Amway

  1.  1

    Is the business model of Amway Hong Kong the same as other Amway markets?

  2.  2

    Is the bonus scheme of Amway Hong Kong the same as other Amway markets?

  3.  3

    What is direct selling? How is it different from pyramid selling?

  4.  4

    Direct selling is network marketing and participants can be successful just by building a large network through recruiting. Is that true?

  5.  5

    What are the fundamental differences between Amway's direct selling pattern and pyramid selling?

  6.  6

    Amway adopts a multi-level marketing pattern with a bonus scheme characterized by multiple award levels. Is this similar to fraudulent pyramid selling?

  7.  7

    Do Amway Distributors earn income without making any effort?

  8.  8

    How can Upline Sponsors benefit from the sales volume of Downline Distributors?

  9.  9

    At Amway, can Distributors attain higher achievement than those who join earlier than them?

  10. 10

    Does Amway guarantee that all Distributors can be successful?

  11. 11

    Some say the Amway bonus scheme benefits only the senior Distributors. Is this true?

  12. 12

    Why does Amway operate as a direct selling company instead of selling products through traditional channels like supermarkets and convenience stores?

  13. 13

    What are Amway's strengths in the market?

  14. 14

    Is Amway China's direct selling operation different from that of the overseas markets? How can China maintain the competitiveness of direct selling?

  15. 15

    Why multiple award levels are set up in the Amway bonus scheme?

  16. 16

    Some say, "Amway has a long history and the market has reached saturation. It is difficult for new Distributors to build a successful business." How will Amway respond to this kind of criticism?

  17. 17

    How does Amway handle misconduct among its sales force?

  18. 18

    What kind of training is provided by Amway to Distributors?

5    What are the fundamental differences between Amway's direct selling pattern and pyramid selling?

 

Pyramid selling uses the payment (start-up fee) of new participants (new downlines) to create opportunities for future profit (cash or other interests). Under the pyramid scheme, income is generated by recruiting new downlines and redistributing the start-up fee received among the members according to their levels, instead of selling products to consumers. Even if product selling takes place, the products of pyramid selling companies are usually of low quality and without product return guarantee. When a participant resigns, pyramid selling companies usually do not accept the return of saleable stock.

As a lawful direct selling company, Amway is committed to providing high quality products. Through direct selling, Distributors sell products to customers directly and earn income by retailing, servicing, sponsoring and training downlines. Sponsoring itself does not generate income.

In conclusion, there are great differences between bona fide direct selling companies and fraudulent pyramid scheme companies. The former provide excellent service and products to satisfy customers' needs, while the latter only aim at short term huge profit by recruiting new members.

You can easily distinguish the bona fides from the fraudulence according to the following guidelines:

Bona Fides Fraudulence
1) Low entry fee 1) High entry fee
2) Income derives from product
    selling		 2) Income derives from
    recruiting
3) Offers high quality products 3) Ignores product quality
4) Accepts product return
    within cooling-off period		 4) Without cooling-off period
    and imposes stringent rules
    on product return
5) Allows return of saleable
    merchandises upon
    resignation		 5) Does not repurchase
    inventory