I frequently hear from pro-Amway individuals that Amway is effective. Amway clearly works, as seen by its roughly $12 billion in annual sales, but for whom does it work? I believe that Amway is beneficial to both the owners and some of the long-term diamonds who participate in the programme. Because they manufacture the items and because the sales representatives utilise and attempt to market Amway products, the owners have a tremendous deal. All of the risk is assumed by the distributors. The cost of advertising and marketing the products is borne by the independent business owners, and Amway even requires a minimum quota (of 100 PV) before you can receive a commission. As a result, unless you spend approximately $300 per month on household products, it is not true that simply changing your purchasing habits will result in you earning more money.
It is successful because it rewards its distributors for increasing downline volume, and the downline is effectively an exclusive consumer base for the company's motivational tools and functions. My own personal experience, as well as the data provided by Amway, indicate that these features and tools are quite ineffective. Approximately one in every 200 IBOs will reach the level of platinum, which is supposedly the point at which IBOs will begin to produce some net profits, however a fully committed IBO may still lose money depending on company expenses and tool use. The fact that you travel frequently by flying and attend functions may cause some people to question how you may lose money as aplatinum.
It wouldn't be so horrible if there wasn't a requirement for at least 100 PV. If you only purchased a box of laundry detergent and nothing else, you would receive a little rebate instead of receiving nothing at all. The other problem in the Amway compensation structure is that the Independent Business Owner (IBO) who sells the product frequently receives the least percentage of the commission. Consider the following scenario: an IBO completed 100 PV. He received a 3 percent bonus, which equates to approximately $10. However, Amway rewarded him over $100 in bonuses as a result of his 100 PV. The bonsues are distributed among the tiers of upline, with only a small portion going to the person who "performed the labour." Furthermore, because the IBO is responsible for advertising and marketing the goods, this is a particularly terrible agreement. Because only if an IBO can sponsor a sufficient number of people who will in turn absorb the little gains while you grow will the system operate in your favour, the system will work for you. Will you, on the other hand, be content with making a fortune at the expense of those who put their faith in you enough to sign up?
If you can overcome these obstacles and acquire a share of the action in selling products and functions, the Amway system can be extremely beneficial to you. I believe that most diamonds live pretty ordinary middle-class lives without the additional income from tools and functions, and that they may even be drowning in debt if they try to live the "diamond lifestyle" and keep up with the Joneses.
Is Amway a legitimate business? It all depends on whose side of the political system you're standing on.
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