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Is Amway a Scam? Review of Another Legal Pyramid Scheme

Filed in Popular, Product Review by on June 25, 2018 16 Comments

Amway

4

Training

4.0/10

Support

4.0/10

Price

4.0/10

Overall Quality

4.0/10

Pros

  • Education
  • Support
  • Money back guarantee
  • Been in the business for about 50 years

Cons

  • Strong focus on recruitment
  • Complaints about Amway
  • Negative reviews
  • Lawsuit against Amway in 2007
  • You need to be a sales person

Product name: Amway

Website: www.amway.com

Price: $62 or $83 start up + upsells

Owners: Rich Devos and Jay Van Andel

Overall rank: 40 out of 100

 

The internet is full of discussions, comments, reviews, complaints about multi-level marketing companies and it’s really hard to know which MLM company is legit and which one is a scam.

It will take hours of research and reading in front of your computer before you can find it out.

You need to read other blogs to learn the facts and then take your decision.

When it comes to Amway I did my research and it took me hours to be honest and finally I can share with you what I’ve found about this MLM company.

In short, Amway is not a scam. Far from it. Scam means it takes your money giving nothing in return.

Amway has a wide range of products and has been in the business for about 50 years. Scam can’t be in the business for 50 years.

But the program has pros and cons and it really depends on many factors whether it makes sense for someone to join Amway or avoid it completely.

And in my review I’m going to explain everything in details so you can make your informed decision.

It will take 5 to 10 minutes to read my Amway review. Grab some coffee, relax and read the rest of my review if you really want to know if Amway is worth your time and effort or not.

 

Short review of Amway

Amway (American Way) is a classic multi-level marketing program that has a wide range of products, such as home and personal care, health and beauty products, nutrition, Bath & Body products.

You can join Amway as a distributor and make money both by selling Amway products and by inviting other people to join Amway.

 

Pros of Amway

  • Quality products
  • Education
  • 90-days money back guarantee
  • Has been in the business for about 50 years
  • Support

 

Cons of Amway

  • You need to be a sales person
  • Prices are high
  • Strong focus on recruitment
  • Complaints about Amway
  • Negative reviews
  • It’s called a “legal pyramid scheme”
  • Lawsuit against Amway in 2007
  • Complaints about Amway products

 

Amway is not a scam. I still can’t recommend it because of the complaints I’ve come across online. Don’t join Amway until you read the rest of my review. Otherwise I recommend to try another program that is legit and FREE to try out. It’s been my favorite program since 2013.

Try My Favorite Program FREE!

 

Amway review

Amway was founded in 1959 and has been in the business for more than 50 years.

So, it’s an established MLM company and is different from other MLMs that come and go.

It has offices in many countries and thousands of distributors all over the world.

 

Amway has a lot of products to offer, such as:

 

  • Nutrition: Vitamins, supplements, weight management, sports nutrition, energy drinks,
  • Beauty: Skincare: cleansers, toners, Moisturizers, Eye & Lip Care, serums, Masques/Exfoliators, Intensive Treatments, Anti-acne, men.
  • Makeup: Face, cheeks, eye, lips, Makeup Remover, Kits & Accessories
  • Bath & Body: Hair Care, Body care, Oral care
  • For home use: Laundry, Surface Cleaners, Disinfectant Cleaners, Dish Detergent, Water Treatment, Air Treatment, Cookware

 

 

As you can see there are many different types of products offered by Amway and you can promote all these products for a commission.

You can use both methods online and offline. But all MLM companies mostly do it offline.

I mean you need to be a sales person to be able to promote Amway products to real people.

That’s why only those who have good selling skills can be successful in MLMs.

In fact, Amway’s success has been achieved due to a huge network of active distributors worldwide.

Amway allows you to start your own business as IBO ( Independent Business Owner) and benefit from the company’s program through 3 different ways:

 

  • Retail margin
  • Monthly bonuses
  • Growth incentives

 

There is a start up fee $62 that you need to pay to be able to join Amway. This price includes a Starter Kit and Getting Started Guide.

You also get support, training and mentor that will be helping you down the road.

You can set any price you want when promoting Amway products but keep one thing in mind.

