Welcome and thank you for finding your way to my review of one of the oldest MLM’s in existence, Amway Global. This network marketing giant has been around for a very long time, yet many people may not have heard much about it.
You should know that I am not affiliated with Amway, nor have I ever been. My quest is to research and report to you on the opportunities available online and to give you the best information I can so that you can decide if a business is worth your hard-earned cash or not.
What Is Amway Global?
Amway is a multi-level marketing company that has been around since 1959. It was founded by two school friends, Rich De Vos and Jay Van Andel and has grown into a multi-billion dollar industry with distributors (or IBO’s as they are called – Independent Business Owners) in over 100 countries globally.
Amway has a broad portfolio of products in:
- personal care
- home care
Who is Amway Global For?
Amway refers to themself as your “side hustle”. In order to make money, you need to recommend and purchase their products and build a team (or downline) below you to do the same.
Therefore, you must be someone who is very comfortable selling to people, including family, an inner circle of friends and acquaintances and outwards from there.
I would suggest that if you are even considering joining Amway, or any other MLM for that matter, that you read my checklist to determine if you are the right kind of personality for promoting this kind of business model. It is certainly not for everyone.
Brief Description and Price
owners/founders: Rich de Voss and Jay Van Andel
price: $62.00 for the registration kit, optional product starter kit – $99.00
what’s included with the registration kit:
- marketing support
- direct sales tips
- a step-by-step guide to help IBO’s understand the business, the products, details on the bonus programs and training resources
- ‘Amway Education’ offers free training including more than 80 virtual courses
guarantee: there is no income guarantee
100% refund of the registration fee if you decide not to proceed as an IBO (Independent Business Owner) within 90 days
rating: (out of 10): 3.5
My Review of Amway Global
Amway, short for “American Way” was founded in 1959 by Rich de Voss and Jay Van Andel and it is based in Ada, Michigan. These two friends had been involved in various entrepreneurial schemes in 1949 before becoming distributors of the dietary supplement, Nutrilite, which they had heard about from a family member.
By 1958 Rich and Jay were able to build up a network of other distributors of Nutrilite and decided to form their own direct selling company which they called ‘American Way Association” or Amway and started looking for new products to sell. Their first product was called “Frisk” and it was an organic cleaner.
In 1972 Amway bought controlling interest of Nutrilite and became full owners of that company in 1994.
Since then, their portfolio has expanded to more than 450 products with reported sales of 8.8 billion in 2018.
Amway has more than 450 products backed by a 100% satisfaction guarantee.
Some of their more popular products include:
- Nutrilite – this is a plant-based protein powder and their signature product
- Glister – which is an ‘Advanced’ type of toothbrush
- Artistry Intensive Skincare Advanced Vitamin C + Hyaluronic Acid product
- eSpring – which is a water treatment system
- Atmosphere – an air treatment system that removes contaminants and allergens through a filter system
- Amway Home – a line of cleaning products that use biodegradable ingredients
getting started as an Amway IBO
To get started as an IBO with Amway, you need to sign up through a sponsor, which is, of course, another Amway IBO. The cost is around $100 that you will have to invest in products. Then, you can host a party or start selling to people one on one.
If you prefer, you can direct people to your website, which, by the way, is not included when you join. You will have to create and pay to host your own website which is an additional cost. Customers can then purchase products through your website without you, the IBO, needing to hold any inventory at home. However, you are encouraged to have products at home so that people can try them.
You still need to be able to approach family and friends, face to face and feel comfortable talking about and educating people on the product line however, so you must be prepared to direct sell.
ways to earn with Amway
There are essentially 3 ways to generate income with Amway.
- Retail – you buy the products from Amway and sell them at a higher price and keep the difference
- Bonuses – you earn Point Value (PV) on all the products you sell, then, when you start recruiting others to join as IBO’s, you will also earn points on the products they sell. These points are then accumulated and can be rewarded as cash bonuses
- Incentives – if you can recruit a lot of people quickly and get that downline going, you can earn Fast Track Incentive Program Rewards for extraordinary growth. These include trips and one-time cash awards
The compensation plan is 21 pages long and is very complicated, as is always the case with these MLM’s so I will try to condense it.
There are 22 rank levels within Amway starting with ‘Silver Producer’. The highest echelon to achieve is ‘Founder’s Crown Ambassador’.
Simply put, there is an extensive award and bonus system within the company. ‘Plaques and ‘Pins’ are awarded when you acquire a certain amount of points. To earn bonuses, and thus commissions, you will have to sell a certain amount of product (which has a point value) and so will the people in your downline. As you recruit others below you and they also recruit, more points will be acquired, you can attain a higher rank status and thus achieve a greater income potential.
If you would like to view the entire Amway compensation plan you can do so here.
how much can you earn
There is no actual income disclosure available for Amway for the US, however, this is in small print at the bottom of their compensation plan.
So, as you can see, the majority make very little income despite the enormous amount of work involved.
Pros and Cons
- company in business a long time
- international opportunity
- refund if you quit in the first 90 days
- the high failure rate with the MLM model
- cult-like atmosphere
- harassing of family and friends
Final Thoughts About Amway Global
Criticisms such as cult-like tactics resembling religious revival meetings to attract and retain IBO’s have been directed at Amway.
The company has also had its share of legal issues. In 2010 it had to pay restitution in the amount of $56,000,000 in response to consumer accusations that it was operating an illegal pyramid scheme. There is a vast amount of information on this if you choose to investigate further online. For me, personally, this is a huge red flag.
Then, once again, we have the pyramid structure that puts you, the new IBO, at the bottom where you will have to purchase products, harass family and friends and work very, very hard for a small payout.
Of course, any business, online or offline, requires hard work and perseverance to achieve success, but the MLM business model is already so flawed and this is why the failure rate is so high and why most people drop out.
Amway is not a scam, but I cannot recommend this MLM as a way for you to generate an online income from home because I think it is just too stressful and takes such a long time as well as having a high failure rate.
Have you, or anyone you know, been involved as an IBO with Amway? Perhaps you would be willing to share that experience in the comments section below and give your personal account of what it was like.
A Better Option-What We Do
Philip and I found ourselves in the situation of absolutely having to make some money after a series of life-changing events. We did look at the MLM business model but dismissed it almost immediately. We scoured the internet to try to find something authentic and real in which to immerse ourselves and for us, it was Affiliate Marketing.
It is not a get rich quick way to make money, but rather a sound, solid business model that is also fun because it just feels good to help people like us understand that there are ways to help that bottom line in retirement without harassing family and friends and investing thousands of dollars on products.
If you would like to read Philip’s review of the company we joined to learn online entrepreneurship, you can do so here. What appealed most to us initially was the fact that we could go in and ‘kick the tires’ for FREE and were under no obligation.
Please be careful out there in cyberspace and I wish you every success,
The greatest years of your life are still ahead!