Amway
  • Compensation Plan
    (3.5)
  • Product Quality
    (3.5)
  • Start Up Costs
    (3.5)
  • Reputation
    (2)
  • Distributor Success Rate
    (2)
Overall
2.9
Comments Rating 0 (0 reviews)

Summary

Amway is an MLM company that sells products in the health, beauty, and home care niches.

Although Amway has been the subject of many lawsuits over the years, Amway’s business opportunity is technically not a scam.

However, the vast majority of people struggle to make any real money as an Amway distributor.

See the full review below for more details.

Pros

  • Established MLM company.
  • Good front end products.
  • Capacity to sell online.
  • 180 day money back guarantee on products.

Cons

  • Poor historical reputation.
  • Most people will struggle to make good money.
  • Possible issues with market saturation.

Payments and Ownership: I DON’T own or work for Amway. If you have payment issues or need to get a refund – you’ll need to contact Amway directly. ALWAYS make sure that you understand the payment and billing arrangements BEFORE subscribing or buying anything. Opinion Disclaimer: the content in this review is ultimately a reflection of my own opinions and is not intended to malign any religion, ethnic group, club, organization, company, individual, anyone, or anything.

Name:Amway
Website:Amway.com
Real owner:Alticor (parent company)
Platform:Independent
Type:Network marketing
Price:Various
Trial?No
Money-back guarantee?180 days (products)
Rating:2.9 / 5
Recommended?Yes – (if you like MLM)
How to join?Via their website

Amway claim to have helped millions of people start their own business by selling Amway products and teaching others how to do the same.

But can you really make a full time income with Amway’s business opportunity – or is it all a scam?

That’s what I’ll be investigating in this Amway review.

Screenshot of the Amway website.

Image source: Amway.co.uk

What is Amway?

Amway (‘American Way’) is an MLM (‘multi-level marketing’) company that sells products in the health, beauty, and home care space.

Amway was founded in 1959 by Jay Van Andel and Richard DeVos.

Steve Van Andel is currently the chairman, Doug DeVos is the president, and Milind Pant is the CEO.

Alticor is the parent company of Amway.

Amway generated 8.8 billion USD in revenue in 2018 and employs more than 19,000 people.

What Are Amway’s Products?

Amway’s inventory extends to more than than 450 products.

That’s too many to list here, but the main categories are:

  • Home use products.
  • Bath and shower.
  • Beauty.
  • Body care.
  • Body lotion.
  • Business support materials.
  • Conditioners.
  • Deodorants.
  • Detergents.
  • Dish cleaners.
  • Facial care.
  • Foundational supplements (Nutrilite).
  • Cook ware.
  • Supplements.
  • Hair care.
  • Nail care.
  • Skin care.
  • Energy drinks (XS Energy).

Screenshot of Amway's supplement products.

Image source: amway.co.uk/nutrition

What is Amway’s Business Opportunity?

When you join Amway as an IBO (‘independent business owner’) you can make money in three ways:

  • By purchasing Amway products at ‘IBO cost’ for resale.
  • Through the sales generated by the IBOs that you recruit into Amway.
  • From bonuses that you unlock by meeting certain sales volumes.

What’s The Compensation Plan?

The compensation plan can be found here.

Compensation plans can appear very confusing if you’re unfamiliar with how MLM companies operate.

But basically, the most rudimentary way to make money as an Amway IBO is by buying items at cost and selling them for a higher price – the amount of which is up to you.

Amway recommend that you also purchase a Product Starter Kit so that you can get to grips with the most popular products.

Once you’re familiar with the products themselves, you can then branch out into ‘sponsoring’ others to become Amway IBOs.

This is how you build your ‘downline’.

Downlines are how you make ‘real’ money in MLM.

Because a percentage of the revenue generated by your referrals will be ‘rolled up’ to you.

Clearly, the more people who accept your invitation to become IBOs and go on to make sales – the larger your downline and thus the greater your earnings.

What Are The Performance Bonuses?

Understanding the performance bonuses is probably the most confusing aspect of the Amway business opportunity.

