Is Amway A Pyramid Scheme? No, However…


Welcome to my Amway review. I think it’s pretty safe to say you’ve probably heard of Amway and its business opportunity. And when it comes to their business opportunity it’s not uncommon for people to still be asking: Is Amway A Pyramid Scheme?

And when it comes to any MLM that’s a fair question. Because there are a lot of shady MLM companies out there.

Now, if you’re here I can only assume you’ve been approached by someone you know regarding Amway’s business opportunity and you want to find out more about it before you make a decision.

And with that said, let me first say, good on you for taking the time to do your own research getting involved with any business opportunity. That alone tells me your serious about finding a legitimate way to make money online.

Now, before you continue you need to know, I’m simply here to show you the pros and cons of Amway and give you my personal opinion. What you decide to do after reading my review is up to you.

Alright, let’s see what Amway is all about.

Quick Overview

Product Name: Amway


Price: Less than $100

Founders:  Jay Van Andel and Richard DeVos

Type Of Company: Multi level marketing company

So, What Is Amway?

Amway, which is short for (American Way) is the one of the oldest and most recognized MLM company in the world.

They have over 350 plus different products in nutrition, beauty and home. The company was founded back in 1959 by Steve Van Andel and Doug DeVos and is headquartered in Michigan.

Amway operates in over 100 countries and territories with more than 1 million Independent Business Owners. And in 2019 Amway announced it had 8.4 Billion in sales worldwide.

The Products

As mentioned, Amway has over 350 products which are broken up into the following categories:


  • Vitamins & Supplements
  • Weight Management
  • Sports Nutrition
  • Energy Drinks


  • Skincare
  • Makeup
  • Fragrance

Personal Care

  • Bath & Body
  • Hair Care
  • Oral Care


  • Air Treatment
  • Cookware
  • Disinfectant Cleaners
  • Laundry
  • Surface Cleaners
  • Water Treatment

You can see a full list of all their products by clicking here.

How Do You Make Money With Amway?

As with most MLM compensation plans, they are complicated and confusing. And Amway is no different. My head still hurts after reading their compensation plan. So, I’m just going to cover the highlights of the plan. You can read their compensation plan by click here.

Broken down you have 3 ways you can earn


As an IBO (independent business owner) you receive special IBO prices on all products. You’re given a suggested retail price, but you can also decide what you want to sell each product for. And the difference between your IBO pricing and the retail price is the retail margin. That’s your profit.

Performance Bonus

So, you can earn a Personal Performance Bonus and Differential Bonus on the volume of downline IBO’s you sponsor.

With the personal performance bonus, you earn a bonus from products purchased by you and your customers each month.

With the differential bonus this pays you the difference between your bonus percentage level and that of the IBOs you personally sponsor.

Now with every product you sell you will earn PV (point value). And when you start sponsoring new IBO’s you will also earn points from the products they sell. And it’s these points that will determine your performance bonus bracket.

Of course, in order to be eligible for these bonuses you must meet certain monthly qualifications.

amway bonus


New IBO Incentive Award – $50

Earn $50 up to 3 times in your first 6 months as an IBO. To get this incentive you must generate 150 Personal PV in a month, with at least 50 PV coming from qualified customer volume.

First Step Award – $100 (available once per year)

To earn this, you must help 2 of your downline IBO’s from 2 unique legs earn the $50 new IBO incentive award. And generate your 50/150 PV in the same month that the second IBO from the two new legs you sponsor earns.

Balanced Sponsor Award – $200 (available once per year)

To earn this, you must help 2 of your downline IBO’s in a third new leg earn the $50 new IBO incentive award. And generate your 50/150 PV in the same month that a new IBO from a third new leg you sponsor earns.

Mentor Award – $75 (earn unlimited times)

You receive $75 each time you help an IBO that you sponsored earn their first $200 balanced sponsor award. And you must generate your 50/150 PV in the same month that the leg qualifies.

Now there are other awards and levels each with their own bonuses. I counted 23 different levels you can climb within Amway. There’s so much when it comes to the different levels and those bonuses there is no way I can get into all of it here. Like I said the compensation plan is pretty intense.

But out of it all, the bottom line is this.

The more you sell and the more people you recruit into your downline the more money you can make.

Ok, So Can You Make Money With Amway?

As with any MLM opportunity of course you can make money. However, the amount you make is typically a far cry from what you’re told you can make.

