Is Amway a pyramid Scam for selling products

February 18, 2008

Today I shocked when one of my friend was trying to sell Amway product Nutrilite soy protein powder to me. He was explaining the benefit of amway products in a same manner as most of scams website explains their stuffs.

I release that he is not much aware of such kind of marketing. He is not able to understand that if amway product is really useful it should be available in all stores even at high price. People will sure buy Amway product from store if it is really useful.

This pyramid method is only adopted to sell useless stuff to people without investing a penny in marketing of these stuff. Even some very intelligent people first time believes in this type of scheme and in the hope of making some extra money they becomes the representative of Amway. Its really horrible to see that people have to waste their time for training and explaining the befit of Amway to general people. Most of the people can not earn more then a penny through this way.

Government should ban this type of scheme in country like India. Poor business infrastructure and low education is a big factor to involve people in amway scheme.

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Comments (32)

  1. Outsider says:

    Amway has some decent products, but most of it os grossly overpriced and what’s more, the guys on top of the pyramid sell you cd’s and seminar tickets so you can learn to scam other people.

  2. Neil says:

    amway will never realise your dream. if you are intelligent enough, you will get out of this scam.

  3. Aun says:

    According to the theory of evolution by Darwin, only the fittest survive. This applies to many areas in life. If a product is useless or overprice it will not stay in market for long as people are smart. If you must insist, then more than 4 million people in the world should be stupid to support using the product for 72 years. Nutrilite, the brand of the protein had been around 70 years ago. Olympic Games Committee is also stupid to endorse Nutrilite as the sole Nutritional Supplement for their athletes. Yes, the more than 100 scientist involved in the research of Nutrilite products are also stupid. So do I.

    The reason the products are sold through human marketers is to promote prosumerism and spread the earnings of products over a wide range of people. If done the conventional and putting the products on the shelves, the wealth will only end up in a few people’s hand. Thus the rich get richer and the poor get poorer.

  4. Bob Bacon says:

    I not know how speak English, I stupid and leave stupid comment. I want be rich.

    Yes

  5. Jose says:

    Following the “Aun” rationalizing of this scam, named Amway, all the millions of naive people who are seduced by the “easy” money promised by Amway officials should be rich by now…. or better then (and following the evolution theory exposed by Aun), if Amway is so good, all the people in the world should be rich (using Amway´s method), but oh!! surprise! is not happening, nor gonna happen, because is a pyramid… quite simple, it doesn’t matter if the olympcs committe are supporting amway products, the truth is out there… there is no such “magic recipe” to get rich thorough multilevel scheme. Paraphrasing Aun, with the Amway way “the wealth will only end up in a few people’s hand”

  6. thaserty says:

    Jose, you didn’t get the point that Aun said.

    Amway product may be pricey but it is the best among other product.

    Yes, I agreed about the ‘never come true’ goal but its products are good. try it and you will know it.

  7. Kris says:

    If Amway products are really good in quality…then why don’t they sell products via Super Markets, retail outlets etc…why don’t they compete with companies like P&G…Why are they promoting products via Multi Level Marketing….I think Amway share in less than 1% in world wide consumer market…means 99% people are stupids…because they are not using Amway products?

  8. alex says:

    Nutrilite and good amount of Amway product selling and support require good understanding and personal usage of the product, otherwise it is like a paanwalla selling a mercedes or SAP and you buying it.

    None of the people who made money selling amway products ever mention they reached where they were in 2 days. The average time it takes to become those big emeralds and diamonds can be anywhere between 2-12 years, average 7-8 years in India.

    The short-cutters and barbers who got screwed trying to make money, I dont really care for them. These guys belong to the Amway cemetery.

    Wonder why Medical / IIT / Engineering education in India is not called a scam ? Stupid people spend 18 years and 15 lakhs on education in above scams for a career lasting 20 years after which you need to spend the remaining 30 years on somebody else’s cheques or live in penury or pensions. The BE guys in India have to spend another 3 years plus 6 lakhs clearing MBA.