If you increase the price you will have to compete with other distributors in your area and your promotions will give you very limited results in that case.

You will also be earning bonuses and PV points from Amway. There is a minimum that you need to meet when it comes to PV points.

My research shows that it will require monthly spending to reach that minimum level.

When you start your business with Amway you need to get 100 PV points.

Also, remember that when you order products from Amway you will have some shipping costs.

Your Amway earnings will directly depend on the number of sales you can make monthly and the number of people you can convince to join Amway and it also depends on the activity of those people who joined Amway through you.

 

 

What I don’t like about Amway

Lawsuit against Amway in 2007. The case was settled in 2010. Amway paid $34 million in cash and $22 million in products.

The truth is that most people don’t make any money as Amway distributors. It’s not because Amway is good or bad.

It’s because of the nature of MLM system. Most people fail in MLMs.

I also don’t like the way how most MLMs are promoted to people.

People are promised a lot of money with little effort because the company has the system in place, training and support.

In reality this theory doesn’t work in practice.

If your MLM sponsor has a good knowledge and experience and are successful then maybe he can help you become a success story too.

But it depends on many factors, especially it HUGELY depends on your personal qualities and skills.

You need to realize that you need years before you can build your own downline and increase your income.

Not all people are equally happy with the quality of Amway products. I know a person who tried Amway products and wasn’t happy at all.

The quality didn’t impress him at all to say the least. Though Amway products are not cheap and he spent a few hundred bucks.

He refused to buy Amway products but his friend (Amway distributor) was insisting and trying to convince him to buy more of Amway products and join Amway as a distributor.

The reason why I’m telling you this story is because many people on the internet tell similar stories about MLM distributors.

They are very annoying and pushy most of the time. And it’s clear why.

 

 

Because they want to make more sales and more money. In my opinion, it’s unethical. Inviting is ok but insisting is wrong.

 

MLM products are always expensive and most of the time you can find similar products from other companies (non-MLM) for a much lower price.

I already said in my other reviews that MLM companies set such high prices with one simple goal: they need to pay their distributors commissions on many levels which is why it’s called MLM (multi-level marketing).

If you decide to become an Amway distributor you will have to become in some way annoying and pushy and promote products to all people you know around you, your friends, relatives, neighbours etc.

Many of them will be avoiding you because of your active MLM distributor activity. I’ve heard of such stories from many other people.

Not always, but very often MLM distributors become like zombies.

 

 

Their strong belief in exclusiveness of MLM products becomes really annoying and as a result they lose friends. I will show you real examples further in my review.

What I don’t like the most in MLMs is that people at the top make the most money. If you join MLM you will be at the bottom.

Your task is to recruit others so you can make money. But when you recruit someone and earn a commission from him people who are at the top of you make money too.

That’s why they will always make way more than you. Because they are at the top.

BTW, you can find many videos on YouTube about MLM system and all negative aspects related to this business model.

As I already mentioned in many of my MLM reviews, in order to be successful with Amway or any other MLM company you need to recruit a lot of people so they join Amway under you.

Then each of those people must recruit others. If they can do it you will earn from them all. So, it’s not easy.

Making money just by selling Amway products will be extremely difficult. Because you need to make sales consistently each and every month.

I also don’t like that in MLMs you need to buy products so you can stay active and continue to earn points.

If you don’t buy products you are not considered to be active which means you don’t qualify for commissions.

As a MLM member you buy products to meet minimum quotas set by MLM company. This means you have to buy products even if you don’t want to buy them.

And then you need to sell them even if the market is saturated.

I also don’t like that in MLMs the amount of money you can earn directly depends on how much you spend within the system.The same applies to Amway too.

Below you can see the table that clearly shows that your income increases as you start spending more. If you have 100 points your commission will be only 3%.

If you have 7500 points your commission will be 25%.

 

 

The last thing I don’t like in MLMs is that in order to keep sales on a monthly basis you need to be super sociable and meet new people every day or every week.

Organize parties at your home and advertise Amway products, show people catalogues, ads etc.

Also, talk to people and convince them that Amway is a good company with excellent products.

By doing it you will be able to make sales and get people to join Amway. Because your income depends on your activity.

