Is Amway A Scam?

I have been doing amway for the last 8 years, and I have seen a lot of ups and downs throughout my experience. No matter how my business was doing, I was sold on one thing, Amway works. If it is not going the way I want it to go, it has to do something with me, or the way I run things. Recently however, things have changed. New discoveries, personal studies from Amway's own literature, I have come to a conclusion that it will not work for me. The thing that I was sold on (Amway always works) was mostly a subtle thought injected in me by the CDs and seminars I have listened

For my accomplishments, I attained a platinum business few years ago, and have been doing good, no great. I also have another platinum business under me, and other legs all silvers. For anyone who knows a little about Amway, that’s a solid Emerald foundation. Emerald these days makes roughly around 100k gross. Please don’t think this 100k is yearly.

Average Founders Emerald income in North America is $135,826. As an average, obviously some earn more and some earn less.

The residual nature of the business that is being sold to everyone works in one way, and one way only. As long as you are working, showing the plan, selling training materials, and getting qualified again, you will make that 100k as an Emerald again.

My sponsor is a Founders Emerald. Each one of his qualifying legs has multiple downline Diamonds and two have multiple Crown Ambassadorships in the downline. Believe me, he does not need to be out "working, showing the plan, selling training materials, and getting qualified again".

This applies to any pin starting from 100pv all the way up to crown, as long as you are showing the plan, getting people started, and doing every trick in the book to make people stay, you will get paid. Forget getting paid. The free trips that your upline brags about, you have to get qualified for these trips every year. If you went diamond and then stopped performing, guess what. That peter island trip will only come once.

None of this is a secret. Of course your business needs to keep generating sales volume to keep generating income and qualify for trips. That's the way it should be.

Why did I quit? Well, few reasons. The 100k I mentioned earlier, not every Emerald will get it. It is tricky. With my structure, 3 platinum’s of, roughly around 60 people, I am going to make 60k.

Only 60 people for a platinum business is on the verge of Amway investigating if it was built legitimately. That's extremely unstable. In Europe the average Silver Producer has 150 people in their network. Having platinumships with only 60 people is .... well, odd, and predictably low income and unstable - a lot of work to maintain.

Is that what BWW teaches?

A good amount of money nevertheless. The problem with this is, to achieve this, there is no amount of work that I will do, will justify the leadership that I have reached my true limit (and I have a great work ethic, paid my college tuition during college, working 2 jobs with 15+ credits). If I complain the leadership why I am getting paid less than what is written, I would get the following answers:

Amway pays out exactly what is written in the compensation plan. The bonuses at your level you can work out *exactly* what you will earn every month. Complaining to someone that you're earning exactly as much as you should be is a bit pointless isn't it?

Another reason. The amount of lies my uplines have told me, and the amount of lies I have told people about Amway (knowingly and not knowingly) is unimaginable. I was encouraged to lie to the prospects and new IBOs.

That is clearly an absurd and dangerous way to run any business, not to mention unethical. Complete opposite of what I've been encouraged.

Why? To help them in the long run. Additionally, I was told to break up with my girlfriend few years ago, because she was anti amway. I was not told directly, but implied during a "core training" session. I will quote accurately "Ladies, do you like your men to be dreamers? Gents, do you like your women to be goal setters, go getters? Would you ever settle with a person without these qualities? If you are dating someone who is not a dreamer, go getter, or who is antiamway, there are plenty of other options out there. You cannot afford to jeopardize your future with someone who is against what you are doing here"

Joecool reported something similar. Even if true - and to an extent it is, nothing to do with Amway, it's the same any endeavour - it's not something you "teach" or encourage.

I would also like to point out the claims people make that leaders get a side income by selling tools. Let me tell you, you are correct!

Well known.

For every CD and for every book you move, there is a margin of 60-80 cents at the lowest level. For example, Platinum will get some cut(60 cents), emerald will get some cut (more than 60c) and diamond will get a cut.

This is a BWW thing, not an Amway thing. Other organisations pay nothing like those amounts. Can you post the rebate schedule?

Even at platinum level, the profits that comes through selling CDs and Books, covers the cost of all the products needed for one household

Emerald's in our organisation average less than $600/mth income from these sources. Platinums significantly less.

Are you in the US or elsewhere?

So why are some people successful? You will be successful as long as you are willing to do the work, and the work is dirty, shady and never 100% satisfying. If you are ok lying to people, forcing people to do things, influencing people to believe what is not there, then yes, you have a chance.

