When people think about Amway, the truth is that many opinions appear: “It’s good!” “You should give it a try” “It is a waste of money” “I didn’t earn anything!”.
What we’re trying to tell you with this is that opinions from your friends, family, or anyone you know will usually be subjective, if not all the time, which is why it is hard to determine if some business opportunities truly work or not.
This is the case of Amway as well, and you usually reach a point in which you have to give it a try yourself in order to find the answer to the question we set in the title.
But we want to save you time, money, and effort or help you determine if, on the contrary, it is a business you can invest in, to your heart’s content.
This is why we will go over all the franchise background, history, and how you can be part (or not).
When Everything Started: 1959
This company has come a long way since Jay Van Andel and Richard DeVos founded it on November 9, 1959.
These two founders have been friends since school days, and before deciding to start Amway, they worked together in various endeavors, which include a hamburger stand and an air charter service.
The company’s full name is actually the American Way Association and was started when both founders were introduced to the MLM system (multi-level-marketing).
This system consists of bringing more people as distributors of the brand while you earn a commission or percentage of the sales of this distributor as long as it is associated with you.
In other words, people earn money based on the people they bring to join as independent distributors, not for selling the product alone.
This business model has been quite popular over the last 50 years (if not more), and people usually relate it to scams nowadays due to its similitude with pyramid schemes.
But going back to history and now that we have a concept of the MLM system, Jay and Richard made the decision to create Amway as a response to the instability of the former company where they worked, Nutrilite.
The goal was to look for more products in the market focused on health, beauty, and home care.
They were able to reach the first product, Frisk, which is a concentrated organic cleaner. The rights of the product weren’t from the company itself, and instead, Jay and Richard decided to buy them in order to handle the distribution and manufacture of the product.
Both founders continuously found products that could help the company grow while also starting to create more sections and bringing distributors to build the empire it is considered nowadays.
What You Do & Need to Spend
The entire concept of Amway follows the previous MLM system we mentioned and briefly explained.
This means you will earn money in two different ways: by selling the products as an authorized Amway distributor and bringing new people to become one.
The trick with these MLM businesses is that you make more money out of the distributors you bring and register with your name as a referral.
You need to work around persuading people to buy your products and start working as distributors for you to obtain compensation and commissions.
These people will be selling products under you, which is why the more people you bring, the more money you will be making, even passively.
In our opinion, you really have to be a good seller in order to make both things possible: sell products and convince people to join.
Here’s when many people’s doubts start to pop up: is it fair to bring more people into this business?
To answer this, we have to point out the main difference between MLM and a pyramid scheme: the latter doesn’t involve real products or services.
The reason why pyramid schemes are scams is that the entire process to make money is to fool people into signing and selling products or offer services that don’t even exist.
Meanwhile, MLM focuses on the same system, but you DO have products and services this time.
Next, let’s talk about prices.
Investing in this MLM business is actually quite cheap, and this is a pro we have to point out here and now.
Amway charges a bit less than $100 annually as a starting fee and continuous one to cover the cost of resources and help provided to distributors.
It is pretty similar to membership but quite cheaper than other MLM businesses and even services you pay for nowadays (like Netflix).
But the trick is here: you need to buy the products and packages to start selling.
The real money you will send isn’t the starting and annual fee but rather how much you will have to invest in buying products to distribute or sell them.
Obviously, this investment comes from your pocket and varies according to the products or package you decide to acquire.
Does It Work? Making Money with Amway
We mentioned a few paragraphs ago that Amway isn’t a scam, but there’s more to it than just this simple statement.
MLM businesses are the problem in common with this business opportunity you’re probably considering.
Why? Because the problem with finding new distributors is that you have to do it if you genuinely want to make money continuously, and they’re not easily found.
This is why over 65% of the company’s distributors don’t earn more than $150-200 per month because it is pretty challenging to have a continuous influx of people wanting to join and distributors.
But what happens with the products you’re selling? Here’s another problem: they are expensive.
Not everyone wants to buy Amway despite the quality of the products (yes, they work correctly) because they tend to be more than what many people are willing to pay for health and home care.
This means that your sales can be stagnant during the first months or even years, and those that make a fortune thanks to them are not making it thanks to the products but the distributors. So basically, it’s a lie when it comes to this.
Don’t get us wrong, Amway works, and you can make money with it, but not as much as the company promises you.
Well, it is normal to see and read many MLM companies telling you, “You’ll become wealthy with our help.”
But you want to believe, at least once, that this business opportunity will actually turn out to be a good decision, just to find out that, in this case, it won’t.
Most people only make a bit more than $150 per month, as previously mentioned, while another very small percentage earns around $500.
However, finding people who have genuinely earned a lot of money because of the system is rare, and we consider them even unreal.
To summarize this, Amway does work, and you can make money. It isn’t a scam but somewhat legit, but quite tricky when it comes to the whole business concept they offer you.
Pros & Cons: Investing (Or Not) in Amway
This is a lot of information to process, and we get it. Even if we tell you that it isn’t the best business idea, you might still want to give it a try.
But before you do that, we want to make sure we’re providing all the evidence that says “no” but also the one that can incline you to a “yes,” so you can make a well-informed decision.
- The starting and annual fees are cheap, and you can have your money returned during the first 60 to 180 days.
- The products are real, and they work, which means you won’t scam people with them.
- It is well-known worldwide and won’t require you to have a reputation.
- The products are hard to sell because they’re expensive.
- You can’t make too much money even when putting in a lot of effort.
- You can end up jeopardizing relationships when trying to find new distributors.
- Earnings and commissions aren’t fair.
No Need for Amway
Finding a business model that works, is reliable, doesn’t require too much investment, and can be done from home, is something many consider impossible straightaway.
Well, we thought in the same way until a few years ago when we discovered local lead generation.
This business model invites you to invest little money and a lot of time that will pay off later when you start making money passively, and all this from home.
Local lead generation focuses on bringing leads to websites for third parties, small companies, or businesses that need to find and bring clients their way.
Your role in this process is to build the websites for the businesses you will contact or reach out to you for your services.
Then, you have to rank each site on Google to make sure you’re bringing organic traffic or leads and be able to charge the clients for each lead generated, which is equal to a client for them.
But why is the word “local” in this? Because the companies or future clients you will be contacting will be located in your area, so you’re able to handle the websites and SEO to rank them on Google easily.
Better Than Amway MLM?
We already pointed out many problems with Amway, but if we have to focus on the biggest difference between this business model and the MLM system would be the fact of making much more money.
With local lead generation, you’re guaranteed to make over $1.000 per month for each website you build and bring leads to it. All this after putting a lot of effort in the beginning but being able to enjoy the results without moving a finger later.
Besides, you aren’t bound to make money based on finding others that will sell or offer the same.
However, as good as local lead generation sounds, keep in mind that you need to learn some skills.
From simple terms and programs to know how to build sites, contact potential clients, and handle every step on your computer.
Not many courses or training programs go over the detail and instead assume you know the most basic elements.
Fortunately, there’s a number 1 program we recommend since it goes step by step, allowing you to carefully follow the process and have support whenever needed.
To know more about it, you can click here…
Here’s Our #1 Recommended Online Business Model: