In short, the answer to whether or not Amway is a scam is: no. But in the defense of both pro MLM and anti MLM parties I believe the answer deserves a little more justification.
First let me start by saying that I use to be an active business rep in the Amway compensation plan. I can also say from personal interactions, that most of the people you see in network marketing online got their start with Amway. Here’s a list without last names: Ty, Bo, Ray, Fernie, Vanman, Johnathan, Michelle, and the list goes on. The story is no different with myself, just a different version of the same story: approached by a guy at the store, showed the plan, got involved, made some money (more than most) but wasn’t seeing the return I wanted for my efforts, finally found internet network marketing and real leveraged systems, bye Amway (no hostility intended).
First let’s define what most people consider to be a scam. In my experience the people typically asking this question are not wondering whether or not it is illegal. The answer to that question is inherently obvious; if it were it would have been shut down years ago by the federal government. So what then do they mean by scam, or pyramid for that matter? The real question they are asking is simple:
“Am I going to make any money at this?”
If you’re an active business owner and you don’t know this already you need to start tuning your ears in on what people are saying. The reason this is so important is that it will allow you to understand where they are coming from, which will then help you determine the next set of questions to ask them to help them past the barrier they’re in front of.
If their problem is just a simple lack of belief in themselves, as demonstrated above by the question “Is Amway a scam?” then there a couple ways you can handle this. My favorite method is to just say “no” and move on. But there’s no harm in asking what their real question is. Simply put, just ask “what’s the real question John?” Eventually if you dig deep enough with enough “why’s” you’ll eventually find the real reason.
For those of you that came here looking for justification for not joining Amway or any other MLM I’ll save you the trouble: stop looking for a reason not to join. You’ve obviously decided to not join in your head somewhere and looking around for a better reason than the truth (fear or doubt) won’t change anything, so just move on. It’s no big deal. Many people have left MLM to become great successes in professional blogging, affiliate marketing, and other niche industries found online. But I will say this: no matter where you go, you’ll ultimately have to learn how to speak to audiences if you want to make the big bucks. There’s no way around the fact that public speakers are real leaders, and the real leaders are the ones making the real money.
If you fall into the category of someone legitimately looking around to determine whether Amway is a scam, or if it’s legit I’ll just answer your concern right here (my answer may surprise you since I left the organization): There is no Amway scam! Amway has been around for over 50 years and operates in over 80 countries. They pay out millions upon millions of dollars in commissions each year and give generously to their communities. Although the average monthly income for a distributor is only 150$ don’t get caught up on that. Most businesses, regardless of their nature, don’t make any money and go under. In addition, by making your decision not to join based on statistics you are automatically lumping yourself into the majority of people that fail. It’s like saying, “well, if 95% of people make no money than it’s likely I won’t make any money.” Or in other words, “I’m not good enough to be in the 5%.” If you’re determined to make it and have a winning mindset then the real attitude you’ll want to manifest is “If one stinking person can do this, then I can do this.”
Many people that were once in Amway still support the company by buying products from their former sponsors, because they were brought into the business model through friendships. My wife and I happen to be one of these couples. We buy from other distributors and companies as well, provided the value is there and we connect well with the reps (which is usually the case).
The only negative statement I would have to make about Amway is the fact that although it’s not a scam, Amway still operates in the hillbilly era. Their rules and regulations, last I checked, don’t allow the building of a downline on the web. In fact, if they discover you marketing their services and or products on the web they’ll cancel your membership, thus terminating all of your compensation. Things may have changed so make sure you double check me by reading the rules and regulations yourself. The products are phenominal though so don’t think I’m trashing Amway. I just didn’t find it to be a fit with how I wanted to work this business model.
They also don’t have much of a starting package for new distributors, it’s fairly low cost and thus doesn’t net much in the case of commissions.
If you’re considering MLM as a viable business model, make sure you take in the concept of Attraction Marketing. It’s much more efficient to build real estate online that will remain there forever, catching the eyes of drivers (web surfers) every time they drive by. And don’t forget to visit our MLM Tools page and see what the industry gurus are using today in their arsenal.
To Your Trials & Success