And yet I built an Amway business that continues to generate me an income to this day, and I never did any of those "shady" things. Work, yes. Lie, force etc? Never.

In the end, I would like to add that icerat has been informative in the past, to me at least. Why did I like his comments? Because I was so blinded by the religious teachings of Amway/BWW, I was not willing to accept the truth. After re-reading 5-6 pages, I know one thing for sure. what icerat writes here is what they teach in their seminars and special training sessions. This is called bullet proofing. Answer to every negative question, any critic is provided here. Needless to say I have heard the exact same things over and over again in these seminars. No offense to you icerat, I like you. I would recommend you think over this whole process critically, rather than emotionally. Again, just a suggestion, no need to start an argument :)
Good luck to you all

I always think critically and rationally. You give your experience, I give mine. I've read and studied more about Amway then, I suspect, anyone in the world. Every book, every court case, every academic paper I can source. One of the things I've learned is there is HUGE variation in the way Amway affiliated organisations around the world. BWW is different to Mueller-Meerkatz is different to Julia Yu is different to URA Association is different to Network 21 is different to etc etc etc.

Which is the way it should be, as independent businesses.

Don't make the mistake of believing what you do or are taught is the same as everyone else.
 
For those who dont know what "check with upline" is. It is a very subtle way to make amway reps believe that they cant make any important decisions in life. Buying a car? check with upline. Buying a house? check with upline. Getting married? check with upline. Heck, I am ashamed to tell you all that even the wedding date has to be approved by uplines. It sounds crazy now, but there has been countless CDs and seminars to brainwash people why "checking with upline" is the ultimate key to success

And my experience in another part of the Amway world is completely different. Indeed almost the antithesis - sure, get advice, but you take responsibility for your own business. In the last few years I've done all you mention - bought cars, houses, got married. Not only did I not once "check upline" nobody has even remotely suggested I should.

Sounds more like your upline is running a cult, not a business.
 
Only 60 people for a platinum business is on the verge of Amway investigating if it was built legitimately. That's extremely unstable. In Europe the average Silver Producer has 150 people in their network. Having platinumships with only 60 people is .... well, odd, and predictably low income and unstable - a lot of work to maintain.

That is amazing. I wonder if you understand what a poor light that puts the whole enterprise in.
 
That is amazing. I wonder if you understand what a poor light that puts the whole enterprise in.

Which just confirms to me you don't understand how the "whole enterprise" works. It doesn't put in a "poor light" at all.

Hint: very few of those 150 are trying to earn an income.

note: I should have said "households", not "people".
 
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@ Icerat - I am going to try to answer all your questions in a single paragraph

I do believe this business can be run ethically and morally, like we claim in the business plan. But that really has to start from the top. I am in US, and in the BWW organization, and let me tell you there are secrets/lies at every level. I have read a lot of your comments on this forum and I trust you when you say that in UK, it is running better. I also had an organization in UK, and their system felt a lot better from above.
I have a couple of Emerald friends from crosslines and they make roughly around 85-90. Your sponsor in an exceptional case. If I start 3-4 people and they all are self starters and go diamond and beyond, that takes the business to auto pilot. That really means I dont have to do much except get "Diamond" done. I would be interested to know why he is not dimond yet as his organization is doing pretty good (and I ask this with a humble heart, and not trying to insult your sponsor)
In North America, BWW teaches 45-50 people team platinum. This also assumes team has few customers.
There is no rebate program for BWW
 
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@ Icerat - I am going to try to answer all your questions in a single paragraph

I do believe this business can be run ethically and morally, like we claim in the business plan. But that really has to start from the top.

Indeed, and Jim Dornan was probably the most ethical and moral person I've ever had the honour to meet.

I am in US, and in the BWW organization, and let me tell you there are secrets/lies at every level.

How anyone thinks that can lead to a successful long-term business is beyond me

I have read a lot of your comments on this forum and I trust you when you say that in UK, it is running better. I also had an organization in UK, and their system felt a lot better from above.

Sam, our organisation is essentially the same everywhere. I have registered IBOships in North Aemerica, Australia/NZ, UK, Scandinavia, and CLOS. Our teaching is the same everywhere.

I have a couple of Emerald friends from crosslines and they make roughly around 85-90. Your sponsor in an exceptional case.

Sure it is, but I've never heard anyone claim a leg (and thus it's income) is stable without at least 3 platinums in it (and I've heard some say 3 emeralds), so to complain about a leg not being a stable income when that's exactly what's taught is, well ... odd.