Many people don’t like this type of activity. I’m personally not a sales person and don’t want to organize home parties and push products that are not necessarily as good as they are advertised.

 

Complaints against Amway

When doing my research on the internet I was a little disappointed by the number of negative reviews, complaints and comments that I’ve come across against Amway.

Though I found positive reviews too. Not everything was negative.

But too many were negative for a company that has been in the business for about 50 years.

For example, read this complaint below. It’s a bit long but describes very well how MLM system works.

 

 

Many things will become clear for you. It clearly proves what I’ve said above. MLM distributors are very often annoying and people avoid them.

Here is another complaint from a family that has been part of Amway. Do me a favor and read their short story.

 

 

You will be amazed at how Amway treats its former members. It proves once again that MLM business is not for everyone and I already told about that in my other reviews of other MLM programs.

This opportunity is very specific and you better understand what is required from you as a MLM member before you decide to join Amway or any other MLM company.

Amway also has offices in Ukraine and Russia. Since I know Russian language I did some research on Amway on Russian market too.

I found both positive and negative reviews. Those who complain about Amway have same arguments that I’ve found On US market.

 

 

 

 

 

 

 

Here is a short list of complaints:

  • Amway members are annoying
  • Amway members are like zombies
  • Amway members are all brainwashed
  • Amway products are over-praised
  • Amway products are overpriced for what there really are
  • Bugs on Amway website
  • Everything costs money, even brochures or Amway calendars
  • You won’t get support from your sponsor if you don’t visit Amway seminar
  • Amway members lose their friends

 

Can you become successful with Amway?

Yes, you can become successful with Amway and you can miserably fail too. Of course, it’s highly important to stay positive when you start a business.

But your success also depends on some other factors, such as your personal qualities and skills and also it depends on the system that you plan to join.

If the system is right your chances for success are much higher. If the system is wrong though it’s not a scam your chances for success are much lower.

When it comes to Amway it’s hard to say if you can become successful in this program or fail. I’ve found positive reviews too and you can read them.

But I’ve found also many negative reviews. My advice to you: read all those comments and my review and then take your decision.

Just for your information: Jon Taylor who is the author of the book ‘Multi-Level Marketing Unmasked’ said in his book that 99.7% of people that join MLMs lose money.

You can find this book by Googling it. His book is the result of the research of 600 MLM companies and based on his 30 years experience in the field.

In his book he talks about major flaws in MLM system, questionable MLM product claims, overpriced MLM products, why MLMs put so much emphasis on recruitment, moral side of MLM system.

This reminds me of FTC regulation against MLMs. See below.

 

 

According to Amway report from 2010, the average gross income of Amway member was around $202 per month.

Anyway, you still have chances to become successful in Amway but since I don’t like MLMs I never recommend them.

So, it’s up to you to join Amway or not. I can only tell you that your success hugely depends on your efforts, skills, qualities and sales experience.

 

What I like about Amway

Like any other program Amway also has some positive aspects. Among positive aspects is their quality product line. Amway offers a wide range of products.

Of course, their products are not perfect. Some people like their products while others don’t like it at all. Anyway, the overall quality is acceptable.

Amway offers 90-day money back guarantee which is great. This guarantee means the company is confident in the quality of their service and products which is why they offer such a guarantee.

Amway cares about its members and provides quality training, support and mentor assistance. So, you are not alone with Amway.

The company has been in the business for over 50 years and has a good experience in providing help to its distributors.

 

Final word on Amway

Let’s recap all that we’ve learned about this company and the income opportunity offered by their MLM program.

Amway offers quality products that you can sell and make money. Can you sell? That’s a big question.

I don’t know what type of person you are, I don’t know anything about your personal qualities or skills.

I can only tell that MLM is NOT for everyone. It’s a very specific program.

The truth is that as John Taylor says: “99.7% of people that join MLMs lose money”.

You still have a chance to achieve success but I strongly believe it’s not going to be easy.

As you can see from my review, there are many complaints and negative reviews of Amway.

I think after all this info and facts Amway doesn’t look attractive vs affiliate marketing. Anyway, Amway is not a scam.

If you feel you have skills and qualities required to be successful with this MLM then feel free to join Amway. Otherwise I don’t recommend it.

