2007-03-05 23:40:46 · 6 answers · asked by shoreke 1 in Business & Finance ➔ Small Business
I don't think you understand Amway. It's not a pyramid nor a scheme. You must understand the structure. It is more of a franchise. It is publicly traded. Read about Quixtar. Maybe that'll help you.
2007-03-05 23:44:24 · answer #1 · answered by Lawrence D 1 · 0⤊ 1⤋
Great question! I can't stand Amway. But here's your answer:
Amway isn't a "ponzi" scheme (which is actually what's illegal). A Ponzi (or Pyramid) scheme is where the "buy-in" fees are actually used to pay the people who bought in previously.
This is not the case with Amway. The "buy-in" fees go to the company, and the revenues that people "up the pyramid" make are based solely on the sales generated by the people that go in under them on the pyramid. THAT is legal. The Ponzi schemes that are illegal are the ones that don't actually sell product...they just sell memberships and fund the profit-taking through that.
For more info, see the link below:
2007-03-05 23:45:34 · answer #2 · answered by Scotty Doesnt Know 7 · 0⤊ 0⤋
Simple. Amway is NOT a pyramid scheme! It IS multi-level marketing, to be sure. Pyramid schemes and multi-level marketing are TOTALLY different animals!
2007-03-05 23:47:26 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 2⤋
They get around the law by actually passing product (like grossly overpriced soap) down the line. But they actually make most of their money selling books and tapes to their own downline. But make no mistake. While it might be (barely) legal, almost anyone who has seen how it works can see that it is immoral. It's all about brainwashing and convincing a lot of people to act in a way that you know is not to their benefit. Unfortunately many people are up to their butts in it before they catch on to what it's really all about. The goal of the recruiters is to get people in and get them participating in the con before they realize that they themselves are being conned.
Amway is not so much a business as a disease. And it lays waste where it passes through.
2007-03-05 23:49:17 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Nop. Amway have products to sold and Pyramid have nothing!
2007-03-05 23:45:57 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Say this, say that, and at the end of the day. amway is a sham. The tops make money and everyone else is the sucker
2016-06-10 01:53:22 · answer #6 · answered by Frank 1 · 0⤊ 0⤋