Unfortunately I’ve seen the worst of Amway. My friends still spend time pushing the business and denying that they are broke.

You understand that there are products being bought (and therefore sold) and some how view this as distributor success; but you must consider that nearly all of these customers are describing themselves as ‘independent business men’, and since only such a small percentage of these ‘business operators’ ever sell any significant amounts of product, their warehouse is significantly being robbed, all by the business man himself? (How insane is that?)

This supposed ‘business owner’ can never ever claim a profit! He ‘assumes’ the ‘bent over’ customer position and backs up to the only profitable business owner involved here, the Amway Corporation in Ada, Michigan. Amway products, probably the most marked up of all goods anywhere, support the mistaken idea that Amway is paying a commission, while these minuscule checks represent only a ‘rebate’ to their loyal customers, the ABOs and IBOs themselves. Amway business men are buyers of mostly mundane goods all coming with a extremely premium price tag.

The only ‘real’ profit that can be made in Amway comes from the small margin markup on the outside sales representing only about 4% of Amway’s Gross total sales. Amway doesn’t participate in these minuscule profits, although they benefit by their significant ability to fix a monopoly price. I must point out that many of the pitiful retail sales are made the distributor’ cost, so the distributor actually realizes a net loss from these transaction, all in the mistaken belief that these sales qualify one to remain viable in Amway long term closed market swindle.

What about India? In a majority opinion, two high justices in the ‘world’s largest democracy’ have decided that Amway violates India’s laws against pyramid schemes, which they term money circulating, prize chit schemes. In spite of this landmark ruling, Amway India continues in operate outside of Indian law. Operating the Amway scheme in India makes one a law breaker, and any Indian citizen may book charges against anyone engaging in the Amway swindle there.

With all the talk about Amway surviving their ‘roll up’ in Great Britain, isn’t it significant that Amway has no presence in France? David Brear has detailed how Amway was handled by the French authorities. In short Amway Diamond Jean Godzich was convicted in absentia and received a term in prison, although he had fled to the United States to avoid that problem.

To claim that Amway is legitimate because it operates in over 50 countries fails to mention that it has been determined to be illegal as well. As I have pointed out, Amway can be arrested in India. Amway has been shut down in France. In Great Britain, information garnered from the recent efforts to roll Amway up, showed that nearly all distributors–save a very few–lost money.

In the United States, nearly all IBO distributors conveniently disregard the 70% selling rule and therefore must represent a ‘lie’ in order to receive any commission payment (which actually acts more like a rebate than a commission). Therefore Amway as it currently operates in the US is a ongoing fraud! Operating outside of the FTC’s own rules.

The products are for all intents and purposes unsellable, therefore the small number of sales to non-distributor customers of less than 5% represents the only profits that can truly be divided amongst all levels of compensation. I must ask Cindy Coenen how this 5% (or less) in retail sales can be divided up to pay all the Amway middlemen and how can lavish lifestyles be created on such a small margin? How insane is this?

How can profit be generated by consuming ones own inventory? How can any circumstance of this nature even be called a business? Amway operates a carefully constructed “closed market swindle,” and obviously succeeds in finding people who believe in insane pseudo-mathematics. At the moment, Amway seeks to flim-flam folks outside of their North American operations like the Chinese Communists. The ‘American Way’ is now the ‘Chinese Communist Way’ to the significant shame of all Americans.

Amway has carefully baited the trap, and seemingly can find an ever increasing number of naive people to fall for their ‘closed market swindle.’ Calling a Amway’s swindle legal only makes it easier for the authors to avoid being held to account. Actually, Amway’s supposed legality only works to make it more difficult for the ‘taken’ to find redress. Amway has instituted a Nazi-like arbitration system that prevents the swindled from seeking redress in the courts. Those following the arbitration system usually find themselves effectively ‘gagged’ by any settlement agreement. Recently courts have found these arbitration rules to be ‘unconscionable’.

Chris, you indeed pal-parrot the Amway official line. This doesn’t guarantee success as the authors of these lies want all to believe. You therefore must make a Eric Scheibler out to be a loser liar. The loser liars are IBOs who still want to believe the unbelievable!

Also, IBOs do lose tons of money. Just look at a function where say 25,000 IBOs are there. Keep in mind that there are many many functions across the country and happening all the time. These IBOs are all overspending to do their defacto 100 PV quota. They are also likely on KATE (voicemail), standing order and the costs of travel and the functions. These expenses guarantee that the IBO group as a whole, suffers massive losses with a select few reaping in the rewards. Amway also wins as these “dedicated” IBOs will self consume their PV.

If this business and the products were so good, why are so few products sold to non IBOs and why to IBOs stop buying if their focus is no longer “going diamond”? It’s because the products only have value to an IBO when that IBO still thinks they will create passive residual income. Once they realize it’s not happening, their desire for Amway products disappears and they go back to WalMart or Costco.

1. It doesn’t cost much to start an Amway “business” so people aren’t really losing money. The fact is that almost everyone DOES lose money in businesses like Amway because of the minimum purchases required to move up the pyramid plus the wide range of expenses to be involved. Sure, those expenses are voluntary, but so many elect to pay them because they think it’s their ticket to the top. Whatever the reason, the vast majority of people are still losing money in Amway.
2. Amway’s process must be legal and moral if they haven’t been shut down. Anyone who has studied MLMs knows that they are on the fringes of what’s legal. And, more importantly, the morality of a “business” that is nothing more than a deceptive transfer from the bottom of the pyramid to the top is the issue. Lies and deception by Amway employees and kingpins is the key problem.
3. Amway paid out [put in large-sounding number] in commissions. How great is that? The real number that are important are the ones related to how much each distributor is making. It’s next to nothing for all but a tiny fraction of one percent at the top of the pyramid.