But basically, you can earn a Performance Bonus between 3% and 25% depending on your sales volume.

Sales volume is calculated from two figures: PV (‘point value’) and BV (‘business volume’).

PV is a unit amount assigned to each product – so the more you sell the greater your PV.

BV is the dollar figure assigned to each product – the cumulative monthly amount of which is multiplied by the percent value of your PV to determine your gross Performance Bonus.

In order to receive a Performance Bonus, an average of 70% of your Personal Business Volume per month must come from products sold at a ‘commercially reasonable price’.

Screenshot of Amway's performance bonus structure.

Can You Sell Amway Products Online?

As per the Business Reference Guide, Amway say that you may only sell through your own Personal Retail Website provided by Amway.

You are not allowed to sell via eBay, Amazon, or any other retail sites.

However, how you capture and direct traffic to your website offers some flexibility.

Because of this, I recommend that you check out this FREE book called Network Marketing Secrets by former top MLM’er – Russell Brunson.

Where you’ll learn how to use sales funnels to automate the lead gen process online.

This can save you a lot of time and effort – such as avoiding having to do exhausting ‘home parties’ and worrying about where to get leads from.

Because Russell shares with you the methods that he personally used to generate 1.5 million leads in just 6 weeks.

Click here to get your FREE book now.

How Much Does it Cost to Get Started?

It costs $62 to get started as an Amway IBO.

This is presented as a ‘sign up fee’.

Can You Get a Refund?

The Business Reference Guide says that you can return your products within 180 days of purchase for an exchange or refund.

Is Amway a Pyramid Scheme?

No.

An illegal pyramid scheme is where you’re paid exclusively to recruit others into the business for the purpose of promoting the same opportunity to others.

Amway is able to side step this because they have front end products that allow IBOs to generate revenue from retail sales.

Furthermore, IBOs are not paid when they recruit someone else to become an IBO – but instead from their referrals’ sales volume.

With that said, the ‘upflow’ of money in the MLM business model does closely resemble that of a pyramid scheme – resulting in several refuted lawsuits claiming that Amway is a pyramid scheme.

Is Amway a Scam or Not?

Technically?

Amway isn’t a scam.

But the MLM business structure does present some serious challenges to new IBOs.

The details of which I’ll be discussing in just a moment.

Amway Reviews

Before I reveal my own thoughts on the Amway business opportunity, here’s a summary of the main points raised in other Amway reviews that I found online.

Good Amway Reviews

You can see some of the positive Amway reviews here.

With people praising:

  • The 180 day money back guarantee.
  • The quality of the products.
  • Getting paid on time as an IBO.
  • The earning potential of the opportunity.
  • The profit margins.

Screenshot of a 5 star Amway review.

Image source: BestCompany – MLM – Amway.

Amway Complaints

There are many Amway complaints online.

Amway has a 2/5 star rating here on HighYa based on 8 consumer reviews at the time of writing.

More complaints can be found here.

People took issue with:

  • The cost of the products.
  • The apparent lack of ethics.
  • The high failure rate of most IBOs.
  • Poor support.
  • Minimum sales targets.
  • The strain the business opportunity put on close relationships.

Screenshot of an Amway scam complaint.

Image source: HighYa – Amway Reviews – Scam or Legit.

My Thoughts On Amway

I’ve reviewed a lot of MLM companies over the years.

And here are my thoughts on the Amway business opportunity.

1: Most People Struggle to Make Money

The sad truth is that regardless of the company – the MLM business model makes it very difficult for the average person to make money.

And Amway is no different.

If you take another look at their Business Reference Guide, you’ll see that they openly declare that the average monthly gross income for active IBOs was just $207 in 2016:

Screenshot of Amway's income disclosure statement.

2: The Business is Stable

Amway is considered to be the ‘original’ MLM company.

This means that they’re well established and have fought off most of the typical lawsuits pertaining to pyramid schemes and other acustations that may wipe out newer MLM companies.

And with billions generated in revenue each year – you can rest assured that you’re getting involved with an MLM company that knows what it’s doing.

Many claim that this filters down into the level of support and training that IBOs receive.

