|
|
Amway. Scam or Legit? Is it really building your own business?
Amway and many Multi Level Marketig (MLM) companies say they offer the world's greatest business opportunities, which are based on selling products. Amway is an enterprise, both international and domestic, where thousands of products are marketed to customers through word-of-mouth advertising. Each salesperson is told he or she will become an Independent Business Owner (IBO) "own their own company" and that can purchase products at wholesale prices and then sell them at a profit on a retail basis to friends and neighbors.
Almost no one actually earns a real profit from buying the MLM products and reselling them. Why you ask? Its simple, their products cost too much. Cheaper and similar products are available online, by mail or in local stores. The demand for these products are little to none. They tend to try to get people hooked on products that they dont currently have or need.
Also, MLM companies such as Amway authorize so many sales people that competition for retail selling is huge. The costs and time required for buying the goods, promoting the business, delivering them or working with customers outweigh the small profit earned. Also, the requirements for purchases are greater than most people can meet, hence most of the IBOs wind up with a lot of unsold goods.
These IBO's are compensated with commissions based on the bulk of goods that is redistributed through their Amway account in person. They operate by giving every IBO access to sell Amway products through their personal networks. As an IBO, you are encouraged to purchase as many Amway products as you can, as well as develop a client base and have them purchase the products to generate revenue for the yourself and the organization.
Amway informs their BPOs that they can actually make more money if they will recruit other new sales people into the programs. Any purchases made by new recruits, will yield a bonus to their recruiter. Also, each person can earn multiple bonuses when their recruits get recruits. Each person can make money on multiple levels of new recruits.
Hence, the promise that everyone can recruit a huge downstream is also not true. Basic reasoning requires that for one person to be at the top, most people must be at the bottom. Only a minute fraction can ever be at the position where the bonuses are paid, while the vast majority of people will be at the bottom where they will be losing funds.
There is a another part to this trick. For the salespeople to be "qualified" to receive the bonuses, they must meet a certain quota of purchasing. Therefore, most people will continue to buy products every month or pressure their recruits to also buy products while they try to recruit others. The initial investment grows monthly as they will remain in the program, hence their costs and time of recruiting also multiply and losses increase.
Is Amway a scam? I say no. This review about Amway concludes that they are a lawful organization that allow individuals to generate an income by selling to their friends, family and anyone they can get to try to grow their business. If you enjoy recruiting friends and family, meetings, hosting home event parties and cold-calling than this may be right for you.
Personally, I've completely avoided these types of pyramid-like programs altogether and have been able to make a comfortable living from the internet at home much more easily.
About the Author Expert Author Chrisleadher M. Castillo of http://www.ChrisleadherMCastillo.com is a lead online marketing guru who works with industry mentors from around the World in developing the best tools to automate making income online. To find out more how Chrisleadher M. Castillo & his team of Marketing Mentors can educate you to make income online now, try for a limited time their Free Online Marketing Bootcamp now!!
|
 |
Please Rate: |
|
Rating: |
 Processing ... |
(Average: 5.0 stars by 2 users) |
| Views: | 516 | |
|
| More Articles from E-Commerce | | |
| Top Articles in E-Commerce | | |
|
