Amway Business Review

The purpose of this article is to provide a review of the Amway business. Please know up-front that I am a former IBO. However, I’m not one of those “nay-sayers” or “Ambots” that people refer to. I’ve created this review based upon my personal experiences and independent research. My goal is to be objective and educate people about what the company has to offer.

My Personal Amway Journey

Amway Business

Is the Amway business a good option for you? It could be. Hello, my name is Charles Holmes. I am a former Independent Business Owner. I spent two and a half years building my Amway business. During that time, I was affiliated with the World Wide Dream Builders line of sponsorship.

I was a very focused Independent Business Owner. I sold out to the system and did what my upline recommended. I did achieve some success. I reached the 2500 PV pin and stayed at about 3,500 monthly PV for over a year. I sponsored 13 people and had 67 people in my downline. That’s my story.

To this day, I still love Amway Global and its products. They are high quality products. As a result, I am still a retail customer in Amway. During the past couple of years, Amway has even lowered the price on many of its products. They are cheaper today than when I was involved in the Amway business from 2002 to 2004.

If I knew then what I knew now; I would have done things differently. In fact, I think anyone could join Amway today and build a profitable Amway business. The secret to success is to build a large retail customer base and sponsor new distributors, rather than spending all your time and money on the “system” and training tools.

Although I do see a value in the training tools, I don’t think it should be your primary focus. After all, you need to sell Amway products and sponsor new distributors to make money in Amway or any other MLM Company. If you keep that a top priority, you will do well.

Amway History

When Amway first started in the late 1950s, it was a direct selling company. Rich Devos and Jay Van Andel started Amway in 1959. Prior to starting Amway, Rich and Jay were successful Nutrilite Distributors. They started the American Way Association with some of their top distributors, when they had fears the Nutrilite might go out of business.

In Amway’s early years, people would join the company to retail products to friends and family members. In many cases, Amway was sold door-to-door. That was the primary focus. Distributors also had the option to sponsor other distributors and build a downline. Distributors earned a performance bonus off their personal use, their retail sales and the sales from their downline distributors.

As time progressed, Amway evolved. More products were added to the product line. In addition, successful distributors shifted the focus from retail sales to sponsoring distributors. Although some distributors achieved huge success, most didn’t. Most distributors were no longer taught to retail products. Instead, they were taught to focus on sponsoring people. As I mentioned earlier, if you want to make money in your Amway business, you must sell products. If you don’t do that, you won’t make any money.

Amway Tools and Training Systems

Furthermore, in the late 1960s and 1970s some of the top earners realized that they needed to educate their downline about how to build a successful Amway business. As a result, they hosted seminars and created educational materials such as tapes and books to sell to their downline. This was the start of the “systems” in the Amway business.

These systems allowed the Diamonds to build huge downlines. The systems provided great value. People could sponsor people on the other side of the country and have a standardized way to train and motivate them. Personally, I see a great value in that.

However as time progressed, several kingpins realized that the system itself was very profitable. In many cases, the system generated more money than their Amway business. As a result, the same kingpins shifted their focus from promoting Amway to promoting their systems.

During the past 30 years, many people have left the Amway business because of their negative experience with the systems and motivational organizations. To this day, I’ve never met someone who didn’t like Amway itself. Even if they quit the business, they had a positive view of Amway. They just didn’t like the training systems. In fact most successful network marketers started their MLM journey with Amway. Isn’t that amazing?

I know that anyone could build a profitable Amway business in today’s world. In my opinion, the best way to do that is to become retail sales focused. You could still participate in the system to learn what it takes to succeed. But, you must realize that the system is only part of the success equation. The most important thing to do is to sell products and sponsor distributors. If you can do that, you will make money.

Amway Business & Income Opportunity

So, how do you make money in Amway? There are a few different ways to make money with Amway Global.

Performance Bonus:

Amway pays distributors based upon the volume of their sales. This includes personal sales and sales by downline distributors. The larger the volume of sales, the higher the percentage of commissions earned.

Every product has a point value, also known as PV and business volume, also known as BV. The PV is a point value assigned to each item. It remains constant. The BV is the business volume associated with the product. The PV determines the percentage of the BV you get paid in bonuses. For instance, a $20 item might have a PV of 5 points and a BV of 20 points. In other words, a $100 purchase might equate to approximately 25 PV and 100 BV.

Depending upon your total PV each month, Amway pays you a monthly performance bonus as listed below:

100 PV = 3%

300 PV = 6%

600 PV = 9%

1000 PV = 12%

1500 PV = 15%

2500 PV = 18%

4000 PV = 21%

6000 PV = 23%

7500 PV = 25%

Your PV and BV is calculated based upon your entire group’s sales. For example, if you personally generate 600 PV in sales and your two downline distributors generate 400 PV in sales, you would get paid 12% of your total BV amount. Amway would also pay your downline their bonus (3% to 6% range) and you would keep the difference.

Retail Markup on Product Sales to Customers:

Amway will pay its distributors the retail profits from items. The retail markup on most items is 10 to 30%. Let’s suppose I sign you up as a customer. You go online and purchase $100 worth of products from my Amway store. Amway will pay me the difference between the wholesale and retail price. In this example, that should be somewhere between $10 and $30, depending on which items you purchased. In addition, I also have the option to service my customers myself. In those cases, I would initially purchase the products myself at wholesale price and then charge the customer the retail price, or whatever price I deemed fit. When the customer paid me, I would just keep the profits myself, instead of getting paid the retail profits from Amway directly.

Some of the more popular Amway products include SA8, XS Energy Drink, Nutrilite and Artistry products.

Leadership Bonuses:

Amway is wonderful about paying its successful distributors yearly leadership bonuses. This includes distributors at the Platinum level and higher. Some distributors earn five to six figures or more per year in additional performance bonuses for maintaining certain achievement levels. The higher your achievement level, the more money you make.

Summary of the Amway Business

In conclusion, the Amway business is a great business opportunity for anyone willing to work hard for two to five years. Amway is an established, proven company with a great product line. Amway rewards its distributors very well. If you start an Amway business and generate lots of sales volume, you can earn great money. The secret to success is to focus on selling products and sponsoring new distributors. You can participate in the training systems, but should never lose sight that you get paid to sell products and build a team.

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