How does Amway Business Work: Information about Amway Tools and Product Income
What does the term “How does Amway Business work” refer to? It is a common search term online. Many prospects search for this term to find out how they can make money with an Amway business.
In the world of network marketing, Amway is the one of the big dogs. It’s been around nearly 50 years and in terms of revenue, it is one of the largest network marketing companies, along with Avon and Mary Kay. However, Amway is very different most MLM Companies in that there is a product and a tool business. We will cover these in more detail below.
Let’s start with the product business. The first way to earn money in the Amway business is to sell products. You can sell products to your retail customers, your downline distributors and through self consumption. When you sell customers Amway products you earn a wholesale retail profit. This is the difference between the retail price and the wholesale price.
When your downline distributors purchase products for self consumption and retail sale, their sales volume is added to your volume (until they become a Platinum level distributor). At the end of each month, you earn a bonus check based upon the total sales volume of your organization. The larger your sales volume, the higher your percentage.
In addition, Amway pays leadership bonuses, cash prices and many other incentives. In my opinion, they do a fair job rewarding top distributors. Most distributors don’t earn much because they don’t generate enough sales volume. This happens because most distributors don’t build a large customer base or downline.
The second way to make money in the Amway business is with the business tools. In fact, the tools business is what has caused so many problems. If you do a search online, you will discover that Amway has a big black eye because of the tools and systems. Visit any of the hundreds of anti-Amway websites and you will find thousands of testimonials of people having issues with the tools business.
In essence, Amway allows successful distributors to create business education tools, such as books, tapes and seminars, and then sell them to their downline for profit. In many cases, successful Amway distributors earn MOST of their income from their tools business, not their Amway business. Even worse, many top distributors deny this. This is the major issue amongst most disgruntled Amway distributors.
In most MLM Companies, the company does not allow their top distributors to sell other products, services or training materials to their downline members. In my opinion, this is a good idea. After all, a company must do what it can to protect its reputation.
Although I think Amway is a great company, I think their corporate leadership should "ban" the tools business and bring Amway back to its roots. This would have a huge, positive impact for the company, and might attract a "wave" of new distributors.