If selling beauty and home cleaning products to your friends and family sounds like a great idea to you, then, this could be an excellent opportunity to make money with a flexible schedule. MLM programs like that of Amway could be the best way to seek the flexibility and income that you have always wanted. In this review, I will be outlining what is Amway MLM compensation plan and what it takes to earn a living from this kind of business opportunity.
You will also want to know if this program is legit or another pyramid scheme. Sit back and relax as I review all that is about the Amway MLM business with you.
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Read: What is MLM Business
What is Amway?
Amway is a multilevel marketing company established in 1949 by two good friends – Richard DeVos and Jay Van Andel. Initially known as the Ja-Ri Corporation, the duo started out by selling Nutrilite and other imported products.
After a decade, Richard DeVos and Jay Van Andel have had more than 5,000 distributors directly under them.
By 1959, the two friends decided to start Amway with their top distributors selling their now well-known product, the Liquid Organic Cleaner.
This changed everything in their lives. After making a success of the home products, they quickly made an entrance into the world of beauty and health products.
At present, Amway is based in Michigan and has networks of millions of Independent Business Owners (IBO) in more than 100 countries.
What is Amway MLM?
With total revenue of $8.4 billion in 2019, over 3 million salespersons, and 17,000 corporate employees, there is no doubt Amway is one of the most popular MLM companies in the world.
MLM or distributing products through network marketing is the backbone of Amway. The company was launched with born network marketing distributors and it still remains one of the most sought-after MLM organizations across the globe even with lots of flaks and controversies for being a pyramid scheme.
In practicality, Amway MLM is no different than any other MLM company out there. With this MLM program, individuals like you can join Amway (not as salaried employees) as distributors/representatives and sell its products to make money.
There are more rewards and money if you are able to pull in more people in the company and enjoy the perks of their sales and purchase of products.
Of course, there are resources, tools, and training on offer to teach you how to sell the products and recruit more people as part of the Amway MLM program.
How does Amway MLM work?
The typical way that Amway MLM works is you becoming its distributor and sell products directly. Secondly, recruit your friends, family, and other customers under your team to scale your income.
To do this, you have to first register yourself with the company. Amway distributors are called ‘Independent Business Owners’.
You must take help from one of the existing sponsors from Amway for registration. The registration fee is less than $100 (Actually $76 for US citizens) and the good thing about this registration fee is it is fully refundable if you decide to quit the program within 60 to 180 days.
The registration fee may attract your attention a lot but this low cost is equally balanced with the number of products you will have to purchase over time to be a successful Amway IBO. So, don’t get judgemental too early.
Being a veteran in the MLM segment, Amway knows how to keep their IBO’s enthusiasm and energy inflow by offering various business tools, a personal website, products that are already selling like hotcakes, and more.
Once you get a nick of it, you are good to enter the market and prove your worth as a seller and distributor of Amway.
So, what do you need to sell? The answer to this question should be researched well in advance as it has a direct relation with your performance.
There is no doubt that Amway products have versatility and variety. They rely on organic ingredients to create their products and have pioneered the process.
The company sells products in primarily four categories – Nutrition, Beauty, Home, and Energy + Sport.
The nutrition category is established with:
Nutrilite – Nutrilite is a brand for Amway and still remains the top-selling product. The company has been producing some high-quality dietary supplements under this label.
‘All Plant’ protein powder, multivitamins and multimineral ‘Daily’ tablets, and ‘Salmon Omega-3’ softgels are some of the highlighted products in this category.
Nutrilite products are best known for providing essential vitamins, minerals, and phytonutrients made from plant-based ingredients that improve immunity, heart health, bones, and joints.
The beauty section is captured by:
Artistry – This is the cosmetic and personal care product line. ‘Youth Xtend’ is something that you should look for. This label has serums, and creams for skin glow.
‘Essentials’ is another range that offers lotions, massages, cleansers, etc. for skin radiation, hydration, and anti-aging benefits.
The products are based on scientific formulas combined with powerful ingredients from natural plants, fruits, and herbs.
Under the Home category you will find:
eSpring – eSpring is one of the popular water filters and is also termed as the world’s no.1 selling product by Amway. The product is useful in purifying tap water with its cutting-edge technology that uses UV light and a carbon block filter to do this.
‘Atmosphere’ is the second brand under this section. It offers multiple air purifiers and ‘Sky’ is one of the reputed air purifiers. It is made of particle sensor technology with a three-stage filtration system to improve air quality.
You can also find some really cool cleaning products and cooking accessories in this section.
Last and not least is:
XS – The XS brand is dedicated to energy and sports drinks. Athletes and people involved in sports activity look forward to the supplements in this section.
The most searched is XS Energy drink. This product is designed to deliver energy and nutrition to serve the active and healthy purposes of every lifestyle.
