Thank you for stopping by, I am sure you are eager to find out what is Amway About? Without a shadow of a doubt Amway is the leader in Multi-Level Marketing (MLM). It is ranked by Forbes as Amway as the 42nd largest privately held company in the United States by revenue.
So what is it about Amway that draws so much people to it. What is the real story behind this large multi level marketing opportunity. Welcome to my Amway Review.
I believe you are here to find out if you can make money with Amway (American Way) so I will get right into the meat of the matter. Let me tell you what Amway is about.
First of all, I want to set the record straight. I am not a rep for Amway. I intended for this review to serve as a source for you to adequately evaluate the opportunity and the company so that you can make an informed decision as to whether or not this is an opportunity that is worth your time and energy.
My Experience With Amway
In 2011 during my of my down time when I was desperately seeking an opportunity to make some extra money I was invited to a workshop where I was introduced to Amway. I must tell you I was totally sold on this business and by the end of the meeting I was convinced that this was the way out of my struggles.
With a room full of like-minded people most of whom are all “successful” (that was what I was led to believe at the time) because of this business I was all pumped up and ready to go.
Speaker after speaker tell you anyone (family or friends) are potential customers and it is one of the easiest thing to sell to them because the products are stuff that everyone wants.
I have now come to realize that the products aren’t anything new that people need, so no one is going to buy my over priced laundry detergent when they can get similar product for less money at their local store.
One thing I can tell you, it is not a scam BUT….what they do is brain wash you into thinking success is right around the corner.
What is Amway About: Is it a Worthless Business Opportunity?
Price: A registration fee $62 & Starter Kit $99.99
Owners: Richard DeVos & Jay Van Andel
Overall Rank: 30%
Amway was founded in 1959, by long-time friends and business partners Jay Van Andel. It is a Multi-Level Marketing (MLM) company that uses distributors, otherwise called “Independent Business Owners” (IBO), to sell their health, beauty and home care products. Whether the products are of any good is not the focus of this review so I will not get into that part of it.
Distributors can make money two ways either by Amway products at “wholesale” prices for themselves or to independently sell the products to other people. This can generate a modest income, but the larger payouts come from recruiting new distributors.
This allows Amway to market to future distributors by offering an easy way to start their own business or store. So I will leave you to be the judge whether or not it can be considered a successful business with a modest income of approximately $6000 for the year, because that is what I made.
You could argue that I might not have worked hard enough and you could be right but in my opinion I was so desperate for a breakthrough and I worked my ass off day and night trying to recruit distributors and to get sale for products.
Amway today produces and distributes over 450 products produced in manufacturing facilities across the U.S., China and India. It has a network of millions of “Independent Business Owners” (IBOs) in over 100 countries. For better or for worse, they have made a name for themselves in the MLM world.
Is Amway a Pyramid Scheme?
I have heard on numerous occasions and have read reviews where it is said that Amway is a pyramid scheme. To me Amway is not a pyramid scheme they use the direct selling approach to get their products to the public. Persons who sign up to sell the products will be selling to individuals.
The products are only available through Amway Independent Business Owners. They typically buy the products at a reduced rate and sell them. They profit from the difference between the selling price and the price they paid to purchase the products.
Sponsoring Other IBOs
The real money is made by sponsoring other IBOs and building a network of distributors. You will then get a percentage of the entire network you help create. This is what is referred to as MLM (Multi-Level Marketing).
It’s this type of marketing that leads people to think that Amway is a pyramid scheme. However, just because the shape of the business structure is a pyramid does not mean much.
A pyramid scheme is when someone promises payment for enrolling others in to the scheme but supplies no real product or service. Amway does not do this. Distributors have to get product sales in order to build their business. It’s built on product sales and recruiting others to buy and sell products and then to help others do the same.
How Much Does Amway Cost?
Now for one of the most important questions. How much does it cost to join Amway?
Well that will vary on how much you are willing to “invest”
It is relatively inexpensive to get started as an Independent Business Owner with Amway. Now you could just buy your membership which will cost you US$62 but that will only get you thus far and maybe no further.