And it’s no different with Amway.

You’ll find that with all MLM business opportunities the one thing they really like to focus on is all the money you can make. And what you can do with all this money and the freedom it can afford you.

Yeah, in my experience that’s all hype. What is talked about and what usually happens is way different.

Now the only information I could find when it came to the earnings that an Amway distributor makes was found in their Money Rewards Brochure. And in this brochure, it states that the average income for an “active” independent business owner in the US was $207.00.

And 48% of all independent business owners were active.

amway average income

$200 per month, that’s it!!

But it’s really no surprise. A ridiculously small percentage of people that enroll into and MLM actually make any real money. In fact, studies have shown that 99% of people that get involved with any MLM will lose money.

Sure, by Amway stats the average active IBO is making $200 per month. But that does not take into account the amount of money these distributors are spending each month for their business.

Not to mention the money each distributor spends on Amway products each month.

You see, as an Amway distributor, oh sorry independent business owner. You are strongly encouraged to swap out all your current household products for Amway products.

So, this is just more money your spending. Now you may be saying “Well I’m buying these products anyway so I’m not spending more”

Yeah you are, however Amway products are more expensive than products found in your local store.

What Training And Tools Can You Expect?

Amway has Amway Education that includes over 80 virtual courses. You can also get training from the person that sponsored you. And in addition to that Amway also has additional motivational and training material you can purchase.

What’s The Price?

The cost to get started with Amway is going to cost you less than $100 and is an annual fee.

This fee is to cover the costs of the resources provided to you by Amway. Which includes a virtual office, ongoing training, marketing material, customer service, mobile business management tools and more.

What I Like About Amway

#1) Solid Company

The company has been in business since 1959. So, if you do decide to join Amway, you know they’re definitely going to be around.

#2) Good Products

Amway does have good productss.

#3) Refundable Registration Fee

If you decide that being an Amway independent business owner is not for you. You can get a refund within 90 days of your registration.

#4) Variety of Products

With over 350 plus products in their catalogue ranging from nutritional to household products. I think it’s pretty safe to say you won’t run out of products to sell.

#5) Satisfaction Guarantee

If you are not completely satisfied with their products you have 180 days from the time you purchased your product(s) to either exchange them you get a full refund. Of course, not all products can be refunded.

Amway Satisfaction Guarantee

What I Didn’t Like About Amway

#1) Low Success Rate

As with any MLM business model the success rate is dismal to say the least. People get sucked into MLM’s because the story they are told of how this is going to be their ticket to financial independence (freedom).

Does making $200 a month through Amway sound like financial freedom to you?

amway average income

#2) Expensive Products

One of the many common traits MLM companies have is their products tend to cost more than comparable products that can be found in your local store. And Amway is no different.

For example, 1 bottle of their laundry detergent – which is 133oz, retails for $36.00 and you can do up to 133 loads and has no phosphates or chlorine.

Compare that to ECOS laundry detergent you can find at Costco. For $34.99 you get 2 bottles of ECOS totaling 420oz. And you can do up to 420 loads and it has no chlorine bleach, phosphates, phthalates, dyes or parabens.

You tell me which is the better deal?

And if you join Amway, they really want you to start using their products which makes sense if you’re having to sell them. But I see 2 problems with that.

First, you’re going to have a hard time selling products for more money when people can find comparable products for far less.

And second, you’re going to end up spending more money each month for the products you buy from Amway.

#3) Recruiting

I know Amway says you don’t have to recruit people to make money with them, and that’s true.

But if you want a shot at making the big money. The money every distributor raves about. You’re going to have to start recruiting people and build your downline. There is no way around it.

So not only are you going to have to become a salesperson to sell Amway products. You’re going to have to become a serial recruiter to have a shot at making the big money that everyone claims you can make as a independent business owner.

So that means every day you’re going have to wake up and try and convince (sell) people on the idea of joining Amway.

And the first people that Amway tells you to approach is your friends and family. Your warm market. And once you have burned through the people you know. You now have to pitch your business opportunity to a cold market. To people you don’t know. And that’s a lot harder to do.

#4) Not Your Business

It makes no difference what MLM company you join you NEVER own your business.

With MLM you have to follow all their policies and procedures. Including having to meet ridiculous monthly qualifications in order to receive the commission you’ve earned.

No matter what way you decide you want to make money online. The first rule is you have to have complete ownership and control of your business. And with MLM you have none of that.

