Alright before making an attempt to provide an answer to the question: “ Is Amway a scam ?” it is important to first of all take a peep into what network marketing or direct selling isall about.That is, is it a legitimate business model?, since the Amway Company is first and foremost a direct selling firm.
Consequently, direct selling essentially refers to the marketing as well as selling of product items directly or face-to-face to consumers, outside of a retail sedentary location. MLM or multi-level marketing is a form of direct selling.
Is Amway a Scam or Not?
Also, peddling is another kind of direct selling and its oldest form. So the question before us now is if this form of marketing or selling of products legal or even successful. Concerning this, the answer to the first part of the question is yes it is legal.
This is so because the Federal Trade Commission (FTC); a U.S. government independent consumer protection agency does not say that direct marketing or MLM is otherwise.
However, the caveat given by FTC regarding MLM plans is that one should avoid those promising commissions for new distributor recruitment.
Is Amway a Scam or Pyramid?
The reason that it advises against this practice better known as pyramiding is because such plans will eventually collapse once new distributors cannot be recruited.
Thus, leading to a situation where most people involved in such a plan lose their hard-earned money, except probably for those at the very zenith of this pyramid.
Alright regarding the second part of the question; that is the success of direct marketing it has been reported by DSA (Direct Selling Association) of the United States that in the year 2000 fifty-five percent (55%) of grown-up Americans at one time or the other have patronized direct selling representatives.
Is Amway a Scam or Success?
This, in addition with the over US $114 Billion sales made in the year 2007 by 62 million sales representatives or more as reported by DSAs worldwide is enough evidence of its success and impact in recent years.
Okay so having laid this foundation is Amway a scam ? Well, going by what has already been established it isn’t just because it employs direct selling or multilevel marketing.
So why has there been a lot of information out there, especially online about Amway scam. Amway for the benefit of those who don’t know is a company that has existed for more than 50 years (actually since 1959), which uses direct selling to sell its products.
Is Amway a Scam? No
Now in the course of doing business over the years, this firm has spread its tentacles in almost every part of the world. And has had people working for it both as in-house staff and as IBOs (Independent Business Owners); that is individuals who sell and recruit others to do likewise for Amway, while earning some money for themselves.
Now some of these people have done a good job, while others haven’t. Consequently, giving this company some of its bad reputation. This, however, does not in any way excuse the management of the company as well as its representatives of any wrongdoing where such is applicable.
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Is Amway A Scam?
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Is Amway a Scam? Truth Exposed
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