Is Amway A Scam?

Not really. He only suggested buying products as part of trying to convince me to become a part of his downline.

Which is still selling products, just at a discount and allowing you to easily order yourself.

That article nicely debunks a misconception that there is a 70% sales rule. However I refer to a 10-customer rule mentioned in the FTC decision. There seemed to be little interest in fulfilling that.

If you don't (customer details have to be provided on amway.com monthly) you don't get paid. Sounds like "interest" to me.

How many have been sanctioned in any way for violating these rules?

Many. An extremely large organisation (TEAM) actually got kicked out of Amway a few years back pretty much for this very reason. According to various resulting lawsuits it ended up costing Amway several hundred thousand distributors and hundreds of millions in sales.

Complaints are initially handled by the IBO association (IBOAI). An Amway "critic" got invited to their headquarters a few years back and met with one of the executives and reported -

He explained how the Board handles complaints about IBOs – it is carefully documented and all parties are well-aware of any charges brought against them: it’s all recorded in black 3-ring binders. Some folks’ binders are thin; and some folks’ binders rival those that hold the recorded history of the IBOAI

Having said all of that, these are Amway rules, they are not legal requirements. As already pointed out on several other related threads, the FTC has no problem even if there's no sales to non-members. What matters is that you have legitimate products at a legitimate price. Having significant non-member customers provides easy evidence of this.

Bear in mind, I'd be happy to hear that there's been action on this front. I'm not trying to argue that it's the same as it was when I was observing the situation.
 
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Sure, but don't forget that a retail sale is a sale made to a consumer. There's no reason that can't include the distributor themselves.

The '70 percent rule' provides that '[every] distributor must sell at wholesale and/or retail at least 70% of the total amount of products he bought during a given month in order to receive the Performance Bonus due on all products bought

IBOs are very likely not meeting this rule. IBOs order directly from Amway, thus they are not customers of their upline. They are customers of Amway. How many of these IBOs are actually moving 70% of their purchases to real customers?

This is significant because without these sales, the only way an IBO can increase volume and make money is to recruit more and more downline who will hopefully get with your "buy from yourself: program, thus creating the illegal pyramid discussion.

Check out this article about the 70% rule:


http://www.amquix.info/quixtar_disarms_70_percent_rule.html

An excerpt: To ensure that distributors do not attempt to secure the performance bonus solely on the basis of purchases, Amway requires that, to receive a performance bonus, distributors must resell at least 70% of the products they have purchased each month.
 
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No, it's because you apparently have decided that someone eating pasta is not a consumer because they registered to get it as a discount

I didn't "decide" anything. Someone who buys a product as a "wholesaler" who is selling to other sellers is not a consumer under the accepted definition of the word. They are part of the supply chain. ONLY the end users are considered a "consumer".



Yeah, just like those scammers P&G and Coke & Unilever and you name it.

Again, P&G, etc are not schlepping cases of whatever door to door trying to hawk the product direct to the true consumer. Wholesalers are part of the supply chain, facilitating the moving of product from manufacturer to retailer only.

No, I haven't had to define that. If they consume they're consumers, not my decision.

Except they AREN'T consuming, they're re-selling.

1. a huge amount of product is sold to non-members.
2. a huge amount of product is sold to non-retailing members
3. if at least 70% of what has been bought in any given month hasn't been on-sold or used, then no income is earned

And #3 is your out...all you have to do is on-sell, and you're golden. So long as you can keep new rubes coming in to buy bulk quantities, you never have to use the product OR sell to an actual consumer...you just keep "sheering the sheep".

Rubbish. P&G sells for example to importers who actively look for further distributors and wholesalers, who actively look for smaller distributors, wholesalers and retailers.

Which is why they are part of the supply chain, NOT the consumer base. They make no retail sales direct to the true consumer.

Your ignorance of the retail industry is mind-boggling.

Your ability to twist the accepted and understood meaning of words and concepts is what is mind-boggling.

Woolworths started as a single "five and dime" store
Wal-mart started as a Walton's 5 & 10 store
etc etc etc

None of those encouraged the people who walked through their doors to go out and set up their own Wal-Mart/Woolworth's/etc.

That's the difference. The above mentioned sell to CONSUMERS. Amway sells to would-be retailers.

Your ignorance of the retail industry continues to be confirmed.

No, the fact that you are a shill for Amway in particular and MLM in general is what is confirmed.
 