 

Final glance at Amway

  • Quality products
  • Education
  • 90-days money back guarantee
  • Has been in the business for about 50 years
  • Support
  • You need to be a sales person
  • Prices are high
  • Strong focus on recruitment
  • Complaints about Amway
  • Negative reviews
  • It’s called as “legal pyramid scheme”
  • Lawsuit against Amway in 2007
  • Complaints about Amway products
  • Overall rank: 40 out of 100

 

My top recommended program to make money online in 2018!. NOT MLM!

 

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About the Author ()

My name is Rufat. I'm the founder of Your Income Advisor. My goal is to help others succeed online, by exposing scams and reviewing top rated products. I can help you start your own business online

Comments (16)

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  1. Stephen says:

    It is always a great pleasure reading Your reviews Rufat,

    I just like the way You’re very thorough with Your reviews. You try to cover every aspect of the program You’re reviewing thereby making it easier for us, Your visitors to make our own decision.

    Of course, as You said, Amway is not a scam and I like Your honesty in this regard as well. I really understand why You mentioned that You cannot recommend this MLM program.

    I don’t know why, but it looks as if all MLM programs are either too expensive to join, or their products are too expensive to buy or sell. Thereby making it difficult for their members to have success.

    I don’t like the idea of having to recruit people. But they all use the same method in running their business. It is as though without it their business cannot thrive.

    As for me personally, although Amway is not a scam, looking at all the many complaints from their customers, I can’t join such a program to lose my hard earned income. I will also not recommend such a program to anyone looking for a way to build a full-time income online.

    Thanks for sharing Rufat. always appreciate Your reviews.

    Stephen.

    • Rufat says:

      Hi Stephen and thank you for the comment. I try to do exactly as you explain but not all visitors like it. Sometimes I get comments from MLM members and they never agree with my approach. They believe MLM is the best way to do a business online. Some of them, very few in fact, are making some money and they defend themselves. Most are not making a single dollar and yet they defend MLM opportunity. That’s ok. This is their choice. If MLM works for them then let them stick to it. I believe MLM is not a good system because most experts in this field agree that majority of their members don’t make even $100 per month. Anyway Stephen, as you say, complaints is a huge red flag for me. I described how MLM works. If someone likes it and can do let them do it. This is their choice and their right. And my right is to review a program and choose to recommend it or not.

  2. yoguRJ says:

    Really thanks for the review about the AMWAY. Most of the MLM’s online is a scam. Nowadays it’s hard to find the LEGIT MLM companies online. Once again thanks for attaching the people’s experience. It really helps me to think more before I join. As the people joined in the AMWAY feels disappointed and worried, I will not join Amway anymore. Thanks, Rufat.

    • Rufat says:

      Not all people feel so but most are disappointed. I think you better start with affiliate marketing business instead of MLM because 97% of people fail at this business.

  3. Deanna Martin says:

    Very interesting review of Amway company. I was not aware it has been in business for 50 years. I like the fact that your give a short version and the longer in-depth and more detailed version for someone who wants all the details. Very well done. There are too many scams out there that we have to be on guard for. Thanks,Deanna

    • Rufat says:

      Thank you for the comment Deanna! I’m glad you like it. This is my style of writing reviews. I think this way is more friendly for visitors. Because most people don’t want to read the whole review. It takes at least 5-10 minutes. Short version in a few words gives an idea of what the program is about and whether someone wants to read it to the end or just leave the site.

  4. CoconuttyWife says:

    I generally very much dislike pyramid schemes. I feel like those who promote those businesses are almost duped into doing so and only later realize that they are making almost nothing. I know people who have gotten into various pyramid-scheme based companies and wind up making very little money. Plus, it is annoying to see their whole newsfeed filled with, “try this makeup!” or “Celebrating the 4th with my awesome (insert brandname) shake, without which I would be dead and foaming at the mouth.” Slight exaggeration, but you get what I’m saying. Wealthy Affiliate is one of the few legit companies I’ve seen out there, plus they have an awesome free start and don’t ask for any payment info whatsoever.

