Amway Scam? Yes It Is In My Opinion!
The Amway scam crushes the dreams and opportunities of millions. Founded in 1959, the Amway business opportunity has proven after 50 years that year after year it produces billions for the company and little for the Independent Business Owners that are doing the actual work. In my opinion, it is time for people to wake up and stop supporting this clear product-based pyramid scheme.
The California Vitamin Company/Nutrilite created one of the first MLM schemes and is owned by Amway – Source Wikipedia
The Failure Rate for Amway IBOs is 99%. – Source Study of Ten Major MLM’s and Amway/Quixtar
This is an incredible failure rate when you compare it to individuals starting their own businesses.
Only 36% of businesses fail after two years on average.
According to the U.S. Bureau of Labor Statistics the survival rate for a normal business is 54-61% after 4 years.
If you choose the lowest paying job in the United States, you can expect to make a yearly income for part time work of $7,540.
(Amount reached by multiplying the federal minimum wage of $7.25 by 20 hours for 52 weeks)
Here is an example of how the Amway scam is presented to people.
Amway Scam Facts
There are 3 Million Amway IBOs – Source Amway.com
46% of Amway IBOs Are Active. I hope you understand how bad a business opportunity Amway is when only 46% of the 3 million people that were sold this business opportunity are even willing to try and make sales.
For the 46% of IBOs that do remain active, they can expect on average to make $2,424 per year – Source Amway Business Reference Guide
Typical expenses for being an Amway IBO are over $300 per month. This is far more than the average monthly income of $202. – Source Facts About Amway
Top Amway performers make most of their income from books, tapes, and appearances. – Source NBC Dateline report
It’s important to get a complete picture of how the plan works: not just how much money distributors make, but also how much time and money they spend on the plan, how long it takes before they’re earning money, and how big a downline is needed to make money. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling. -Source Federal Trade Commission on Multi-Level Marketing
A common MLM lie is that MLM is creating more Millionaires than any other business. This is a lie. The largest percentage of millionaires are Managers and Educators. -Source Millionaire Corner