Question:
Need info on AMWAY compensation?
gracenov15
2011-12-17 20:01:29 UTC
hi my wife and i are going into the amway business and wonder how the compensation works
We have been told you need 100 pv just to be paid at all how much would we have to spend to reach that level is there a monthly minimum to stay in the business Please explain the levels and compenstation plan as much as possible Thanks!!!!!!!
Six answers:
William C.
2011-12-18 12:28:36 UTC
RUN dlo not walk away from this.



I have knwon a number of people who have tried amway and other MLM's



NONE of them have made any real money.
anonymous
2013-09-18 09:22:26 UTC
That David Steadson guy says he is not employed by Amway but you have to wonder, he is all over these types of questions. I know the original sucker, um, I mean poster is from 2 years ago, but I wanted to drop this here in case anyone stumbles across this, since it is the number 2 result for "Amway downline".

http://www.amquix.info/steadson_amway_zealot.html

Talks all about David Steadson plus you can read about the Google Bombing that had been going before.

I personally urge people not to participate in these kinds of things. The only one I have ever seen anyone have any real success with is Mary Kay. In fact one my customers drives one of those pink Cadillacs they give away to top sales people.
David Steadson
2011-12-20 16:04:57 UTC
Wow... can you believe some of the answers in this post? Some serious ignorance displayed.



Amway is one of the world's largest direct selling companies, with over $10 billion in sales in the last 12 months. It's world headquarters, which stretch for over a mile and include massive manufacturing and warehousing facilities, are in Ada, Michigan. (yes, that's in the United States, which should give you a hint about the credibility of one of your respondents ....)



The company also owns farms and manufacturing facilities in California and Washington, as well as in Brazil, Mexico, and China (for the Chinese market).



There are several ways to generate an income through the Amway business model, none of them "require" you to spend anything.



The first is through retail sales to customers, either personally or via your personal website. The recommended markup is generally between 20% and 30% however you can pick your own markup.



The next level of income is possible through volume rebates. In the US if you generate over 100pv in volume in a month, then you qualify for a 3% rebate on what's called "business volume" or BV. (BV varies between product categories but as a base point for Amway manufactured products it's roughly the price of the product with no taxes applied.) The percentage volume rebate you earn increases as your volume increases, topping out in North America at 25% and in other markets at 21%.



Your sales volume is calculated by adding both volume you have generated personally, either through personal use (ie essentially you as a customer of your business) or through sales to customers, as well as your group volume (volume generated by any Amway IBOs you have recruited, your "downline"). Your downline are also eligible for volume rebates and Amway calculates this and subtracts it from your rebate, paying them directly. You earn the difference (for example if your downline is getting a 3% rebate and you're at the 9% rebate level, then you'll earn a 6% profit margin (9-3=6) on that volume.



Note that to earn rebates on your downline volume Amway rules require you to have at least 50PV in registered customer volume. Without this you'll still earn rebates on your personal volume.



Retail profit and volume markups are the two basic income levels. There are more than a dozen additional bonuses and income streams available, some of which can be worth 7 figures. The information on the standard bonuses and commissions is in the Amway Business Reference Guide. Check the Sales Incentive Program guidelines for other incentives which may change from time to time.
-
2011-12-17 20:07:58 UTC
Unfortunately, this is not what you want to hear. AMWAY is one of the oldest MLM's out there, and many would consider a MLM to be a scam. Congress even considered putting laws in place against the MLM business model. All it really is, is a pyramid scheme that gets around the laws by offering a product or service -- like how Newt Gingrich can say he's not a lobbyist because he didn't officially register as one. It's a technicality.



Just google things like "Amway scam" or "MLM scam" and see what you learn. Unless you are one of the first people to join the MLM's, and now control all of the downlines, you will NEVER make any money from this. You are NOT going to sell any products/service. ALL of your money will come from recruiting suckers, and there's not too many left out there anymore. Last I checked, the typical MLM member makes ONE sale in their lifetime.
kemperk
2011-12-18 10:34:09 UTC
2 points to add to what the other poster said;



a; Amway signed a consent order, to either go to prison or take the biz out of the US--they chose Canada.



There is, therefore, no legal HQ in the US.



b; I once audited an Amway 5th level distributor, cause I never believed the hype. It took 2 days to do it.

Amway had convinced this distributor to not use a CPA but believe Amway's way of counting and accommodating

for costs of things.



I did an audit and she was not netting 35k a year as they said she was but netting 7k. She immediately

filed for BK. She was spending appropriate to 35k.



She had bought many tapes to motivate her and they had promised a total refund any time she wanted one.

She called and they reneged.



During my immediate post college years [degrees in biz] I began to help new distributors get out

of Amway as hundreds of promises turned out to be BS. I rarely got any money they had paid returned

to them.



I even thought I would test the hypothesis about safe distributors........i asked one for enough product

[as a research query, not cause i was a distributor] to supply a retail store. The Distributor immediately

said "that would hurt all the little guys, I won't provide that, even prepaid orders!"



ONE hotel I was staying at had advertised a great money making opportunity and had a room reserved

for 3 days. I visited before the speaker was to speak. I shared with the attendees questions they needed to

ask --about the return of product not sold from their kit and how to get out if they choose to get out

in 1-2 mo. And if the speaker had audited records of profits earned by new enrollees. He did not

and would not ask any he knew of, for any. As i hoped would happen, the room reserver needed to lie to

get this room and the hotel quickly canceled his other 2 days of reservations.



MLM is a scam, regardless if Amway or not. It is used by those who know nothing about the rules

of business, of tort law and who are willing to be nine people and to try to convince relatives to

attend "parties."



IF you want to be flim flammed, and hustled, open your wallet for all hucksters, not just MLM.



merry xmas and happy new year



I am an expert on small biz operations, by the way.
Abby
2016-02-28 06:03:21 UTC
some of it is right and some wrong. Cause how much you make is determined by the structure you have in your group. the lowest a platinum can make is 40K. so many things come in to factor.


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