Hi their! You are here reviewing the business plan of Amway, one of the most successful network marketing companies in the world and longest standing. But I do think it has some faults and in this article I will tell you why.
First of all, did you know Amway did sales of $8.6 Billion in 2017 and is ranked #29 among the largest privately held companies in the world? I can see why people are interested in it as a business model. With that length of success and reputation, if your going to look at a network marketing company, your going to look at Amway.
I do like network marketing as a business plan. I think it has helped many people succeed and bring financial freedom to those who may not have attained it. It is one of the lowest risk and lowest capital types of businesses out their. And you’re earning potential is unlimited and lucrative. This I love since so many people don’t have a lot of capital to start a business. Network marketing can be a great start.
Having been in the network marketing business for some time now. I know some in’s and out’s. Take this research to heart, as it will save you time and money down the road. After my research on Amway, here are my issues with it:
The Pay Structure – Designed For The Rock Stars
Amway has your typical network marketing declining percentages pay structure. To put this in simplified terms. As people get added into your organization in depth, you will get less and less of what they buy and sell. Your first level you get 9%, then 6%, then 3%, and nothing after that.
If you don’t understand this, this basically means to increase your income, you have to keep adding more and more people to your team. Then since each of these people are in different “legs” (as we call them in network marketing) they are all in competition with each other. Meaning a good chance of politics among your team.
Having seen this structure to many times in network marketing. Sometimes I wonder if people are creative and ever thought of something different. It is designed for rock stars. The 5%. The one’s really good in sales, good with people, charismatic, etc. Most people are not like this, (although I will say all skills can be developed over time).
The deal is for the average person, this type of pay plan will be hard to make a significant amount of money. It will definitely take you more time and money per week than what they are going to tell you.
Lack of Teamwork – No One Benefits From Each Other
Like I said above, since the pay structure is set up the way it is, each successive person that someone finds will have to be put into a new leg. Since this new person does not benefit from anyone else their sponsor has found prior, he/she is already in competition with the other people they have found.
This does not sound like a fun team meeting (I will say with the right leader it can be done as they can learn from each other) but since no one benefits, they are less likely to help each other out. And just so many thoughts could be going through a person’s head about motive in the meeting. Reminds me of being in a big corporate machine with lots of office politics. No, thank you!
Products – Can’t Give You An Honest Review
Honestly don’t know enough about their products to leave a review. They could be fantastic or not great. If they have been around for as long as they have been, they can’t be bad otherwise people wouldn’t be buying or using them if you know what I mean. They do have a good rating with the BBB which is good.
Corporate Team – More $ Focused, Less Distributor Focused
OK, looking at their corporate team. It does look like they are trying to come out with more products and be innovative in that area. I do give them that.
Problem I do have is their products are on both Amazon & EBay. You may wonder why this is a big deal? Let me tell you. This means you are in cutthroat competition with the other 3 million distributors of Amway. The one that can wholesale the most or take the least margins, will get the most sales. Leaving you with many customers shopping on Amazon rather than your website.
Let me explain it like this: You potentially have a sale of some good vitamins to your neighbor who has arthritis. She decides to go online to look up reviews and finds she can buy it on Amazon for 35% off compared to the price you quoted her. You were just giving her the price with the normal mark-up for a distributor so you can make some money. She is going to have to really like you in order to buy from you. Can you see how competitive this can get?
This hurts you but the company could care less, their getting the sales either way. Honestly this makes the bigger guys bigger and hurts the smaller guys or the ones just starting out.
Find a company that will fight for each distributor and makes it fair for each member, whether they are in for 20 years or 20 days.
Wrapping up, I don’t think your getting your money’s worth or time match with Amway. It is going to be too competitive and not enough pay. If you have certain skills, you could be great at it but even then Having a better option for you. And if your average Joe Schmo, it will be hard to be successful in Amway (with enough work and persistence, a person could do it).
Saying all that, why not make it easier on yourself and make money quicker and with an encouraging team (one where everyone benefits no matter where they are at) and with a corporate team that wants to make you successful. They want you to have that six figure residual income. Having that option.
I love network marketing and the opportunity it brings to set people free. I love residual income, the bread and butter of financial freedom. Having researched lots of companies. Let me show you the best one.
To read more about my option click HERE!
Comment below if you have any questions or remarks. Contact me on my contact page if you are interested to know more. It’s always free to look at and see if it is an opportunity for you.
Hope you enjoyed the article!
Blessings & Grace!,