The Amway Scam- Don't Fall For It!

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By strkngfang

If it sounds too good to be true, it is!

I consider myself a fairly smart individual so I'm actually a little embarrassed that I fell for this "fantasy" called Amway. They have created an on line version of this scheme now called Quixtar but that was just coming out when we parted ways.

For those of you who don't know, this is a multi level marketing business that relies on selling to people you know, then they sell to people they know and on and on. You are given "gem" names to represent where you are in the business regarding your sales to further inflate your ego and create more false security. Ruby & Sapphire's are mid range but the big goal is to make "Diamond" and then there is also "Double Diamond", aren't you intrigued?

How do you get "sucked in"?

This part is really easy if you let yourself. Usually one of your friends that is already involved will "bait the hook" first and after you are really interested then they will set up a meeting with you, them and their "upline" distributor, usually a ruby or diamond. "Upline is the name given to everyone a head of you and "downline" is for those beneath you. You are assigned to a team and you are all interconnected. Next they will fill your head with how rich you can get and how soon you can retire from that crappy job that you hate and be financially secure for life. The fact that "he" was still working G.E. and was a 7 yr "business" owner should have made me scratch my head but oh well? The last step was to pay your start up fee, which I think at the time was 75.00 and presto, my wife and I were now independent business owners.

How do you make money?

By now if everyone had done their jobs right in "brainwashing" you then you should be so fired up to spread the great news to all of your family and friends, so you can all retire and live on an island somewhere sipping marguritas. Sadly for us none of our family or friends fell for the business part but did purchase some of the products, which we did get a small percentage of.

How you make money and how you really make money are two separate entities entirely.

You are taught that you sell the high quality products such as their vitamin, cleaner & jewelry lines to everyone you know and you profit from the sales. This is true but the products are overpriced and your "cut" is very little. I will admit that the products are high quality and not junk. We continued to buy some of the popular dishwashing detergents even after we quit. In addition, you were basically required to accumulate a certain amount of "FV" per month by buying the products yourselves. Each product held a different FV value. I don't remember how much we spent a month but it was a good amount. A few times because of money stress, which will happen eventually, we didn't make our FV for the month and would have thought we killed our friends dog, it was quite the disappointment to them. Of course it would be, they weren't getting their usual cut? It was amazing to me how dumb we were to financially strap ourselves to not risk making our "friends" unhappy.

The real way you make money!

The number one way for brainwashing to be effective is you have to keep the person constantly exposed. If they get a minute to think on their own then they will come to their senses. They had this covered. There were meetings every Monday night for a few hours at a select meeting or reception hall. Everyone would wear their business attire and bring their 5.00 a person fee, notebook, laptop or whatever you could jot down some infinite wisdom from your superiors.

From the meetings came the big events called "functions". These were anywhere from a few states away at a stadium or convention center and there were thousands that attended. Each one of these were a few hundred bucks. You had to go to all of these or you were a "loser" and didn't want your dream bad enough. I remember someone who risked losing his day job to go because of immense peer pressure from his leaders. They could care less if you lost your job, screwed up your marriage or life, you just had to be there!! We fell for this too and I even joined a bunch of people and slept outside in the cold on the concrete in sleeping bags the night before to get those front row seats, "was I an idiot"? That was a blessing in disguise because that is when I re inhabited my brain again, realized how stupid we've been and my wife and I left before the dumb thing ever started. We wasted the money and gas but we were happy to have broken free. These functions were just hours and hours of top rated sellers telling you all of their BS about how rich they were and how many cars and houses they had etc. It always struck me funny that none of these so called millionaires never appeared on the Forbes magazine "rich list of wealthiest people". These were full of applause, chants etc and fully resembled a cult gathering.

Back to more brainwashing. We had the meetings, and functions but we needed daily stimulation so how about books and tapes. There were tons of both of these materials that you were expected to purchase regularly. I think a new set of tapes came out each week. They were basically highlights from the functions with more "I'm rich" bragging. You were told to listen to these as much as humanly possible. At home, work, in your car, before you go to bed etc. The books were all disguised as "self help" and motivationals but really were clever ways to screw people over without them realizing it and making money off of them to boot.

I used to get defensive when this was called a cult. But looking back, that is exactly what it was. The more you exposed yourself, the deeper you got and it was hard to break free. Its kind of scary if you think about it.

Lets sum all of this up. You join, you are a business. Your friends join and become your "downline". You buy products at a discount and supposedly save money. Your friends buy the products, you make money off of them. The more you buy, the poorer you get but the "richer" your "upline" gets. Throw in the books, tapes, functions, meetings and you are headed for financial ruin, if you both have good jobs. If you are a young single person working part time somewhere then kiss goodbye your apartment, job, food, etc. Luckily we were at least smart enough to not bankrupt ourselves but our finances definitely took a big hit. Their excuse was the usual rant, "you have to spend it to earn it", "work now, play later". We saw some marriages in trouble, friendships end etc. In fact, we lost our two friends that got us involved after we quit. You were also highly encouraged to disassociate yourself from quitters because they will "try and steal your dream". This really hurt our feelings that we were treated this way by them. It was years later, after they finally quit that we became friends again. Needless to say we never dumped any of our non believing friends so at least we were smart enough to know the value of a friendship.

I'm sure these ploys are still out there, I know Amway/Quixtar is but most of our past team has been disbanded. Just be careful and realize there are no get rich quick plans that really work. The only growth you see from this is your stress level and your debt.

Comments

kschang Level 5 Commenter 3 months ago

All of the flaws you mentioned are detailed in my "5 flaws of MLM / Network Marketing". IMHO, Network Marketing is always on the edge of tipping over into scam, and is always ripe for unethical marketers to exploit weak-willed people. It probably CAN be ran ethically, but that'd be an extremely rare bird indeed.

http://kschang.hubpages.com/hub/Networking-Marketi

GoingOnline profile image

GoingOnline 3 months ago

I personally stay away from anything promising retirement by the age of 30 on a tropical island, unless it's a lottery ticket, but I can understand why people buy into it.

I've seen plenty of otherwise very sensible people falling for this kind of stuff. It's high pressure sales environment + friend pressure, difficult to resist. And your friend probably thinks he's doing you a favour, and as such he's offended if you don't accept it. Reminds me a bit (or a lot) of certain religious sects.

Thanks for writing about your experience, and hope things are better now!

strkngfang profile image

strkngfang Hub Author 3 months ago

That was 15 years a go, I'm much wiser now :)

connex4you 3 months ago

I get really tired of people saying Amway is a scam. That it is some sort of pyramid scheme.

The truth is a pyramid scheme is where you cannot make more money than the top dog. A good example of this is a retail business. The employer, or CEO or the top dog makes more money than their workers. Thus, a pyramid scheme.

Multi-level marketing (MLM) is not a scam. The business model Amway and other companies use has been PROVEN by the Federal Trade Commission to be not only ethical but a solid way for people to earn money.

I personally know of several cases where Amway Independent Business Owners have made a ton of more money than their upline sponsors.

So, if you have had a bad experience with someone in your Amway upline, quit bashing the entire company and the way they do business.

As a matter of fact, just the other day, I had a very bad shopping experience at Wal-Mart. What a scam those folks are!

strkngfang profile image

strkngfang Hub Author 3 months ago

You're entitled to your own opinion just like I am. I'm not sure why you would waste your time reading something you disagreed with from the start?

kschang Level 5 Commenter 3 months ago

@connex4u -- FTC sued Amway back then as a pyramid scheme and their lawyers reached a compromise, which became what's known today as the "Amway Rules" that establishes what's legal and what's not legal. It doesn't "prove" it's an ethical and solid way to make money, merely "not illegal if you do it right".

There is no denying that MLM, by its very nature, is close cousin to a pyramid scheme. It's PRIMARY DIFFERENCE is the Amway Rule: 70% of sales must be to ultimate consumer (not in the company), and company can only pay on SALES, not on recruiting.