In any case, average Founders Emerald income in North America is $135,826 (p.9) - ergo your friends are earning way below average, so their Emeraldships are "below average"

If I start 3-4 people and they all are self starters and go diamond and beyond, that takes the business to auto pilot. That really means I dont have to do much except get "Diamond" done.

God no. There are plenty of Diamondships that don't even exist anymore. There are Diamonds who sponsored Diamonds that don't exist any more.

There's more to building a sustainable business than just getting a title and a pretty pin.

I would be interested to know why he is not dimond yet as his organization is doing pretty good (and I ask this with a humble heart, and not trying to insult your sponsor)

I asked him once and he said "because I joined and had an income goal and reached that goal". I have friends at all sorts of different levels that are happy where they are. Not everyone wants to be a Diamond - or at least wants to do what it takes be a Diamond - and that's just fine.

In North America, BWW teaches 45-50 people team platinum. This also assumes team has few customers.

Really? Is that 45-50 ordering or 45-50 registered or 45-50 on "the system" in some manner?

There is no rebate program for BWW

The per-CD/tape income is (supposed to be) in effect a volume rebate program, much like Amway's. I believe every organisation has to have it operating in this type of manner under Accreditation+, though I know there was a period of time allowed for changeover for organisations that had to change.
 
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Which just confirms to me you don't understand how the "whole enterprise" works. It doesn't put in a "poor light" at all.

Hint: very few of those 150 are trying to earn an income.
note: I should have said "households", not "people".

And this improves the picture how?
The very things you think are strengths are the things I find repellant. And my opinion doesn't even need the ethical shenanigans already described, simply the numbers you have presented.

Just to stay on schedule though, this is the part of the conversation where we move the goal posts and start talking about "valuable business experience acquired" and "buying quality products at a discount."

And this too is reminiscent of Scientology. If one part of the presentation is getting effectively criticized, move to another aspect. If things get iffy there, go to a third and eventually cycle back to the first. This pattern repeats throughout this and other Amway threads.
 
How about you explain why it puts it in a "poor light"?

Because you have a hundred and fifty person network to support the person we are saying is succeeding at Amway. I believe you came up with this number to make such a network "stable."

I was actually shocked at the 60 person downline mentioned.

I'm trying to think of an applicable geometric shape to describe the situation. "Pyramid" seems too generous.
 
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Ok, well that's quite a bit different. How many would you need registered to reach that many, and is it IBOships or people (IBOships are often a couple)?

40-50 Iboships doing 150+ personal PV + customers. Roughly 100+ registered would be needed for this equation, but that number varries I am sure you know


I'm trying to think of an applicable geometric shape to describe the situation. "Pyramid" seems too generous.

There is no doubt this is a pyramid. The way I would tell a potential "Prospect" is this "You put 3 people together, structurally it will look like a pyramid". Examples: Your own Job, CEO on top you at the bottom, and CEO making the most money" For the longest time I have argued that Amway is just a structural pyramid and hence told the potential prospects the same. After going platinum I learned that it works as a financial pyramid as well. In a nutshell Amway is a pyramid with products involved. The products makes it a legal pyramid
 
There is no doubt this is a pyramid. The way I would tell a potential "Prospect" is this "You put 3 people together, structurally it will look like a pyramid". Examples: Your own Job, CEO on top you at the bottom, and CEO making the most money" For the longest time I have argued that Amway is just a structural pyramid and hence told the potential prospects the same. After going platinum I learned that it works as a financial pyramid as well. In a nutshell Amway is a pyramid with products involved. The products makes it a legal pyramid

Sam, it sounds like you now feel victimized. Do you think those who were beneath you in the network were also victims?
 
Because you have a hundred and fifty person network to support the person we are saying is succeeding at Amway.

And if, for argument ske, those 150 all registered just to shop and were thus just customers providing up to a 25% profit margin for the Platinum?

Why would needing 150 customers to generate a certain amount of turnover put something in a "poor light"?

I believe you came up with this number to make such a network "stable."

It's an actual average in Europe.

I was actually shocked at the 60 person downline mentioned.

I'm trying to think of an applicable geometric shape to describe the situation. "Pyramid" seems too generous.

Have you ever drawn out a "traditional" distribution channel? What shape is it?
 
40-50 Iboships doing 150+ personal PV + customers. Roughly 100+ registered would be needed for this equation, but that number varries I am sure you know

50IBOship doing 150+ presonal PV plus the required minimum 50PV in customer volume would be over 10000PV.