From what I can tell, there are endless amounts of training material you could buy. But please be careful if you go down this path and let me tell you why I say that.
Many people who have struggled to see a profit from the training that they paid a fortune for and will sometimes lie about their own success. They will create their own courses that you can buy from them that will promise you success but will just be more regurgitated information that may or may not work.
Please be careful, I would hate to have you lose money over false results and promises.
Amway charges an annual registration fee to cover expenses on resources the company provides to help distributors effectively run their business.
These resources include setting up your virtual office, providing online and offline training materials, product and marketing materials, customer service, and mobile business management tools.
The startup cost for Amway Business Owners is less than $100 annually in every country where Amway operates and is fully refundable within 60-180 days if a person decides Amway isn’t for them.
What Does Amway Offer?
Upon paying this fee, Amway provides you with the following:
◾A virtual office
◾Marketing and product materials
◾Mobile business management tools
◾Offline and online training materials
There does not appear to be any additional costs with getting started. However, you will need to buy the products that you sell. The associated costs vary depending on the products you choose and their total cost.
The moment you become an Amway IBO, you will certainly have access to guidance and also training that will help you to grow your business. These include:
1.Business and Leadership training courses
2.Training for better product and sales knowledge.
3.Training and support from your sponsor and other Amway IBO members.
4.Customer Service to answer questions
Additionally, the training offered comprises of:
1.Product- specific training
Amway does have many support functions in order to connect you with other members so that you can network with what works and what doesn’t. This is actually be a good thing and one I see as good benefit.
On the other hand though, these functions tend to help keep people motivated and focused on the over promised results.
If you do end up joining Amway, you are really going to have to trust your intuition and know that most of the people in this company are going to be dishonest.
Therefore, you’re going to have to be able to distinguish between the ones who are real or fake.
Pros and Cons of Amway
As with everything there is good and bad; in some cases the good outweighs the bad and visa versa. Let us take a look at the good and bad of Amway, let us reason out what is Amway about and if it is worth your time and energy.
- Amway products have value to most people. They are products that can be easily used by almost anyone
- Product quality is excellent
- Has a money back guarantee that allows you to return your starter’s kit.
- Even though the possibility to make money is extremely small, you can still make money
- You have no limit on how much money you could make
- Amway has a large range of products including nutritional supplements, cleaning products and cosmetics.
- They are quite reliable and honest as far as this type of business goes
- Most people don’t see any value in Amway products
- Only 3% of members actually make money
- The products are high-priced
- You have to pay for the personal development trainings
- They amount of product you must personally consume or sell is approximately $500/mo.
- The marketing plan is outdated and needs to be revised
- Amway’s compensation plan highly favors the top earners and doesn’t give a great platform for new people to earn money quickly.
How Much Can be Made with Amway?
As I said before, Amway is a MLM business so if you are afraid to talk to people, if you hate cold calling or following up on leads then this business is not for you. You will be selling products and you will have to deal with questions or handle difficult customers that are not satisfied with the product.
So this is a tricky question and honestly I don’t know. One thing I do know is that the top level distributors of Amway make a bag of money.
The few distributors who are at the Crown Level are making residual incomes of hundred of thousand of dollars could be even millions. While those at the Founders Emerald and Founders Diamond levels are sitting comfortable also.
On the other hand, only a few of the other distributors on the lower level make any money. When I was a distributor I earned about $400 per month consistently. This was mainly because I use to sell my family and co-workers the products but after a while they started complaining that they could get similar products for less. Eventually my sales got lesser each month until I was my only customer.
Recruiting distributors were also a challenge, guess I was just not a very good salesperson.
Anyway, if you decide to sign up and become an Amway Independent Business Owner the compensation plan is set up in a way so that you can earn a significant amount of money should you become one of the 5% that hit the top of the pay plan or next to nothing if you are at the bottom.
But according to Amway.com, only 48% of all IBOs are active and their average monthly gross income is around $200.
There are three basic ways to earn money with Amway, retail commissions or product sales to customers, monthly bonuses from 3% to 25% on business volume depending on the monthly productivity of you and your group and monthly and annual leadership bonuses.
