Is Amway A Pyramid Scheme? Read My Review To Find Out The Truth!

Chances are someone you know has asked you to join their Amway business opportunity claiming it can help you build a full time business online.

Or you might have been looking for some ways to make some extra money and stumbled upon this company by accident.

Whichever the case may be, you’re probably asking yourself is Amway a Pyramid Scheme or a legit way I can make a lot of money and quit my job.

Now before I go any further, I first want to congratulate you for taking the time to do your research, because that’s how you can avoid scams altogether. 

Secondly I want to tell you that you’re going to love this review, because I’ll be covering everything you need to know about Amway so that you can make an educated decision as to whether or not this is the right company for you.

So without wasting any more time, let’s jump right into it!

Quick Summary Of Amway

Name: Amway 

Website: Amway.com

Price: $194 + hundreds of dollars a month in products

Rating: 2 out of 5

What Is Amway?

Amway or American Way is an MLM ( multi-level-marketing ) company that started way back in 1959 by Jay Van Andel and Richard DeVos.

Richard said, “they were just two guys from Ada, Michigan who wanted to have a business of our own” — and eventually decided to start selling Nutrilite.

Fast Forward to today, Amway is the world’s largest direct selling company which makes over 8 billion sales a year, has products in a wide variety of different areas, and sells its products in over 100 different countries throughout the world.

And they say with the help of their company, you can have a healthier, more confident life — as well as build a very good income online by selling these products to other people.

But you might be wondering is this really true, or am I just chasing a pipe dream that will never happen?

Well I can tell you that if you do decide Amway here you can make money and possibly a lot of it — but the chances of this happening are so slim I wouldn’t even waste my time on this.

And I’ll explain more why this is in just a minute. But first, let me discuss what this company is actually selling. 

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What Does Amway Sell?

Instead of a traditional MLM company that sells just a couple of products or is involved in a couple of different areas — Amway here sells A LOT of products within basically 4 different categories.

Now I’ve seen other MLM’s like this in the past that sold a lot of items such as Younique and Pampered Chef —  but the difference was they only sold products within one category such as cooking or beauty.

But as I just said, Amway here sells hundreds of products within 4 different categories — which are as followed:

1. Nutrition 

Is Amway A Pyramid Scheme - Nutrition

There are 179 items within this category and you’ll find things such as vitamin supplements, energy drinks, meal bars, and more. 

2. Beauty

Is Amway A Pyramid Scheme - Beauty

There are 277 items in this category ( making it the largest one ) — and here you’ll find things such as creams for your skin, lipsticks, perfumes, foundations, and more.

3. Personal Care

Is Amway A Pyramid Scheme - Personal Care

There are 56 items in this category and you’ll find things such as shampoo, face gels, toothpaste, and more. 

4. Home

Is Amway A Pyramid Scheme - Home

Then last but not least, in this category you have 64 items and you’ll find things such as cookware, cleaning products for your clothes, items to purify your water, and more.

So it’s safe to say that if you did decide to join this company and promote it, then you would have a very large selection of items you can show your customers.

Now all in all, the average price for most of Amway’s products is around $100. However there are some items that go as low as $10, while there are some that go to $2,000.

Amway Compensation Plan 

One of the things I really dislike about MLM companies is how long and confusing they make their compensation plans.

And Amway here is no different.

They have a 31 page pdf for you to read, and to make it worst they use all sorts of numbers and graphs to make you feel like your back in Calculus class.

So to keep you from having to go through the trouble of reading this entire thing, I’ll cover the basics to show you how it works. 

Affiliate Ranks

There are 23 ranks you can earn with Amway, with each one getting progressively harder as you continue going up.

Here is the name of each of the ranks within their plan:

  1. Sponsor
  2. Silver Producer
  3. Gold Producer
  4. Platinum
  5. Founders Platinum
  6. Ruby
  7. Founders Ruby
  8. Sapphire
  9. Founders Sapphire
  10. Emerald
  11. Founders Emerald
  12. Diamond
  13. Founders Diamond
  14. Executive Diamond
  15. Founders Executive Diamond
  16. Double Diamond
  17. Founders Double Diamond
  18. Triple Diamond
  19. Founders Triple Diamond
  20. Crown
  21. Founders Crown
  22. Crown Ambassador
  23. Founders Crown Ambassador

Now the higher you go up within these ranks, the more money you can make within the company.

However, actually obtaining these higher ranks is so difficult, that 99% of everyone who joins this company will more than likely never make it past the Gold Producer rank.

Retail Commissions

Amway says you can markup the prices of their products to whatever price you want so that you can earn a profit. But they will also give you a suggested price for every product they sell to help you out. 

Is Amway A Pyramid Scheme - retail sales

Residual Commissions

Amway uses a unilevel compensation structure within their plan.

This means that when you personally recruit someone they will be on your 1st level, then when someone on your 1st level recruits someone they will be on your 2nd level and so on and so forth.

Is Amway A Pyramid Scheme - Unilevel compensation structure

This also entails that you will receive a small portion of any commission they make. 

