All of us have heard of Amway, one of the original and most popular MLM companies. It is the biggest direct selling company in the world with revenue of over 8-9 billion a year. 3 billion more than their closest competitors Herbalife and Avon. Amway is one of the true pioneers of the multi-level marketing business model. Amway employs more than 17,000 workers and is spread across 100 countries all over the world including the USA, India, China, Canada, Thailand, and Japan. Its sales force consists of 3 to 4 million independent distributors worldwide. Amway is ranked at 44th according to revenue in Forbes magazine’s list of the largest privately held companies in the USA. Their wide range of products includes health, wellness, beauty, nutrition, and home care. Amway is listed Under Top 100 MLM Companies Across The Globe 2021
In this review of team Amway, we will have a look at what is Amway, the Amway Compensation Plan, the pros and cons of joining Amway MLM, Is Amway a pyramid scheme? And our final verdict on Amway.
|Industry:||Multi Level Marketing|
|Founders:||Jay Van Andel and Richard “Rich” DeVos|
|Headquarters :||Ada, Michigan|
|Products:||Health, wellness, beauty, nutrition, and home care|
Amway was founded in 1959, by Jay Van Andel and Richard DeVos. Both of them used to be distributors for Nutrilite, selling nutritional products. Nutrilite deployed a network marketing model. Jay and Richard soon became top performers and built a downline salesforce of over 5000 distributors. Eventually, they left Nutrilite with their top recruits and started Amway. The company was initially called “The American Way” and later shortened to Amway.
Amway later acquired Nutrilite and developed it into one of the world’s biggest brands of supplements. Today, Nutrilite sells over 10 billion vitamin capsules all over the world. It was also named as the world’s number one selling nutritional supplement brand by Euromonitor International.
Even though Amway does not have the best reputation among the general public, that is largely due to their MLM business model. And most definitely not due to their products. Let’s have a look at some of the products of Amway.
Amway’s products are known to be of the highest quality. Most users of Nutrilite supplements only have good things to say about them. Their household cleaning products under the L.O.C (Legacy of clean) brand are impressive fully biodegradable and organic products. Artistry, Amway’s cosmetics, and personal care brand generate billions in revenue every year. The eSpring water filter by Amway which uses UV light and carbon block filter to refine tap water is a highly acclaimed water purifier. The company’s XS energy drink is also hugely popular, making over 100 million in sales yearly.
There are over 450 products in the Amway catalog such as Amway home, Satinique, and Atmosphere Sky. Amway products are usually well received in terms of product quality but criticized in terms of inflated prices.
Amway MLM compensation Plan
As Amway is the world’s largest MLM company, the top-level distributors make huge amounts of money. But those are only a tiny percentile of the distributors registered in the company. And only 48% of all independent distributors are active with an average income of around $200 per month. For most people, it will be a difficult task to make a meaningful level of income.
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There is no initial charge to join Amway. But you are expected to purchase a certain quantity of products, to begin with. You will have to buy products worth around $100 initially. Amway, similar to other MLMs earns the majority of its revenue by recruitment. So there will be immense importance to not just sell products but to enlist new distributors. The actual funds are in the recruitment. You will receive commissions from the goods that your enlisted distributors sell and from any products you sell yourself.
Pros of joining Amway
Amway is a genuine company and the most successful network marketing company in the world. It has billions of dollars in yearly sales and a history of over six decades in the market.
Amway’s products tend to have an excellent reputation for being the best in terms of quality which can help maintain long-term customers.
Amway has a product catalog with more than 450 products varying from skincare to health supplements. So it is not likely that you would run out of products to sell as an independent distributor.
As the most established multi-level marketing company in the world, Amway provides high-quality training materials for its distributors.
The top-level distributors in Amway have the opportunity to earn some of the biggest commissions in the MLM industry, with annual incomes in six and seven figures.
Cons of joining Amway
Because of their network marketing business model which highlights more on recruiting than sales, Amway‘s name among common people carries a bad reputation.
It costs about $100 initially to become an independent distributor, and you are required to purchase a bunch of products for personal usage which tend to be costly.
Like all network marketing businesses, there is great importance placed on recruiting other people into the network so you can earn commissions from their sales.
Distributors are constantly urged to purchase costly motivational books & videos from their upline.
The company acknowledges that only 48% of all independent distributors are active. And the average income of the active distributors is only around $200 per month.
Is Amway Legit or a Pyramid Scheme?
Amway has been around for over six decades and makes more than 10 billion dollars in annual revenue. So it is safe to say that Amway is not a scam or a pyramid scheme. And they have an amazing range of quality products.
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If you decide to join Amway, there is money to be made out there. Remember the attractive rewards and bonuses we mentioned above. But you will have to create and manage an utterly huge downline to reach anywhere near the promised outrageous income level.
In this review of Amway, we have covered what is Amway, the Amway Compensation Plan, the pros and cons of joining Amway, Is Amway fitness a pyramid scheme? And our final verdict on Amway. Consider all of these factors before deciding on joining Amway.
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