    Amway education and earnings mean u continue getting royalties and live and die in comfort with a great lifestyle even till 90. It operates in 120 countries.

    Belongs to the general category of fools who think India is the next great economic challenge to the world bigger than China … About time these frogs came out of the well and stop making noises in the well.

    Nutrilite is older than Amway and is endorsed by WHO – The World Health Organization and is one of the leading suppliers of safe and useful food supplements to control and prevent illness by supplement low nutrition diets with right amount of vits / minerals and proteins.

    Please check up what Gartner has to say about the Wellness revolution and the Internet impact – the figures make IT look insignificant … at least for those who want to make great personal wealth and also maintaining good health, instead of spending 6 years trying to compile a crore doing slavish Cooliegiri for the US economy working nights out here.

  9. pradyumna says:

    you see
    there is no free lunch
    if u want 2 get money what a dimond get, u have to work hard
    i know peoples know less than 1% about amway and giving advice about that
    if it is a scam it can not run in 92 contries and for a period of last 50 years.
    about the products and price, people need to be educated,about quality and concentration
    it is up to u what u choose and where u want to go
    leave bleming attitude, do some thing better

  10. pradyumna says:

    thanks for sharing ur views

  11. Alain de Montford says:

    Let’s be clear. What Amway does is essentially pyramid selling but they are not breaking the law and there’s nothing wrong with their products. BUT, they target (and I quote from an internal memo, July 2007) the “barely educated” classes to move their products. They can overprice their products by using personal relationships (friends selling to friends) to bypass competitive factors.

    Orrin Woodward, a former top level distributor at Amway/Quixtar made millions recruiting consumers into Amway, 99% of whom lost money. He told them if they bought his special “marketing tools” they could make money in Amway, and they could earn additional money by selling these tools to other recruits. The tools scheme was called “Team.”

    99% of those who bought into the “Team” income scheme lost money. So, 99% of Woodward’s recruits never earned a profit in Amway/Quixtar. And of those who invested in his separate “Team” marketing business, 99% of them never earned profit from that scheme either, compounding their losses on top of their losses in the Amway scam.

    Some of the comments above come directly from the Amaway marketing materials which are designed to appeal (and I use AMWAY’s term) to the “barely educated” class.

    Anyone is free to sell their products; to defend their marketing activities and to quote their absurd materials but they should bear in mind, that to the owners of Amway, it defines the class to which they belong.

    Folks, just because their products are ok and their scheme is legal does not alter the FACT that many people are being misled and lose money every day. What Amway knows is that, though hundreds lose money and drop out every day, there are millions of unfortunate, desparate or gullible people just waiting to replace them.

    For the record, I have held senior executive positions with multinationals in Europe and SE Asia. My only interest in this matter is the truth and I was motivated to write after listening to a group of executives discussing this matter. Over their brandy and cigars, they were busy laughing at the “poor saps” who engage in the Amway scheme.

    I understand the appeal of Amway and the financiel pressures which push people into the scheme and it’s certainly is not my intention to upset anyone or to support any particular cause. I was simply angry with these arrogant, smug businessmen and decided to do some research and to write up what I disovered.

    There is much, much more. If anyone believes that Amway is anything other than a legal ‘con’, please do the research.

