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Amway Frequently Asked Questions

Unlike my argument page, this page is actually intended to be serious answers to serious questions. It is my hope that people will read this page and refrain from asking questions that I hear over and over again. Here is a list of the topics so far...

  1. This group that I know seems to be similar to Amway. Are they related?
  2. What is Quixtar?
  3. What do you think about other MLMs?
  4. Who are you to tell me what to do?
  5. Will you please send a message to my (husband / wife /mother / brother / friend / etc) personally and tell them not to join Amway?
  6. Did you know that Sidney Schwartz is supposedly a salaried minion of Procter & Gamble?
  7. Now that I know the truth, what are some embarrassing questions that I could ask my upline the next time I go to a meeting?

 

  1. I have been pitched by a group that calls itself (so and so). It sure sounds to me like the way you described Amway. Are they the same?
  • It could be a completely different multi-level marketing group, or it could actually be Amway. More specifically, it could be an Amway Motivational Organization (AMO for short), which are the groups that are primarily responsible for hosting functions, recording tapes, and writing books.

    Isn't that nice?

  • Most everyone who is sponsored into Amway is picked up by a distributor from a specific AMO. Distributors will typically tell you that their AMO is different from all the others, and that everything you hear about Amway in general is not true of this group.

    The most prominent AMO's that I know of are:

    Many AMO's name themselves after their founder, in ways like "John Smith Enterprises" and so on. I only know the names of a few diamonds, so I can't provide an exhaustive list.

    Here is a list of other Multi-Level Marketing firms, which may well behave in ways similar to Amway:

    Again, this is not an exhaustive list. If you want to know my opinion of these groups, a later question will cover it.

     


    Q: I have been pitched by a group that calls itself (so and so). It sure sounds to me like the way you described Amway. Are they the same?
    A: It could be a completely different multi-level marketing group, or it could actually be Amway. More specifically, it could be an Amway Motivational Organization (AMO for short), which are the groups that are primarily responsible for hosting functions, recording tapes, and writing books.

    Most everyone who is sponsored into Amway is picked up by a distributor from a specific AMO. Distributors will typically tell you that their AMO is different from all the others, and that everything you hear about Amway in general is not true of this group.

    The most prominent AMO's that I know of are:

    • International Networker's Association (INA) (This was "Ted"s group)
    • World Wide Dream Builders (WWDB)
    • Network 21
    • Britt International (named for Bill Britt)
    • INTERNET
    • Quixtar (more on this one later)

    Many AMO's name themselves after their founder, in ways like "John Smith Enterprises" and so on. I only know the names of a few diamonds, so I can't provide an exhaustive list.

    Here is a list of other Multi-Level Marketing firms, which may well behave in ways similar to Amway:

    • Primerica
    • Mary Kaye
    • Excel
    • Equinox
    • Alpine Industries
    • Herbalife
    • Forever Living Products

    Again, this is not an exhaustive list. If you want to know my opinion of these groups, a later question will cover it.


    Q: There's this new thing called Quixtar. It seems to have something to do with Amway. Does it?
    A: Oh yes. Quixtar is Amway's brand new "revolutionary" online marketing tactic. To hear them talk, you'd think they invented the whole concept of online sales, which of course have been around for years.

    At the present time, Quixtar has an online presence in two places: http://www.quixtar.com, and http://www.countdown9199.com. The first site is currently marked "under construction" and will not be available to view until September 1, 1999 -- this is what countdown 9199 signifies. The second site is a great example of typical Amway hype, full of images and multimedia and signifying nothing.

    "GOALS ... You know what you want out of life, and you're willing to work for it. Why wait? Act now!" Wow, I'm fired up now.

    The site also features many of the kind of exciting and empty words that investors get so turned on by when they're technologically illiterate but dying to seem hip. This would be your lingo like "e-tailing", "e-commerce", "virtual business", etc. (If it's a virtual business, do you make virtual money on virtual sales? Can you become virtually rich?)

