Amway Scam

Is Amway a scam? We normally get a lot of ignorant comments, failing to address the real issue of the Amway scam, never addressing any of the valid points we bring up, and holes we expose in the money making get rich quick scheme that is Amway.
Only a couple of months ago, in a landmark pyramid scheme federal court case Amway announced that it had agreed to pay $56 million, and an estimated 100 million dollars worth of changes to their business model to settle a class action that had been filed in Federal District Court in California. The class action, which had been brought against Amway / Quixtar and several of its top level distributors, alleged racketeering, fraud, and the defendants operated as an illegal pyramid scheme.

This court case isn't really surprising to anyone, which is why it isn't even big news, most people already believed it to be true. It isn't the first time Amway has been in court for these exact same problems, and whilst it still operates the way it does, will not be the last.

Even with the problems with Amway being acknowledged in lawsuits and court cases proving their "direct selling" multi level marketing to be one of the poorest "investments" you can make, people still harp on about how good the system is, and how the only reason people fail in it is because they are not good at presenting the system, even though these people themselves are mostly not making money - less than minimum wage by some studies.
No, the thing that is broken IS the system. Amway fanatics still hold by their extremist views, even when the company is paying out hundreds of millions of dollars after federal courts labelling them a pyramid scheme.

It has been proven hardly anyone except those at the top of the pyramid make any money.
Why do people still stick with it?
1. They are deceived. -Presentation material is proven to be very deceptive.
2. After joining, they get a warm fuzzy feeling from feeling like their upline actually cares about them, and not their wallet, and giving the impression they are successful, when most of the time they are faking it. (Even a Founder's Emerald has stated how little money he was making)
3. It's not just about the money, some people are lonely, and spending money on these meetings is the only way they have to meet friends. Once they have this network of like-minded people who seem to not have the power of free thinking, they forget about the profiting altogether, but keep paying their upline, and buying tools blindly, which is what makes it like a cult.

There is also the fact that Amway's distributors and public relations efforts spin the truth and put out many positive articles and videos attempting to discredit facts and valid concerns, replacing them with lies, and try to drown out the truth with their propaganda. There are even videos out since the court case attempting to equate pyramid schemes as being harmless, and that every company is a pyramid scheme. Although I don't think corporations follow a good business model for any individual to try and make money, to say they are all a illegal pyramid scam is blatantly false. This is propaganda on a Nazi Germany level.

Amway sell dreams to desperate people...and prey on poor uneducated people, desperate for a better life. The problem is even their own skewed company data shows the average earnings per IBO would not even cover the costs of running a business, let alone make a solid profit / salary, not to mention all the wasted time you would spend to make this loss. You would be better off doing nothing in the first place, and keeping your money in the bank, which itself is one of the worst investments you can make, second behind multi level marketing and direct selling schemes, because they rob you of your time and friends. Why bother when you could be making much smarter investments, for a lot less effort, and much more potential earnings?

All hail the Amway scam


Rich Diamond said...

The people that defend Amway so vigorously are totally owned by a cult like system that promises success and makes THEM feel like there is something wrong with THEM when they don't succeed. These people are NOT making money; which only proves that they are "emotionally owned".
Amways distributors / "leaders", people high up the pyramid say anyone and everyone in Amway who doesn't make money is simply a failure, completely brainwashing people into taking responsibility for the Amway scam being a failure.

Real IBO said...

No one makes money in Amway?! Really?! Funny! I have a customer who buys products from me and I make money! You shouldn't talk when you're misinformed; Have a fragrant day!

Mr Million said...

Congratulations "Real IBO", you have "a" customer.
That 1 customer must be making you rich? No? Once this customer stops buying expensive products from you then what? No money, you're broke and bankrupt?!

There are a few people that make money in Amway, some are even rich, but these people are usually at the top of the scam structure or as with any pyramid scheme / fraud taking advantage of others.

If you are making lots of money in Amway, share your tax return with us, otherwise no one will believe you, because statistically, just about no one makes a profit in Amway, fact.

Anonymous said...

I agree with A LOT of the things that you have mentioned in this article. I want to start off by saying, I am a very open minded person. HOWEVER, when I hear about how "the system" works and speakers talk about "the dream" - it just doesn't make sense to me why any ethical person would get involved with such a company (no offence to those who are involved)!!!

My boyfriend is currently in the Amway business and I really do worry about the ideas and thoughts that have been put in his head. I have attended a couple meetings with him (for support) and have tried to be positive about it for him. But I've also tried to be realistic with him and, I guess, show him the bigger picture. In your article, you wrote that it was "propaganda on a Nazi Germany level", which I do think is a bit extreme, but I do see what you mean. My boyfriend listens to these "Motivational" CDS - which I'm sure he paid a fair amount for the set (I haven't asked him how much they cost because he knows that I'm skeptical about the company and I did not want to argue about it). He'll criticize the SunLight detergent that I use to wash my clothes and speak highly about the detergent that he purchases from Amway. In a previous University Chemistry course, I was shown a label for one of their products (I have choosen not to disclose which product as I do not want to offend the company) and my professor criticized how they advertised things that went against SCIENCE. At the time, I didn't know where the product was from, I now (having seen the physical product from by boyfriend) remembered seeing the exact label in my 1st yr chem class. It just blew my mind that it was THIS company that was falsely advertising some of its products; this was the company that my boyfriend has choosen to be a part of.

I, myself, am an educated person, who is currently attending a well known university. I believe in getting a degree (or some other eucational certification), searching for a job (and yes probably a 9-5 job in which according to the Amway beliefs, is not the ideal life). My boyfriend on the other hand, completed high school and has been working from job to job. I DO NOT believe that you have to be educated in order to be successful, but I do think that having some sort of education provides a "backbone". From what my boyfriend tells me, the people he's acquainted with in Amway don't have any... well, life plans. I worry that people look towards Amway as a way of success. I guess an easy way out. I guess my biggest concern is, I worry that my boyfriend believes it so.

Anyway, I've just been doing some research (in the midst of exam period) about all of this because I want to have a serious discussion with him about all of this.

I apologize for boring you with my thoughts and comments. I was wondering though, do you know of any reliable sites or statistical figures where I can look more into for information. I would like to have more background informatino before I discuss this with my boyfriend.

Thank you in advance!

Anonymous said...

You are dumb....

Anonymous said...

I regard AMWAY and N21 as insidious. There are two members of my family that insist that with a little more application it can be a nice little earner. One of them has been a member for years and I see no evidence of riches. He devotes himself to "climbing the ladder" and attends Saturday evening meetings (business meetings on a Saturday evening - antisocial). I see no net benefit but cupboards full of cleaning products, a water purifier and more latterly a HealthPointe kit. This seems to be nothing more than a re-worked Atkins diet (now discredited) in a glossy box with a supply of nutriway products (none of which could ever replace natural raw foods).
The ulterior motive presents itself. Never mind the overweight sibling, how can I get more sales? A ha, here is my chance.

Am I missing something? How the hell does an organisation with a very limited range of often overpriced goods make a profit? I never saw more than a handful in the "shop" so it must be mail order driven.

I do not know how many "customers" you must have to make a difference (to see a return on your investment in books,DVDs, and time etc.), but it must be thousands.

There was a time when I was given the spiel about "owning" the business being better than generating profits for others. If the person I am talking about were to devote as much effort to a real business in which was a real shareholder and the profits actually returned to him, he would be much better off right now.
Lastly, I choose to keep my mouth shut about this because I know it could be a relationship breaker.