2009 comebacks: Amway
Filed under: Career
Desperate times inspire desperate actions. This may be part of the business plan behind the reemergence of Amway from behind the obfuscating name it adopted, Quixtar. The company, often criticized for operating much like a pyramid scheme, is returning to its best-known brand name, Amway, no doubt hoping to recruit new agents unable to find other work.
The original Amway was purchased by Alticor Inc. in 2000, and has since emphasized online sales and recruiting in foreign countries. The Alticor CEO told the AP recently that 80% of the companies sales are now outside of the U.S.
The Amway model is no doubt familiar to almost everyone: a sales agent buys product from the company at wholesale and sells it to friends and family at retail. The agent is also rewarded for recruiting new sales agents by receiving a bonus based that agent's sales. This pyramid-like scheme troubles critics such as our own Tracy Coenan. She also criticizes the company for raking in dough selling motivational materials to its own agents.
A 2004 NBC Dateline report found that the average active Quixtar (Amway) agent made only $1,400 or so per year. However, they recorded a pitch session in which the speaker suggested that the audience members could pull in a quarter of a million a year. While the company policy prohibits recruiters from exaggerating income claims, the whole business structure makes this an inevitability. This disconnect leads to much of the controversy surrounding Amway.
Nonetheless, in an economy with climbing unemployment and dwindling investments, I expect this year will be very good for Amway and similar home-business schemes. I can only suggest there are better places to put your energy.




Reader Comments (Page 1 of 8)
1-22-2009 @ 7:51AM
Wordsworth said...
There ARE far better ways to earn money than Amway or other businesses like it. You will spend more money with Amway than you will ever earn by being forced to buy materials, travel to meetings and "being your own customer" (purchasing the product that no one else will because it's cheaper at Wal*Mart). You will lose your free time to the company and annoy your friends and family in a desperate attempt to get them to join you. Dollar for dollar, you will earn more with a second job at McDonald's
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1-22-2009 @ 8:15AM
Marie said...
I have to disagree. Maybe there are different types of Amway groups but you are not "forced" to do anything. They approached me my third year of college and suggested I buy materials, do these meetings. buy these products but it is not required. I did meetings when I wanted, bought products that I needed or was worth the money and only purchased literature that seemed worth my money. As for the products, the money does go back to Amway but a percentage goes to you to. Let me ask you a question...last time you went to the grocery store, how much did they pay you to shop and buy their items? I'm guessing....never. Better to pay yourself a little then to pay other companies everything.
1-22-2009 @ 8:15AM
CESAR CASTILLO said...
every body who say bad things about AMWAY are very wrong however if working at macdonalds is your thing, have a good retirement, as for me i love amways products the people and everything alse so for those that are not with AMWAY GLOBAL i wont see you at the beaches of the world, CHAO BYE BYEYEYEYEYEYEYEYEYEYEYEYEYEYEYEY
1-22-2009 @ 9:28AM
Igor Sandler said...
Excuse of a loser. You have no idea how Amway plan works. Compare it with a job proves that 100%. I just expected to money fall on your head from the sky while you are watching a ball game? Well, good luck at that McDonald job.
1-22-2009 @ 7:35AM
judy said...
i joined amway in the early 80s and dropped out about 2 months later....to me it was a scam, it was exactly like was stated here,almost cult like,pyramid type scheme that only a few if any would achieve.they really didnt care if u sold anything as much as trying to get others to join. of course when u need money,it sounds good but really unless u are good at sucking people in ,forget it..and the products are nothing special and were high priced at that time. i doubt it has changed for the better.
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1-22-2009 @ 7:57AM
Ozzie said...
I agreed with everything Judy said, the only thing I have to add is that as a successful honest business man I thought I would do good and stayed a little longer... just to find myself with a big frustration.
1-22-2009 @ 9:29AM
Igor Sandler said...
Excuse of a loser.
1-22-2009 @ 10:04AM
Bob said...
My company used to give Amway certificates and catalogs on staff appreciation day - the merchandise was no better than something found in the old dollar stores - usually the item ordered would be out of stock (something not relayed to you till months later) or in the case of something like a sauce pan or skillet just plain fall apart. After a year or two of this, we stopped getting Amway certificates, no one wanted them.
1-22-2009 @ 11:44AM
Ann said...
Obvious that you haven't seen how much the company has changed over the years and how much they are making it beneficial for the business owners.If you went to school,you paid for books to learn whatever it was you were going to do with your life.Same thing here,to get educated you need to do the same.It's not a get rich quick scheme.You get out whatever you put in.Any company that is successful is always going to get negative feedback that's a given.My husband and I are part of Amway,very proud to be and have been very successful.You should take another look if you are serious about your future
1-22-2009 @ 8:05AM
DK said...
I was an active distibutor in the early 90's I unlike so many actually went out and worked hard thru 1999 and had some luck thru I developed a 6 figure income within 3-4 years but I havent been " active" since 2001 but still recieve about 2500. per month off of sales residuals from my group Amway is not a scam The organizations who operate under them with all their training and seminars are. So beware If someone is insisting you go here and go there and listen to this and read that Those people are in it for the money from the training dollars They want sheer numbers thats it Having said that I recently went to a trip in las Vegas i qualified for It was errie Sure felt like a cult to me Now that Im on the outside Botttom line there is moeny to be made But it is not easy anyone telling you so hasnt done it
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1-22-2009 @ 7:54AM
Tanya said...