I didn't "decide" anything. Someone who buys a product as a "wholesaler" who is selling to other sellers is not a consumer under the accepted definition of the word. They are part of the supply chain. ONLY the end users are considered a "consumer".

I entirely agree. So where's the problem? Virtually 100% of Amway products are eventually sold to a consumer.

Again, P&G, etc are not schlepping cases of whatever door to door trying to hawk the product direct to the true consumer. Wholesalers are part of the supply chain, facilitating the moving of product from manufacturer to retailer only.

Same with Amway. Where your problem?

Except they AREN'T consuming, they're re-selling.

Just like wholesalers/distributors, where's the problem?

And #3 is your out...all you have to do is on-sell, and you're golden.

No, because of the person you sell it to doesn't want to use it themselves (ie you sold it to an end-user), or can't resell it you have to give them your money back.

Which is why they are part of the supply chain, NOT the consumer base. They make no retail sales direct to the true consumer.

Again, virtually 100% of Amway products are eventually sold to a consumer.

Your ability to twist the accepted and understood meaning of words and concepts is what is mind-boggling.

I haven't twisted the meaning of any words.

None of those encouraged the people who walked through their doors to go out and set up their own Wal-Mart/Woolworth's/etc.

Not quite to the same extent, but both of those are franchisers and certainly do encourage people

That's the difference. The above mentioned sell to CONSUMERS. Amway sells to would-be retailers.

Most manufacturers sell primarily to would-be retailers. Where's the problem?

No, the fact that you are a shill for Amway in particular and MLM in general is what is confirmed.

That's the best you can do? Insults and false accusations?
 
Which is why they are part of the supply chain, NOT the consumer base. They make no retail sales direct to the true consumer.

Your ability to twist the accepted and understood meaning of words and concepts is what is mind-boggling.

No, the fact that you are a shill for Amway in particular and MLM in general is what is confirmed.

Icerat cannot grasp the concept that it's a problem when IBOs, pretending to be retailers, are actually the consumers whose solution to a failing business is to open up competition "franchises" (sponsoring others). This is why IBOs are practically guaranteed failure once they get started.
 
I entirely agree. So where's the problem? Virtually 100% of Amway products are eventually sold to a consumer.

If that were true, there would be no failed Amway "distributors". The fact that there are shows you are wrong. And there's still the pesky problem of you insisting that "consumers" includes the downliners.



Same with Amway. Where your problem?

Funny, I've NEVER had some earnest guy come to my door and give me the "Can I interest you in some Proctor and Gamble" pitch.

That's because Proctor & Gamble doesn't sell to consumers. They are a manufacturer, who sells to wholesalers, who in turn sale to retail outlets. They DON'T encourage their customers to set up their own "Proctor&Gamble franchise".



I haven't twisted the meaning of any words.

You've done nothing BUT twist words.

Not quite to the same extent, but both of those are franchisers and certainly do encourage people

No, they don't. Each store is corporately owned within a nation. All US Wal-Mart stores are owned by Wal-Mart. Wal-Mart does license out the business in other nations, but ONLY to a single company, not individual store franchisees a la McDonalds, etc.

Most manufacturers sell primarily to would-be retailers. Where's the problem?

They don't do what Amway does and encourage the retailers to become wholesalers themselves.

That's the best you can do? Insults and false accusations?

No, the best I can do is what I have done: expose your word-twisting and misinformation for what it is.
 
Icerat cannot grasp the concept that it's a problem when IBOs, pretending to be retailers, are actually the consumers whose solution to a failing business is to open up competition "franchises" (sponsoring others). This is why IBOs are practically guaranteed failure once they get started.

Icerat cannot grasp that he's outed himself as an Amway/MLM shill. His level of cognitive dissonance must be off the charts.
 
If that were true, there would be no failed Amway "distributors". The fact that there are shows you are wrong.

You want to explain that piece of logic?

And there's still the pesky problem of you insisting that "consumers" includes the downliners.

if they're consuming, then what else are they?

Funny, I've NEVER had some earnest guy come to my door and give me the "Can I interest you in some Proctor and Gamble" pitch.

And you've had some stranger knock on your door trying to sell you Amway? Uhuh.

You don't think the differences in startup costs might influence who you market to?

That's because Proctor & Gamble doesn't sell to consumers. They are a manufacturer, who sells to wholesalers, who in turn sale to retail outlets.

Bingo! Guess what Amway does?

They DON'T encourage their customers to set up their own "Proctor&Gamble franchise".

