Wednesday, December 31, 2008

Amway Global in 2009: Aiming for a Comeback

One of the big ironies of 2008 is that the recession, largely created by GOP economic policies and an incompetent Bush administration, has created an opportunity for a GOP-dominated Ponzi scheme: Amway Global. In the past few months, Alticor, Amway's parent company has devoted millions to television commercials, newspaper ads, and market research. People who lost their jobs or who fear unemployment are undoubtedly attracted to Amway's slick ads. I think this is a tragedy. The overwhelming majority of people who join will be worse off financially. Amway Global is not as big of a Ponzi scheme as Bernard Madoff's $50 billion Ponzi scheme but it is in the billions.

May 2009 marks Amway's 50th anniversary. Let's hope that the comeback attempt is unsuccessful.

UPDATE: Here's an Associated Press story on Amway's attempt at a comeback.


Anonymous said...

It's funny how all the Amway rejects just reverberate the same tired crap, as if your all reading from the same script.

News flash for you guys. As much as your company has made it seem as if Amway is the only way to make it big in the world. It's not, you guys represent a very, very small percentage of the wealth in the world. And only a very, very small percentage of people make of the majority of the wealth in the Amaway business itself.

So please open your eyes. All the "Tools and Functions" have obviously halted all logical thinking in your brain.

generic Brand said...

What's actually funny (referring to the person above me) is that people who want to defend something that someone else is bashing can't even use proper grammar and language in their defense. If you want to come across as intelligent, or want people to think the company, belief, product you defend is legitimate, then write with clear diction and make a valid point.

Anonymous said...

Ponzi scheme huh? Do you even know what a Ponzi scheme is? Amway is nothing but a supplier. What people shoose to do with it is there business. In 2008 they went from 7 billion to 8.5 billion in revenue. Pretty impressive.

Anonymous said...

The ad campaign that started recently seems like an attempt, on their part, to prey on those who are financially disadvantaged, unemployeed, and desparate for a so-called job.
The way they do so well is because of the low markup they allow for the distributors - an average of 15-20% on the products based on their model. This isn't very much. If someone wants to make $3,000 in a month they will need to sell $15,000 - $20,000 to make that profit (ignoring expenses and potential bonuses from/to the downline - if you have one). Why not allow the distributors to keep a higher %-age of the product price and stop rewarding the upline with their FAT checks for the points in their downline. Why should they be rewarded for the sweat and hard work of others. Tell them to get out and sell the products themself and actually earn that check. Your better option is to find a company where your work doesn't directly influence the potential earnings of a line of individuals who otherwise have little interest in your success. This type of reward system is not much different than a pyramid scheme. Finally, if any sales pitch for success is based on theoretical information (which theirs is), proceed with caution.

AJ Nel said...

It's not a Ponzi scheme. Ponzi schemes are much more complex and interesting :). Amway merely uses the most annoying marketing technique in the world. That said, it does work for Amway as they get their products sold to and by someone thinking his / her brand loyalty and "marketing" will bring in a residual income - something which is pie in the sky for 90% of them.

Julian said...

$7 billion eh? does that represent hard work, or simply the sheer volume of IBO's getting ripped off and caught up in a pipe dream? Seeing as the distributors buy most of the products for themselves and end up unable to resell, its probably the latter. Interesting how big companies find ways to legally screw people over. Is it illegal? no. Is it a multi-level marketing scheme that lines the pockets of the upper execs and screws over everyone below? Yep. Hell, you can make some money doing it, but if your going to go to all the trouble, you may as well start your own business, make more in the long run, and feel ethical about it.