Amway (short for “American Way”) is an American MLM company selling health, beauty, and home care products.The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan. Amway and its sister companies under Alticor reported sales of $8.6 billion in 2017. It conducts business through a number of affiliated companies in more than a hundred countries and territories. Amway was ranked No. 29 among the largest privately held companies in the United States by Forbes in 2015 based on revenue, and No. 1 among multi-level marketing companies by Direct Selling News in 2016. Our Amway review will give you an insight of the Amway opportunity.
As with most of the old school MLM companies, such as Herbalife, only a handful of people will make decent commissions. These kinds of companies are for people who love the products, there are far better income opportunities out there. Of course 50 years or history creates some security; you know that the business you build with Amway will be around for a long time.
Looking at the Amway UK business we found these income details: Retail consultants: 17 205, were 4 735 made money. The average monthly income was £41, highest monthly paid made £557. Certified Retail Consultants: 19 699, where 7 413 made money. The average monthly income was £100, highest monthly paid made £3743. Business consultants: 66, which made an average of £2281 per month. So out of 37 000 distributors in the UK 66 could in theory live from their commissions (£2281 per month). Out of the 66 there is 1 Diamond, this guy alone take most of the commissions, so in reality these 65 left might earn £ 1000 per month, if lucky. Not the big pay check they tell you about.
The compensation plan is called a “stairstep breakaway,” which requires the business rep to effectively rebuild a leg once it has reached what’s called Platinum status (7500 points). Basically, legs break off once they qualify and the commissions turn into 4% royalties instead of commissioned pay-outs of 30%. The compensation plan design requires a lot of time and effort. If you really want to be profitable in Amway you basically need to build 6 legs at once. Online marketing was up to recently not allowed, so this is not an online business opportunity.
Cost to build a business
You can start for as little as $60 and you will receive a Welcome Kit with the step-by-step guide how to build your business. As with most product based MLM companies you are expected to spend hundreds, if not thousands on products each month.
Qualifying for commissions requires more volume than most other companies; this keeps new distributors in the red for a longer period of time. You need to move products for around $300 to start earning commissions, your total personal cost could easily become $500 dollars per month to build your business (Amway cost, then you have all your personal costs, like gasoline and hotels).
According to what we could figure out in our Amway review there are 2 Diamond distributors in the US and 1 in the UK. This can only mean that becoming a million dollar distributor is close to impossible, and for this reason we would not consider Amway as business opportunity.