No, but they sell to wholesalers who do. And their competitor Unilever, even does it more directly - with multilevel marketing!

You've done nothing BUT twist words.

Oh yes, by insisting that someone who consumers something is .... dadah! ... a consumer! :rolleyes:


No, they don't. Each store is corporately owned within a nation. All US Wal-Mart stores are owned by Wal-Mart. Wal-Mart does license out the business in other nations, but ONLY to a single company, not individual store franchisees a la McDonalds, etc.

My mistake, what they do is have franchisees within their stores.

Anyway, your point?

They don't do what Amway does and encourage the retailers to become wholesalers themselves.

Manufacturers don't want their customers to expand and buy more stuff off them? Colour me skeptical.:rolleyes:

But you're right. Most manufacturers don't provide anything like the training and support to their downline distributors that Amway does.

No, the best I can do is what I have done: expose your word-twisting and misinformation for what it is.

Yeah, so I got Wal-mart wrong. :rolleyes: mea culpa!
 
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Removed breach of rule 12.
 
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You want to explain that piece of logic?

Your claim is that 100% of Amways sold product goes to consumers. IF that were true, then there wouldn't be any failed Amway reps, because they'd have sales. That many Amway reps cannot make sales is a documented fact. Therefore the product they bought did not get sold to a consumer.

And there's still that pesky issue of you deliberately changing the definition of "consumer" to include wholesalers.



if they're consuming, then what else are they?

They're NOT consuming (actually using the product). They're wholesalers selling it downline.



And you've had some stranger knock on your door trying to sell you Amway? Uhuh.

Yes I have. Been a few years, but I have. I've also been leafletted and or had business cards left on my car for Amway reps.


Bingo! Guess what Amway does?

Amway tries to get everyone who "walks through the door" to become a retailer of Amway, which, again, is NOT what P&G, Coke, or any other legitimate non-pyramidal company does.


No, but they sell to wholesalers who do. And their competitor Unilever, even does it more directly - with multilevel marketing!

That doesn't make P&G a MLM. It makes them a manufacturer whose product is being bought by a MLM.

Oh yes, by insisting that someone who consumers something is .... dadah! ... a consumer! :rolleyes:

Only by using your twisted definition of consumer to include downliners.

Let me make it abundantly clear, sparky. If you are an Amway rep and buy something to re-sell, you are NOT a "consumer" of that unit. If you buy a unit of Amway, take it home, open it up and personally use the product you are a consumer of that unit only.

You've already stipulated that the popular and successful way to be an Amway rep is NOT retail sales to consumers, but in setting up a daisy chain of rubes...excuse me..."associates/team members/etc"...and selling to THEM.


My mistake, what they do is have franchisees within their stores.

Anyway, your point?

The point is that does not make Wal Mart as "franchiser", shilling for new "reps" to set up their own stores. And that does not show that Amway is just like Wal Mart.

Manufacturers don't want their customers to expand and buy more stuff off them? Colour me skeptical.:rolleyes:

Manufacturers don't push their customers to become manufacturers. Amway reps push their customers to become Amway reps themselves.

That's the difference. You are the only one here who doesn't seem to grasp that fact.

But you're right. Most manufacturers don't provide anything like the training and support to their downline distributors that Amway does.

When a legitimate company trains personnel, THEY pay for the training. They do this because trained personnel make more sales, and more profit.

When a MLM scam "trains" people, the people pay the MLM for the training. The company makes money off of selling training materials, not the sales of the people trained.


Yeah, so I got Wal-mart wrong. :rolleyes: mea culpa!

Nice to see you admit it. Now for you to admit that you're wrong about MLM and Amway...:cool:
 
Your claim is that 100% of Amways sold product goes to consumers. IF that were true, then there wouldn't be any failed Amway reps, because they'd have sales.

Sorry, but there's no logic at all to that claim. Jut one example -

I register with Amway to make a little extra cash through retail sales. I try but discover I'm no good at sales and aren't willing to learn. I've "failed". I return the products I don't want myself to Amway and get a refund. A few I keep because I want them and consume them myself. Amway's returned products are sold to someone who registered just to buy the products at a discount. I've "failed", all of the products have been sold to consumers.

That many Amway reps cannot make sales is a documented fact.

Please provide said documentation. Note that you said cannot, which is different to are not

Therefore the product they bought did not get sold to a consumer.
non sequitur
And there's still that pesky issue of you deliberately changing the definition of "consumer" to include wholesalers.