#5) Bad Reputation

Amway does not have the best reputation when it comes to MLM. In fact, many people call Amway Scamway.

Before I become an affiliate marketer, I was sucked into an Amway meeting. I had no idea it was going to be in an Amway meeting until I got there. As soon as I did, I got the hell out of there.

If the company you’re a part of is so great why is it most distributors never use the name Amway when talking about this “great” opportunity they have?

They don’t, because Amway has such a bad reputation people want nothing to do with it when they hear the name. Building a business is hard enough. Why would you want to join a company that’s going to make things even harder?

My Final Opinion Of Amway

I’ve never been a fan of MLM. The whole concept is set up where you’re forced into becoming a salesperson not only for the products but for the business opportunity.

And yes, some people are cut out for that. But the majority of people are not.

And everyday people get sucked into MLM because of the stories they are told of what their life is going to be like by building an MLM business. But everyone gets a huge reality check once they come out of the fog when they are actually trying to build their business.

Building an online business is supposed to be fun.

Tell me, does having to wake up every morning knowing you have to try and sell products and sell people on the idea of a business opportunity sound like a fun way to build a business?

Not to me it doesn’t. But hey, that is me. But, if you think you can beat the odds and make this business work, then go for it. And I wish you nothing but success.

There Is A Much Better Way

Like I said building an online business is supposed to be fun. You want to wake up each morning excited about your business.

And you can wake up each day excited about your business being an affiliate marketer.

Because as an affiliate marketer you can build your business around your hobby or passion.

And with affiliate marketing you never have to approach your friends or family or recruit anyone to build your business. You never have to sell anything to anyone. And you have complete ownership and control over your business. You call all the shots.

Now, if building an online business around your hobby or passion sounds exciting then you need to take a few minutes and check out Wealthy Affiliate.

And I say that because since 2005 wealthy affiliate has been providing people with all the tools, resources, training, and one on one support for building a thriving online affiliate marketing business.

As a matter of fact, it’s wealthy affiliate that has helped me build my affiliate marketing business into a multiple 6-figure a year income.

And the great thing about wealthy affiliate is you can see everything they have available to you absolutely free.

I hope you found this review helpful and I hope I answered any questions you may have had about Amway and its business opportunity.

Of course, if you have any questions or comments please feel free to leave them below and I’ll get back to you right away.

And if you did find this review helpful and enjoyed it please feel free to share it with your audience. And as always anytime you need a hand don’t hesitate Emailing Me anytime.

I believe in you!!

2 thoughts on “Is Amway A Pyramid Scheme? No, However…”

  1. Listen unless you have mentorship with Amway, you don’t know what your talking about. This is coming from someone who’s been retired for 2 years because of this business. So before you start throwing out information that you clearly don’t know what your talking about. I’d recommend you talk to someone that has succeeded. Of course not everyone is going to succeed. It’s like saying everyone is supposed to be a millionaire. Oh, another thing, there’s no such thing as research. Research requires money. Google is just a search engine.

    • First off thanks for dropping by.

      I’m very familiar with Amway – I was sucked into an Amway meeting and I know of other people that were in Amway. So, I know of Amway and what they have to offer.

      Unfortunately, I’ve never found anyone that has had any real success in Amway. And when I say real success, I mean someone that’s earning a full time income.

      Now that’s not to say people can’t succeed. Of course, you can, and it sounds like you did. Congrats.

      But for the majority of people that get involved with MLM that’s never going to happen. And the statistics don’t lie.

      The insanely high failure rate in MLM cannot be ignored, nor can the recruiting aspect of building an MLM business. And when it comes to recruiting, after joining many people discover it’s way outside their comfort zone and quit because of that.

      And while I agree mentorship is key, it’s not always available from the person that recruited you.

      Now of course you can spend even more money each month and join world wide dream builders for mentoring. But again joining this does not mean that it’s going to help get to the upper levels of Amway.

      But like I said in my review if someone thinks they can beat the odds and succeed with Amway – and you know what you’re getting yourself involved with and what you have to do. Then go for it.

      Bottom line, you have to do what works for you. And MLM does not work for me and many others.

      Now with that said, You suggested I should talk to someone who has succeeded. You mentioned you succeeded with Amway, and again congrats.

      Would you be willing to share your story of how you found success, how long it took you, and what was involved in being successful in Amway?


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