Amway review: the pros and cons of running an Amway business
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 vacations were spent at network marketing conventions as a child and my parents have been involved with 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 that I review. I use a simple pro and con evaluation method that is by no means exhaustive, but I hope it helps you confirm any research you’ve already done on Amway.
Pros and cons of Amway Corporate
Pros– Amway is the oldest and largest network marketing company in the world, generating more than $ 9 billion in annual sales. If you decide to start an organization with Amway, you can be sure that the company will not file Chapter 11 and destroy all your hard work.
Cons– Reputation of Amway. Almost everyone has heard of Amway, and those who haven’t will certainly have someone in their life to whom they will gladly offer input. In some respects, Amway has earned its bad reputation due to its swashbuckling marketing techniques, but on the other hand, most people who have a low opinion of them think it is a “pyramid scheme” that gives away their ignorance.
Pros and cons of Amway products
Pros– Amway has a wide range of products including nutritional supplements, cleaning products, and cosmetics. All of their products are well made and would certainly rank in the top 10 for every single product they sell, and many in the top 3. For example, it would be difficult to find a better laundry soap than SA8 and it is considered high efficiency, concentrated and green and has been on the market for decades.
Cons– Although the products are of high quality, most of them are overpriced. Even if they are not overpriced (that is, the quality of the product justifies the higher price) it is difficult to convince people that they should exchange the mail order product they used to buy at the grocery store 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 of Amway’s product lines, often at a more attractive price.
Pros and cons of Amway Business.
Pros– The main advantage of doing the Amway business is its commitment to personal development. The level of mentorship is extremely high and they are very focused on building community and support for their Independent Business Operators. Another pro is profit sharing, which is huge, but you have to be a Diamond before you qualify, which less than 1% of IBOs do.
Cons– 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 must personally consume or sell is also a deterrent, more than $ 500 / month.
Another downside is their marketing approach. People are trained not to tell people that it is Amway and are often told to lie if someone asks if it is Amway. This tactic breeds distrust and resentment and adds to Amway’s bad reputation. Your marketing plan hasn’t been updated in over 21 years. I found an old Amway business plan in my dad’s office from 1989 and it had the exact same plan that a friend of mine presented me with when he tried to get me to join his Amway business in early 2010. Most of it was word for word. . . They have not changed anything to new technologies, the Internet or social networks.
Amway’s compensation plan greatly favors top earners and doesn’t provide a great platform for new people to make money quickly. Dollar for dollar, most other companies do much better. For example, my friend at Amway has an organization that makes about $ 120,000 / month in sales and makes about $ 1500 / month. I have friends at a different company who make $ 60,000 / month in sales for their entire team and make about $ 3,000 / month. That is a 400% difference.
Amway review conclusion
Amway is a great company that helps a lot of people. Everyone in this industry owes them a lot for leading the way to all the other great companies that followed in their footsteps. With that said, I think the time to make big money with Amway is over. There are many good networking companies with comparable products and better compensation plans that would make it easier to build a business. Now, those of you who are passionate about Amway products or the Amway business still can. I know of a guy who sponsors 10 people a week at his Amway business, but he doesn’t follow the corporate business model at all. Use purchased phone contacts and call over 300 people a day!