  12. Rocketbanana says:

    Hey guys and girls! I was approached by a cousin of mine around ’04 telling me about Amway, he was persistent so I joined him for a couple of meetings, getting to know it WASN’T a scam, that the UN had approved it and given it it’s thumbs up, so to speak and they told us not to share their great idea cuz our loved ones would never understand. I quickly realized the scam, just another sales-gigg with none of the profit you normally get scamming people into buying shit they don’t need. I have since learned that there isn’t a better way to know that a product or service is corrupt than to see it has the WHO/UN stamp of approval on it. The UN is a totally evil organisation and the WHO is if possible even worse. Take my word for it, Amway is a classical pyramidstructured organisation, (just like our global society) it benefits the players who got in early, those with connections up hight or those that can manipulate people(climb over corpses) to get into a position where they can recieve a steady income. Your better of picking fruit for money, where you get to breathe fresh air and get some exercise. If you pick Amway for your future you’ll be stuck in some conference-center being told to buy more friggin’ books that are wickedly overpriced. #WARNING” SCAM #WARNING# SCAAAAAM!!!! GET OUT!!! SCMACSCMSCMASCAMSCAMSCAM!!
    Good luck and have fun everbody, Amway, UN, WHO, CFR, TRILATERAL COMMISSION, NATO, BILDERBERG, ROMAN CATHOLIC CHURCH and THE JESUITS SUCK!!! DON’T GET INVOLVED!!! DOOOON’T!/ Rocketbanan(sweden)

  13. Raju says:

    its like , glass half filled seems half empty to the negetive person , only he should help himself. no person or org can help him.
    please let me know if u need help..
    amway is great and will remain so even if u develop 1000000000 websites like this one..

  14. ali says:

    Well people have a misconception about amway. Amway is one of the best profiting brands in the world who share their profit with the person who sells the claims and other commodities and proucts of the company
    People do not understand the pyramid structure
    indeed its a leg system. its not that the lower abo’s work and upper one takes the cake. Its like who ever works takes the cake .by making a group u do get payed if ur a downline or a upline .as far as why arnt these various products not be retailed under a roof is the simple reason that the wealth would get accumulated and stagnant in a single individual hand
    Belive me this system is one of the finest system some people belive these are cons but if u ask a person who has never seen an ocean and show him a lake the interpretation are different. also there guys in this page who have commented have no idea what and how this system works they are here just to brag about the company of what they dont know about. if a marketer or a distributor is brought to light u can see that he can approach many people and show the benefits rather than a shop or show room the biggest boon Amway has done that it has given the power to share wealth amongst the people who work hard to give the various world class commodities . also Amway has completed its 50 years and a 50 year old company spread in 92 countries with a turn over of 1100 crore in india is not fool do make people what u say a “scam” it is a truthful company and its pays those who work hard .

    My final word is
    If You see an elephant or a lion walking with pride u also see many hyenas or coward fox or wolfs howling around them but it makes no difference to the elephant or lions pride .he considers them inferior and loosers
    The same way Amway is the elephant and there are hyenas or wolfs or fox who dont like the company and try to mock it but the MORAL OF THE STORY IS they are just a bunch of losers who just talk in their drawing room not realizing the fact that what the company and is doesn’t make a difference what the people say the the fact is they have not seen the ocean. when they first say the lake. anyways let people say what they want But the reality the truth always prevails that Amway is and will remain the unbeaten . and such stupid comments by people wont disturb the equilibrium
    Thank you !

  15. kumar says:

    Amway or such MLMs are not technically illegal because they are selling legit. products. Their products are very high quality and very expensive. And it is possible indeed to get rich in Amway. But be sure to understand this – you will NOT get rich by selling products, but by recruiting other people.

  16. S kumar says:

    It’s really an ideal and foolproof system to distribute wealth to those who are consistent in hardwork. Products are not overpriced. It’s useful for mankind and our environment. Those who criticise pl. try to experince the product.

  17. Anyonymous says:

    Alright, Amway is a pyramid scheme. But if you work your ass off, unhealthily, you may make money. They’re freaking crafty.

    I would stay away, personally.

  18. Gaurav says:

    Amway distributors “think” they are selling Amway products, but the real product being sold is the motivational tools – books, tapes and seminar tickets..

    Take that income away…100% Diamonds will quit the Business, 90% of their income is from Motivational tools..

