Is Amway a legitimate direct selling business or is it an illegal scheme? Here are the facts about the Amway brand and the Amway Business Opportunity.
Yes, people around the world earn additional income through their Amway business. In fact, Amway has paid more than US$63 billion in bonuses and incentives to its distributors (Amway Business Owners or ABOs) since the company’s founding in 1959.
As with any sales business, the income you earn is based on successful efforts resulting in product sales. The amount of time put into the Amway business varies greatly from person to person, so the income varies as well.
The question for most people is what kind of income am I looking for? Not just in terms of income level, but also immediate income versus long term sustainability. For most people, Amway is usually a part-time “side gig”, but not something like GrabCar or Airbnb.
While GrabCar can be an immediate payoff (pickup – drive – get paid), Amway is a business where someone can earn income, more predictably, over time. If an Amway Business Owner is successful in developing a team that collectively sells more products, they receive compensation for doing so and the business can become stronger and a more reliable source of income.
Amway does not position itself as being a primary income source for most people. The majority of Amway Business Owners run their businesses part-time to make a little extra money to support themselves and their families, or to reach a specific financial goal. If their business grows and they develop experience, they may choose to put more time into Amway and consider making it their full-time job and primary source of income.
ABOs make money when their customers buy Amway products and when others in their organisation sell products.
Primarily, money can be made by:
Retail Mark-up – Amway Business Owners are able to sell their products at a mark-up (the difference between cost and retail price) to earn retail margin on the sale. ABOs can set their own prices, but Amway does establish a suggested retail price for every product we sell.
Bonuses – Amway Business Owners can receive monthly bonuses based on their personal sales volume – how many products and what types of products they sell.
Growth Incentives – As their business grows and new members join their group, Amway Business Owners receive monthly bonuses based on the product sales volume of their team. Amway Business Owners are awarded growth incentives namely, the Core+ Plus Discretionary Incentives Programme, as well as incentives for reaching key business building milestones, such as one-time cash awards and business trips.
The Core Plus+ Discretionary Incentives Programme can help business owners earn early income such as Customer Sales Incentives (CSI) from their very first sale, which must be a Verified Customer Sales from their customers who are registered as Amway Privileged Customers or APC. The rewards from this programme keep growing when an Amway Business Owner’s business grows. APC is a new segmentation that opens the opportunity to members of the public who wish to purchase and enjoy their favourite Amway products. They can be recruited by an Amway Business Owner.
Obviously, the monthly compensation earned by Amway Business Owners varies widely, and is largely dependent on what their goals are and how much time and effort they consistently put into the business. Amway believes strongly in rewarding success.
No. Amway Business Owners make money from the sale of our products. Simply put, if no product is sold, nobody makes any money. 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. That said, any sales leader would tell you that to build a big sales business, you want as many points of sale as you can manage and support.
Like any sales organisation, the more people selling, generally, the more volume you can drive. This is why big retailers are always trying to set up new stores. The more points of sale, the more customers you can reach.
Not necessarily. Our business owners don’t have to stock inventory of Amway products and there are no purchase requirements with Amway — ever. Amway Business Owners do not need to purchase products or stock inventory because products can be directly shipped to them or their customers when purchased.
However, some Amway Business Owners choose to keep their own inventory to show or demonstrate products to customers in-person, use products for events, or quickly provide them to customers upon purchase without the need for shipping. While Amway does not require inventory to be held, sometimes it is practical to have some on hand. It is 100% up to the business owner to decide what is best to meet customer needs.
With Amway, you decide what your goals are and how much time you want to put into the business. Compensation and bonuses are based on your performance in selling our products. There’s no magic formula to making money in an Amway business. If there was, everyone would do it. Every person is different, and how they approach being in business is different as well.
Most people join Amway to supplement their primary income source, and they start making extra money as soon as they sell products. Others have bigger goals and long-term visions with Amway. The higher your income goal, the more time and effort it takes to reach the goal. Some Amway Business Owners put in enough time and effort to begin earning enough income to go full time with their Amway business.
While earning extra income is nice, it’s not the only reason people join Amway. Many people around the world join Amway to develop new skills that owning your own business allows, such as sales, financial management, leadership, communication or public speaking.
But how do you gain those skills needed to be successful? Most new business owners are helped enormously by the people who sponsor them into the business because they are incentivised to help you become successful. But Amway also provides free training opportunities, through online webinars, classes and materials.
Yes. For thousands of people around the world, Amway is their sole source of income and they have built quality lives for themselves and their families. As with any successful business person, they will have invested years of hard work and experience before Amway could be their primary source of income.
The reality is that most people are not looking for Amway to be their primary source of income, and Amway does not position itself as being a primary income source for most people. The majority of Amway Business Owners run their businesses part time to make a little extra money or to reach a specific financial goal. Sometimes, as their business grows and they develop experience, they may choose to put more time into Amway and consider making it their full-time job and primary source of income.
No, we do not require additional spend for training materials and events. In fact, Amway provides millions of optional free training sessions to Amway Business Owners such as live presentations, online webinars and classes through our own Learning Management Systems.
Amway Business Owners often get a lot personal one-on-one coaching from the very people who introduced them to the business opportunity, or people on their team. The Amway Business Model rewards people who invest in training and development of their team members and help them run successful Amway businesses.
But Amway also invests heavily in business owner training and tools to help business owners be successful. Globally, Amway conducts millions of free training sessions every year, which can help individuals gain the knowledge they need and access to the tools they need to reach their goals.
Some Amway Business Owners or authorised third parties in Amway markets may also offer motivational or training materials to other business owners for a fee. However, such materials are always optional and are subject to generous return policies that Amway requires such Amway Business Owners and authorised third parties to provide.
For those who are not interested in building an Amway business, and simply want to purchase high quality Amway products for their own use, they can sign up as Amway Privileged Customers (APC). Learn more about it here: www.amway.my/register-landing-apc
This is Part 1 of a 2-part article.