Amway’s back – on Australia’s A Current Affair

Australian TV program, A Current Affair (ACA), had a feature segment on Amway tonight, titled “Amway’s Back”. You can watch the segment online here.

The promo for the segment did not bode well, featuring a classic false dilemma
The global giant is offering big bucks for less work and Australia’s big sports stars are getting behind it. Is it a fast track to fortune or an easy way to burn your friends?

Is that the only two choices? Really? How about big bucks for a lot of work and making lots of new friends?

Still, the segment is a reasonable one, featuring brief interviews with Amway Australia General Manager Michial Coldwell as well as Amway Brand Ambassador Libby Trickett. It’s a little overly focused on the “selling” aspect (rather than developing teams through leadership, which is where the “big money” comes from) and more false dilemmas (big bucks for nothing or lose all your friends!). The old rubbish about Amway being a pyramid is raised by the interviewer and summarily dismissed by Michial Coldwell. Unfortunately it’s followed by some ignorant commentary from Effie Zahos of Money Magazine.

Ms Zahos makes silly comments like “it’s a legal pyramid scheme”. How exactly does that work Effie? Pyramid schemes are, by definition, illegal. So it’s “a legal illegal scheme”. Yeah that works. Do you even know what a pyramid scheme is? It’s quite simple – you get paid for bringing people in to the scheme. How much do you get paid for bringing people into Amway? Zip. Zero. Zada. Back to business school for you Effie. Well, perhaps not, since that’s part of the problem – most business schools are still ignoring a $100 billion industry!

Ms Zahos doesn’t improve her reputation by continuing on to say “I don’t like being told the only way I can get discounts is to always shop at this one place” Anyone have a clue what the heck she is talking about? I wouldn’t like that either. What the heck has it got to do with Amway?

She then says “how do I know that those prices are actually cheap to start off with … or do I get the discount purely because they’re an inflated price?” Well gee, how do you know this with everything else you buy???? You check prices on similar products, and if there are no similar products, you make a value judgment on whether the price you are paying is worth it to you.

The shows host finishes with some good advice that perhaps Effie Zahos needs to listen to – “like any business, it’s important to do your research first”. Indeed.

33 thoughts on “Amway’s back – on Australia’s A Current Affair

  1. The question and answers here isn’t whether the Amway Business model works.It comes down to what your personal strategy is for financial freedom is.If you do have a plan then you’re a step ahead from most and if part of that strategy involves Amway then you’re on the right track.My suggestion is that if u are genuinely looking to invest a bit of sweat equity and understand delayed gratification then you understand yourself and your options, and you may be ready to research this once in a life time opportunity the right way ….. Which is via Network 21.Get in touch with a Platinum or Emerald leader and they will put you in the right direction to understand what’s in offer.Take your dream board to someone you can trust that’s walked the road !
    Remember we will never have exclusivity without sceptics and there are many experts too.Get the facts from the inside and understand whether you are going to invest your time in a scheme or a system.
    Network 21 has changed my mindset on life and my outlook to the future and my family dramatically.I have never seen another environment so full of the the “right kind” of people who will sell
    Out to your dreams and goals before their own.I am in the corporate medical industry and have used ACA to create propaganda and excitement around some of my own products , so they will do what they are told…don’t be driven by the media, but by your own due diligence and informed decision-making.All the best to and your journey and especially those with the burning desire and strong will to win!!!

  2. The Amway Sales and Marketing Program is a great opportunity and is built on high ethics and honesty, but unfortunately it is sometimes misrepresented or misunderstood. I have been involved as an IBO (Independant Business Owner for 3 years and have made money and new friends, and not “lost any friends”. Bill Gates and many other successful people have described Amway as the best opportunity around.

    1. I absolutely agree with your comment! People like Bill Gates would say that as he is a self made millionare due his intelligence etc so of course he would understand the concept for sure.

  3. As someone who just started myself, and knowing the stigma that this business has copped all throughout the years, i made the decision to continue… THE SAME THING HAPPENED WITH MACDONALDS, why would they have put out ads that covered up the rumours and whatever of their products… yeh, remember that ad? the young teens working at maccas and they were talking about quieting down what other people say? same principle. every business, everything that comes out as a trend today continues to be scrutinised by people regardless. so why not invest in something that seems logical. and when those who are in the business hit their goals, they’ll be happy for it. if people are happy eating maccas well im in no position to stop them.

