2015 Amway Review | What To Consider Before You Join

amway review

Amway reviewsMost of us in the internet marketing world that you’ll find on the front page of Google (or any page for that matter) have some type of plan in mind, whether we’re involved in the network marketing niche or not.

I will do my best to be fully transparent with you and tell you mine.

Before you read this article I want to be perfectly honest with you.  I told you in the video I would reveal why I published this, and since I didn't fully hit the mark I'll explain below.

By writing this 2015 Amway Review I am targeting a very specific niche of people, primarily in my cold market; not Amway representatives like some may believe.

What do I mean by this.

Let’s think about it. Where does everyone go for information nowadays. The internet.

So if any of us as network marketing professionals can position ourselves in an ethical and honest way to capture the mass market of people looking at the MLM industry as a viable way to make money from home, it will result in a huge success.

Here’s the way this article will likely work, and then I’ll get into the nuts and bolts (Amway term by the way!) of my Amway business review.

Scenario:

An Amway rep approaches someone in a belly to belly manner (which is what they’re primarily taught).

The rep draws a few circles on a napkin (called the napkin plan in Amway training circles), and the observer gets excited.

Before joining however, they decide to “do a little research,” so they head home after booking a follow-up appointment and jump on their computer. Basically, this new prospect is thinking “should I join Amway?”

The person considering Amway Global finds my article, clicks on it, reads through it and then decides to look at other companies besides Amway. More than likely if they’re cold market they had no idea the network marketing industry was so big, or that it had so many ways it could be built.

If you’re thinking: “Dang, that’s messed up,” then odds are you have one of two issues. You are either an Amway rep that’s upset because you know I’ll likely attract anyone you “show the plan” to if they decide to Google “Amway reviews,” or “Amway Global review.” Or you have an issue with the idea of a competitive marketplace.

Think about it this way. If you owned a Cadillac dealership and you were hiring car salesmen, you’d want the best potential salesperson you could find right?

What if these great salespeople were considering multiple dealerships to work for (because they are)?

And what if you could position yourself in such a way that your dealership looked more attractive than every other dealership out there to get them on your sales team?

Wouldn’t you do it?

I hope you said “yes.”. If you said “no,” you probably need to look for a different line of work, something not involving sales in any way, shape, or form.

Why do I say that?

Because this is a competitive marketplace, end of story. And if you’re in network marketing you aren’t just competing with other companies. You’re competing with every network marketing distributor that draws breath, including those in your company that are upline and crossline from you.

Ok, on to the 2015 Amway Review.

I’ve went ahead and drew up a list of pros and cons to give a fair objective of the Amway Corporation and what it means to be a distributor. Let’s start with the pros.

Pros

  • Inexpensive to start. An Amway IBO membership is only ~$60 per year.
  • Exceptional products. Amway has poured an enormous amount of money into research and development, enhancing their brand products over the last 50+ years.  Their energy drink Xs Energy is the best energy drink I’ve ever tasted.
  • Group delivery. Amway will ship bulk orders to where their Platinum level distributors are (or higher) for free. This encourages all reps to maintain relationships with their customers. At one point customers were able to receive free shipping by ordering on their own if they exceeded a certain dollar amount, but this is no longer the case due to policy changes.
  • Long customer lifetime and good retail profit. Amway literally has some of the best offline training out there. They’ve pretty much mastered it since that’s all they do. Because of this focus, reps that stick around tend to get very good at building relationships with their customers which extends the length of time a given person will order the product. I personally know tons of people who are in their 60s and 70s that have ordered Amway detergent for 30+ years and swear by it.
  • Excellent offline training support. The training platforms are usually excellent at providing training to their team members. They are always available and willing to help with anything related to guerrilla marketing since that is what they teach.

Cons

  • Building network marketing teams that last is incredibly difficult in North America (specifically USA). This may sound a bit harsh, but I have not seen Amway break a single Diamond in the USA in 2 decades (it was brought to my attention recently that there was 1, but I have not verified this). The reason teams are difficult to keep together, even with the promoting of events, is because building a business entirely offline is not attractive to most people in this country. And as much as leaders may complain that the internet has ruined this industry in some circles, it doesn’t change the fact that the marketplace is an entity all of its own; it’s not up to us to determine what’s best for the marketplace, it’s our duty to find out how they want to be marketed to and then meet that desire. Building solely offline gets tiring and the vast majority of people simply don’t want to burn the rubber off the tires any more.  Now don't get me wrong, building a local team can be extremely powerful (I do it in fact), but if you are not leveraging the power of the internet then your method of marketing may not be attractive to most prospects. Additionally there are a lot of companies that have embraced the internet, and since most people go to the web for information it is easy for Amway reps to get discouraged and explore other options when they find out a business can be built online. Again, don't get me wrong, there's nothing wrong with the local offline approach, but it's best when combined with the internet.
  • The compensation plan design requires a lot of time and effort. If you really want to be profitable in Amway you basically need to build 6 legs at once (called “going Eagle”).
  • The compensation plan is called a “stairstep breakaway,” which requires the business rep to effectively rebuild a leg once it has reached what’s called Platinum status (7500 points). Basically, legs break off once they qualify and the commissions turn into 4% royalties instead of commissioned payouts of ~30%. I asked a former Amway emerald once what it was like having his first leg break-off and his reply was: “it’s awful, you really know how to ask painful questions don’t you.” He went on to explain his commissions dropped by at least 80% when they turned into “royalties.” It should be noted that the royalties technically disappear if the volume in the leg drops below 7500 points, so it’s not really a “permanent” royalty unless you maintain your volume. It is in essence a “punishing” compensation plan that forces you to rebuild a leg once it reaches this trigger volume, effectively causing you to “not” want others to pass you up.
  • Qualifying for commissions requires more volume than most other companies, this keeps new distributors in the red for a longer period of time. In order to qualify for a paycheck a rep must do 100PV per month. This wouldn’t be such a big deal if the average point wasn’t somewhere around $3.00. This means new distributors have to move $300.00 a month in volume to get paid. Normally, most other companies come in somewhere around $1.10 to $1.50 per point, meaning the new rep would only need to move $110.00 to $150.00 or so per month to qualify.
  • Internet marketing is not taught, and at times in Amway’s history has been forbidden. Policies and procedures change over time so make sure you read the advertising section of Amway's policies and procedures to determine whether or not you can market online.
  • Amway has been around for 50+ years which has resulted in deep market penetration in most of North America. During this time frame it acquired a negative reputation that lasted the better part of 2 decades. This resulted in the need to re-brand Amway as Quixtar (during the 90s). The baby boomer generation is very aware of this and many will be quick to discourage their younger family members from doing Amway. If you are thinking of joining Amway and think this may be inaccurate, simply ask someone in your family in their 50s, 60s, or 70s whether or not they think you will make money with Amway, and why. There are ways around this when approaching the cold market, but it typically involves meeting with the same individual a multitude of times, playing verbal jujitsu, and not exposing the Amway name until the fifth or sixth approach. I personally know an Amway distributor (and good friend) that makes ~50k per year so it is absolutely possible, but he works his butt off driving all over the state and he constantly deals with high attrition.

Here’s what you can expect after joining Amway.

The largest training platform in Amway at the time of publishing this article is WWDB (WorldWide Dreambuilders, officially World Wide Group), which is a mirror image of BWW (Britt WorldWide). In fact, Ron Puryear visited Bill Britt to find out how he structured his training platform before founding the WWDB group. Although there are multiple training platforms inside Amway, WWDB happens to be the largest so I will only focus on their process here, although this can technically be looked at as an Amway BWW review as well. The cost incurred by partnering with any Amway training platform will be relatively the same.

The costs for operating your Amway business when partnered with WWDB are as follows:

  • $100-$150 per person for each quarterly conference on average. This does not include the cost of the hotel, food, gas, etc. Conferences range from $75 to $450 so I used $150 as a rough number.
  • ~$60 paid to Amway one time for an IBO membership.
  • $300 plus dollars per month or more to “make the first circle work.” This must consist of customer volume (50 PV) as well as personal volume.
  • $37 per month for Communikate (also called Kate) to communicate with the training organization
  • $50 per month to be on standing order for CDs and rally tapes

All together, the average cost on a monthly basis to run your Amway business using the WWDB training platform is somewhere around $500.00.

Since Amway pays their distributors based on percent commissions of business volume (sales dollars) moved, this means a distributor would have to sell somewhere around $4500 to $5000 per month to customers and his team just to break even.  amway review

The image here provided by MLM Success Secrets shows what an IBO earns if they move 700PV (~$2100) in a month.

Doubling this amount won't get you quite out of the red.

It should also be noted that there are not currently any training platforms inside Amway that offer affiliate commissions for referring new members.

This means that in order to turn a profit a new member must rely solely on the income produced using Amway’s compensation plan.

If you'd like to see a few more examples of how pay is determined in the Amway compensation plan based on business volume and product moved, visit this site.

I will also point out (at the time of this article being published) that the last diamond in WWDB that got their start in North America apparently came to the same conclusion I came to: the United States is a difficult market and absorbed with internet marketing strategies, making it difficult to build an Amway business.

The particular couple I'm referring to decided after reaching platinum status (~$40-50k a year) to move into a new market Amway had just opened in order to break out and become top earners.

Where did they move you might ask?

Jamaica.

Conclusion

Although it's cheap to start an Amway business, the cost in maintaining it is relatively high on a monthly basis relative to other companies in the network marketing niche due to the poor point to dollar ratio.  Expect to be in the red for quite some time due to this fact.

As a purely offline network marketing company, Amway can be profitable from a retail sales standpoint, however, the real money and leverage comes from building teams of leaders, not slinging product.

The compensation plan is very difficult to build and requires a great deal of time and effort due to the stair-step breakaway design.

Although the company has been around for a great length of time, the negative reputation through the years has resulted in Amway being labeled as a “pyramid deal.”  This creates a great deal of resistance with new prospects due to negative outside influences beyond the distributor's control.

Ultimately, it is possible to build an Amway network marketing business, but like any business it requires hard work and determination. Only you can determine the outcome, and the work you desire to put in to make it happen.

Notes To The Reader & Other Resources

If you're interested in the rules and regulations for starting and running an Amway business visit here.  You'll not only find a breakdown of their compensation plan, but some other guidelines related to marketing on the internet, etc.

Although I don't work with him personally (although he did endorse our eBook), there was a great article published some time ago on MLMBlog.net by Ty Tribble in relation to my quote earlier on Amway's lack of growth in the United States.

Finally, if you've reached this point in the article and are considering network marketing companies and have not yet joined one, click here if you'd like to read an article on why we decided to partner with Ariix.

P.S. - Right now we're offering the ELITE POSTCARD SYSTEM 80% off! CLICK HERE to look at The Elite Postcard System and see how easy it is to build a downline using postcards and the phone!

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