Monday, March 25, 2024

Artificial Intelligence View On Amway?

 Out of curiosity, I asked my Microsoft Co-Pilot AI (artificial intelligence) if Amway was a poor business opportunity.   The initial part of the response was how you can register as an affiliate for $55.   It goes on to speak about different levels in Amway such as affiliate or a higher level  where you recruit downline, etc.   It also mentions that income increases when you sponsor downline, creating a leadership group.  This is general basic knowledge for people somewhat familiar with the Amway opportunity and the details.

The interesting part is the discussion about the challenges and controversies surrounding the Amway opportunity.  

1.  Amway has faced criticism for its pyramid like structure where recruitment plays a significant role in earning income.  

While Amway was reviewed by the FTC in the past, they were found not to have qualified as an illegal pyramid.  However, this is not to say that Amway was exonerated or spoke of as a good example by the FTC, which is what some Amway IBOs and defenders like to spew on the internet.  Indeed, Amway was fined at one time for $100,000 for violating that 1979 ruling.  In this case, Amway apparently had ads that misrepresented income claims.

was amway fined in 1986 - Search (bing.com)

2.  The company (Amway) imposes strict requirements and sometimes unrealistic goals, making success challenging for many.  

For example, Amway has very strict rules about advertising and other factors that make it difficult to move products to the general public.  And if you have any disputes about these rules and regulations, you appeal to Amway, who gets to be the arbiter of these rules.  Can anyone really challenge and multi billion dollar corporation and win?  I find it highly unlikely, next to impossible.

3.  Amway affiliates cannot sell Amway products on platforms like Amazon or EBay, limiting their options.

So IBOs cannot use retail outlets or even ecommerce giants to move Amway products,  Thus, IBOs can sell person to person.  That is a restriction that is likely to hinder the opportunity to move a high volume of products.  I don't understand this rule because once an IBO makes a purchase from Amway, they get to restrict how that product is marketed to the public?  Maybe there's something I don't know about this, but you'd think Amway would want the market flooded with their products.   During the covid pandemic, online businesses like Amazon went through the roof and sales were booming.  If I'm not mistaken, Amway sales were lower or flat compared to pre-pandemic levels.  Amway had at one time peaked about just over 11 billion (I believe) but their sales and revenues has since dropped.  

And these restrictions are imposed by the corporation but doesn't include charging premium prices for generic in nature types of products, generally speaking.  If you remove any bias from your mind, take a look at what you can purchase from Amway for $100 and see what you can get from Costco or Wal Mart for similar products.  (Costco and Wal Mart don't sell Amway products).   Secondarily, the Amway name reputation has suffered from IBO lies and behavior.  For example, calling people broke or losers because they don't agree that Amway is a great deal.  All these factors add up to what the opportunity is:  A revolving door with high IBO turnover and the potential for business losses.  Is seems as if the longer you stay in and participate in the tools and training systems, the losses mount and become staggering in some cases.  

I know AI still needs to be scrutinized and double checked, but the AI response on Amway is correct, based on my experiences and in my own opinion. 


 

  



2 comments:

Anonymous said...

Amway severely limits the advertising of Amway products by individual IBOs, even when the products have been purchased and delivered to IBOs. It's insane, and something not done by any other commercial enterprise.

The reason is simple. Amway is not so much interested in the retail sale of products to the general public as it is in recruitment of down-line by IBOs. The tools, fees, and required PV purchases from all those recruited down-line are the real source of Amway's income. The products are just a cover.

Anonymous said...

The thing about Amway is that it's not about selling the products. It's about selling THE PLAN.

Up-line won't admit this, because it will discourage people from signing up.