No, I've done no such thing. By definition if someone is a wholesaler, then they're on-selling the product, not consuming it. I'm defining someone who consumes a product as a consumer.

They're NOT consuming (actually using the product). They're wholesalers selling it downline.

Yes, that happens too of course. But what about when they consumer it themselves instead? They're a consumer.

Yes I have. Been a few years, but I have. I've also been leafletted and or had business cards left on my car for Amway reps.

First time I have ever heard of anyone doing this. Who in their right mind would think that would work? I know some other companies work with a similar technique, but it's first to find people interested in starting a business/earning money, not what you claim.

Amway tries to get everyone who "walks through the door" to become a retailer of Amway, which, again, is NOT what P&G, Coke, or any other legitimate non-pyramidal company does.

Not what Amway does either, except in your vivid imagination. Even if it was, so what?

That doesn't make P&G a MLM. It makes them a manufacturer whose product is being bought by a MLM.

MLM is a marketing strategy, not a "thing" you can be. I notice you completely ignored Unilever.

Only by using your twisted definition of consumer to include downliners.

Oh yes, terribly twisted of me to consider someone who consumers something as a consumer. How could I be so ridiculous? :rolleyes:

Let me make it abundantly clear, sparky. If you are an Amway rep and buy something to re-sell, you are NOT a "consumer" of that unit. If you buy a unit of Amway, take it home, open it up and personally use the product you are a consumer of that unit only.

So we agree, where's the problem?

You've already stipulated that the popular and successful way to be an Amway rep is NOT retail sales to consumers, but in setting up a daisy chain of rubes...excuse me..."associates/team members/etc"...and selling to THEM.

I don't think I quite said that, but (a) you're not doing any "daisy chain", what the person you sell it to does with it is their decision, not yours (2) same as other distribution networks - manufacturer-wholesaler-wholesaler....retailer-consumer. A "chain", which as show in FTC vs Amway is very similar in length in both Amway and traditional distribution. Eventually the product finds it's way to a consumer. In the case of Amway if it doesn't then it can be returned to Amway and all financial transactions are rolled back. In the case of traditional distribution it sits gathering dust in a warehouse or store until it's thrown out.

The point is that does not make Wal Mart as "franchiser", shilling for new "reps" to set up their own stores. And that does not show that Amway is just like Wal Mart.

No, as already pointed out, Wal-mart is a retailer, Amway is a manufacturer. Just because Wal-mart doesn't offer franchises doesn't mean lots of other retailers don't.

Manufacturers don't push their customers to become manufacturers. Amway reps push their customers to become Amway reps themselves.

Not even remotely equivalent. Wholesalers most certainly "push" their downline distributors to generate more volumes, and if one of the eventual end users of the products wants to sell them as well they wouldn't stop them.

That's the difference. You are the only one here who doesn't seem to grasp that fact.

The "fact" that manufacturers don't push their customers to be manufacturers has never been denied by me

When a legitimate company trains personnel, THEY pay for the training. They do this because trained personnel make more sales, and more profit.

Yup, just like Amway does.

When a MLM scam "trains" people, the people pay the MLM for the training. The company makes money off of selling training materials, not the sales of the people trained.

(a) people don't pay Amway for training
(b) Amway makes no money selling taining material

Any company using MLM ostensibly to sell a product, but really making most of their money from selling "support materials" is most likely a pyramid and, like Burn Lounge recently, will get shutdown or forced to change.

Nice to see you admit it. Now for you to admit that you're wrong about MLM and Amway...:cool:

The problem seems to be you don't actually know how MLM and Amway works. It's a classic case of assuming Amway/MLMs are pyramids and then assigning the very real flaws of pyramids to Amway/MLMs. The problem is in your initial assumption
 
The problem here is that Icerat is using wholesalers and consumers as interchangeable. In a normal business setting, this doesn't happen. The manufacturer sells to folks to eventually move the product to a customer. In the Amway model, the wholesaler, retailer and consumer is the IBO.
 
I consider MLM not necessary a "scam" to me, but definitely quite "evil". It motivates people to sell to family members and friends due to greed, as opposed to trying to simply get them something decent.
 
I consider MLM not necessary a "scam" to me, but definitely quite "evil". It motivates people to sell to family members and friends due to greed, as opposed to trying to simply get them something decent.

Isn't that potential (and that's all it is) there in all businesses?

And of course, isn't the potential there to be "trying to simply get them something decent" as well?
 