“The average monthly Gross Income for “active” IBOs was $207. Approximately 48% of all IBOs were active. IBOs were considered active in months in when they attempted to make a retail sale, or presented the Amway IBO Compensation Plan, or received bonus money, or attended an Amway or IBO meeting.
If someone sustained that level of activity every month for a whole year, their annualized income would be $2,484. Of course, not every IBO chooses to be active every month.
Gross Income means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards, which may be significant.
Depending on the monthly expenses that sellers have, those who earned an average of $207 may not have actually earned anything at all. The $207 was their gross profit before any associated expenses. It is unknown what the average monthly cost was for Independent Business Owners during this time.
Miley Cyrus Says it well………
There’s always going to be another mountain
I’m always gonna wanna make it move
Always gonna be an uphill battle,
Sometimes I’m gonna have to lose,.
It is going to be the climb of your life if you want to make it to the top.
Considering two things…
So if you are still planning to join Amway, just consider these two things:
- Can I sell enough of these products each month so that I can earn an income?
- Are these products an expense or investment for my customers?
- Do I have what it takes to recruit other distributors?
Below are some statistics I became aware of recently:
- Approximately 97% of the distributors of Amway never make a profit.
- Less than 41% of their distributors are actively attending meetings and working this business.
- Amway’s products and opportunity is too hard to sell because it is not essential to society.
My Final Opinion on Amway
I think Amway is a strong, well respected company with great products. It is also a genuine company and lot of people, especially those at the top, are making a living from each month.
My biggest drawback is that whenever sign up as an Amway distributor your up-line tells you to make a list of ALL your family and friends. Then, you will be expected to contact each and every one of them to present your business opportunity.
However, it takes a certain type of personality to pull this off successfully. It’s a trait that few people posses, and it’s not an easy one to learn due to various psychological roadblocks that many of us have.
If you manage to go through your list and talk to everyone you know, what do you do then? You can go to your up-line for help, but it’s unlikely that they will have the answers you’re looking for. They will likely tell you to re-approach the people on your list or start prospecting strangers!
So it depends on how serious you are. You have to be willing to work as hard as hell and then work a little harder. You will need to get into the trenches and get “down, dirty, and busy” to experience success.
If you are willing to do this no problem, sign up and get working.
That being said I think the time for making big money with Amway is over. There are lots of good networking companies with comparable products and better compensation plans that it would be easier to build a business with.
Anyone serious about building a home or online business he or she should seriously consider building this building through affiliate marketing.
The gateway to your freedom is through affiliate marketing utilizing online tools and strategies to build your business from the comfort of your own home.
The fact is, there are millions of people every day doing research online about certain products or opportunities. Now, imagine if you had a website that was ranked #1 on Google for one of those information terms. You would have thousands of people reading your message on a daily basis, people are already sold on the affiliate marketing concept and looking for a reason to join your business.
You might be thinking, “that sounds great, but I don’t know the first thing about affiliate marketing, you have nothing to worry about.
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That is the heart and soul of any business, and that is what this program teaches you.
Amway as a business is definitely not a get rich scheme, you really have to work extremely hard to make it work. Be ready to put a lot of hours in and keep the momentum going to create your income.
As with most MLM companies some make a lot more than others. It will take a long time to create a substantial income and you will have to spend most of your time doing this. The products are good but I think they are over-priced. There are some products I would go back to buying as a customer, they were honestly that good.
My Final Verdict
Amway is a legit business and the products are safe to use.
The business is not a scam however, it’s the people who get involved end up losing. If you like the idea of creating a business from home I don’t think it is a good choice. Would I recommend it as a work from home business NO.
I believe the opportunity to make money with Amway has passed, is it too late to get involved with this opportunity? Only the people at the top will ever make any meaning money from this business.
However, it is never too late to take advantage of an opportunity so if you still want to go ahead and give it a try it is all up to you. There are always pros and cons to starting any business.
So if success is really what you are seek and you are willing to learn and do some thinking outside the box you can make money with Wealthy Affiliate.
Join me today, and take a look a this wonderful opportunity.