Amway Scam or Not-

Document Sample
Amway Scam or Not- Powered By Docstoc
					Scam is such a harsh word. Yet, there is no shortage of sites and comments that say
exactly that about Amway, any search on the Internet will bring up a long list of
critics all telling you about how much of a scam Amway is. Largely, this happens for
three reasons.

The first, is that the net is forever. It tends to accumulate old, outdated remarks.
Anyone posting something today is in direct competition with all the posts - forever -
on the same subject. Almost no one takes the time to look at when something on the
net was actually written. And the when was this posted information is often missing or
concealed. So, the scam notices stay up and build up. If Amway started handing out
free gold bars tomorrow, the Internet would still be full of posts about how terrible
Amway is.

The second reason is about numbers. Amway has been rolling along for more than 50
years. Fifty years is a long time and a huge number of people touched by Amway. Out
of this sample, there are going to be many who were disappointed. And unfortunately,
that's how the numbers work on the Internet. They are skewed because the people
most motivated to weigh in, are those who've had the worst experiences. Naturally,
the ones with the problems are those who gave Amway a half-hearted effort and failed
at it.

The last reason, and I think the most important one, is that people join Amway (and
other MLM groups) with false expectations. They are led to believe they will reach
the highest levels with little or no work on their part. Amway itself is at least partly to
blame for this.

**Amway, the right and the wrong**

The Right: Amway, and other network marketing operations, have a core business
model that has made Rich DeVos (the co-founder of Amway) one of the wealthiest
men in the world. The business model revolves around using social networking to
build businesses. There is nothing wrong with this model, and it still works today.
Expansion and duplication are well known in franchises of all types. And the number
of Amway-like companies that have successfully followed in their footsteps can't be
denied. There is a lot of right in the mix.

The Wrong: The first problem came in when distributors found they could recruit a
bigger downline if they pushed a little bit of hype. Gradually, the promises grew
larger and the information about the real business became less important than inflating
dreams. This raised the expectations of new members to ridiculous levels - "Make a
quarter million dollars your first year!"

It doesn't take long for someone working the biz to catch on. And then the other shoe
dropped. Successful networkers found they had their own product to sell; beyond
official Amway goods. They found they could market motivational tapes and books.

Motivation has always been a part of network marketing. It's the fuel that keeps us
going when the inevitable bumps in the road arise. But here was a chance to make
money off your own downline - no customers outside of the network needed. And
best of all, motivational tapes are cheap to make and duplication is a breeze. Some of
the leadership took this opportunity and being the excellent salesmen they were, drove
it through the roof.

Along with this came the paid seminars. There is nothing wrong with a seminar that
motivates and trains members; as long as it can eventually increase sales. But for
many new distributors, any profits they made were sucked up by tapes, books and

The parent company isn't to blame for this. Amway clearly states that tapes and other
materials are voluntary. But distributors felt they needed them, leaders were happy to
make and sell them, and there seemed to be no end to the supply.

**The final call**

Amway can and does still make money for people. But there are traps. The top levels
are sometimes prone to prey upon those beneath them. If their focus is a cycle of
recruit and dump, they are shooting themselves in the foot. To the IBO (the correct
term for what used to be a distributor—an Individual Business Owner) who is
sold on hyped promises and goes broke buying motivational materials, Amway will
seem like a scam.

On the other hand, someone who understands the basis for network marketing as a
business can still do well. They need to rethink things a bit and quit falling for the
crazy emotional side of things, but the opportunity is still there; it's still real.

**The facts**

In some ways, the opportunity is better than it has ever been. Ethical practices and
modern leveraging mean a reawakening of network marketing; away from the scam
side of the ledger and over to the respectable side. That is, when you use modern tools
and techniques that let IBOs do the things that real businesses do - social networking
and automatic lead generation. If you keep it simple and focus on what works, instead
of sucking money from your business partners. More Facts:

- Amway has survived all the legal challenges mounted against it. - People continue to
quit their jobs and make 6-digit incomes in Amway. - The so-called pyramid hasn't
crashed - not even after 50 years! - Systems do exist that can help you recruit for
explosive growth.
It can be done. And whether or not you continue in Amway or network marketing, I
wish you all the best!

Shared By: