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Home > Is Amway Australia A Scam?

Is Amway Australia A Scam?

Amway Australia isn’t just one of the first companies of its kind, it is also one of the most successful.

In fact, the company isn’t just restricted to the United States but it can be found all over the world.

Despite its renown, though, quite a few claims and accusations have plagued the company since its inception. So, if you are curious to figure out whether it is legit or a pyramid scheme, here is what you need to know:

What Is Amway Australia?

Amway is one of the largest corporations in America. It was actually founded in 1959 and to date, it is involved with the selling of beauty, nutrition, bath and body, at home, and various other products. The corporation offers up more than 450 products in various departments. It is estimated that the company is earning around 9 billion dollars a year.

Although it got started in the United States, Amway’s reach has now expanded to over 100 countries and territories around the globe. It is estimated that the company has around 17,000 employees and around a million individuals involved in the selling process.

How Does Amway Australia Work?

Amway is actually one of the first companies to truly use multi-level marketing to its advantage. The company tags individuals that they label as Independent Business Owners to sell their products to friends, family members, and anyone else. They are also encouraged to get other individuals to join the establishment as well. This is how these workers can earn their commission.

There are various levels to the organization. The more that you sell, the higher that your commission will be. Not to mention, being a good salesperson and recruiter also gives you the opportunity to climb further up the organization’s ladder. This, in turn, puts you in a better position to earn more money.

Is Amway a Scam?

Of course, the question that you want to know is this – is Amway a pyramid scheme or a Ponzi scheme? Now, it is understandable why you would want this information. For the longest time now, Amway has had numerous charges filed against them. Not to mention, the Federal Trade Commission has looked into the company and its business dealings a number of times.

Furthermore, there is a healthy amount of skepticism levelled at multi-level marketing in general and Amway has made a fortune with this method. Despite all of the accusations and investigations, though, it has been proven that the corporation hasn’t broken the law in any discernible way. This news, couple with the fact that the company has been functioning for so long, makes it unlikely that it is a scam.

What Are the Advantages for Working for Amway Australia?

Perhaps the main reason that people keep flocking to Amway is its stability. It has been around for decades and its bright star doesn’t appear to be diminishing too soon. What’s more, it is a structure that most people are familiar with. As such, it makes them more likely to opt for such a company.

There is also the fact that many Amway Australia products already bear a stamp of quality. The company has made award winning products and the quality is more or less uncontested these days. The result of this is that a number of people feel comfortable about selling products that they can be certain about.

Finally, Amway has been doing this for a while and they have managed to figure out what works and what doesn’t. With this knowledge, they have managed to put together some rather impressive training programs for new salespeople. Of course, they also provide additional assistance and training materials but the Independent Business Owners have to pay extra for these perks.

What are the Downsides of Amway?

This doesn’t mean that it is all smooth sailing with Amway, however. At one point, virtually every person in the country knew the name Amway. Unfortunately, it also developed a cult-like following which made individuals wary of the people selling Amway products.

This, combined with the fact that the company has had a few run-ins with oversight agencies mean that its reputation has tarnished a bit. Therefore, if you are planning on selling Amway products, you can expect to face a few obstacles when doing so.

At the end of the day, however, most people are just keen to make a profit selling these products. So, can it be done? Well, here is where the issue begins. Typically, Amway Australia charges its IBOs a higher price for its products. This makes it difficult for the average individual to turn a profit, especially when starting out.

In fact, from the numbers that the public could find, a majority of Amway salespeople find it difficult even to break even. When they do manage to do this, the profits aren’t what they are made out to be. While top level executives reap quite a few benefits, the same can’t be said for the salespeople on the ground. They can usually expect to make a profit of around $200 or more each month. The truth is that MLM companies have a hard time at the moment.

Making a profit can become even more complicated if the salespeople opt for paid training. These can be rather expensive, depending on the type of program that you choose. There is also no proof that the advantages of the training outweigh the upfront cost.

The Final Verdict

So, what is the final judgment call on Amway? As mentioned, this company is certainly not a scam and this point has been verified by the necessary authoritative agencies. Not to mention, it has been around for long enough and has a revenue that is impressive by any standards. Also, it is now a global phenomenon.

Does this mean that it is right for you, though? Well, as a money making scheme, it does appear to be rather tough to make any profit with Amway’s business model.

Furthermore, the upfront costs can get rather considerable if you are not careful. If you were to approach the strategy the right way, though, they may be a chance for you to be successful. Once again, though, this would be speculation and not really be based on any specific evidence.

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