    I was a Platinum Distributor… and I made huge losses just like every one.. and my upline Emerald was also making loss. He only used to get money by selling tapes to downline, open meetings and getting how many people come in functions..

    its ridiculous the diamonds brainwash their own distributors in believing that more attendance in functions is GREATER than selling products… that tool money is their “gold”…

    Amway by itself cannot survive.. it has survived because of this coaxing system… and hence it says nothing to stop this.

    Also, most diamonds.. do not qualify as diamonds next year,, but keep coming on stage year after year… just because they have enough “tapes being sold” enough function numbers,, and enuf popularity ..

    This revelation is nerve wrecking to a loyal distributor and I couldnt sleep for weeks.. and after 1 year as a Platinum.. I decided to quit.

    Its a cult, scam, pseudo religion… stay away. You cannot have those golden years of life back.. run away.

  19. daniel says:

    I hate distributers. They were trying to brain wash my brain. Amway is a scam,bunch of lies,waste of time, and money wasted. If ur an associate u pay for seminars,opens,books,cds,and u have to pay for everything including field trips to seminars. Thats stupid!!!!! In order for me to join amway i had to pay $25 dollars fo seminars every month,177 to get my license by being a member, and pay to go to opens $5 a week, plus buy stupid ass cds,books, about people who are trying to brain wash ur brain. I swear that if anyone tries to get into amway be careful because u wont make it to diamond,emerald,or platinum, only 0.1% will reach that level Amway tried to fool me, for example, they told me to leave school cause amway would be a great future, Thats complete stupid how would i drop school when im almost done. Plus most of Amways products are more expensive then walmart products, or any other store. For anyone interested in amway research the company. its a completely lie. i saw on youtube that most people giving thier speeches at seminars or opens get paid trying to persuade people to join. Type amway scam on youtube.com and check it out.

  20. Abe says:

    You’re absolutely right about low education being a big factor in involving people in schemes. Perfect example, people like you who cant even spell. If you are not well informed about a specific product then perhaps you shouldn’t be so explicit in voicing your opinion about it smart one!

  21. In this world there are hardly 7 % successful persons. Rest 93 % are common people. Have you ever found out how they become successful. They had done there part of hard work and in fact they were people with a dream which was time bound and which was converted to Goals. Since Goals are achievable they put there everything into it. Today all the big shots are into networking. Reliance, Bata, Tata, McDonalds all are successful because they networked. If you want to take any of these above mentioned companies franchisee you have to shell a very huge amount. But if you want to own an AMWAY business all it takes is Rs 995. That also refundable in the first purchase offer in the form of products which an individual can select from the wide range of inventory. Even if you don’t wanna do business buy your required world class products in 20 % reduction rate. If you really wanna make money out of it you have to work. Nothings come for free. It takes time to reach a level where u will get steady income. Here the business is very simple use the product u like it tell others and when they buy and use they are satisfied they tell others and your business grows. It is not a business of joining people. AMWAY never pays you for joining people. Incentives are payed to people who create business volumes. The real life education is possible in this business. Any one who has a Goal and who is teachable and willing to learn can do this business. If you want to be a leader you have to really lead and it takes a lot of Guts and you have to be a real man with a strong backbone and will power can only do this business. So fickle minded and persons who lack will power please stay away from this business. You can just go for a serious introspection. So to wind up this business is for those who want to help others and help themselves. Go Diamond

  22. Ganesh says:

    Many pros and cons for Amway in this blog…I’m a Distributor and really want to go at it…No matter who ever say cock and bull stories about the products/system/money for everything…and blah-blah…

    Friends, just give a try as naveen said it is not for fickle minded persons…The ultimate goal of this business is financial freedom…there may be many distractions during the course of this business which comes in any other business wherein you will be investing Huge (depends on the business) and here it’s a meagre amount…To sum Up those who are trying hard wouldn’t say anything compared to those who try little and say many rubbishes about this won’t work..that won’t work….

