limited to recruiting. Of course this is what you are encouraged to do because you and everyone else earns income based on what those new recruits sell. Once my initial sales pitch was spoken again and again from all angles people's reactions to my new venture went from slight interest to huge irritant. The meetings I needed to attend felt obligatory to my success according to my sponsor and once in attendance I was bombarded by my overly aggressive upline in a way that actually made me uncomfortable (hence the 'cult' like comparisons of today). At that time there was no internet so my own personal contacts, including family and friends became my target. In the end I sold nothing, pissed off a couple of people, lost about five hundred dollars and had lots of unused product that I never really needed in the first place.
Is Amway a Scam?
Honestly no, they are not a scam and are even accredited by the Better Business Bureau. Not to say they don't have their issues, in 1979 they were actually taken to court but found to be a legitimate, multi level marketing operation not a Pyramid Scheme. Strangely enough, Amway still has to validate themselves and prove their legitimacy to their potential distributors most likely on a daily basis. As well, the Federal Trade Commission has implemented mandatory public acknowledgement of basic earnings and the division of these earnings to be depicted on their product labels.
Unlike illegal schemes, Amway Global does not charge a substantial fee to join, have an required investment, require you to purchase or maintain inventory, pay bonuses unless actual products are sold, pay bonuses for recruiting nor have minimum orders.
In one section of Amway's website they want to ensure you are aware of the facts. They want you to know what it means to be an Independent Business Owner (IBO) for Amway. They summarize it as follows as being the CEO of your own business and therefore you can have opinions and make important decisions. They then discuss upline's, downline's, sponsoring, achievement levels such as Diamond & Crown Ambassador, bonuses, products...
... In my opinion, none of these terms constitute what an actual independent business owner really is or does, the titles are fluff and Amway's goals seem obvious, recruitment then sales! For the most part I wanted to shout the word 'So what?' after reading each point they reference. They also remind us of how everyone measures success differently which in hindsight I find ironic because a) it's true b) because it's also very vague and c) I ought to have thought of this cliche myself before I signed up. The reputation of Amway Global's success speaks for itself but the individual successes of those who are hoping to benefit are not so evident.
Remember to do your homework and if Amway is the right fit for you, go for it and good luck!!
