If you're familiar with the world of direct sales (aka multi-level marketing, often shortened to MLM), then you've probably heard of Amway. Founded in 1959 and worth an estimated $8.4 billion today, Amway is one of the oldest and biggest MLMs around.
For many of us who are interested in the financial growth and freedom associated with online marketing and entrepreneurship, MLMs seem like the place to start. Companies like Amway are quick to let you know that some of their so-called independent business owners (IBOs) are making six figures every month on their own time.
In this Amway review, we'll pull back the curtain on these promises and take a look at what Amway has to offer. Is it a fantastic business opportunity with great products at the helm or is it a scam?
Read on to have all of your questions about Amway–and about internet marketing secrets–answered in this complete Amway review.
What Is Amway?
Amway is an MLM founded by Doug DeVos and Steve Van Andel. True to any direct sales model, Amway's IBOs are offered the opportunity to sell exclusive products using their own methods on their own time.
How do you get started? Amway allows new IBOs to sign up via a sponsor (someone who already sells Amway products), charging a $100 registration fee to get started. Once you're in, there are three core ways to make money:
- Commissions on each product you sell directly or that someone in your downstream sells directly
- Performance-based bonuses given to IBOs as they grow their business
- Incentives received for achieving certain milestones set by Amway
Sounds pretty easy, right? Let's take a quick look at what you'll be selling.
What Products Does Amway Offer?
Unlike other MLMs that sell products with their own branding, Amway sells a variety of different product lines. These include:
- Nutrilite supplements
- Specialty skincare products and cosmetics
- XS Sports nutrition shakes and energy drinks
On top of these big sellers, Amway sells dozens of other product lines that they claim you can't find anywhere else. The trouble is that we're seeing a lot of these supposedly exclusive products on e-commerce sites like Amazon, where they're being offered for a lower price.
Does this affect the legitimacy of the company? Given how much it's worth, it would seem that the model is still working.
Amway Review: The Pros of Amway
It's important to talk about the perks of working for a company like Amway. For starters, Amway does allow you to build up your own independent business using tools like a personal website and social media. You don't answer to anyone but yourself (in theory), which means that you can take on as much or as little work as you need.
As with most MLMs, developing a downstream is key to your success with Amway. Selling the products will bring in some money, but convincing others to come on board is a better way to create a partially-passive income with Amway. If you can pull it off, you can make some serious money.
Amway Review: The Cons of Amway
Where there are pros, there are usually cons, and this is something everyone should be wary of before joining an MLM. When you watch Amway's promotional videos, it's easy to fall under the impression that their products sell themselves and that you can get rich with minimal effort. The reality is that for most Amway IBOs, Amway is not a sole stream of income–and we'll tell you why.
Amway Isn't Really Designed to Make You Rich
On Amway's own website, you'll find a page entitled, “Can you make money with Amway?”
After scanning through the surprisingly brief response to this question, you'll discover that even Amway's own higher-ups don't think you're going to get rich through Amway. In fact, they describe it as a “side gig,” noting that most of their distributors don't make a living off of Amway's business model.
In fact, even IBOs who make it to Amway's “Founders Platinum” level of sales only bring in an average of $41,066 per year. Why isn't this multi-billion dollar company leading to huge profit margins for its IBOs?
There are a few barriers that prevent Amway from becoming a get-rich-quick scheme, one of which is market saturation. With a company that has been around for so long and is so widespread, it's not as easy to find new consumers who are ready to start selling Amway products, themselves. Plus, commission rates are often as low as 5%, which means that you'd have to sell a lot of product to see any real turnover there.
In the end, though, the main reason that Amway's IBOs aren't rolling in cash is that they don't have the marketing skills necessary for any independent sales endeavor.
Without Marketing Skills, You Won't Succeed With Any MLM
A common complaint with MLMs like Amway is that they don't provide their direct salespeople with a ton of guidance. Where you do find a consumer base and, more importantly, how do you recruit new salespeople into your downstream?
The real key, here, is to learn everything you can about marketing. Browse through resources like our marketing blog, take classes, and look for mentorship outside of the MLM if you want to become an expert marketer.
How Can You Boost Your Marketing Skills to Succeed In Any Online Business Endeavor?
We hope our Amway review has given you some insight into Amway's business model and how to make it work for you. No matter the company, the product, or the commission rate, you're going to need marketing skills to succeed in any online business endeavor.
Whether you're looking to boost your business through a third party like Amway or start from scratch, we have the tools you need to succeed. Join the 15 Day Online Business Builder Challenge to access unbeatable resources like The #1 High-Ticket Business Model to Launch Online.