Amway is a big beast in the MLM or network marketing world and has been around for quite a while. But does it mean that you will become successful by joining the opportunity? Can you make money with Amway?
Well, the answer to that is probably yes, but what you want to know is whether you can really make a six figure income and quit your regular job that you hate so much, right? I will tell you everything I’ve learned from being in an MLM before.
I’ll tell you of the struggles that NOT ONE of the members of Amway are going to tell you. If you knew of them, you would never join, believe me.
Read until the end if you want to make an informed decision about the Amway opportunity.
Amway At A Glance
Owner(s): Jay Van Andel and Rich DeVos
Purpose: Make money selling products and recruiting
Do I Recommend It?: NOPE!
What Is Amway?
In terms of how reliable Amway is, you don’t have to worry because it has been around for over 60 years. It was founded in 1959 by two gentlemen, Van Andel and DeVos, who were part of another MLM then.
They were very successful and decided to take some of their top earners to create their own MLM business, known at that time, as The American Way, later shortened to Amway.
Amway is actually the biggest MLM or network marketing company in existence today. The annual revenue of the company is close to $9 Billion, which is $3 Billion over the other MLM giant we know so well, Avon.
The kind of products that Amway produces and distributes will be somewhere within nutritional, beauty, personal care and home products categories. Not only does it promote organic and biodegradable products that are better for us and our planet, they also provide an income/business opportunity.
That’s why you’re probably here today, right? To learn more about that opportunity and whether or not you can really make it work and quit your job.
However, the unchangeable truth is that no matter how you look at it, no matter how good the products and no matter how good the members claim the income can be, this is still an MLM and most people run the other way.
So how easy is it going to be make sales? How easy is it to recruit? On paper, the math makes sense but the truth is that the members are prepared to hide a lot of the truth of this business opportunity.
How Does Amway Work?
First of all, I was kind of taken aback at NOT finding exactly what it costs to start with Amway. They don’t tell you how much the tools are gonna cost, or whether or not you need to purchase kits.
That’s what similar programs will have you do, and you can take a look at My Daily Choice, which is similar to Amway.
Others say that it is $100 on average to join, though I have seen others who say it’s free. Not really sure what the deal is here with the discrepancy and that does not really make me want to trust Amway.
If it’s really worth it to pay even more, then why not tell us and justify WHY you’ll be paying at all?
Nonetheless, like I mentioned earlier, this is still an MLM. The objective of the business is still to recruit and to make sales in order to make money.
You’ll still need to make a list of family members and friends to either pester about joining or to sell to.
I’ve been in Avon and Primerica before and let me tell you that though the products were not priced too high, that it was still hard to make money and do you know why? That’s because you start at the bottom.
I know, everybody starts at the bottom, but the fact of the matter is that those who joined earlier will have a much better earning potential than those who join later.
You see, with Avon, I ran into the problem of my locality being so saturated with reps. Everybody I talked to already had their preferred reps, who sometimes even gave them deals.
“Buy a certain amount and you won’t have to pay taxes” is one of them. And there were also people selling at much less than the catalogue prices and as a newbie who was making less commissions, it was hard to compete with them.
That’s what I see happening with Amway. The more people that come into the business, the harder it will be to recruit more people later on. Maybe selling won’t be too bad but then again, their products are priced so high!
People do understand the importance of organic and biodegradable but with so many cost-effective options at Walmart for example, the middle-class people won’t buy from Amway.
The Amway Compensation Plan – How Much Money Do Current Members Make?
There are several ways that you can make money with Amway.
1) Sell products at your own retail price
So basically, you’ll be able to buy at wholesale price and then to resell at whatever price you decide to sell it at. Mostly, people will be looking at catalogues, or even online so chances are that you won’t be able to set your own price.
Your profit is pretty much the difference between what you buy it at and what you resell it at and your profits have been set in stone already.
2) Trade discounts
These are incentives for reaching new discount levels. You can earn between 3 and 25% depending on your sales volumes and that of your team. Each time you reach a new level, you make a one-time incentive.
3) Sales from preferred customers
What I like is that you can register preferred customers on the Amway website where they can purchase from the website directly instead of going through you all the time. Because they are your preferred customers, you make the commissions.
4) Growing your team
The next is to grow your team and have your team make sales and you’ll be able to also earn a cut. This is the main objective of being an Amway representative.
You want to become financially free and don’t want to be working harder as time goes by. That’s why building a team is important because the more money you want to make, the bigger your team needs to be.
However, I did find something that is quite contradicting. And if you watch the below video, you’ll understand what I mean.
So basically, what is being said here is that you’ll make full commissions on your personal sales, but when it comes to team sales, you’ll only make the difference of what your team makes.
One example he takes in the video is that you make a 1150PV and 1000PV comes from your ONE leg, meaning that you only recruited one person who made the 1000PV happen. Your referral and yourself are both at the 12% level.
In the end, because there’s no difference between the level that you’re at and the level that your referral is at (12% – 12% is 0%!), that you’ll basically be making nothing.
So my question is, what happens when everybody is at that 25% level? That’s where everybody wants to be right? What would have been the point of going through the trouble of recruiting at that point?
My conclusion is that this does not work like a regular MLM, where you can expect to make more the more your downline grows. You have to become a little selfish and take time to recruit for yourself.
This can lead to a little bit of neglect from your upline because they are pressured to keep recruiting for THEMSELVES in order to keep ahead of the game and to keep making money, as will be the case for you.
I see no point in building a team with Amway, if that’s really how it all works.
If you’re an Amway representative reading this review, please correct me if I made an error in understanding. But from my research and little information actually available on the Amway website, this is how I’m seeing it.
Is Amway A Scam?
No, in my opinion, Amway is not a scam. On the contrary, it is a legit business opportunity because they emphasize that the money you make comes from sales of actual products and not from the act of recruiting itself.
This is a legit MLM where you make commissions on selling products yourself, as well as from the sales of your downline. However, the compensation plan, the way it is explained in the video, is a little weird.
It shows that you can only make money as long as your team makes less PVs than you. As soon as they catch to you, you’re not making anything. This will put pressure on you to keep recruiting to be able to keep earning.
After a while, once everybody in your team reaches the 25% commission level, it seems as if you’re not going to be making any money seeing as the difference between your level and there’s will result in 0% commission for you.
From this time, not having a lot explained on the website and having only a few videos available explaining the compensation plan, it looks like you’ll need to keep recruiting to have people at the LOWEST level for you to be able to earn the difference in commissions.
There’s no longevity and no point to the business model in my opinion, because the hard work of recruiting that you do will eventually close up the gap between you and your referrals, where you won’t be making any money (if they reach the same level as you).
So at this point, as this stands, I do not recommend Amway. Not only is this an MLM where you’ll be asked to recruit family and friends, but the products are expensive. There is only a VERY small percentage of people who would be willing to buy the products when there are more cost-effective solutions around.
Why Don’t You Try A FREE Online Opportunity With A Better Success Rate?
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Thanks for reading my Amway review. So what is your opinion? Can you make money with Amway? What are its long-term prospects? Are you with Amway and succeeding so far? Is my depiction and understanding accurate?
Forgive me if I made a mistake in this review. Please feel free to correct me. I wrote what I found, as I understood it.