Marketing Amway products - losers far out number gainers?

The problem(and charm) of a MLM business is that in a sense, it's fully automatic. You start your business, grow it, and you don't have to bother about recruitment after a certain point. Your downlines will do it. You don't have to worry about who to promote. It's decided by sales volume. Which would be nice, except that... You don't have a "stop" mechanism for a MLM business. For any product that comes out into the market, there's a certain number of people who wil buy it. Now suppose you have 100,000 people who will buy it in a market. For the sake of simplicity, I'm going to assume that every salesman has more or less the same ability to sell a product. Now, in a normal company, if every salesman that the company employs is able to sell to 100 people (and are able to earn enough commission to make a living while doing so), eventually when you reach 1000 salesmen, any further recruitment is pointless both for the company and the salesmen. At this point the company will stop recruiting salesmen. (In reality it's more a disminishing returns rather than a flat rate, but I'm trying to keep it simple here) I'm going to call this point x. For MLM company, there is no "Stop". Any sales rep recruited after point x will not be able to make any money in the already saturated market. Does the sales rep know exactly when this point x will occur? No. Does his upline know? No. Does his upline's upline's know? No. Even the top management won't have any idea exactly when point x will occur, since the MLM practice of the sales rep buying the product first will still result in good sales volume for a while even after point x has been reached. And, since MLM by their very nature is designed to keep recruiting and recruiting and recruiting, it'll usually continue recruiting unitl way past point x. Which has lead to the misconception that only thoses at the top of an MLM recruitment chain earn. Which usually leads to them pointing to someone 3 levels down from them and saying "He/she joined later than me but is earning more than me now" It's not so much about who joined first. It's about whether you joined before point x. Anyone who joined after point x will be in the group of those who "end up withunsold stock, get disillusioned and call it quits". And the recruiting nature of an MLM will make this group of people the majority. It's not because an MLM is an unethical business. It's not because of an overpriced product. A perfectly fine product promoted via an MLM will also encounter the same problem. It's because an MLM has no "stop recruiting" button.

I have not got into business models as these. But I had an acquaintance/ friend who was an agent in Amway and she was a very decent girl . She was doing well but later I lost touch with her.There was another friend/schoolmate who I happened to see after some 36 years, in a gathering. We were all out of touch for such a long time and I found it very strange when she tried to display and sell her products. Such marketing firms, that sell products which are totally disproproprtionately priced in relation to the value gained by the customer,, naturally makes us sceptical. Thank God I would never fall for any such marketing strategies and I never get tempted. I believe in Brand but this must also have proper utility value .[not only snob-value]Of course, here I am talking as a customer and not as an agent who has burnt my fingers. No experience there!

As a beginner in network marketing you should enter in a program that does not require you to buy anything . It does take time to build your clientele, but once built. The incone is there for you month after month. I am a network marketing and my plan does not require people buy anything or spend any money to join.

Amyway has long lost it's glory in my country where it used to be the longest leader in the network marketing. They used to have strong marketing strategies and it has become the household name for many many years but now it has taken a backstage and almost disappearing in in the market. I believe those who have started earlier gained when it was first launched that was in the 70's but consumers are more smarter now and moreover the market is saturated with many other products with competitive prices where Amway are lost when it comes to pricing. There is not much difference in quality but amway reach the target consumers because of their well trained salesman who can make amway products sound like magic with their sales techniques.

You are 100% right. I went to an Amway meeting several years ago as a favor to a friend who had joined and dragged me along. It felt like a cult. There all these meetings and people who claimed to have quit their day jobs and were making so much money with Amway products. Well, I didn't join, but I told my friend I'd buy some stuff from her. It was extremely expensive and had to be ordered. It took about a week fo get the products. I just thought that why in the world would anyone order toilet paper and wait a week for it? If you run out, you get in your car and go to the store. I didn't see how it would be a viable program. Needless to say, after a few months she quit too as she had spent a lot more than she earned.

Well, once I and my husband also had been trapped by these Amway people. Though we didn't like the strategy, as we are not very social by nature, but we joined due to extreme financial crunch we were facing during that time. The more I was trying to get into it, I was reckoning that we are losing our self esteem, and finally we had to give up because we could not take any more insults.

I am agree with you and your opinion about this internationally renounced firm Amway and its Products. About people or I can say Amway Distributors its true the losers percentage is high... its limited to some with strong grounds (economically, personally, socially, locally....). This is one face of a coin. Why not we should look at it with different perspective..... Personally, when I was a Graduate Student, this Business Opportunity was told to me by a friend of mine... I even have attended Business Seminars associated with this on couple of occasions... but refused to join this as I was thinking at that time that this is not for me/not suitable for the person like me.... things have changed after that... today I am in an better position financially without this business..... but something I managed to get out of this "public speaking", I use to deliver Business Plan to future prospects on my friends behalf and this enhanced my personality in a much bigger way that I could have got in formal educational system.... I am still out of this Business and have no desire to join this in future either.

First of all I am not a Amway business owner but I use their products and this are really good even though its price are very high but their quality is world class and why should we think they will give their best thing to you in no cost they have right to sell them in high price. and my one frien earn 40 to 50,000 per month it is all about hard work.

I too am skeptic about those chain marketing business (they call it 'Multi Level Marketing'). And I suppose, only those products which may not sell in conventional marketing, come into MLM. I earlier tried one MLM, which was having very worst business plan than AmWay. (At least Amway are having money back policy, if returned within specified period) And these MLMs damage our relationship with friends and relatives. I have another doubt, why almost all the products which come into MLM are overpriced always? At least my products are still working. Thank God. I won't scam anyone.