Amway

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Amway offers many bonuses and incentives to its distributors

With its original product released in 1959, Amway has sought to be seen as the global leader in the health and beauty industries. Amway's fundamentals established by its founders are freedom, family, hope, and reward. The Michigan-based company believes its distributors will achieve happiness through earned success. Its product line includes weight management shakes, eye and lip care, household cleaners, laundry detergent, and more.

Amway prides itself in being a family company with a global management team in place to support independent distributors. Amway hopes to help people start their own business with the promise of access to exclusive products, a low startup cost, and a 100 percent satisfaction guarantee. People interested in Amway's health and beauty products can choose to become an Amway independent business owner or be an Amway customer.

Because of the large amount of saturation with Amway, customers may want to consider one of the other top MLMs in the industry.

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The Good

  • Amway Compensation Plan
  • Additional Bonuses
  • Money-Back Guarantee
  • Positive Amway Reviews
  • Endorsements and Sponsorships

Amway Compensation Plan

What other MLMs call distributors or salespeople, Amway calls business owners.

These independent business owners (IBOs) partner with Amway and the Independent Business Owners Association International (IBOAI) to establish communication and support through its international community of independent contractors.

As an Amway Independent Business Owner, you can earn money in all of three ways: selling products, recruiting IBOs, and earning bonuses. Bonuses are earned through your overall sales volume and the size and success of the group you organize and recruit.

Simply put, the more you sell and the more you recruit (and the more your recruits sell/recruit), the more money you make. Success is entirely dependent on personal success in quickly forming business relationships. If interested parties have a talent for forming quick, meaningful relationships, then this is a good compensation plan for them.

The amount of money a distributor, salesperson, or business owner makes is dependent upon the combination of what Amway calls "immediate income" and any additional income earned through performance bonuses.

An IBOs immediate income is the total amount you make from product sales minus the total amount it costs to purchase the inventory. If you buy $1,000 worth of inventory each month and sell $3,000 worth of product, then your immediate income for the month is $2,000.

In addition to the immediate income, IBOs can build a higher income by increasing their sales volume, which is determined by their Point Value (PV) and their Business Volume (BV). Each product, or set of products, has a PV assigned to it.

Business Volume (BV) is the dollar value of the products that IBOs, distributors, and salespeople sell. To make it simple, your total sales volume is the combination of PV and BV (most people just call it their PV/BV).

Amway states that IBOs who focus on registering new IBOs earn higher bonuses than those who focus on sales.

The total Point Value (PV), along with Business Volume (BV), help determine your monthly performance and which bonus bracket you will fall under for the month. Here is a list of performance bonuses and their corresponding Total Monthly PV:

Total Monthly PV: Performance Bonus (% of BV)

  • 100-299: 3 Percent Bonus
  • 300-599: 6 Percent Bonus
  • 600-999: 9 Percent Bonus
  • 1,000-1,499: 12 Percent Bonus
  • 1,500-2,499: 15 Percent Bonus
  • 2,500-3,999: 18 Percent Bonus
  • 4,000-5,999: 21 Percent Bonus
  • 6,000-7,499: 23 Percent Bonus
  • 7,500+: 25 Percent Bonus

Additional Bonuses

The company also offers an extensive list of additional bonuses with specific qualifications and awards for each bonus rank. Here's a list of the different ranks and some of the associated awards and bonuses:

  • 25% Sponsor — 25 percent performance bonus.
  • Silver Producer — 25 percent performance bonus and a Silver Producer pin.
  • Gold Producer — 25 percent performance bonus and a Gold Producer pin.
  • Platinum — 25 percent performance bonus, a Platinum pin, invitation to the New Platinum Conference, and Growth Incentive Program participation.
  • Founders Platinum — 25 percent performance bonus, a Founders Platinum pin, and Growth Incentive Program participation.
  • Ruby — 25 percent performance bonus, a Ruby pin, the monthly Ruby Bonus, and Growth Incentive Program participation.
  • Founders Ruby — 25 percent performance bonus, a Founders Rub pin, a monthly Ruby Bonus, and Growth Incentive Program participation.
  • Sapphire — 25 percent performance bonus, a Sapphire pin, and Growth Incentive Program participation.
  • Founders Sapphire — 25 percent performance bonus, a Founders Sapphire pin, and Growth Incentive Program participation.
  • Emerald — 25 percent performance bonus, Emerald bonus, and a pin*.
  • Founders Emerald — 25 percent performance bonus, Emerald bonus, and a pin*.
  • Diamond — 25 percent performance bonus, Emerald and Diamond bonuses, and a pin*.
  • Founders Diamond — 25 percent performance bonus, Emerald and Diamond bonuses, and a pin*.
  • Executive Diamond — 25 percent performance bonus, Emerald, Diamond, and Diamond Plus bonus, and a pin*.
  • Founders Executive Diamond — 25 percent performance bonus, Emerald bonus, and a pin*.
  • Double Diamond — 25 percent performance bonus, a pin, and a $48,000 cash bonus*.
  • Founders Double Diamond — 25 percent performance bonus, a pin, and a $64,000 cash bonus*.
  • Triple Diamond — 25 percent performance bonus, a pin, and a $80,000 cash bonus*.
  • Founders Triple Diamond — 25 percent performance bonus, a pin, and a $96,000 cash bonus*.
  • Crown — 25 percent performance bonus, a Crown pin, and a one-time cash bonus of $128,000*.
  • Founders Crown — 25 percent performance bonus, a Founders Crown pin, and a one-time cash bonus of $160,000*.
  • Crown Ambassador — Receives a 25 percent performance bonus, a Crown Ambassador pin, and a one-time cash bonus of $192,000*.
  • Founders Crown Ambassador — Receives a 25 percent performance bonus, a Founders Crown Ambassador pin, and a one-time cash bonus of $224,000*.

 *All ranks above "Emerald" include a 25 percent performance bonus and participation in the Emerald Profit Sharing Bonus and the Growth Incentive Program. Additional bonuses may apply.

Money-Back Guarantee

Amway has a $62 registration kit with items needed to get started. This registration kit has a 100 percent money-back guarantee for the first 90 days. The kit comes with the following:

  • Step-by-step guide to help distributors understand the business, products, training resources, and details on bonus programs
  • Marketing support
  • Direct sales tips

People who choose to become Amway independent business owners will be part of a network of more than three million people who have chosen to do the same.

Positive Amway Reviews

Though the company does not have a huge quantity of customer and distributor reviews, the ones we have received have been mostly positive. 

The aspects of the company that customers seem to like are the money-back guarantee, customer service, experience, high-quality health and beauty products, and ethics. The few negative Amway reviews do not focus on products, rather they criticize the company's ability to actually provide a decent income opportunity for its distributors.

Reviews from distributors applaud the company's ethics, sales training, debt-free status, family values, ingenious business model (kingpin marketing organization), and team-centric sales strategy.

Amway distributors and independent business owners will find selling and recruiting much easier because of the 100 percent money-back guarantee. One distributor claims the company has never missed a single bonus check. 

Endorsements and Sponsorships

For people who value high-profile endorsements and sponsorships, the Amway Center Sports and Entertainment complex in Orlando, Florida is the home court to the Orlando Magic. The multi-level marketing company not only hosts an NBA team at its flagship center, but it also hosts popular performers such as Ed Sheeran. Amway also has a number of celebrity athlete ambassadors including:

  • Kirk Cousin, professional football player
  • Adreian Payne, professional basketball player
  • Chris Harris Jr., professional football player
  • Rich Gannon, retired professional football player and sports commentator
  • Allie Lyn Dragoo, cyclist
  • Trent Murphy, professional football player
  • Canadian Men's National Soccer Team
  • Canadian Women's National Soccer Team

Amway also has several notable partnerships with companies such as:

  • Sony
  • Neiman Marcus
  • Lego
  • Macy's
  • Microsoft

The Bad

  • Lawsuits
  • Compensation

Lawsuits

Amway's time in business has not been without controversy. The multi-level company is not new to dealing with a class action lawsuit. One class action lawsuit in the last ten years resulted in Amway paying $56 million to settle a case alleging it operates a pyramid scheme. Amway agreed to the deal to close a 2007 class-action suit. Here are some of the accusations Amway has received form each lawsuit in its more than 50 years of business:

  • Amway's kingpin companies that sell "motivation and training" products to recruits are part of an illegal pyramid scheme.
  • Amway criminally violates federal racketeering law
  • Amway violates California's "endless chain" law
  • Amway deliberately deceives consumers to enroll in the pyramid scheme in which they inevitably suffer financial loss
  • Amway commits wire fraud and mail fraud

Compensation

Although Amway pitches that people can be financially free through its multi-level marketing model, the number of distributors who are able to generate a reliable income on a full-time basis may be lower than some expect. Here are the statistics:

  • About 10 percent of all U.S. direct sellers work full time and are the highest earners
  • About three percent of all American direct sellers earn more than $50,000 per year
  • About six-tenths of one percent make more than $100,000 per year

Amway's level of retention can also be discouraging since less than 41 percent of its distributors are active. One source says that Amway's payouts to distributors show that more than 99 percent of all who sign up never earn a profit.

The Bottom Line

If choosing a multi-level marketing business with a proven track record of sales is important to you, Amway will most likely be in your top three MLM companies to sell for.  Amway is also more forgiving to people who do not receive the experience they expected when signing up with the health and beauty company. Distributors have a money-back guarantee which gives them time to decide if Amway fits their needs.

However, Amway is not foreign to lawsuits and questions of the integrity of its business practices. What do we suggest? Compare Amway to other multi-level marketing companies and how they best meet your personal goals and values. Also, consider whether or not you want to be associated with a company who has settled in court due to pyramid scheme accusations.

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User Reviews

4.5

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55 Reviews

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CARMEN
February 24th, 2016

AMWAY places lots of emphasis on building unique relationships and self development. Business support is available from several sources and the corporation do walk the talk. Most of the hiccups comes from the sponsors Not the corporation

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Derrick
January 11th, 2016

A truly incredible company founded on great values and morals.

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Mark Duran
January 6th, 2016 Petoskey, MI

A rock solid company founded and operated on the principles that make our nation great! Family, freedom, hope and reward! & no other DS company even comes close to 47 billion a year! Not a get rich quick Buisness, it takes persistent and consistent work to build a income producing asset of a business. Also good to know this company is always looking 20 years to the future, always making things better.

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Renes Van Rensburg
November 16th, 2015

Intergity and support has changed my family's circumstances.

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Amanda Bigner
October 20th, 2015 Middletown, OH

Reason I get to be a a stay at home mom!

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