What is so Special about Amway?
Amway is the poster child for multi level marketing. They started the whole business idea and made it huge! They have about 3 million people working for them so it is a continued success. Nowadays everyone has heard about multi level marketing, as well as the many companies that use this business model to become successful. People say multi level marketing is great, and others say it's a complete scam. Which one is it? Let's go back to the company that started it all and ask ourselves: just what is so special about Amway?
Advantages and Disadvantages to Multi Level Marketing
To determine what is so special about Amway we must first address what multi level marketing is. Simply put, it is a business model that distributes its products through independent sellers. This means that individuals like yourself can decide to make a business right from home, or wherever they may be. It is great because you are your own boss, create your own schedule, and get all the perks of working for yourself. However, someone else manages the supply chain aspect to it all and what it takes to get a ton of products distributed to a ton of people.The advantages for the company, Amway, are that they have thousands of people talking about, promoting, and selling their products for them. It's almost as if all of their marketing is done on its own. Think of MaryKay, another very successful multi level marking business. You never see ads for them on television or in magazines because they simply don't need to.
Bring your Friends
Another advantage is that the more people one individual convinces to also sell the product the more money they make. For example, Taylor starts selling Amway products, but then convinces their friend to do it too. Taylor not only now gets a profit from what she sells, but also a portion of her friend's sales as well.
What is Amway?
What do they even sell, and how did they gain so much success being the first in the market place? Amway sells a series of health, home care, and beauty products. The company was started way back in 1959 by a guy in Michigan. The company has been investigated multiple times to see if it was a pyramid scheme but was determined it was not because of four reasons:
1. The distributors of their products were not paid to recruit people.
2. They did not require their distributors to buy a large stock in inventory
3. Each distributor was required to maintain a certain amount of retail sales.
4. The company was required to accept returns of excess inventory.
Is Amway for Me?
If you go to their website, you can look through their products offered and their story, and determine on your own what makes them special. It may be hard to discern considering their site seems outdated, and the products don't seem like anything unique or enticing. However, when they started out, it was their business model that helped them grow. The idea of being able to work for yourself was very appealing to so many! Now, the thing that makes them special is that you can start your own business for very cheap and, if done correctly, there is almost no way to lose money. It cost $62 to get started and you are guaranteed this back in 180 days. No other money has to be spent and there is a very generous return policy on any products that are purchased. There is an easy income simulator which displays how much product you will have to sell to make the desired income.
How is Amway Different from Other Multi Level Marketing Companies?
These few key things make Amway a competitor, to this day, in the multi level marketing world. It is cheap and easy to get started and there are no requirements beyond that. The products they sell are very mainstream and almost anyone can use them! They aren't hard to figure out or learn about and they are all right there online, meaning the individual business owner doesn't have any work beyond finding customers.
Is Amway a Pyramid Scheme?
Seeing that Amway has been confronted with many acquisitions of being a pyramid scheme, although denied, what is the different between Amway and a pyramid scheme? A very key indicator of a pyramid scheme is the push to recruit people over selling the actual product. Also, a very high cost to get started which can be in the form of a stater kit or non refundable membership fee. If they are requiring you to take any mandatory trainings or tutorials to get started, this is also a warning sign. The goal for a multi level marketing company is to sell products, where a pyramid scheme is to recruit people, which in turn passes money up a chain of investors. They can be hard to spot right away, but doing even just a little bit of research can undercover if you could be getting yourself into a bad situation.
Maybe you've been living under a rock or maybe you just don't hangout in this realm of the world, but some of the other top multi level marketing companies are those like Avon, Marykay, Tupperware, Herbalife, and Isagenix. Among all of these, Amway still comes in at #1, even after all this time! This shows how foolproof their business model was and how they have kept their success all this time. They really are special because their products are not that unique and they don't sell things you can't get at the local grocery store or Walmart. As the day and age has changed over time, people are becoming even more and more interested in starting their own businesses and not working a 9-5 with a boss they hate. It looks like Amway may stay 'special' and relevant for many years to come!