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.