In our model a silver producer would typically have 10-15 "core 15" people taking it seriously and developing a network and customer base, then another 10-15 with lesser "business" involvement of some sort (maybe checking it out, maybe just retailing) and then a whole bunch of people who are primarily shoppers with no system expenses but generating volume. Plus of course a bunch of registered and then decide to do nothing at all.

There is no doubt this is a pyramid. The way I would tell a potential "Prospect" is this "You put 3 people together, structurally it will look like a pyramid". Examples: Your own Job, CEO on top you at the bottom, and CEO making the most money" For the longest time I have argued that Amway is just a structural pyramid and hence told the potential prospects the same. After going platinum I learned that it works as a financial pyramid as well. In a nutshell Amway is a pyramid with products involved. The products makes it a legal pyramid

No no no no. There is no such thing as a "legal pyramid" and having products does not change you from being a "illegal pyramid" to a "legal one". What matters is if you are getting paid for recruiting people. That payment can be disguised through sign-up product packs or other compulsory expenses, or even just through purchase motivation. Even within Amway, if we assumed zero external customer sales and you build a network where the primary motivation for people purchasing products for their own use is in the hope of getting others to do the same, then you're an illegal pyramid. If you have exactly the same structure and sales volume, but with the people purchasing products because they want them and think they're good value, and you're not a pyramid.

If the motivation for purchase is business building and you stop recruiting, the whole thing falls apart and everyone "loses". If the motivation for purchase is product value and you stop recruiting, everyone still gets the products they value (and can continue to do so), nobody loses.
 
No no no no. There is no such thing as a "legal pyramid" and having products does not change you from being a "illegal pyramid" to a "legal one". What matters is if you are getting paid for recruiting people. That payment can be disguised through sign-up product packs or other compulsory expenses, or even just through purchase motivation. Even within Amway, if we assumed zero external customer sales and you build a network where the primary motivation for people purchasing products for their own use is in the hope of getting others to do the same, then you're an illegal pyramid. If you have exactly the same structure and sales volume, but with the people purchasing products because they want them and think they're good value, and you're not a pyramid.

If the motivation for purchase is business building and you stop recruiting, the whole thing falls apart and everyone "loses". If the motivation for purchase is product value and you stop recruiting, everyone still gets the products they value (and can continue to do so), nobody loses.

Unfortunately, the highlighted is the case in my line of sponsorship. That is coming after me being core in the system for last 8 years.
 
And if, for argument ske, those 150 all registered just to shop and were thus just customers providing up to a 25% profit margin for the Platinum?

Why would needing 150 customers to generate a certain amount of turnover put something in a "poor light"?

Well why not 10,000? That ought to be enough customers to make bank, even in Amway. If they are just customers after all. It hardly seems worth it to even call the set-up a network, or a downline when they are just customers. No need to show a "plan" at all.

I'm tired of the analogies. The "it's like this" or "that." I'll tell you what it's like, it's like poor Sam and all his brethren who work their butts off with hopes and dreams, and they get smashed like bugs on a windshield. And when they do get squashed, they are told it's their fault for not working hard enough.

Face it, the game is rigged. No matter how big or small the network is, only one player is guaranteed to make money - Amway Corporation. Amway is good for Amway.
 
Unfortunately, the highlighted is the case in my line of sponsorship. That is coming after me being core in the system for last 8 years.

By contrast Sam, I built an Amway business in Australia back in the 1990s to just under Silver level. For a number of reasons from 1999 to 2014 not a single plan was shown in that network, and nobody recruited in to that network.

Yet it has generated sales volume (and profit) every single month over the past 15 years. And neither I nor anyone else in the group have been "core" in god knows how long.

Legitimate product demand builds a sustainable business.
 
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Well why not 10,000? That ought to be enough customers to make bank, even in Amway. If they are just customers after all. It hardly seems worth it to even call the set-up a network, or a downline when they are just customers. No need to show a "plan" at all.

Why, because you think so?

I'm tired of the analogies. The "it's like this" or "that." I'll tell you what it's like, it's like poor Sam and all his brethren who work their butts off with hopes and dreams, and they get smashed like bugs on a windshield. And when they do get squashed, they are told it's their fault for not working hard enough.

Tell me, marplots, why is it your openly accept one experience, but not another?

Face it, the game is rigged. No matter how big or small the network is, only one player is guaranteed to make money - Amway Corporation. Amway is good for Amway.

And yet I continue to make money, despite your beliefs.
 

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