So, you want to know: is Amway a pyramid scheme or a real opportunity to make money online?

It’s vital to know what Amway is and how it works before deciding to join this program. 

This will help you understand clearly what the company is all about, including the Independent Business Owner opportunity that it offers.

That’s why I’m leaving no stone unturned while presenting this Amway review to you.

Amway Review Summary

Product Name: Amway

Website: amway.com

Price: $69 one-time registration fee, plus $99 one-time Starter Kit Fee

Recommended: YES/NO

Summary:

Amway is a company that’s based on the Multi-Level Marketing (MLM) business model, where you can join and start recruiting new members to start earning money. They have a wide variety of products that you can promote and sell to your customers to increase your earning. You can join the company and become an Independent Business Owner, where you can sell the products as your own. Ultimately, Amway is a legit business opportunity that can help you make some additional income, but I wouldn’t recommend it to you if you were looking for a real way to make income online. You’ll see why I say this when you complete reading my unbiased Amway Review.

Therefore, read this comprehensive article to the end to learn everything you need to know about Amway.

You’ll also know whether Amway is a scam or a pyramid scheme, or a legitimate business opportunity to help you earn money online.

So, let’s dive in!

Amway Review: Introduction

Also known as Amway, the American Way Association was founded by Richard DeVos and Jay Van Andel in 1959.

This company promotes and sells products related to health, beauty, homecare, and nutrition niches.

In the beginning, Van Andel and Devos were promoting only one line of food supplements, which is Nutrilite.

Although the start was somewhat rocky, they later decided to expand their products once that venture took off.

Therefore, they now sell other household supplies besides the Nutrilite, including but not limited to, the following:

  • Skincare
  • Weight Loss products
  • Makeup
  • Cookware
  • Energy drinks
  • Laundry and dish detergents

Amway uses a system known as multi-level marketing, where people can join and start promoting the program to earn money.

When you join as an Independent Business Owner, Amway will allow you to sell their products independently.

You’ll also be able to sponsor other people into the program and earn some additional cash.

To understand the Amway opportunity clearly, let’s see how it works.

How Amway Works

To become a member of the Amway program, you’ll need to sign up through their website.

This will make you an Independent Business Owner (IBO) and give you access to the products that you’ll be selling to earn money.

Amway provides over 450 products for you to choose from, and all products have a Satisfaction Guarantee.

Therefore, in case your customers aren’t satisfied, the company will allegedly help you to make it right with them. 

You will be earning money by selling Amway products.

However, the company doesn’t seem to guarantee anyone of the amount they can earn by selling the products.

Most Amway reviews reveal that it takes a lot of work and effort to make money with this program.

As an IBO, you’ll be offered with skill-building opportunities.

Upon signing up, you’ll get access to online and offline learning, as well as business tools to help you increase your sales.

The company doesn’t disclose much information regarding the inclusions of these resources and tools.

But according to the owners, you will learn practical skills that can assist you in your business.

Allegedly, the learning resources comprise information regarding selling Amway products.

You may also learn some business operations, sales tactics, and other related topics that will help you to create a foundation for your business.

Amway uses the direct selling method to supply their products to the public.

When you join Amway, you’ll be selling the products to other people differently from a retail environment, IBO’s will typically buy the products at a reduced price and sell them to make profits.

The other way to make money with Amway is building a network of distributors by sponsoring other IBO’s. You’ll earn some income percentage of the whole network that you create.

This business model is known as Multi-Level Marketing (MLM) and leads people to think of Amway as a pyramid scheme.

Nevertheless, it’s just the business structure that’s a pyramid, and it doesn’t mean much. Therefore, Amway is not a pyramid scheme and I’ll expound this in details in my conclusion.

Amway Pricing

In their promotions, Amway claims to have a low startup cost.

The registration fee is $69 one time. Then, you can pay $99 one time for the Starter Kit. Although this is not required, it’s recommended for new IBO’s.

Once you have paid for your desired option, you will get the products as well as step-by-step guides, training brochures, and other resources to help you get started.

Amway Meant for? (And not For)

Allegedly, Amway is intended for people looking to earn money online by promoting and selling health and related products.

They have over 450 products that you can sell after becoming one of their members.

People can also make money by recruiting others into the program, which makes Amway look like a pyramid scheme.

However, Amway may not be good for you if you have no interest in selling products online or recruiting people.

Additionally, it seems like those at the top of the tier are the ones who earn most of the profits. It can be pretty difficult for anyone to join and start making money as claimed by the company.