3: Good Product Quality

Despite claims that they are overpriced, the general consensus seems to be that Amway’s products are of good quality.

And when you’re deciding on an MLM to choose – it’s crucial that the front end products are decent.

Because cases like Monat illustrate that having a lot of controversy surrounding their products can have a knock-on effect to distributors – making it harder to generate sales.

4: Amway’s Reputation is a Double-Edged Sword

Amay’s reputation may work for you or against you as a distributor.

Because even though their products are considered to be pretty good on the whole – the brand name is somewhat tarnished in the eyes of some.

This is mainly due to the many lawsuits that Amway have been involved in.

Yes, the company is still alive and kicking.

But Amway have been found guilty of price fixing and making exaggerated income claims by the FTC before [source].

Along with a slew of other issues that have done the Amway brand no favours.

So, when pitching Amway’s business opportunity to others – expect to have to explain why Amway isn’t a scam.

5: MLMs Can Damage Relationships

One of the common issues cited by people that have gotten involved with MLM companies is the damage it has caused to their close relationships.

This initially happens when people start continually pestering their friends and family to buy products or join up as a distributor.

But another thing to consider is partners that go into business together without realising just how difficult it is to be successful with MLM.

This can cause issues when one person decides to give up and the other wants to continue pushing on.

Similarly, you may find that your partner isn’t supportive of your commitment to building your MLM business and may criticise how you prioritise it over everything else despite an obvious lack of results.

There’s a fine line between persistence and delusion.

6: Market Saturation May Be An Issue

With Amway being such a well established brand – you may find that people have already been exposed to both Amway’s products and their business opportunity.

This could be a real problem if you’re restricted to face-to-face selling in a location that’s saturated.

But this could potentially be resolved by going online to get leads.

Which brings me to my next point.

7: Go Online to Get Leads

One of the hardest things about running an MLM business is getting new leads.

You’ll typically be told to pitch to friends and family first.

And after that, unless you’ve got your own physical business where you can pitch to a relevant market – you’re pretty much reduced to approaching strangers cold.

This can be both awkward and pretty poor in terms of getting results.

But as I said earlier, Amway will provide you with a website that you can send traffic to get new leads.

So I strongly recommend using the sales funnels outlined in the FREE Network Marketing Secrets book.

Where you can use the ‘3-way call’ and ‘home party’ funnels to convert your leads into valuable members of your downline WITHOUT the hassle of having to host the home parties and bother your upline over and over again.

Pros

  • Established MLM company.
  • Good front end products.
  • Capacity to sell online.
  • 180 day money back guarantee on products.

Cons

  • Poor historical reputation.
  • Most people will struggle to make good money.
  • Possible issues with market saturation.

Conclusion: One Of The Better MLMs

Despite Amway’s checkered past, they are probably the biggest name in the MLM space.

This means that if you’re interested in getting started with MLM then you might do well with Amway because you won’t have to worry about them going under anytime soon.

And you can be confident in the quality of the products that you’re promoting.

But I would strongly recommend looking at using the online space to generate leads.

Because by using the strategies taught in Network Marketing Secrets – you’re getting warm leads to come to YOU.

Rather than the other way around (which is exhausting).

Click here to get your free copy now.

What’s The Alternative?

But if you’re totally brand new to MLMs and are simply looking for a reliable way to make money online or increase your monthly income?

Then I would encourage you to stay away from network marketing.

Why?

Simply because it’s so hard for most people to make money due to the business structure.

Instead, I would recommend starting your own online affiliate business.

Because with affiliate marketing, you can start promoting products for free – without having to buy them first.

And if you set up your own website, you can drive 100s or even 1,000s of potential customers to your offers without ever having to pitch a single product face-to-face.

Also, the success rate is much higher with affiliate marketing than MLM.

Because you’re paid on the sales you make rather than relying on the formation of downlines and the activity of others.

And if you click the button below, I’ll show you how to get started with affiliate marketing using the same resources that I used to make 5 figures in profit in less than 12 months.

Do you want to make money online?
Yes - show me how!

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