Is Amway a Scam?
Is Amway a scam? This question has been asked many times in many forums about multi –level marketing. The answer has always been a resounding “No!”. After considerable deliberations on the methods used and the system followed by Amway in its selling operations, business groups, entrepreneurs, marketing consultants, and concerned government authorities conclude that Amway is a legitimate business with real products sold to the general public. This is differentiated from the so called “pyramid” scams which have infected the marketing world, victimizing willing investors in deceptive multi-tiered schemes involving the sales of non-existing or obscure product lines.
One of the best gauges in determining the legitimacy of any multi-level marketing (MLM) operations is the quality of the products sold. Products sold through direct selling are usually high quality, innovated products priced higher than their counterpart or competitive products in the market. The higher pricing standards are always mistaken to be a result of added costs due to commissions earned by the sellers in the multi-level marketing. Contrary to these beliefs, the higher prices are caused by the increments in better quality, better operational efficiency and the many added features of the products sold through direct selling. Reliable studies show that marketing costs of the traditional marketing and multi-level marketing are practically the same. This is another wrong notion that the uninformed public succumb to when assessing the merits of products sold through direct selling.
Multi-level marketing (MLM) is the preferred system for selling high quality products at sold at higher prices. To sell these products, aggressive selling style is needed and this can only be achieved by direct interaction between the consumers and the sellers representing the products, where the advantages of using the better quality products are fully explained.
The system of multilevel marketing is not well understood by the general public. It is only those with working experience in MLM companies like Amway who know and appreciate the real value of the income opportunities offered by these firms. The success of Amway in Australia is a fine example of a successful multi-level marketing operation. With over 100,000 distributors selling one hundred fifty million Australian dollars of products a year, Amway has shown that direct selling is a stable way of doing business with profits shared by management and multi-level sellers of the product.
Those calling Amway a scam are clearly misinformed about the company and the system of marketing that they employ. The aggressive style of selling does not fit all those join the company to share in its bountiful opportunities to earn big income. This is the reason why the percentage of people earning high incomes within the company is considerably small. Not all have the diligence and passion to engage in the aggressive and vigorous selling style typically used to pedddle high priced high quality products. Anyway, the vast majority of sellers not making good money are those who, attracted at first by the big incomes to be earned, quit after realizing that they do not fit the persona and qualifications of an effective direct selling agent. Amway, realizing that fine selling skills are expected of sales personnel, conduct regular sales training and product knowledge seminars to prepare their sales force for the task at hand.