Amway A Scam Or Is It An Accredited MLM Home Business Opportunity?

is amway a pyramid scheme

Amway A Scam Or Is It An Accredited MLM Home Business Opportunity?

Amway has a lot of different products to sell, but is it a pyramid scheme? The Amway business model is actually very simple. It uses a lot of the concepts that you are probably already familiar with if you have been involved in other home based business opportunities. For instance, the distributors will earn a commission from the people they bring into the business.

But is Amway a pyramid scheme? The Amway business structure has a few main flaws that make it illegal. First, there is no public benefit to the distributor beyond making money. So they can buy their own list and sell it and make money off of new recruits who make no further profit as the original distributors continue to recruit.

This type of business is also closely related to multi-level marketing (pyramid schemes). Multi-level marketing is a situation where a large number of people are recruited into a company only to find that the company gives very little to them. They are just receiving sales from a single level at the expense of making their own sales.

The Amway Company is no different than a multi-level marketing company. It is based on recruiting highly skilled and trained distributors and hope that those people make enough sales through their selling skills to build an upper level of management and profits. However, a lot of Amway distributors fall through the cracks and that’s where pyramid scheme accusations usually come from. This accusation is often directed at Amway because there is a lot of products that use this exact same business structure.

So is Amway a pure pyramid scheme? Not necessarily. It is important that you realize that if there is only one person making the vast majority of the money that goes into the business then it’s not a pyramid scheme because they are not making any money anywhere else. You still have to look at the product-based compensation plan because that could be the key to making a substantial amount of money in this business without having anyone else make any money besides you.

Amway also has compensation plans that go beyond the network marketing company that they are a part of. They offer a special bonus to distributors that recruit other distributors. These are known as “rainmakers”. You don’t have to have a large number of distributors in order to be considered a “rainmaker”. The more distributors you get involved, the larger the chance that some of them will be successful and they will be able to bring in more distributors which will mean you can have a bigger percentage of the company’s sales.

The way I see it, Amway is just a proven path for someone who is ready to start making money online and who wants to grow their business with minimal risk involved. If you are a person that is willing to work very hard and to learn new things, this could be the ideal MLM home business for you. I believe that making tons of money and having the feeling of being rewarded without having to do any work is an integral part of what makes Amway so appealing to many people. I really can’t see how anyone can call Amway a pyramid scheme because there isn’t any financial incentive involved.

If you’re not ready to get caught up in all the negative things that Amway has brought to the industry, don’t buy their products. I don’t know how to explain this better than I will. You can’t earn money from an MLM opportunity like Amway without selling or recruiting your downlines. In order to do that, you need to find a company that offers recruiting opportunities like what I described above. When you become a distributor of Amway and make money, your downlines will be making money also and you’ll be able to retire knowing that you made a positive difference in the world.

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Frank

Entrepreneur, Blogger, Affiliate Marketer and webmaster of Stealth Secrets. I have been earning a full-time living as an affiliate marketer since 2004. Want to do the same? Check out what I recommend.