  4. Opinions remain opinions until facts are presented. The dogs will bark but the caravan moves on.
    Iv been in the busines now 2 months. Absolutly loving it. Would not quit for no one. Im under the Teammak network. Fantastic friendships created. Lifelong friendships who will stick thru thick and thin. No tradtional business has this vibe. Your own your own there.
    Honestly with every business comes the garbage.
    Opinions are just as factual as gossip.

    These type of opinion gossips are living in fear because the reality is the internet is the future and no one can stop it.

    A 50 yr track record. None can stand up for that. Pyramids collapse far quicker than that and well usually change names and re appear.

    All I can say to opinion orientated garbos who like to vomit and steal peoples dreams is get a dream and chase that dream. Not steal other peoples. Go and ask the people who have the lifestyle and dreams achieved rather than listen to some outsider living a poor, over worked and fearful lifestyle.

  5. All of you can go to hell. Pardon my harshness, but do you human beings actually realise what you are doing? This world is a place where the fortunate make money from the misfortunate’s life. The reason we have 3rd world countries today is because of what we pay them for all of the products we recieve. And we do not pay them enough. For every cent you make from simply signing people to your false scheme, there are people working their entire waking hours of their week and life to make. Put more of you thought into correctly paying these countrie’s people , and maybe we will get somewhere as a human race.

    1. Paul, what on earth are you talking about? (1) Amway’s products are not manufactured in 3rd world countries, unless you count India and China, where the governments their required Amway to set up local manufacturing to sell to local customers – they are not sold to other countries. (2) we don’t make ANY money from “simply signing people” up.

      You might want to consider a modicum of research before engaging in public rants.

    2. Extremely old, but tell that to the many many Indians and south africans who have been able to save their family with this business. not to mention the 200,000 world vision children sponsored by IBOs, making Amway the worlds largest corporate sponsor.

      there is also Network of Caring, a charity where 100% of donations go to the cause because the founders pay all admin fees from their own pockets. the charity has raised over 1.5 million for good causes globally. from disaster relief to building schools for village communities. all because of what this business has afforded people.

      so yes, pardon you for having no idea what you are talking about.

      It isn’t wealth which defines a man, but what he chooses to do with it.

    3. All crap. An Amway INO receives no money for signing up someone else. Obviously you know absolutely how Amway works.

  6. Hi IBOFB, I’m a new distributor (one month) under MItch Sala (Dave and Vanessa McPherson are our Emeralds) here in Australia and I’m loving it – so far it has been about getting to know the company, listen to the CD’s and understand the criticisms that I’ve found. I have had a few doubts but have reached the conclusion as have all the above, that you can’t be in business for 50 years and not be a solid company worth working with. I’ve been able to get lots of CD’s from former distributors quite cheaply so haven’t had to fork out lots – but even if I’d had to it wold have been money well invested – investing in your own education and grounding in the business is not a bad thing. Anyway really appreciate seeing blogs like this where the record is being set straight.

    1. Gday greg! Chances are youll never see this (if youre still around)

      Im also in the Mcphersons team on the central coast. They are top people!

      Smallllll world!

    1. Yes i think the life lessons I learned from being an active IBO with Amway were invaluable….I got to see just how greedy and insensitive people can be including my ex who just saw dollar signs all the way. If you so much as disagree with anyone they first ask you for your contact list claiming they can help you turn everything around for you and then shun you whether they get their hands on it or not. Trust me, your friends won’t be friends very long if you pester them the way your upline want’s you too….of course your upline will tell you they aren’t your true friends if they react like that and you have new friends now. Their once bad reputation remains very much intact because the only method they have is to burn people out and take what they can while the newbie can still walk and talk like they want them to.
      Yes they have a massive attrition rate.
      Yes the upper levels receive $$$ kickbacks from the sales of the personal development books and CD’s and MP3’s.
      Yes the Amway brand products are “good”, but the imports including the groceries, jewelry, air filters, water filters (the list goes on) are all grossly over priced to make everyone feel like they are getting discounts, are often crap that has been introduced on a golf course handshake deal.
      Massive amounts of cronyism, lots of fake personalities, hidden religious focus so the big money makers can pretend they are very altruistic just like your average does when they go to church too….did i mention fake personalities.