    AMWAY is always SMART work and Balance in life…since this always stays at the fourth priority which goes…god,work,family and then this and as we go deep into the system this will come to the third one wherein work will be eliminated(i.e., quitting our work)…..If a person has balance in life i.e, managing all his work with priority will definetely work…

    Go Diamond….!

  23. Raju says:

    What is good? What is bad?. We all are confused and try to find out an answer with the present information already we have no research or further studies. Before submitting a negative opinion to anything please think, “do you have any knowledge about that”, if you have, think “from where you obtain that?”, Sure i can say you will get negative from ignorant people or people who failed in their debut.
    First study about anything before comment, also collect information from those who are successful.
    There are people in this world who are brilliant than us.
    People who are looking for get rich quick scheme are better to Go behind Pyramid schemes. But Amway is not a Pyramid scheme, Amway is an ‘Intellectual Distribution system” Which requires educate prospects, how to use this high quality, highly priced, innovative products cost effectively ie those who use amway products as per company guidelines, can save a good amount money when compared to ordinary products available in the market. Then these prospects converts to Customers then to business partners.
    AMWAY PRODUCTS ARE ‘BETTER THAN THE BEST” in Quality and Cost – Use amway products as per the guidelines of company. you will be shocked to see How the ordinary companies w2ere cheating you all these years providing inferior quality products for a higher price.
    One more thing about amway business, Do you ever have a dream of building your own 100/1000or100000 Million dollar company without any head aches, or investments? It is possible with amway, AMWAY FOR QUALITY PEOPLE ONLY. Yes I said QUALITY in All means. Attitude, Aim, Love, hard work….. It is a revolutionary Business.
    NO ONE CAN STOP AMWAY…..
    If you dare do it

  24. Vinod Soni says:

    All those -ve attitude people should read the books writen by robert kiyoski as to what this world has for common man and what is the remedy for this.there is no way to get rich quickly and short cut to success hence the AMWAY plan is a cobmination of hard work + Smart work.Where as an ABO or NON-ABO not cobmining these two is a sure failure.If any one ready to retune his mind and thought process to the foreseable future on the current trends is sure to success.

  25. elenessa says:

    At Amway, you get a 15 per cent commission on what you sell. For every Rs 30 of sales, you get one point value (PV), meaning if you do business worth Rs 6,000, you get 200 PVs. Beyond 200 incentive points a month, you are entitled to an incentive commission.

    This commission varies according to sales. For example, sales of Rs 72,000 per month will get you a commission of 12 per cent and sales of Rs 3 lakh, 21 per cent and so on. So if you sell products worth Rs 3 lakh a month, you get a retail commission of Rs 45,000 and an incentive commission of Rs 63,000, which amounts to Rs 1.08 lakh per month, or nearly Rs 13 lakh a year. That is, if you are selling alone. Otherwise, you share the incentive commission with your recruits. To get a share, the recruit needs to have done a minimum business of Rs 6,000 per month.

    Clearly, then, you make more money as your network grows. After all, now you are skimming off the earnings of many people rather than getting a cut out of what only you are able to sell.

    But the earth isn’t big enough. What is the minimum number of salespersons you should be able to recruit (or ‘downlines’; you become their ‘upline’)? Does 10 seem reasonable? Ten people who will buy from you regularly? In turn, these downlines (level 2) should recruit 10 people each (level 3), and so on, right? The problem: given that the earth’s total population — men, women and children — is around six billion, by the time you get past level 8 in the MLM scheme, you’ll have run through all earthlings. Level 9 would fall short of servicing two earths by only 16.7 per cent, while at level 10, you would need the population of more than 16 earths!

    And what Amway is doing is to tell all their prospects that they could make pots of money. But with the full knowledge that many of them will not. The Latin phrase ‘caveat emptor’ simply means ‘let the buyer beware’. But what if nobody is a buyer and everybody is a seller … with soap in their hands and hope in their hearts?

