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Why do some people mistake Amway as a pyramid scheme?

A lack of understanding can create confusion.

Pyramid schemes have nothing to do with real commercial activity. Pyramid schemes are a form of financial fraud based on recruiting new people to make investments used to pay the people who joined earlier. In Amway, distributors (Amway Business Owners) make money from the sale of our products – never from recruiting. On each product sold, we set aside a portion of the product cost as “bonus” (sales commission). This is shared by Amway Business Owners who work together in sales groups according to their contract with Amway. Without product sales, nobody makes money. And since Amway Business Owners are not required to purchase products and our products and the Amway business opportunity are backed by a 100% satisfaction guarantee, there is extremely low risk for Amway Business Owners or their customers.

Amway is a consumer products company that has been around since 1959 – more than half a century – and operates in more than 100 countries and territories. Global sales in each of the past few years have exceeded $9 billion. Amway Business Owners offer brands like NUTRILITE™, ARTISTRY™, and eSPRING™, which include more than 450 health, beauty, and home products.


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