      1. What you say is true too often. Most people make lots of mistakes as they learn what works and what doesn’t. Please don’t condemn the whole business for the unprofessional few you have met.

  7. I did my research even though i was skeptical about it because of the law suits i noted. I realized why they gained a bad reputation and it wasn’t the companies fault overall but was leading people in it that abused the system for quick gains and i believe it took a while to get rid of them and now are trying to rebuild the once solid reputation.

    The fact they still make $8.4 billion and have been going since the 1950’s indicates they are legal and ethical and all governing bodies seem to agree from my research.

    In the end i could not find anything wrong with this business, so i am going to start doing it myself and educating people not only about Amway but also about how network marking/MLM’s works and the reason is it the 21st Century style of business that will continue to grow and improve over the next couple decades.

  8. I have just watched the video clip and listened to what Effie Zahos has had to say and my first reaction was…’And this person writes for a money magazine??’. But then I have to think back to the sort of comments I originally made some years back. Effie has reached her conclusions based on the evidence, or rather lack of it, she has collected which would probably fit on the back of a postage stamp. To use the term ‘legal pyramid’ in this day and age simply beggars belief. However until she does a proper research job her ‘opinion’ will never change and it is pointless getting into an argument with her. Years ago the writer Andre Maurois wrote that generally ‘people hunt around like bird dogs for opinions that back up what they believe rather than look for the true facts and when faced with something that challenges their beliefs they fly into a rage’. Until Effie does some proper research and asks some really searching questions, like any GOOD, reputable journalist would, she will never budge from her rigid, luddite viewpoint. I say let’s challenge her to get off her backside and spend a couple of months doing a proper investigative job! Now that would impress me…c’mon Effie!

  9. I love when people say research they go right to Google and do “research”. Google is the bathroom wall of the world. You’ll find exactly what you’re looking for. The thing is for me seeing is believing. I’m not going to listen to what someone heard from a friend of a friend who did this business and then quit because they didn’t make any money. Well 1) they are a quitter and 2) they probably had no coaching or mentorship through this business. We have an amazing mentorship and training system through World Wide Dreambuilders and there are many other training systems that are great at what they do. Simply being an Amway IBO (in my opinion) does not get the proper association or coaching and mentorship so maybe that’s where a lot of people have a sour attitude.

    Regardless if you want to find negative about something you’ll find it. I’m sure if you searched for “I hate the pope” or “I hate Mother Teresa”, or whatever you’ll find it. Sometimes it takes child like faith and trust in someone. However trust can sometimes be abused which is unfortunate.

    If you can build trust and a great relationship with your upline and you’re willing to put in the work needed then you can make this business a success. Go find out for yourself!

    1. Great to hear your positive attitude towards the Amway business, Shaun. However, it sounded like you were arguing with someone–I’m don’t know who. I’m almost certain everyone who has posted comments (except for NoSucker) is an IBO/ABO. As for Google being the “bathroom wall of the world”; Google is a highly respected, successful business, providing a valuable search engine service for millions of web surfers. I regularly use the spell-check feature on the Google toolbar to help me look smart. πŸ™‚ Sorry, but overall I found your comment had a “canned flavor”. Do you have any thoughts that pertain specifically to IBOFightBack’s commentary, or the ACA program?

      Anyways, most importantly, keep building your Amway business!

  10. I am a new (4mths) IBO and a very proud one. My day job is a Bank Manager and I have researched many different business opportunities and have found nothing to compares with the Amway business. Obviously you have to work at it like anything to make money and I was never promised an easy ride. As far as a “Legal Pyramid” goes any corporate organisation is more of a pyramid than this business!!! Thanks ACA for the free advertisement. Effie, next time do your research first.

  11. I always get real nervous when TV or other media journalists do a story about our business. Not only do they know nothing or next to nothing about our business, mny of them don’t even try to get the facts. Or, they get their information from the wrong people and take their word as fact. Another thing is they could interview someone like Yager or Britt, then interview somone like me and see two totally different businesses.

    1. Actually Jeffrey, I think the gal they had on the show was closer to you than a Yager or Britt!. But you’re right, there’s a multitude of different “styles”

  12. The only research needed is a book called “Merchants of Deception” which exposes the motivational tapes and books that reap millions to the Fat Cats of Amway leaving the everyday Amway follower destitute…..As usual Amway does the rounds every few years after the heat dies off and attempts to scam a new generation of followers.

