First of all, Amway is one of the oldest MLM or network marketing companies today. Many people get very confused about the difference between pyramid schemes (Bernie Madoff always comes to mind) and legitimate MLM businesses. No pyramid scheme could have been in sight, under intense government scrutiny for so long, and have been so successful. Amway is not a scam.
MLM is a marketing strategy that when written on paper only looks like a pyramid: one recruits two, two recruits four, etc., the guys at the top levels win every time, as not only other people recruit their huge Downlines, they can also sell large volumes of product to make big money.
Older, well-established and successful MLM companies like Amway have everything we should look for in a solid network marketing home business, but when you extrapolate that pyramid of recruits to your bottom line today, after 50 years in the business will understand that there is little profit left for new recruits. The market is saturated; And that’s exactly where Amway planned to be all those years.
Amway Corporation is part of the Alticor group of companies, founded in 1959. Its main products are skin care, nutritional and vitamin supplements, a water purification system called eSpring, and the excellent SA8 line of clothing care products. .
Not only do Amway distributors make money selling the company’s products, they also receive bonuses for sales made by their recruits or downline, therefore, people who have been in the Amway system for years earn all the money. This is true for any successful MLM company, part of a distributor’s earnings depend not only on selling the product, but on promoting the company to others.
If you decide to join Amway, they have a buyback policy, which means that all unsold products will be bought back, which is uncomfortable after having spent months unsuccessfully trying to sell the products to an already saturated market. . .
To ensure that distributors do not attempt to earn a performance bonus entirely on the basis of purchases, Amway requires that distributors resell at least 70% of the products they have purchased each month. You must also prove that you sold those products to at least ten different customers each month to receive a performance bonus.
Sixty percent of Amway distributors, if you look at their criteria, are not active, which means that only 40% of the Amway distribution network earns monthly income, the rest purchase Amway products for their own consumption.
It’s the established people at the top who are making a lot of money, and from what I can see, the bottom of the ladder is overrun with few opportunities for an Amway home business that can make more than a few dollars a month. .
With an annual turnover of around $ 7 billion worldwide, divided by 3,000,000 distributors, that brings average dealer sales to roughly $ 2,300 gross per year.