    • Rufat says:

      What you are saying here very well applies to many pyramid schemes. But making money with their system is possible. But most people lose money. That’s true. When I did my research of Amway I was shocked to know that 97% of all people who join mlm programs lose money. And it’s said by experts who researched this field and know what they are talking about. Regarding their advertising methods I know what you mean. That’s their standard methods that I don’t like and you too. That’s why I prefer affiliate marketing becaus it doesn’t involve any big risks like in case with mlm business model.

  5. Marta says:

    Hi Rufat,
    Thank you for sharing.
    I already knew and tried the Amway products. Some people complain about it, and that’s ok because we all are different and nothing can be ideal for all the world.
    MLM is legit in most cases. What ruined its credibility was all the scams that justified themselves by saying they were part of MLM.
    What I don’t like, is that a person who doesn’t have the right skills for selling insists on selling you something you don’t even need. That’s the reason most people keep away from sellers of any sort. Do you agree?

    • Rufat says:

      I agree, people are different and can’t be equally happy with Amway products. When it comes to MLM system I can’t agree that most of them are legit. I think most of them are not legit instead and only few of them legit. The system itself was created for the sole purpose of selling overpriced products through highly trained sellers, distributors by describing MLM products as superior to any other products available on the market. The idea of almost any MLM is to pay distributors high commissions through multiple levels of the MLM pyramid system. I don’t like MLMs and as I said, very few of them are legit in my opinion. In fact, you can’t buy MLM products and promote them. In most cases you need to pay for the membership and in order to earn more you need to pay for higher levels of an MLM membership. I disagree with such an approach.

  6. Derek Marshall says:

    Bravo for the research Rufat!, such fine detail. I think I will absolutely avoid it at all costs. I did have an ex-girlfriend that Joined part of the Thai side of Amway, which just shows how global and multi-national they are.

    Just for the record..she never made a dime, a single sale! and this despite attending a few events.

    • Rufat says:

      It’s really great you find my review helpful. Yes, Amway has offices in many countries. It’s bad that your girl-friend has failed in this program. It proves once again that if the system is not good it can’t help you become successful even if you get support and education. That’ s the reality of MLM system. It’s true that some people can make a solid income per month but the majority of people miserably fail in MLMs. It’s because most people don’t realize how hard it is to make money through mlm. MLM distributors are very active trying to convince people to join their team but they can’t do much when it comes to helping people improve their skills and achieve goals with Amway or any other mlm program.

  7. Dave says:

    Hey there Rufat,

    I have to say I may stay away from this program if its reputation is this bad. Having a lawsuit, getting numerous negative reviews and focusing much on recruitment isn’t something I want to get involved with.

    I think I am going to go for affiliate marketing since it seems more workable and convenient for me. Thanks for the recommendation.

    • Rufat says:

      I think if there was a lawsuit against Amway there is always a chance it will happen again. I know many other MLMs that were shut down due to their illegal activity. I believe you are right. It’s much better to start with affiliate marketing. It’s much safer and requires minimum investment to start a business. You don’t need to buy products or pay for the right to promote someone’s product. You don’t need pay more for membership packages in order to earn more. You don’t need to collect PV points or bonuses. With affiliate marketing it’s much easier to make money online.

  8. Reyhana says:

    I have actually tried Amway products before and they claim to use natural ingredients, which was why I was explained the prices were so high. I tried the products but they were comparable to the other products I was using in my everyday life so I stopped buying. The prices are really through the roof and now I understand why; it is to pay their agents on multiple levels. Although I knew how MLMs worked (I have been an Avon Rep before), I never knew that’s why the prices were so high. At Avon, the prices were 1/3 of what Amway was charging, although Avon also has some products made from natural sources.

    • Rufat says:

      It’s great to hear that you’ve tried Amway products and understand what I’m talking about here. Yes, I understand that using natural ingredients always makes products higher in price. This is normal. But when it comes to MLMs, very often their prices are too high. It’s because they pay their members on multi-level scheme and pay generous commissions. And that’s why many people don’t like buying from MLM companies. Because there are many other alternative products for a much lower price. I’ve heard about Avon but I don’t have much information about that company or MLM opportunity. I plan to to write my review soon and see how it’s different from Amway. I will let you know when my review is ready so you can share your thoughts. Thank you for your input anyway.

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