Legitimacy has nothing to do with the "potential" of making more than your upline. Your upline is not your boss or your supervisor. He is merely your mentor and your recruiter. Thus comparison to traditional company's pyramid structure is a very bad example. Besides, sales people paid by commission very often earn more than their supervisors who don't make sales. This is NORMAL.

While having a bad upline would make for an extremely experience, you are correct, at least in part, in stating that it doesn't make Amway a scam. However, it does make Amway "prone to scammers taking advantage of noobs", and that is a flaw inherent in the MLM system itself. And do you really pin that all on the "bad apples", or does the system itself share the blame?

NetBlots profile image

NetBlots 3 months ago

I recently joined up myself, and didn't find anything along these lines, call me lucky or what ever but here is what I've had.

Met these folks at a party of either young entreprenuers or to be entreprenuers, so we aren't rich in anyway! Anyway, a week later, this younger couple call us arrange a time to meet, come down show us what its all about, low pressure etc, tried explaining things we were already aware of, which I told her to skip over, showed us that the "business" (Thats where I think its a load of crap) can build itself, ie the put people under you etc, and you can just be dormant for a couple of years until you have a big group of people under you, giving you better discounts from buying etc.

So far they have already put someone under us, and we havn't done anything for it yet, just had a look online, and will think about buying things when we get a better rate (ie when more people are under us.)

It cost a measley $100 to join, they gave us a really nice welcome pack, and when we decide to take it seriously, we build a team to the side of us, and when its reached enough people, we take $1500 a month in our pockets (as the minimum profit share, and it only goes up from there) The people that introduced us to it are on at least 5k a month.

I think its not bad for a side project, but nothing I would pay any more attention to, as I run a web design and marketing business which I can make much more off from each sale, only they are not as on-going as the Amway project.

I've never been one for chance dreams like tattslotto, by the time you win, you've spent how much on trying to? And 95% of people will never win anything decent in their whole lives. Wouldn't it be better to learn how to make money, then have a 100% guarantee it after 10 years? Much better way to make your dreams come true in my humble honest opinion! =)

/my thoughts

Trinhearts 7 days ago

Interesting hub I had to talk my sister out of joining this scam.

I have just begun my journey after reading many books and articles on the subject and my goal is to make 30 cents more everyday. This simple goal can equate to 20 000! the first year $80 000! the second year and 219 dollars per day from then on. I challenge everyone to join me in this journey.

reagu profile image

reagu Level 1 Commenter 5 days ago

Sadly, there are so many others. There's a big one in the financial industry. Another one in the coffee industry. Long distance / high tech as well. Been to the pitch meetings at people's home and office suites. Just couldn't make the push. Sounded too good to be true with the I'm rich videos and all.

songbirdmom profile image

songbirdmom 4 days ago

I totally agree with connex4you. My parents sold Amway when I was a kid, literally everything in the cabinet we had was amway and they made some good money from it. Its an MLM and its actually a good system if you are willing to work hard for your money in the beginning. MLMs are normally; you work a lot for little then eventually work a little for a lot.

naimishika profile image

naimishika Level 2 Commenter 3 days ago

I do not like Amway. I was forcefully became a dealer of Amway in 2010 and spent much money to purchase their costly, but least useful items. I left the dealership and advice others not to do.

vox vocis profile image

vox vocis Level 5 Commenter 3 days ago

Amway fooled me ten years ago. I didn't make anything, but they did! I absolutely relate to everything you wrote in your hub. Everybody should read it. Voted up!

nisargmehta profile image

nisargmehta 3 days ago

interesting article... i always knew about dis n try to let people knw... its as simple as if yu r sellin a Toothpaste which has Manu cost of 30bucks and sell it at 45 which gives yu profit of 10where 5bucks may b Misc cost.. dis MLM charge 60 n after a chain of products sold of same kind dey will give 15 ,or may b 10 in sm case, back as appreciation or any blah. y knt dey simply sell it at 50 at max... still its cheaper n not cheating...?????? none was able to answer dis one.. n no1 wud be able to for sure...