I never tried to sell amway products, but have tried some of the products, and I was amazed at some of the products, the stain remover for clothes is magic, I worked in the food service industry for over 20 years and I can tell you there is nothing out there in the market that can even compare, I used a floor cleaner on an old tile floor dating back to the 1930's which seemed permanmently yellowed, and it looked brand new again! Amway products are wonderfull!!!!
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1-22-2009 @ 10:43PM
John Willen said...
Hello Ann,
You are so right about Amway/Quixtar products, I got into the business just for the products, now I have over 40 customers, who are not in it to build the business, but just to buy products. They make it so easy now, you can become a customer for free, (You still must sign up under a Amway/Quixtar business owner IBO) and if you buy $75.00 or more its free shipping. I would love for you to be a customer ofmine, if you want. I allow all my customers to buy at wholesale, thats my cost.
1-28-2009 @ 11:17AM
Manny said...
Tanya,
Great post on their products and they are some of the best in the world if not the best. If you are ever in need of anything feel free to contact me at mlk@revive-online.com
1-22-2009 @ 7:58AM
mel said...
I did Quixtar for about a year and stopped only because it was time consuming. What people fail to realize is it is not in fact a pyramid scheme. A pyramid scheme generally involves a large group of people at the bottom who does most of the work and a small group of people at the top who makes most of the money. Generally because of the work the people at the bottom participate in. That sounds like a basic coporate job to me. The people at the top's income exceeds mid-level management's income by a large margin and they clearly do not do as much work, yet people still aim to work there. With Amway/Quixtar, they only get a percentage of your earnings up until a certain breakpoint. Once you reach that point they no longer receive anything based on your earnings, unlike some schemes like Prepaid legal. Overall, the only part of Amway that seems like a scheme are the motivational tools they sell, but if you did not know, you are NOT required to purchase them if you do not want to. You do NOT have to go to functions if you choose not to. They do not force you to do that stuff and spend your money. It is not as bad as people make it seem, and at this time it is much better then putting in time and dedication in a job that you will probably lose due to this failing economy. I know graduated seniors who lost job offers before they even started. SUMMARY: Don't knock it until you try it. Better to make extra money than no money at all.
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1-22-2009 @ 9:28AM
Igor Sandler said...
Thank God, there are still smart and intelligent people out there, not just people pissed at everybody and everything. Thank you.
1-22-2009 @ 11:03AM
Ryan said...
You're right. you aren't required to go to seminars, or conferences or buy motivational cds. But if you don't, your upline will make you regret not doing such things. The people in this "business" also cram the stuff down your throats, making it seem like you won't succeed without them, but telling you afterwards they are "optional." My friend is doing this, and he is pretty much nonexistent in our house anymore. He spends hundreds of dollars a month on conferences, seminars, motivational tools, and books that his upline and other people he knows say that he "HAS" to got to, buy, read, or whatever if he wants to get to the next level. All the while he's doing this, he is losing money out the wazoo (along with over 99% of the people in the "business"). I wouldn't call duping people into slaving their lives away beneath you just so you can get that extra 50-100 dollars per month while you do the same for people above you a satisfying "job". My parents have done this scam before for years and never once turned a profit (they even filed for bankruptcy while participating). People have ended friendships, worthwhile relationships, and marriages over the dream that these sleazeballs try to SELL you. Amway/Quixtar may work for a select few, but not for the overwhelming majority chasing the so-called "DREAM".
1-22-2009 @ 11:51AM
Mary said...
You are right that you are not forced to buy the weekly tapes or attend the quarterly major functions (that used to cost $200.00 to $300.00 for an uncomfortable over-night bus ride and sleeping with 3 strangers in a hotel room to say nothing of the functions themselves that last until at least 2:00 in the morning!), but you are told that your business will not grow without them. Some of the products are very good but most are mediocre at best. I got out after about 4 years with nothing to show for it but a bunch of motivational books and a 3'x3'x2' box of tapes that ended up in the land fill. I have never had the nerve to calculate how many thousand dollars and hours I spent trying to sponsor people. "Unfortuately" they were all smarter than I was....they all said "No."
1-22-2009 @ 12:08PM
RobCam said...
Best response I have seen in all of this. I typically do not respond to these Amway is a scam blogs; people have a right to their opinions, no matter how off, and in the end, if they choose to work a job and base their future and their security in THAT, then they deserve exactly waht they get. I am an active Amway distributor, and haven't worked a job since 1995, and have been to some of the best places in the world, incuding Hawaii & Peter Island as a result of building the Amway business; my wife raised our kids, and our children have been privately educated all their lives, and have never been farmed out to a day care center. And for all the knocks against Amway, mainly by people who "tried it", and failed, it IS better to make a little for yourself, that you control & can increase based on your effort, then to tie your future to a company that goes out of business after the executives SCAM AWAY your pension and life savings. (See Lehman Brothers, and 30 other examples). Or to lose your entire life savings of millions of dollars in a real Ponzi scheme like the one Madoff was running.
All I know is this: the income I have created through this Amway business, that I worked HARD to create, still continues to come in, while all around me, people who used to knock it saying the same negative things that many on this particular blog have said...are unemployed. To each his own.
1-22-2009 @ 8:04AM
Tom said...
Amway; Quixtar; or whatever names this Republican cult company may try to use; should be outlawed. They are a pyramid scheme; and most people pour whatever profits they supposedly make; right back into buying AmWay products; which is exactly what AmWay tells them they should do. Some of the products are very good; some aren't so good; but stay as far away from this company; as you would from snake handlers.
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1-22-2009 @ 10:00AM
Dave Proffitt said...
A true liberal reaction, please let someone else give me money because I am to dumb to make money on my own.