Amway Global — Pros and Cons
Before I start to get into any of the information, let me set the record straight. I know a lot of people believe Amway is a scam. I personally, do not believe Amway is a scam. I think it can be sometimes presented in a “hyped up” kind of way, and I think some IBOs can be “scammy”. But I think the Amway system has potential and for the right person in the right team and guidance, it could bring success. Unfortunately, I was not the right person. But that doesn’t mean that you aren’t.
Here are the pros and cons of being an IBO (independent business owner) with Amway:
The MLM Scam – How Amway Relates
While most MLM systems are known to be legitimate organizations, it is in people’s best interest to remain aware of MLM scams. A tell-tale sign of a trustworthy MLM program is that the business will not implement any extra or concealed costs when selling their products to the general public. They will not seek to recruit every consumer to their MLM organization to become distributors. The way these systems work is that they will not pay commisions for recruiting efforts, but rather will financially reward distributors for sales make. If any organization has it’s concentration centered around recruiting efforts rather than the actual products they sell, then it’s like to be an MLM scam.
This one of the big reason many people see Amway as a scam. Because the way they go about recruiting often times comes across as extreme. This extremeness is also the reason many people think of Amway as a cult.
Here are some more signs that can help you decipher a legit MLM program from a scam:
1) Sometimes these businesses will require that you invest a big amount of money in inventories before you can begin your business. If that’s the case, then that’s likely how they are really making their money — off of you. Steer clear of these.
2) If you find that you are being asked to sell “miracle” products, turn away, it’s a scam. If these products were so great, they would not need you to sell them, they would sell themselves.
3) And remember, if they are way too concerned with recruiting, then they are probably aiming to recruit you so that they won’t have to do the sales work and you can do it for them. If you don’t, you will be encouraged to turn around and find some people to do it for you. Why? Because your commission is their commission.
Scam Gifting – How is Amway Different?
Gifting systems are centered around the idea of givings gifts, which can often be in the form of cash. One of the attractive selling points is that you are helping your fellow citizens by giving. This is a very different system than that of Amway and Quixtar. However, is it also seen by many as a pyramid scam.
Cash gifting is legal according to the IRS. The guidelines are that a person can give another person a gift of up to $12,000 each year and neither individual will have a tax liability. The reasoning behind this is that the taxes on the gift have already been paid.
That is what makes the concept of cash gifting so appealing. Also, members who give are rewarded for participating in giving. So where does the scam part come in? Check out the next post for details about the programs.