If you don’t have good skills in recruiting people and selling products online, you can hardly make any money although they claim that their training is all you need.

Who Is The Owner?

The founders of Amway are Rich DeVos and Jay Van Andel, who became friends in Grand Rapids Christian High School, Michigan. 

These guys had similar ambition and goals, which included getting more out of their lives for themselves, their friends, and families.

They ventured into entrepreneurship and started Amway together in 1959 in the basements of their homes.

Their company has become one of the best direct selling companies in the world!

Rich DeVos passed away on September 6, 2018, at the age of 92 and Doug – his son – co-chairs the Amway BOD.

GOOD VS BAD

The Pros

  • They have a huge collection of products to promote – over 450.
  • They offer refunds within 180 days.
  • Provide training on how to promote their products.

The Cons

  • It has hidden costs.
  • The business model used looks like a pyramid scheme.
  • Selling is a specialized skill that’s not for everyone.
  • Income potential seems to be exaggerated.

Ugly Truths Revealed

1. Hidden Costs!

Although the initial cost might be low, there are certain inevitable costs that you are likely to incur.

For instance, you’ll require a functional website and other marketing materials like your personal business cards.

Additionally, all the training resources offered by Amway to help you grow your independent business cost money. A good example is the Amway Inauguration Bundle that costs $338.

You’ll also need to budget for other costs associated with attending the official conferences and meetings held by Amway.

In brief, you’ll encounter several hidden fees that aren’t disclosed to you until you create an account with Amway.

This is not a new incident for me because I’ve seen the same technique while reviewing other products on this website, including:

 

2. Low Earning Potential!

If you don’t have experience in running your own business and constantly generating product sales, the commission levels at Amway could be a stumbling block.

According to the company, your estimated profit is about $500 for retail sales worth around $2,000.

This may be a bit difficult to achieve, especially if you’re just getting started. Also, the commission rate for beginners and members with low monthly Point Volume is really low.

3. It Can’t Be A Dependable Passive Income Source!

Although Amway wants you to believe that you can generate tons of money using their program, the reality is quite different.

You can hardly make money from this company. Instead, you’ll need to spend some cash regularly to keep your account active.

Therefore, this program cannot be a reliable source of income.

It will take you years of investment and work to reap some little benefits.

So, can you depend on this company to help you earn some additional passive income? At least, I’m very skeptical about that.

4. Selling Is Not For Everyone!

You need to understand that selling is a specialized skill that is not everyone’s forte.

Some people are born with this talent, while many others can’t handle the stress that comes with it.

Therefore, the marketing materials offered by Amway cannot convert into sales and incomes.

Besides, you can get free online courses to help you master marketing skills. So, why would you want to purchase literature and CDs occasionally?

Although this MLM company is legitimate, it’s not that simple to earn money with it.

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Is Amway A Pyramid Scheme?

 While there are many doubts out there, Amway is not a pyramid scheme.

Many people think it’s a Ponzi scheme since it uses the multi-level marketing business model, which uses a pyramid-shaped business structure.

Nonetheless, this is just a business structure and has nothing to do with whether the company is a pyramid scheme.

When a company is a pyramid scheme, people are required to enroll others in the scheme to earn money. Additionally, it doesn’t have any real products or services to sell.

Amway differs from a pyramid scheme in that it has a wide variety of products, which you can sell to make money.

Fascinatingly, the Federal Trade Commission (FTC) investigated Amway in 1979 since it was accused of being nothing more than a pyramid scheme.

The FTC declared that it was not a pyramid scheme but a legitimate business opportunity.

However, it was found that the company did tend to exaggerate the potential earning claims of its members.

Therefore, Amway is based on product sales as well as recruiting other people to purchase and sell its products, and then assist them to do the same.

It’s possible to make this business model work for you since there are tangible products that you can sell.

Overall, Amway is a legitimate company and not a scam or a pyramid scheme.

To succeed with this opportunity, you’ll need to have a clear marketing plan, the startup capital, and assistance from the Amway business owners.

The payment structure may also be rather complicated and confusing for most people.

They also offer refunds in full within 180 days, so you can get your money back if the product doesn’t satisfy you.

Eventually, I hope you’ve learned everything you need to know about Amway, and you’ll be able to make an informed decision regarding it.

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How I Make Income Online

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If you have any questions or thoughts whether Amway Is A Pyramid Scheme or anything else, then please leave them in the comment section.

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