Network Marketing (M.L.M.) - Amway

ProgramCritique.com Review:

Founded by Rich DeVos and Jay Van Andel in 1959 Amway Corporation is a private company with annual sales of $6.2 billion (2004). Amway includes Amway Corporation with many legally separate yet surrounding motivational organizations such as Dexter Yager's organization and International Dreambuilders' Association. The sister Internet-based company of Amway, Quixtar started working in 1999. In 2001 Quixtar took over Amway’s North American business transactions. Similarly, in Europe Amivo, the daughter-company of Amway operates while in and Australia Amway lends its services through a2k. 

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Amway introduced the Multi Level Marketing approach, where people are encouraged to take part in its working and are assured of good returns. One of the most discouraging factors that often demotivate people is that one has to sell the products to friends and family members.  The largest MLM in the world, Amway recruits independent distributors who in turn recruit other distributors. Seemingly, it generates income when the distributor sells a product along with the recruits he or she makes. While people have taken Amway to court for practicing illegal pyramid, they could not prove the charge.

Researches have revealed that only 19% of the product finds its way to non-Amway affiliated consumers while the rest of it requires personal consumption or selling to other distributors. The Federal Trade Commission of has made it compulsory for Amway to put labels on products stating that 54% of its recruits do not earn anything while the rest make an average commission of $65 a month. This speaks volume about the moneymaking prospects of Amway.   

Amway tries to appeal people more so like a cult rather than a business opportunity. Resembling a religious meeting, the seminar emphasizes on positive thinking and loyalty for the organization. The chief achievers seem to dwell more on the money made through seminars and the sale of books, brochures, tapes, etc. Many individuals who took up its distributorship with the hope of residual commission and great gains have ended losing faith.

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