facebookCan anyone provide some insights about Amway? - Seedly

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Anonymous

08 Mar 2020

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Random

Can anyone provide some insights about Amway?

Amway prides itself as an anti-pyramid scheme business opportunity, and we have seen many (alleged) success of Amway Business Owners.

Why do people still call it a "scam" and is it a legitimate source of passive income for a 9-5 worker?

Discussion (3)

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Rais M

08 Mar 2020

Accountant at SME

Amway is known and is marketed as a 'direct selling company'. In other words, you can also see it as a multi level marketing (MLM) company. Regardless if they say they have a pyramid or anti-pyramid scheme, almost all MLM work on the basis of a distribution model. They give it different name to avoid any legal issues.

The alleged success of Amway business is true. I have a friend who is quite successful in Amway. They earn money by distributing (selling) Amway products, and at the same time recruit a team (distribution model) to sell to more people, earning a % of what they sold at the same time. This is like a network effect where if you have a strong team, you can perform really well. Amway also conduct relevant sales related training to guide you too.

I guess in Singapore, everyone see MLM as a scam due to the bad image most MLM companies have given. There are many horror stories of people being made to 'buy stocks' to keep so that they can sell in the future, but these people usually ends up being unable to sell them and are stuck with the stocks.

There are also cases where people claim that in a MLM, only the higher level positions are able to make huge money because of the pymarid model, where the money from the new recruits are used to pay the higher level positions.

To be honest, ignoring the stigma, direct selling company like Amway, Herbalife, etc are actually good companies to work at. My friends are working full time in these companies and are performing quite well because they are willing to put in the time and effort to grow their team and the business.

Andy Sim

08 Mar 2020

HR Professional at a Financial Institution

Amway at its core is an MLM company and the business model is basically recruiting more distributors to sell the products, which in turn you will get a share of your recruit's sales. Very often MLM sales person will use pressure tactics and hardselling to others, including their friends and families which I guess is where they get their bad reputation.

Being an MLM sales distributor is tough and alot of them don't make money much less turning this into a passive income. I personally would never consider being an MLM distributor.

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