    What do I expect Quixtar will really do for Amway? Well, I have two feelings about this. Number one, Amway is still Amway whether it's online or off. The fundamental basis of it is still that distributors pay money to other distributors and assume that everyone who works hard at it will eventually become rich. I expect that the new online business will inspire many more distributors to "buy from their own store" even more frequently, causing the Amway corporation and the high pins to make a lot of money. The vast majority of distributors will continue to lose money hand over fist as they buy overpriced products and call them "investments in their businesses". And, they'll tell everyone how convenient it is to buy from themselves. In other words, business as usual.

    ON THE OTHER HAND... moving online might be quite a tactical blunder for Amway. Turning people on to Quixtar means that many distributors will have to get on the internet who would not have done so otherwise. More people online means more people reading web pages like mine. Say what you want to about this site, but it DOES hurt the distributors' business. It's now a common question at meetings, what do you do about potential downline who have read negative things on the internet?

    It wasn't long ago, and I say this from firsthand experience, that distributors were discouraged from going onto the internet at all. Because of all the "lies" that could fool unwary people, it would be better to cut off this source of "mis"information. Now it seems that Amway can't resist going digital anymore. Whether this will be a savvy business move or a grave mistake, only time will tell.


    Q: It sounds like you are pretty down on Amway. Are you opposed to multi-level marketing in general or just Amway in particular? How do you feel about (name of different MLM)? They seem to be much better than Amway.
    A: I was prospected by Amway, not any other MLM, so naturally I put the most time and interest into that subject. However, it is my opinion that MLM is a business plan that is based on a flawed and unsound concept; that MLM's, like any pyramid scheme, will impoverish far more people than it will enrich; and that any product which is worth buying for its own sake will not rely solely on tricky magic marketing schemes to sell them.

    Rather than going in depth to promote my own arguments about the general state of MLM's, let me instead direct you to two other very excellent web sites: quatloos, and Dean Vandruff's "What's Wrong With Multi-Level Marketing?" page. Anyone who asks me about Excel, Equinox, Mary Kay, or anything else of the sort, will inevitably be pointed in that direction.


    Q: Who are you to tell me what to do?
    A: I'm nobody, of course. In particular, I'm a nobody computer programmer from Austin, with a computer science degree from UC San Diego, a decent salary, aspirations to start a software company someday, and a hobby of writing web pages as well as juggling. Also, I was a pretty good high school debate team member, and I happen to have a little side interest in psychology and the motivations that make people tick.

    In terms of why you should listen to me, there's no good answer except that I'm a guy with an opinion. How much weight you attach to that opinion depends solely on how convincing I am, what you think of my research methods, and whether your experience backs up what I said. If you don't agree, that's fine. Contrary to the tone of this question, I don't tell anybody what to do. I merely present what I consider to be relevant information, and then mildly suggest that you'd be better off without doing Amway.

    It's weird that people think I'm telling them what to do, weirder still that they think I am "stealing their dreams". Nobody ever said you had to listen to me or act on my advice. If I did steal your dream, what would I do with it?


    Q: Will you please send a message to my (pick one: husband / wife / mother / brother / friend / etc) personally and tell them not to join Amway?
    A: I'm sorry, but the answer to this question is generally no. I only write to people on rare occasions. The point of posting the web page in the first place is so that the information is there all the time, available to anyone who is willing to see it.

    Besides, what makes you think that this person will believe me? I'm nobody to them, they've never met me. What makes you think they will listen to me if they can't even listen to you, their trusted friend / spouse / family member? It's more likely that they would ask: "Why is this guy telling me what to do?"

    What I recommend in this situation is that you tell this person what you've discovered yourself, then help them find it too. Give them a web address if they're computer-literate; a print-out if they're not. They can probably read just as well as you can, and when you come right down to it, it will really be their own personal decision to make use of that information or not.


    Q: Did you know that Sidney Schwartz is just a pawn of Procter & Gamble? He only put up his site because he was funded and paid off by them.
    A: I'm having a hard time finding the words sufficient to express my complete contempt for this rumor.

    I have had a great deal of personal correspondence with Sidney Schwartz. I would consider him a friend. I was in touch with him long before he got involved in the Procter & Gamble lawsuit. Sid started his site for reasons similar to those that made me start mine: he heard about it, he investigated, he found their practices reprehensible, and he wanted to make the information public.

