Before I get into this Amway review, let me introduce myself. My name is Ben Biel and I have been involved in the network marketing industry for over 20 years. My summer vacation was spent at network marketing conferences as a child and my parents were involved in over 20 different companies. I have had a love – hate relationship with this industry which, I believe, gives me the ability to offer a balanced perspective of the companies I review. I use a simple pro / con evaluation method which is by no means exhaustive but I hope it will help you confirm any research you have already done on Amway.
Amway Corporate Pros and Cons
Professionals– Amway is the oldest and largest network marketing company in the world and has annual sales of over $ 9 billion. If you decide to start an organization with Amway, you can rest assured that the company will not feature Chapter 11 and it will destroy all your hard work.
versus– Amway’s reputation. Almost everyone has heard of Amway and those who have not will surely have someone in their life, you will be happy to give their opinion. In some respects Amway has earned its bad reputation due to its cloak and dagger marketing techniques, but on the other hand most people with a very bad opinion of them think it’s a “pyramid scheme” that betrays their ignorance.
Pros and cons of the Amway product
Professionals– Amway offers a wide range of products including dietary supplements, cleaning products and cosmetics. All of their products are well made and would definitely rank in the top 10 for each of the products they sell with many in the top 3. For example, it would be difficult to find a better laundry soap than SA8 and it is considered a high efficient, concentrated and environmentally friendly and has been on the market for decades.
versus– Although the products are of high quality, most of them are overpriced. Even if they are not too expensive (i.e. the quality of the product justifies the higher price) it is difficult to convince people that they should switch mail order products they bought at the supermarket or Wal-Mart for half the price. There is also a lot of competition. 90% of other network marketing companies have products that compete with one or more Amway product lines, often at a more attractive price.
Amway Business Pros and Cons.
Professionals– The primary benefit of the Amway business is the commitment to personal development. The level of mentoring is extremely high and they focus a lot on community building and support for its independent business operators. Another benefit is profit sharing which is huge but you have to be a diamond before qualifying, which less than 1% of IBOs do.
versus– All personal development costs a fortune. Most of the people I know who started an Amway business quit because they couldn’t afford personal development. The amount of product you have to consume or sell yourself is also a deterrent, over $ 500 per month.
Another drawback is its marketing approach. People are trained not to tell people it’s Amway and are often told to lie if someone asks if it’s Amway. This tactic leads to distrust and resentment and adds to Amway’s poor reputation. Their marketing plan hasn’t been updated for over 21 years. I found an old Amway business plan in my dad’s office from 1989 and it contained exactly the same plan a friend of mine proposed to me when he tried to get me to join his Amway business in early 2010. Most it was word for word. They haven’t changed anything to new technologies, the internet or social media.
Amway’s compensation plan favors higher earnings a lot and doesn’t offer a great platform for new people to make quick cash. Dollar for dollar most other companies do a lot better. For example, my daemon at Amway has an organization that makes around $ 120,000 / month in sales and makes around $ 1500 / month. I have friends in another company who make $ 60,000 / month for the entire team and make about $ 3,000 / month. This is a 400% difference.
Conclusion of the Amway review
Amway is a great company that helps a lot of people. Everyone in this industry owes a lot to them for paving the way for all the other big companies that have followed in their footsteps. That said, I think the time for making a lot of money on Amway is over. There are many good networking companies with comparable products and better compensation plans that it would be easier to build a business with. Now, those of you who are passionate about Amway’s products or business can still do it. I know a guy who sponsors 10 people a week in his Amway business, but he doesn’t follow the corporate business model at all. He uses the purchased telephone contacts and calls over 300 people a day!