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Is Amway a pyramid scheme?

No, Amway is not a pyramid scheme. Unfortunately, a lack of understanding and misperceptions, especially on social media, can incorrectly put this label on direct selling or multi-level marketing companies, like Amway.

Amway is a legitimate direct selling business that has operated for 60 years and now operates in 100+ countries and territories. In a 1979 ruling that stands today, Amway was recognized by the United States Federal Trade Commission as a legitimate direct selling business whose distributors sell quality products to consumers, and where no one earns income unless products are sold. This ruling is used by nations around the world as they established regulations for the direct selling industry.

Specific factors that differentiate Amway from a pyramid include:

  • It is a low risk, low cost business start-up
  • No money is made on recruiting alone
  • There is no minimum product order
  • An individual can earn more than the person who recruited them
  • Amway offers a 100% money-back guarantee on the business registration fee, as well as a 100% satisfaction guarantee on most products*
  • Retail selling is required
  • There is a written contract between Amway and a business owner defining the relationship and providing Rules of Conduct

*Exclusions apply. For complete details visit AmwayGlobal.com and search “Satisfaction Guarantee”.

So, it is not true that the people who started in Amway earlier or who are “at the top” of the business make all of the money.

 


Related Questions

+Why are Amway products expensive?
Because they are made to a higher standard. Product quality, superior ingredients, design excellence and rigorous testing ensure our products are pure, safe, effective, and durable, which can sometimes result in a higher price than our competitor’s products. Read more >
+What is direct selling?
Direct selling refers to selling products directly to the consumer in a non-retail environment. ​Direct selling allows a person to start a business with little overhead costs and with no experience required. Read more >
+What does Amway sell?
Amway offers more than 450 products through our family of brands, including NUTRILITE™, ARTISTRY™, eSPRING™, LEGACY OF CLEAN™, and ATMOSPHERE™. Read more >
+How do you make money with Amway?
Amway Business Owners (ABOs) make money when their customers buy Amway products and others in their organization sell products. Read more >
+Why do some people post negative stuff about Amway online?
We’re one of the oldest and most recognizable businesses in our industry. As a result, we’ve attracted a great deal of attention through the years – good and bad. While most Amway Business Owners have a positive experience with Amway, owning your own business may not be right for everyone. Read more >