  26. varun says:

    well said elenessa..this sums up the whole story..hearts full of hope!! The Amway runs not on the quality of products but on the emotions of people. Very few will make the money who are talented enough to lure a number of emotional people and make a fool out of them.

  27. Rajesh says:

    FINAL WORD

    AMWAY isn’t a fraud.People who have no knowledge are free to say anything abt anything.Its direct marketing.

    But its a fact that people lose money and time in Amway because of the marketing plan that they have.

    It requires an effort of atleast 5years to master this system and become a diamond because the MARKETING PLAN has some serious flaws.

    There are many other networking plans out there which can make you a millionnaire in a short span of 1year if you work on it.

    MORAL OF THE STORY:If anybody want to be a millionnaire(and if you dont have any investment capital for traditional business)…go for network marketing but avoid Amway as there are many good,legitimate network marketing companies whose compensation plans are light years ahead of Amway.

    Study Network marketing business and work on it,it definitely pays!

  28. Anonymous says:

    A person who fails in exam repeatedly will not say studies are nice.
    People with very poor market research are prone to point there fingers to Amway saying it a pyramid scam.People who dnt follow Amway’s rules n ethics will surely say it does not work but it has worked for people since 50 years and for me too. Ofcourse maximum do not gain becoz maximum dnt understand. Good thing is never accepted easily but bad things are. AMWAY has revolutionised the market trend and one who doesnt understand will not bring a single loss to Amway but the individual. This is an advice to those ignorant individual that they must go and take informations from the 90 countries and UNO if Amway is a scam. Infact Amway has a credit rating of A+++++ which is rarely given to any company even Reliance dnt hve it.Failures words are always negative. 21st centuries revolution is AMWAY….motto to change the economy of the world. if u pend Rs 50000 in a year and get Rs 50000 per month is that a loss. Who understands he is the gainer? If every one succeeds then who will sweep the floor and serve us.

  29. Anonymous says:

    Amway is a Global leader in direct selling. i think the smart people here dont know the meaning of direct selling. you should study MBA books. dirct selling means it can not be made available to the market for retailing.

    elenessa i think u should go & collect more & correct information about amway. u need to. :)

  30. BFOBI says:

    Smart people run miles in the opposite direction when prospected for Amway. :)

  31. Justfacts says:

    Yes there are some people who go off track (may be too pushy to sell products) of the ethics and do the business. Thats the mistake by the individual which leaves a bad impression on the company. It happens on any business – say an executive of a reputed bank talking to you with bad manners. I was in anti-amway group earlier but when I used the product I thought no wonder that they are leaders in most of the products.I did a detailed research across the web and talked to people to know the fact.
    It is a business , not a social service to make people rich.The ones who work hard get it while others do not.Nothing comes free – knowledge, the attitude , quality sells the product.

    Finally , when people get impressed and buy low quality products for which some star poses by getting paid in millions , I think direct marketing does all justice provided they have good ethics and quality like Amway.

  32. Reviewer says:

    Kochi, Aug. 6:

    The police on Friday carried out searches at nine Amway centres in three districts in Kerala as part of the ongoing drive against money chain activities and cheating through multi-level marketing campaigns.

    The team under Mr J. Jayanath, Superintendent of Police, Wayanad, searched the head office of the Amway at Kochi and also its office at Kottayam. The raids were also conducted in Thiruvananthapuram, Kollam, Thrissur, Kozhikode and Palakkad.

    The police said that cases had been registered against the company at Kannur, Wayanad, and Thrissur following complaints of cheating.

    Meanwhile, Amway in a statement said the police action has come as ‘rude shock’ and surprise. A fair investigation demands that the company be notified about the nature of complaint received for such a sweeping inquiry, it said.

    The multi-level marketing and direct selling company stated that it had been receiving complaints from distributors over the past one month that they were being called to police stations and being ‘harassed’ to give complaints against the company. This is another step in the direction of ‘high handedness’ of some police officials, the statement said.

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