XS Energy drinks do not contain any sugar, are GMO-free, and come in multiple flavors to suit different tastes and feels.
As mentioned earlier, the variety is huge (more than 400 products to be precise) which provides ample opportunity for its distributors to rake in lots of money.
Every Amway product is backed by a 180-day return policy. Users have the liberty to exchange or ask for a refund against returned products. Beverages and consumable items are excluded from returns and refunds.
Are Amway products worth their price?
Amway products have been generating massive interest since their existence. The company has grown exponentially owing to its quality and the way they procure and manufacture each item.
Amway claims to provide organic freshness, and innovative technology with every product. So, how do these products actually perform in the market? Many online reviews associated with Amway products are on the positive side.
Even though products are strictly sold through direct-sales methods you will find some of the Amway products available on Amazon. The platform offers insights from real users with real reviews. Nutrilite, Satinique Artistry, etc. have all found more than 4-star ratings.
Amway product pricing has been criticized bluntly by many. Comparatively, you will find Amway products at par or slightly expensive.
Amway has justified that some of its products may seem pricey and this is because of the ingredients, quality, and design used to create them.
However, Amway products are not over-expensive. You can end up paying marginally lesser if you intend to buy alternative products to Nutrilite and G&H from Amazon or any other online store. Below are some examples.
This doesn’t deny the fact that Amway products are expensive but the way they are produced, marketed and distributed demands additional cost which is recovered from the end customer.
How to make money with Amway MLM?
Direct selling and networking are the main two ways to make money with Amway MLM. To elaborate it further you have to –
Market the products online or through face-to-face methods and when somebody order and buy the products you get a percentage of that sale.
Secondly, use your network to convince people who have already purchased from you and liked the products to join Amway. Once they join your team, you get to earn additional bonuses on their purchases and sales.
Both the above factors are associated with the Amway compensation plan which is detailed in the below section.
What is Amway MLM compensation plan?
MLM Industry-wise, Amway has one of the best compensation plans. There are two types of plans:
Direct income from sales of products – At this point, you are the one to determine how much you want to make a profit when you sell the products. In this category, you can buy the products at a discounted price.
You earn a profit when you sell discounted price products at a higher/reasonable retail price. But…this is not the best route to make money with Amway. You will have to look at the –
Personal performance bonus (PPB) – This is the corresponding commission for every sale made at this level. Your commission starts growing with PPB especially when you have recruited a lot of people to form a large downline.
This is where your capabilities are tested as a recruiter.
For a better understanding, let me break down some of their terminologies.
- Point Value (PV) – A PV is given each time products are purchased whether for resale or personal use. These are points that are assigned for each product purchased.
- Business Volume (BV) – This stands for the value of each product in dollars and is determined based on the number of orders made by you or your team.
- Performance Bonus Schedule (PBS) – This is determined basis of the tabulation of the PVs alongside their percentages. More points give you a higher Performance Bonus.
- Personal Bonus Schedule
7500 and more PVs = 25% PB (the commission)
6000 – 7499 PVS = 23%
4000 – 5999 PVS = 21%
2500 – 3999 PVS = 18%
1500 – 2499 PVS = 15%
1000 – 1499 PVS = 12%
600 – 999 PVS = 9%
300 – 599 PVS = 6%
100 – 299 PVS = 3%
- Pass-Up Volume (PUV) – This refers to each of your frontlines. That is the first set of people you recruited into your team. The PUV is added to the BV to develop your Gross Performance Bonus (GPB). The Performance Bonus (PB) is one of the requirements that move you up the ladder in the Amway MLM business. PB is the commission you make from BV. That is BV x PBS = PB
This means that 2,500 PVs attract 18% PB when you check the PBS table above. It means with a $5,000 BV of 18% commission, you will get $900. Your immediate income is not added up yet. But, in reality, I wish it is as easy as it is being calculated.
The computation is somehow overwhelming and it is neither complicated nor simple.
Don’t forget that once you actually work on your PVs and BVs you start to climb the ladder (which is definitely not easy) and reach the levels to make –
Monthly Bonuses – Calculated based on your efforts and help involved in creating another IBO. Once this IBO reaches a particular level Amway rewards your efforts in the form of monthly bonuses.
Annual Bonuses – This bonus is offered to the top-three level members and calculated based on the total regional and international BV. The annual bonus percentage is 1% distributed among the Emerald, Diamond, and Diamond Plus members.
Silver, Gold, Platinum, Ruby, Sapphire, Emerald, Diamond, and Crown are the leadership levels to achieve. Every level has its own requirement related to personal volumes, business volumes, and group volumes.
Go through the complete Amway Compensation Plan if you wish to know more.
Can you make money with Amway MLM?
In Amway’s own words, making money with its MLM program needs extraordinary effort. The rewards and recognition do not come easy. One may have to spend a year or years to earn a respectable income.