I consider MLM not necessary a "scam" to me, but definitely quite "evil". It motivates people to sell to family members and friends due to greed, as opposed to trying to simply get them something decent.

That's the bane of Amway and many other MLM. The IBOs themselves are the primary customers and most of the rest of the customers are simply family and friends making purchases out of sympathy for their indoctrinated friends/family who joined Amway/MLM.

And what compounds the problem is when the IBOs also get sold useless tools and seminars that only drain their bank accounts.
 
Isn't that potential (and that's all it is) there in all businesses?

And of course, isn't the potential there to be "trying to simply get them something decent" as well?

The difference is that regular business sells to strangers. They don't have an existing and personal relationship to exploit. While I'm sure a business man would always like a family member to be a customer, these businesses aren't as dependent on family connections for their essential business.
 
The difference is that regular business sells to strangers. They don't have an existing and personal relationship to exploit.

All businesses have existing and personal relationships they could try to exploit

While I'm sure a business man would always like a family member to be a customer, these businesses aren't as dependent on family connections for their essential business.

While I'm sure that there's enormously wide variation between individuals (and cultures) on what they actually do, MLMs don't depend on family connections either. Indeed when I was building an Amway business the teaching was to treat family and friends pretty much the same way I treat them with my other non-MLM businesses, ie let them know about your new venture and what your offer.

There is nothing inherent in the MLM model that is "dependent" on exploiting relationships. I'd suggest that's a fast track to a short-lived business.
 
All businesses have existing and personal relationships they could try to exploit

But in Amway, exploiting existing and personal relationships is nearly exclusive, at least in the US.

l

While I'm sure that there's enormously wide variation between individuals (and cultures) on what they actually do, MLMs don't depend on family connections either. Indeed when I was building an Amway business the teaching was to treat family and friends pretty much the same way I treat them with my other non-MLM businesses, ie let them know about your new venture and what your offer.

In Amway, they depend heavily on famil connections. In the US, many of the purchases made by non IBOs are to sympathetic family and friends. The new venture and offer, in Amway is usually overpriced average products and a poor business opportunity.

l
There is nothing inherent in the MLM model that is "dependent" on exploiting relationships. I'd suggest that's a fast track to a short-lived business.

This is how Amway is designed. Person to person, one on one advertising of products and the opportunity. It is why uplines resort to lies and dreams to sell these things.
 
Amway tries to get everyone who "walks through the door" to become a retailer of Amway, which, again, is NOT what P&G, Coke, or any other legitimate non-pyramidal company does.

Not what Amway does either, except in your vivid imagination. Even if it was, so what?

You've already admitted that was the popular and preferred method of making money as an Amway "rep"...setting up a team and selling THEM the crap to push on other people.

Once again, you expose your own misleading statements.

MLM is a marketing strategy, not a "thing" you can be. I notice you completely ignored Unilever.

Yes, you CAN "be" a MLM when your business model is that of a MLM, then you are an MLM.

Oh yes, terribly twisted of me to consider someone who consumers something as a consumer. How could I be so ridiculous? :rolleyes:

Once again, using YOUR definition of "consumer", which is not that everyone else uses.

No matter how many times you repeat your Big Lie, it's still a Big Lie.

Not even remotely equivalent. Wholesalers most certainly "push" their downline distributors to generate more volumes,

But NOT by turning them into more wholesalers and retailers...which is what Amway does.

and if one of the eventual end users of the products wants to sell them as well they wouldn't stop them.

Maybe, maybe not if they didn't need another outlest in that region they might refuse to open one.


(a) people don't pay Amway for training
(b) Amway makes no money selling taining material

So they just give away all those costly "sales tools" (the CDs, the seminars, etc)?

We already know that's a lie.

Any company using MLM ostensibly to sell a product, but really making most of their money from selling "support materials" is most likely a pyramid and, like Burn Lounge recently, will get shutdown or forced to change.

And Amway will too, once it gets stripped of enough of it's supporters in the right places.

The problem seems to be you don't actually know how MLM and Amway works. It's a classic case of assuming Amway/MLMs are pyramids and then assigning the very real flaws of pyramids to Amway/MLMs. The problem is in your initial assumption

No the problem is in your shuck and jive routine trying to call black white and white black.

YOU know you're shilling for a pyramid scheme.

WE know you're shilling for a pyramid scheme.

WE know that YOU know you're shilling for a pyramid scheme.
 

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