Now how Amway calculates your commissions specifically, is actually kind of confusing — so I’ll try to explain in the best I can.

So you can earn 3% – 25% off of your downline based on how many products you and your team buy, and how many products you and your team sell.

And here is the stats to show you how much you’ll make specifically. 

  • Buy 100 – 299 products = 3%
  • Buy 300 – 599 products = 6%
  • Buy 600 – 999 products = 9%
  • Buy 1,000 – 1,499 products = 12%
  • Buy 1,500 – 2,499 products = 15%
  • Buy 2,500 – 3,999 products = 18%
  • Buy 4,000 – 5,999 products = 21%
  • Buy 6,000 – 7,499 products = 23%
  • Buy 7,500 or more products = 25% 

Is Amway A Pyramid Scheme - performance stats

So if you recruited 3 people and each of them bought $150 worth of products (PV), each of them would end up in the 3% bracket. So when you add all these PV’s together, you will end up in the 9% bracket.

And let’s say you and each of your team members sold $450 worth of products (BV). So when you multiply 450 by 9%, you end up personally making $40.5 that month. 

Now to calculate how much you’ll earn from your members you need to subtract your PV from theirs, ( which is 9% – 3% ) — which will give you 6%.

And when you multiple 6% by 450 you end up earning $27 from each of them. So all in all you will end up making a total of $121.5 that month.

Also here’s a picture to help demonstrate what I just talked to you about.

Is Amway A Pyramid Scheme - residual income

Again if you are confused I totally understand. Because it took me an extremely long time to understand this compensation plan — and this is probably been the toughest one yet for me.

Bonuses

Now there are some very nice bonuses you can earn through this company based on what rank you are and how sales you make per month. 

For example if by some amazing miracle you became a Founders Crown Ambassador, you would be eligible for their Rank Bonus — which would give you $315,000!

Not bad huh? And again this is just one of many bonuses they have.

But if you’re still confused about how their compensation plan works, I don’t blame you. Again I spent probably almost 2 hours looking at it and I still have a headache from trying to figure it out.

Just know though that there are only two ways you can really make money with this company is…

  • Either by selling their products directly to people and earning money
  • Or by building a team and earning money off of their commissions

Of course building a team is going to be the best way to make the big bucks, but it’s also the hardest.

And if you would like a better explanation as to how their entire plan works, you can view the entire thing right here — and also watch this short 9 minute video that goes over it very well. 

 

How Much Does It Cost?

To join Amway, you will need to spend $194 which will cover the registration fee, as well as give you their starter kit — which comes with all sorts of products for you to sell to people.

On top of that, you have to buy and sell around $100 dollars worth of products each month to remain an active member. 

So if you don’t sell all the items you bought, the amount of money you make will gradually keep going down.

What I Like About It

  • It’s been around for a long time

Whether you like Amway, hate it, or whatever — I have to hand it to them for being in business for a very long time and still going strong!

I mean sure there are some other companies like Young Living which have been around for about 30 years — but Amway here is coming up on 60 years which basically doubles Young Living.

So the good news is if you decide to join this company, then you can have a pretty good assurance that they are not going to simply disappear. 

  • Lots of people like their products 

As I was looking at different reviews and seeing what people had to say about this company, one thing I kept reading over and over again was how much they like Amway’s products.

You can see within this pic here, this person says she really loves Amway’s products and every single one she’s bought has offered great results.

Is Amway A Pyramid Scheme - people likes their products

So again if you are looking to make some extra money, then it looks like you have some high quality products you can sell.

  • They offer a 6 month money back guarantee

According to their Satisfaction Guarantee, if for any reason you are not completely satisfied with their products, you can return them within 180 days ( or 6 months ) of your purchase.

Is Amway A Pyramid Scheme - satisfaction guarantee

So this another great point you can make to your customers to help you get a sale — and if you personally want to use these products for yourself it’s nice knowing they have this guarantee. 

What I Don’t Like About It

  • Leading financial experts don’t find this company worth joining

As I was scrolling around YouTube seeing what people had to say about Amway here, I came across a guy named Dave Ramsey.

If you don’t know who he is, he’s basically a money management expert who runs a multi-million-dollar company — and gives people advice every day on how to manage their money and stay debt free.

Now in regards to Amway here, he says very few people will actually make good money with this company.

And the ones that are successful are excellent in recruiting masses of people every day, know how to train their team to be good salespeople, and basically know how to motivate their entire team as well.

So basically if you want to be successful you are looking to be a sales manager — and I don’t know about you but recruiting and training hundreds of people a day is not something I find fun.

However if you do then maybe this is an opportunity you might like.

But if you would like to actually see what Dave Ramsey has to say, you can watch the entire 5 minute video here.

 

  • It has a complicated compensation plan

As I mentioned earlier, one of the things I hate about MLM’s is how complicated their compensation plans are. 

But Amway here really gave me a hard time and I probably spent a good 2 hours trying to understand it — and here’s a picture to show you what I mean.

