From: Eli.Mantel@launchpad.unc.edu (Eli Mantel)
Subject: Re: AMWAY : why isn't it pyramid selling?
Followup-To: alt.business.multi-level, alt.business.multi-level.scam.scam.scam
Organization: University of North Carolina Extended Bulletin Board Service
Date: Thu, 7 Jan 1993 12:43:11 GMT

tfj@apusapus.demon.co.uk (Trevor Jenkins) writes:
>I've been introduced to "AMWAY" and whilst it seems to be an interesting
>concept in marketing it smells awfully of "pyramid selling". Though their
>representative assures me that it isn't (but then they would wouldn't they?).

Within the U.S., the Federal Trade Commission (FTC) defines an *illegal*
pyramid scheme on the basis of certain specific practices, practices which
were prevalent in many pyramid schemes at the time this definition was
formulated, about 20 years ago.  Amway avoided those practices, and therefore
avoided prosecution for being an illegal pyramid scheme.  In particular,
Amway asserts that it has a bona fide line of products to offer.  The
quintessential element of a pyramid is that it would work without a bona
fide product.  If the product sells only because of the "business
opportunity" associated with it, then it IS an illegal pyramid.

>How real is the claim that someone can "make a living at it"?

Ask the Amway recruiter to give you a breakdown of the incomes of other
Amway distributors.  The FTC-required disclosure by Amway states that
average monthly income of Amway distributors is about $70.  As may be
expected, Amway distributors are taught to encourage prospective distributors
to pay no attention to this figure.  OTOH, there are apparently a few good
salespeople making substantial sums.

>What, if any, is their philosphosical/religion alignment?

To my knowledge, Amway has no religious alignment, but some of the
Amway "shell organizations" are religiously inclined.  The "stated"
philosophy of Amway is that you can achieve success by helping others
achieve success.

>Is it true that they just bailed out one of the US' major automobile
>manufacturers?

If this is so, I don't believe it's made national headlines.  If we're
talking a financial bailout (i.e. providing them some money), I guess this
indicates they've managed to accumulate some cash which they used to purchase
some commercial paper with.  While this suggests that the Amway Corporation
is making a profit and may be financially stable, it does not indicate
that you as an Amway distributor are likely to make a profit.

>I'd be interested in hearing the net-concensus about this company
>especially if you're IN with them, but also if you're now OUT.

My only connection with Amway is that I went to a local opportunity
meeting.  My major point to anyone considering Amway or any similar
opportunities is:  DON'T look at the "circles"... look at the product,
and the product pricing.  Make no committment to participate until
they show you the product prices, and you are convinced that it both
represents a value to the consumer (or even to you personally at the
wholesale prices).  Don't try to guess what your PV/BV may be worth,
because you may not necessarily be eligible for them.  

Followups to alt.business.multi-level, alt.business.multi-level.scam.scam.scam.

				Dream Thief
				Eli Mantel (eli.mantel@launchpad.unc.edu)
--
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