Oil is a major player in the commercial and economic development of many countries. The importance of crude and synthetic oils cannot be undervalued as they are the major components for every oil-producing company. Petroleum products rely heavily on both the elements and synthetic oil has its own segment and audience in the petroleum market. To capture this segment, Amsoil started selling synthetic oils and lubricants through network marketing. It claims to offer an earning opportunity to individuals looking to make some money in this field. But, is the so-called earning opportunity legit? Is Amsoil a scam?
There are many questions and doubts that crop up in mind when talking about network marketing. In this review post, I will divulge all the details on what is Amsoil MLM, how does it work, the compensation plan it offers, and the pros, and cons.
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What is Amsoil?
Amsoil is a multilevel marketing company that produces synthetic lubricants, fuel additives, and filters. The company was originally founded in 1969 by Albert J. Amatuzio who was a pilot by profession.
Amsoil is known as the first company to introduce synthetic motor oil based on the research of its founder. It is headquartered in Wisconsin, US, and is a major distributor of synthetic oil products in North America.
What is the Amsoil MLM program?
Owing to the ignorance among people and the slow progress of its business, Amsoil started selling and distributing its synthetic oil products through an independent network of dealers. They are called independent dealers.
The company offers a suite of business tools, support, and a comprehensive compensation plan to its independent dealers. Additionally, independent dealers get access to online training, an invitation to business events, and specialized discounts on their products.
How does Amsoil MLM work?
To become an independent distributor/dealer, one has to become a member by enrolling in the program directly or through a referred independent dealer.
The joining fee starts at $49.95 that includes a personal website, training, product kit, and other promotional items.
Once you become the dealer, you will have to start promoting and selling the products using your website. You can make money through Amsoil MLM by direct selling and making a team.
Amsoil products are the result of personal research performed by its founder Amatuzio. Inspired by the use of synthetic lubricants used in jet engines, Amatuzio developed synthetic motor oil from different oil formulations that can work for automotive engines.
Since then, Amsoil is known to manufacture and distribute many types of oil fluids such as lubricants, oil filters, fuel additives, etc. The products are worth using on technical applications of passenger cars, trucks, motorcycles, snowmobiles, lawnmowers, etc. that help improve fuel efficiency and durability of vehicle engines.
Some of the Amsoil products include:
- Motor oil,
Products worth $100 or more are shipped free of cost in the US except for Alaska and Hawaii. The products carry a 30-days return and refund policy provided by Amsoil.
Are the Amsoil products worth their price?
Amsoil products are reasonably priced. Customer reviews and ratings are on the higher side for most of the products. The products are available on Amazon and gathered more than 4.5 stars ratings from its users.
Being a pioneer in the oil and lubricant industry, Amsoil products are looked at with trust and reliability. Amsoil products performed better in comparison to its competitors such as Mobil and others.
How to make money with the Amsoil MLM program?
There are typically two ways to make money with Amsoil MLM:
Direct selling – Under this method, you can earn profits from the difference between the purchase price and the selling price. These are called retail profits that you can earn up to 25%.
Recruiting downlines – This is typically making a team of members. This could be your friends, relatives, or the customers to whom you sell the products and earn commissions and bonuses.
Amsoil compensation plan
The compensation plan from Amsoil is dedicated to dealers who can make consistent sales and recruitments.
Under the compensation plan, an independent dealer can earn:
Commissions – The qualification to earn regular commissions is to purchase products at a wholesale price and sell at a retail price. The difference will be your commissions. However, eligibility to earn commissions are valued at commissions credits a dealer makes by purchasing a product worth $100.
The commission percentage range from 2% to 25% depending on the commission credits earned.
Commissions based on the dealership – The other way to maximize your earnings is to achieve dealership levels. There are a direct dealer and direct jobber positions to achieve where you can make 5% to 9% commissions with a minimum requirement of 3000 personal group commission credits.
The more you add members under your team, the more products you and your members purchase, the higher will be commission credits and the bigger will be the commissions.
To keep your dealer position active, you have to maintain the personal minimum requirement of 50 commission credits or sponsor one qualified dealer/preferred customer every month.
If you are interested in knowing all the details check the Amsoil compensation plan here.
Can I make money with the Amsoil MLM program?
If you are thinking of making money with an MLM program then first you have to consider a few things. First is the investment in terms of start-up cost. With Amsoil, it is $49.95 per year which is comparatively lower than other MLM.
However, if you add up other expenses such as the purchase of products and any other promotional methods that you may adopt for selling it may shoot up further. Plus, as a dealership requirement, you have to maintain a certain level of personal volume (worth $100) by purchasing additional products.
Secondly, the MLM program demands recruiting of members to achieve permanent dealer positions. This may not be easy from an ongoing perspective and is highly demanding. Even if you are able to achieve these two factors the monetary results should be encouraging.
Amsoil is not transparent in disclosing the income statement of its dealers. One of the reasons could be low-income figures that do not encourage many to join their program. It is very difficult to arrive at an income figure you can make with Amsoil MLM.
Even if you try considering the Amsoil MLM program keep in mind that it is not everyone’s job. You have to be really active, hardworking, persistent, and ready to invest. MLMs usually spill profits after years of dedication and determination.
Is Amsoil a scam or a pyramid scheme?
Amsoil is not a scam considering the number of years it has been in business. Remaining in business for more than 50 years is no mean feat. It has quality products that help people travel lives easier.
The business method is controversial owing to recruitment and networking. However, the selling of physical products keeps Amsoil away from being termed as a pyramid scheme.
- Proven history – Amsoil’s history of selling quality automotive products is commendable. The company has built a reputation among its users that makes it reliable and trustworthy to do business with.
- Quality products – One of the important factors to consider for any MLM company. The synthetic oil-based fluids are best-in-class for every vehicle’s needs and offered at reasonable pricing. The automotive product category is another unique selling point for Amsoil independent dealers.
- Excellent resources and support – Amsoil excel in offering great resources and supportive tools to its independent dealers. There is a personal website, easy-to-use online training, multiple advertising material, and dedicated support. All this makes it a perfect MLM opportunity.
- It’s an MLM – No matter how good the resources, support, and money aspects are in the end it is an MLM. The business model is highly demanding and controversial from a making money perspective. The concept of earning money with MLM lies in regular investments and continuous recruitment which is not sustainable.
- Recurring investments – This is another drawback. The Amsoil compensation plan clearly highlights the requirements to earn consistent money by investing and recruiting. Apart from the membership cost, independent dealers are obliged to maintain their position by purchasing $100 worth of products. There is no denying of hidden costs associated with recruiting, promotions, and traveling.
- No transparency on the income statement – Although disclosing the income statement is not mandatory it helps individuals realize the potentials of making money with the MLM program. The absence of income disclosure could be a demotivating factor for many to consider joining Amsoil MLM.
Conclusion: Is the Amsoil MLM recommended?
Some of the factors that go in favor of Amsoil are the low start-up cost and quality products. Petroleum oil and lubricants remain in demand considering the importance of traveling in people’s day-to-day lives.
The business training and resources, and return policy are other benefits to look for. But all these factors are overshadowed by the fact of MLM requirements.
As an independent dealer, you have to be ready to shell out a certain amount of money every month and keep recruiting members under your team to increase your earnings. One also has to remain active through the years to achieve the income of their dreams that is hard-fought and overly demanding.
Under such circumstances, I do not encourage everyone to consider Amsoil MLM. Instead, there are many such online programs and platforms that provide real money-making resources at the same cost as Amsoil.
I recommend you do online research on such programs and if you cannot find one then check out my recommendation below.