    1. For every organisation that exists initial & recurrent training is usually good business practice. Builds good team unity, improves moral, promotes better service delivery which in turn means bigger outcomes for your bucks. However according to Effie Zahos this is not the case for Amway. Amway is just there to rip you off with their business educational programs. I for one would certainly not be taking business advice from Effie Zahos given her possibly liabel inference that the Amway organization is doing something illegal. I’m sure if it were true what she says, Amway would have collapsed years ago but instead it has been going for 50 years strong. After 50 years I think the proof is in the pudding. Get your facts straight Effie – you might spare yourself the embarrassment of appearing again the fool you obviously are.

    2. Ignorance abounds – AMway Does not produce motivational tapes and books it is only a product broker. Some affiliates produce cds etc to help people develop their skills. However the biggest personal and business training school Network 21 (does 73% of Amway global sales) is a non-profit business and training school that donates any “profits” to charities. There are some that may make profits from the cds etc. Thing is do your research and connect to the right people donating time to help you succeed.

      1. Hi Corrina,
        I admire your positivity, but need to correct a few myths here. I checked with N21 about a couple of your claims and here’s what they said –

        Does N21 do 73% of Amway global sales?
        Sounds pretty impressive but is simply false. Truth is only Amway could possibly calculate the amount of Turnover N21 accounts for and they will not be sharing that any time soon … But I promise it is nowhere near 73% … yet πŸ˜‰

        Is N21 non profit and donates all profits to charity?
        Network Twentyone is a for profit company and has never been classified or represented as a non profit. While Network TwentyOne is a for profit company, great care and attention goes into streamlined operations and reducing expenses to ensure we can deliver world class training and support to our affiliated IBOs and ABOs. Perhaps the confusion comes from our prominent involvement in many global charities as Network TwentyOne and its owners Jim & Nancy Dornan are major supporters of many charities.

        Some quick facts:

        * Network TwentyOne and it’s affiliated IBOs/ABOs have contributed over $30,000,000 to World Vision to aid and sponsor over 50,000 childeren in developing or impoverished countries.
        * Network TwentyOne and it’s affiliated IBOs/ABOs have partnered with Free Wheel Chair mission to provide 1,600 wheel chairs to impoverished and handicapped children and adults in South Africa and the Ukraine with an additional 550 wheel chairs planned to be distributed in Haiti next month.
        * Network TwentyOne and it’s affiliated IBOs/ABOs have contributed over $1,500,000 to Karuna Sharan providing world class education to 1,600 students as well as a home to almost 100 orphans just outsite of Mumbai, India.

    3. I have researched neraly every major business in the world private and public. 50 years in business says enough if its illegal its gone in a few years. The illegal schemes come back yes but never under the same unberrella company.
      Want proof.
      Initial investment $100. First pay back in one month $10.

      I am a reasearcher 10% per month on investment is excellent. Does your bank do that. I know of several other strategies to do that on the stock market. But you would think thats a Scam to. Good luck staying poor.

  13. Hi there IBOFB
    You are right, overall it was a great exposure for us here in Australia, and its our duty now to capitalise on it. Perhaps I’ll go show the plan to Effie!! πŸ™‚

    This whole segment could have been a lot worse. Let me explain – ACA have a reputation for it’s… ummm …. journalistic “integrity”. The local media commentary show – ABC’s MediaWatch has a field day with them almost on a weekly basis – they aim at the lowest common denominator of which suspicion and fear are staples in the diet – So ACA feels it their duty to deliver.

    In a nutshell the jibes were not unexpected – anything less from them would have looked like paid advertainment.

    1. What’s always of interest is how the non-Amway people view it. Here’s a comment on twitter – I cannot believe that A Current Affair is advertising AMWAY! I love Tracy but ACA has turned into a complete joke. Clearly not an Amway “believer” and they obviously saw the segment as pro-Amway! πŸ™‚

  14. My guess with Effie is that she is making comments on what she has HEARD and not researched. She has only listened to comments of the ignorant and not those who is currently in business. I doubt she would have sat down in front of people like Mitch Sala or any of the other successful diamonds and said ‘i think what you are doing is a legal pyramid scheme, what do you have to say to that?’

    1. Effie a Money experts when she makes such completely ignorant and biased comments ?
      You must be Effing joking !!

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