A Silver-level IBO which is actually the first level achieved based on performance was able to earn $9779 in a year.
This is close to $800 a month and does not include the expenses like registration/renewal fees, shipping charges, taxes, traveling, training, etc. If you take all these expenses into consideration the earnings will further reduce significantly.
On top of that, earning $800 a month will take a minimum of 2 years and a maximum of 7 years which sums it all up.
Still, to make it very clear, talking about the extraordinary effort this is surely referred to recruiting people for the company.
Imagine the time and effort it will take to convince a few people to use Amway products and sell them further. This has to be done consistently to reach the top levels which is actually the platform to make real money with Amway.
I am not saying you can’t do it. There are people who have done this and are now reaping their rewards. What I am saying is making money with Amway or any MLM is not easy.
Amway has been kind enough to highlight the earnings, effort, and timeline required to make money with its MLM program transparently. If you like what you see, then go ahead and give it a try.
Is Amway a scam?
Amway is a 100% legit company and not a scam. I mean how many companies really exist in the MLM segment for 6 decades? It is still popular with quality products, has reliable management, and is financially fit to remain stable in the coming years.
There are people who term Amway a scam but this is not about the company but the business model it operates. MLMs are a tough nut to crack and people who cannot crack it start demeaning and degrading the whole company.
Is Amway a pyramid scheme?
There are many that see Amway as a pyramid scheme due to the fact that they have lost money in the business.
But technically Amway cannot be termed as a pyramid scheme because they emphasize more on product selling and subsequently reward people who do this.
As a means to improve the chances of making more money, Amway distributors are required to sponsor more people and build a team. This allows them to earn bonuses and incentives on the purchases and sales of their recruited people.
There are many. The company has been constantly involved in multiple controversies and lawsuits across many countries.
Amway has been a subject of a constant investigation by the Financial Trade Commission (FTC) for cooking the books. Though, FTC didn’t tag Amway as a pyramid scheme. It, however, said the company is operating as a pyramid scheme. The investigation was conducted in 1998.
Amway India faced 5 legal cases for money laundering, running a pyramid scheme, and chit-fund issues from 2006-2022.
Amway Europe, the UK, Canada, Vietnam, and the US were subject to various lawsuits, tax evasion, and deregulation cases.
The company paid penalties in billions to settle the above cases.
Frequently Asked Questions
Is Amway an MLM?
Yes. Amway is an MLM. The company sells its product through direct selling and to do this hire independent distributors called independent business owners.
IBOs earn income from retail markup on the products they personally sell and also earn performance-based bonuses on the sales generated by their downlines.
This is the primary way Amway makes billions in revenue every year.
Is Amway banned in any country?
MLM business model is banned in countries like India, China, and some parts of the gulf region. This is the reason companies like Amway cannot operate on the MLM business model.
Established Multinational Company – It is safe to say that Amway is a multinational company that operates in more than 100 countries.
The company has earned cult status in the MLM segment and still remains one of the most successful direct-selling organizations even after 6-decades.
Plenty of high-quality products – There are plenty of products in Amway’s catalog. These products range from personal care, energy drinks, home products, weight management products, beauty products, and sports nutrition.
Amway is known for its high-quality products. The product’s quality speaks for itself. If you are a full-time Independent Business Owner, you will surely be proud of the products you are selling.
Refundable fees – Your registration fees can be refunded if you decide within 60 to 180 days that you no longer want to be an Independent Business Owner of Amway.
This is a very enticing factor for distributors who want to test their capabilities in the MLM business for a short span of time. They can easily quit with a full refund if they don’t find success.
Free courses – To succeed in the business, Amway has different courses, presentations, and podcasts that are available for free.
Being a veteran in network marketing, Amway brings superior training materials, tools, and resources to the table to help their IBOs succeed and scale their business.
It’s an MLM – Like all other MLMs, success is rare with Amway. Apart from selling, there is a greater emphasis on recruiting people which dampens its reputation.
Pricing issues – Regardless of the quality, Amway products are kind of expensive. You can’t beat the competition just by praising the quality as people seek better products at affordable pricing.
Too many controversies – Amway is rated at the top in terms of controversies. Legal actions, lawsuits, and petitions are there, and that too across the globe.
This is not a good sign and the company is marred with a poor reputation and bad business ethics.
Conclusion: Is Amway MLM worth it and recommended?
Amway has long been admired as a company for the products they produce. If you are looking for great products with quality ingredients and healthy results then Amway should be on your preference list.
However, if you ask me whether it is recommended as a business opportunity to make money then my answer is ‘No.
This is because many people have accused Amway representatives of misinformation and misguidance. Others have also accused the company of employing unethical product promotion to hoodwink people into investing in the business.
Even if you don’t believe in inconclusive facts and sabotaging past, the MLM business model comes last in the make-money segment.
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