Amway is a company that’s been around since 1959 and is a private company involved with direct selling. The company pretty much sells any and all of your typical household items; cleaning supplies, toilet paper, beauty products, and health related items. The company has essentially just spread themselves across the table to aid in any product or service that is high demand but focus on getting people to purchase the products from them and sell to friends under the idea that you can build up a strong sales network. Many people call the company a scam despite it being considered completely legal.
Here are the five biggest reasons Amway is considered to be a scam.
5. The products are tough to sell
As I mentioned, all of the products are of the Amway brand and aren’t anything out of the ordinary, just the typical household items. It’s tough to find people who don’t already have these or would rather switch and purchase them through an individual seller rather than continuing to get it from a food store where there are constantly discounts, deals, and better quality products. Not to mention, why would anyone want to break up their normal routine and have to go out of their way just to get a few items that could be grouped into one trip to the supermarket?
4. The IBO failure rate is 99%
An interesting fact is that 99% of the Independent Business Owners in Amway actually fail with their sales and really struggle to sell enough products. As I mentioned above, why would anyone want to switch from one natural routine trip to the supermarket to deal with an independent seller? I’ve known plenty of people who try to earn some extra money through selling though knife sets or Avon and while I always hope the best for them, it just never pans out as planned.
3. The monthly expenses are greater than the average monthly income
Reports show that the expenses of Amway’s independent business owners come out to over $300 a month, but only pull in an average income of $202 each month. This makes it hard to succeed and actually earn money through the Amway system.
2. 54% of IBO’s are inactive (Independent Business Owners)
If anything comes up as a red flag, it should be that out of the 3 million people who have gotten in on this “business”, 54% are actually inactive sellers. If this many people have given up or failed, the system clearly isn’t working.
1. Customers believe they are employees
Amway is essentially a legal pyramid scheme that sneaks through the cracks of the law by selling physical products. They sell people on the idea that they aren’t customers, they are Amway employees and can all make money by building a network. They make everything seem so appealing by framing it as all you have to do is find some friends who are interested in selling and they can buy everything through you, but in reality it’s tough to sell people on this idea and actually get them to sign up and do consistent work.