Again interesting and useful as i kn use sm parts of d article in realm.... thank you.. :)

STEVEW13 profile image

STEVEW13 Level 3 Commenter 3 days ago

Anyone selling retirement by the age of 30 is simply selling a dream, the moral of the story that everyone should realise in this case and so many others like it, is if something seems to good to be true..... IT IS! Interesting hub, voted up :)

MYWIKISTEP profile image

MYWIKISTEP Level 1 Commenter 3 days ago

It 's simple: when you work for others you will never improve your financial status at the same level of the 2-3 top owners / managers of a firm.

Fast money making is a scam. It might happen but only because you might be some kind of 18-20year super talented expert that came out with a super invention/or scientific rocket.

You need to work to make a leaving, and work more to earn more. It is so simple, but true ;-)

donabhatt profile image

donabhatt 2 days ago

Every single word of yours are true..My dad approximately 10-12 years back experienced the same.It used to hurt his ego to take money from our relatives who used to buy the toothpaste , tooth brush and etc and to meet the monthly target every month he used to get all detergents , shampoo etc which though good were way to expensive. So finally when he decided to quite, few of his upstream who were already Diamond them stopped talking to him......but still I believe we were saved!!

Rusti Mccollum profile image

Rusti Mccollum Level 4 Commenter 2 days ago

A couple in our church, befriended us just to try to suck us in. The rich get richer and the poor get poorer. While I did buy some products we liked, every single time we went out to dinner, a t-ball game, soccer games for the kids , and church. All they ever wanted to talk about was amway. They didn't have money they said we'd make and you are so right. They took us (well we paid to go) to one of their seminars. they take your money for every single thing.As you stated when we wanted no part of it,our "friends" stopped speaking to us.To this day, they haven't spoken to us.

dbroomfi profile image

dbroomfi 2 days ago

My husband and I tried so hard. We were hussled and pressured until we could not take anymore. I feel if you are already making six figures than you can build with others with the same. Otherwise you got to hussle people and stress about everything. I like the health products but I cannot stand the upline drama. If only I had time I could tell some horror stories.

strkngfang profile image

strkngfang Hub Author 2 days ago

Thanks, everyone. It is truly amazing how so many people were affected by this and also sad at the same time. This ruined some peoples lives and marriages.

WebsiteConfetti profile image

WebsiteConfetti 2 days ago

What I dont like about Amway is how some of my friends were trained to put the heavy sales pitch on me.It was just really persistent and they wouldn't accept my 'no' and patronized me by saying stuff like 'but I thought you wanted to make more money'

You hub shows me that I made the right decision staying clear of Amway! Thanks for sharing.

naimishika profile image

naimishika Level 2 Commenter 2 days ago

Donabhatt said it. It was a horrible experience when we start and quit. The relatives, the friends, the connections will never been the same.

nancy 37 hours ago

I jst heard abt Amway recently n i ws fully interested coz who doesnt want 2 b rich really?

McBOV 12 hours ago

Greetings to all!

I'm so excited to have just joined Amway. My boyfriend has been doing it for the past 3 years and after helping get customers I decided to join in the fun and make money for myself. My first month I received 301 orders from my own customers base that I managed to build from sourcing online for people looking for the product or health products. So, in short, I earned 3000 pv with a 18% bonus qualification. The month is not over yet, did I mention I just joined this month? Find out how you too can join my team and accomplish the same and even more. This is a legit testimony. My name is well know online, just search for me on Google under mcbov, mcbov.info, homebasedbusinessllc.com, youtube channel at mcbov2011, I also have a MBA degree. Again, consider joining my team by going to my website at www.amway.com/mcbov, read my bio, and click on starting a business. If you are going to join my team please make sure that you are a motivated, self-starter, and open-minded entrepreneur ready to take some risks.

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