No, Amway is not a safe company to invest your money in. Amway is one of the biggest company in the direct selling industry still the company products are not able to give sufficient value to its agents.
It is very difficult for someone to achieve success in Amway because it takes years of hard work and still the success rate is only 0.04%.
Amway is a legal company and registered under every direct selling rule and following all the rules under direct selling guidlines.
There are problems with the business plan of Amway and approach of agents to add more people into Amway.
Here are the 9 reasons why you should not invest your money in Amway company-
Table of Contents
9 reasons why you should not invest your money in Amway
Amway requires Investment every month
Amway requires a huge investment every month (around products of 5,000 rupees every month). You have to purchase Amway products every month no matter you need the products or not.
It means you are investing 60,000 rupees every year and you are only learning how to brainwash people and posting about your fake rich and happening life.
If you are investing money every month and not getting returns in even a year then you should consider that Amway investment is not safe.
Amway’s income is not fixed
Amway requires investment every month. If people will not invest their money every month then Amway will no longer be a passive source of income.
Amway agents claim that work for only 5 years and then take retirement. This statement is not at all true. You have to give continous guidance and mentorship training to your downline. Otherwise, people will lost trust and that will definately impact the Sales turnover.
The bigger your team, the more will be the responsibility on person sitting at higher level.
Your income depends upon your Sales turnover. If your Sales turnover is 0 then your income will also be 0.
Amway is not safe because income is not constant. It is not surely a passive source of income.
Amway gives a very low commission rate
The commission you will get on selling Amway products is very low. You can imagine that for generating a sales turnover of 1,00,000 rupees. You will get a commission of only 1000-1500 rupees. The commission rate is around 1.5%.
As your income also depends upon your downline so the company offers a very low commission rate on it. Although, you have to make constant efforts to motivate your team to do more sales for higher income.
If you launch your own product or dropshipping then you will earn atleast 15% commission on the sale of every product then why waste time on network marketing companies like Amway.
Even if you are able to add few enthusiastic people to your downline, still the commission rate is very low. Therefore, low commission means Amway is not a safe option.
Amway focus on Recruitment of more and more people
The intent of Amway agents is to add more and more people to their network. The intent of network marketing companies is that if you liked a product then you can recommend the products to someone else then you will get some commission on it.
But Amway agents attract people by giving them triggers that they are earning very high amount od rupees. The reality is that they are fallen into this trap so they just want to recover their lost money.
It makes no sense to add people in the network if they are not purchasing products or building a team on regular basis. You will be paid only for the sales turnover that they generated so adding people by hook or by crook makes no sense.
The agents have to build a team of like minded people who have a very high energy, large network of people and good influencing skills. Te problem is that Amway business model ruin the enthusiasm of these people due to its product quality with very high price.
The intent of Amway is to promote the scheme rather than the products so this is not a business. A company whose intent is just to add people is obviously not safe at all.
Amway Product Quality is not good
There are a bundle of mixed reviews regarding Amway products but most of them are bad reviews.
My interpretation says that the product quality of Amway products is not that good even the company is charging a very high price.
If you compare the price of Amway products with the best brands in the marketing then you will find that Amway products
If the company starts focusing on improving their product quality then maybe their company will grow. Otherwise, after some years people will be aware of the scam that Amway is doing so be safe.
Amway Products are very Expensive
Amway agents say that you will products in exchange of your investment but they will never tell you that Amway products are actually very expensive. I shared the proof of Amway prices in my blog-“Is Amway a real or fake Company?“
It is very difficult to convince anyone to purchase expensive products. Therefore, these Amway agents give personal triggers like Cars, Bungalow, Iphone and huge bank balances. If they will tell you the reality then no one will ever join the company.
This is like a rat trap because a person who invested in their money in this company will always work or motivate himself by the fact that one day he will cover the money that he invested.
You will always regret your investment in amway after a certain level of time when other people will not be convince by the business plan of Amway.
Amway has different prices for its agents and on Amazon
The prices of Amway products is cheaper on Amazon but if you are an Amway agent then you have to purchase those products on higher price.
Some higher level Amway agents advertise products on Amazon just to increase sales turnover. The more the sales turnoover then higher will be the commission. This phenomina is known as undercutting.
Amway is constantly trying to stop the complaints of undercutting but it is an indispensible thing in the network marketing industry.
This is obviously a very demotivating factor for anyone new doing this Amway Business. A new comer can’t advertise products on big platforms like Amazon.
People will question them that why there are different prices of same products on Amazon then those products sell by them.
Amway Agents Show fake incomes and make false claims
It is very difficult to earn a very high income in Amway. The reality is that Network Marketing atleast 5 years of continuous hard work and still success is not guaranteed.
Your income is dependent upon your team’s efforts as well. If you add people by manipulation then it is of no use because they will leave the company after 1-2 months.
This is the reason why people say that Job is 100% better than network marketing. In a job, your income is constant. After 2-3 years of expertise, your salary in a job will be above 50,000 rupees easily.
On the other hand, Amway requires atleast 5 years of hardwork and still your predicted income will be only 50,000-60,000 rupees. This income can also vary anytime if there will be lack of motivation on the people under you.
Network Marketers show fake dreams and show their own fake lifestyles and fake cheaques by which they will influence you. This is a very unethical thing hapeening in this industry.
Ask the Amway agents about their passbook income proofs of 6 months. Their income will definately not match with the income that they told. Now, you can think that how unsafe it is to invest your money in amway.
Free alternatives of Amway are available in the market
Amway requires investment every month but there are free passive income sources available in the market without the investment of a single penny.
Cashkaro is the best platform to earn passive income without any investment. There are free affiliate marketing platforms like Amazon Associate and Cashkaro then why there is a need to invest money in Amway.
Is Amway illegal?
No, Amway is not illegal. It is a legitimate company that is registered under all the Indian Direct Selling Rules. People call it illegal because its business model is very similar to a pyramid scheme in which the intent is just to add more and more people. Indirectly, the intent of Amway is also the same.
Why is Amway reputation so bad?
Amway reputation is so bad because Amway’s products are not value for money. Amway agents add innocent people by manipulation. The agents give triggers of a rich and happening life which is actually their fake lifestyle.
Why are Amway products so expensive?
Amway products are so expensive due to the network marketing business model. The price of Amway products is very expensive in India for no reason. It’s maybe because the competitors also have very high price and Amway have large market capitalization so they never think of changing their prices.