Is Amway A Pyramid Scheme - complicated compensation plan

Now why Amway and other MLM’s companies like doing this I haven’t a clue. 

But I think deep down they like to confuse people and just want to keep “selling the dream” to people talking about how much they can make if they just sign up.

Of course just signing up and working hard isn’t going to make you a lot of money — and to prove my point let’s move on to my next reason as to why I don’t like this company.

  • Chances of you earning a good income are very low

When you look at Amway’s income disclosure, you can see where they say that all their active members earn on average $2,500 a year or $200 a month!

Is Amway A Pyramid Scheme - income disclosure

And I don’t know about you but I don’t consider that good money what so ever. Heck I could go down to McDonalds and earn more than that in a couple of months.

So just know if you want to try to join this company then the odds aren’t looking all that great for you to earn a 6 figure income. 

  • You’ll have to bother your friends and family to market it

Then last but not least, if you join Amway and decide to market it — then you’ll be asking people that are closest to you to buy your products or join your team.

This means your family, friends, neighbors, co workers, and so on. 

And I can tell you having been personally been through this several times from my close friends, it’s not fun.

Because feelings usually get hurt either because you didn’t want to join their team, or that the person trying to recruit you keeps pestering you until you buy their products or join their team — which is very annoying.

And I don’t know about you but simply begging my mom, dad, and friends to buy a product or join my team just so I’ll make money seems very embarrassing and a terrible way to market a company.

Is Amway A Scam?

Amway is definitely not a scam.

They are the world’s largest direct selling company, make billions of dollars a day, and sell products almost everyone loves. 

But at the end of the day they are still an MLM company.

That means you have to go out and constantly recruit hundreds upon thousands of people into your team week after week to be successful.

And to make matters worst, around 99% of everyone who joins this company makes around $200 a month.

So while the choice is completely up to you as to whether or not you want to join this company — I wouldn’t recommend it for the reasons I just gave and more. 

Is Amway A Pyramid Scheme?

Amway is also not a Pyramid Scheme.  

This is because you can make money selling their products directly to people in order to make money.

And for a company to be a Pyramid Scheme it’s members have to earn an income solely from recruiting people rather than selling physical products.

Now if you are still confused as to what is and is not a Pyramid Scheme, you can watch this short 2 minute video that explains more about it in detail. 

 

My Final Thoughts

At the end of the day Amway is definitely a legit company. They are very popular, been around for a very long time, and sell products that everyone seems to enjoy.

However with all that said, they still use an MLM business model which means you can only be successful by building large teams.

This means that you can work extremely hard recruiting hundreds upon thousands of people into your team each month — but if none of them have the skills or motivation to sell this company’s products then you will end up making nothing!

And I don’t know about you, but this sounds like a terrible way to build a business online — and Amway’s income disclosure I think proves it.  

This is why I prefer affiliate marketing to generate an income online.

There’s no recruiting whatsoever, you can sell whatever products you want, and you don’t have to spend a dime on advertising.

You simply create helpful content that points people towards products they’re already looking for  — then you get paid a commission each time they buy something.  

So if this sounds like something you might be interested in, check out my #1 recommended training online.

It gives you step by step training, 24/7 support, all the tools you’ll need to be successful, and best of all it’s 100% free to join. 

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I hope you enjoyed reading my review about Amway, and know have a better understanding as to what it is, what they sell, and most importantly if you want to join them or not.

And if you have any questions or concerns you’d like to ask me about it, leave a comment below and I’ll be happy to help you out. 🙂

Amway

$194 + hundreds of dollars a month in products
2

Overall Rating

2.0/5

Pros

  • Lots of people like their products 
  • They offer a 6 month money back guarantee
  • It’s been around for a long time

Cons

  • It has a complicated compensation plan
  • Chances of you earning a good income are very low
  • You'll have to bother your friends and family to market it
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2 thoughts on “Is Amway A Pyramid Scheme? Read My Review To Find Out The Truth!”

  1. This is a very comprehensive review of Amway.  The information you have shared gives a great insight into the fundamentals of how to run this business effectively. I’m not a fan of MLM’s personally because with this particular business you have to recruit a lot of people in order to earn a decent amount of money. 

    Reply
    • Thanks for your comment Lisa, and like you I don’t find recruiting people, motivate them, and basically teaching them how to sell fun what so ever.

      Not to mention that the chances of you making a lot of money doing this is almost 0.

      So rather I have found that building websites, talking about subjects I like ( such as sports ), and promoting other company’s products ( like from Amazon ) has been far easier and a more profitable way to generate an income online.

      And out of all the companies I’ve come across online, Wealthy Affiliate here has by far given the most comprehensive training on how to do this.

      Also they allow you to join them for free, and if you like what they offer it only cost about a dollar day to become a member.

      So again while some people may like recruiting people and building large teams — I have found that more times than not everyone who tries this ends up failing.

      However with affiliate marketing which is what WA teaches — thousands of people are making a lot of money online. And you can click on this link here to see some of the success stories it has generated. 🙂

      Reply

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