    At some point in our correspondence, he told me that P&G hired him as an "expert consultant" on Amway. This was in relation to their ongoing lawsuit against Amway to squelch the rumor that P&G is run by Satan worshippers. Sid was hired AFTER his web site was in place for quite some time, and he was hired precisely because he had so much good dirt on Amway.

    Much as the rumor-mongers would like you to believe it, Sidney Schwartz's relationship with P&G was not a secret at any time. He was not "discovered" to be working with them, this was publicly available information during the trial. And reading his site, it's not hard to see why he was considered to be an expert. I daresay he has spent more time researching Amway, gathering data, and engaging in personal contact with current and ex-distributors, than anyone else in the world below an emerald.

    P&G paid him for his time as a consultant. Period. They did not "fund" his web site. In fact, the idea that anyone needs to be funded for a private web site is laughable to me and anybody who's ever learned to write HTML, because all you really need is a place to put your site (most ISP's give you that for free), a book teaching you syntax (available for around $20), and some free time. This is not working: it's FUN, I tell you.

    But I digress. What's happened is that Sidney Schwartz got a subpoena from Amway lawyers. He was required to turn over the contents of his hard drive so they could "investigate" his connection with P&G. Sid's actual connection is public knowledge for anyone who's ever read his site.

    In addition, two other site maintainers -- who had absolutely NOTHING to do with the P&G case -- also received subpoenas. With all this hard-drive seizing that's spreading like an epidemic, I'm almost feeling sad to be left out. :)


    Q: I met a guy in the mall this weekend, and he wants me to go to a "business presentation". But now that I read your web page, I'm ready to tell him to put his SA8 where the sun don't shine. I'd also really like to go out in a blaze of glory if possible. If you had it to do over again, what questions would you ask your upline that would probably really embarrass him, or make him reconsider his membership?
    A: If you're looking to change your sponsor's mind, all I can say is, don't get your hopes up. The "education" runs pretty deep in a surprisingly short amount of time.

    If, however, all you care about is solidifying your own decision and maybe the decisions of a few amused onlookers, here are some fun questions that you would more than likely enjoy hearing the answers to.

    • "How many total Amway distributors are there? How many diamonds are there, approximately? What is the ratio of those who strike it rich to those who don't?" The main problem with this line of questioning is that your sponsor probably won't be able to answer the second question. It's not common knowledge, and those who do know seem to guard that knowledge carefully. In reality there are currently about 3 million distributors worldwide (they will know this) but there are "hundreds" of diamonds. This makes your chances of getting lucky about one in 10,000 (give or take), which is a whole lot worse than your odds of making millions by doing something other than Amway. Around three percent of Americans are millionaires, a hundred times better odds than the above.

    • "How much money are YOU making, RIGHT NOW?" It's important that you ask this question of a random sampling from the people you meet. Don't ask "Can you introduce me to someone who is making good money?" and don't be impressed if they take your question to mean that. Anyone can introduce you to that diamond who was standing up there at the podium a minute ago, but he's one guy addressing a room full of hundreds. The system is carefully set up to guarantee that everybody knows SOMEBODY who is making money. It's different when you ask individuals. You will find that the vast majority of people believe they are "just getting started", and that those who have been in it for several years but are still "just starting" invariably blame themselves and call themselves lazy. Will that guilty conscience be yours?

    • For those who claim to be making money, there are two approaches to take. If they are not big pins (silvers, directs, etc) ask them how much they spend on books, tapes, and tickets per month. Then ask if they deducted that in quoting their income. Don't be impressed when they describe these as "business investments"... motivation isn't an investment except in the most abstract of terms. Old tickets don't have resale value; if someone were to quit tomorrow, all these "investments" would be worthless.

    • For someone who claims to be making money and IS a big pin, ask how much they MADE on books, tapes and tickets this month. Or for this very meeting. I have no idea what kind of an answer you'll get, but it's worth a try.

    • Just for fun, read some of the lawsuits on Sidney Schwartz's page, then ask your friendly distributor about them.

    • For those with far too much time on their hands: ask for a catalog. Check out the prices. Check out the prices in a nearby store, on the SAME products (not Amway soap vs. Tide, I'm talking about products advertised in the catalog that were made by third-party companies). If you can't have a catalog, ask what their motivations are for not allowing you to look at the goods before committing to the business.