Category Archives: Amway Myths

MYTH: 70% Retail Sales Rule

Is it dishonesty or just ignorance? If you search around the posts of critics of Amway and Quixtar on the internet, something you’ll see regularly is reference to something like “The 70% Retail Sales Rule”.

Here for example, on Pyramid Scheme Alert, the claim is made

A 70% retail requirement level has been applied in various agreements between state Attorneys General offices and multi-level marketing companies charged with violating pyramid scheme statutes.

and

At least 70% of product must be sold at retail to consumers who are not also Amway distributors.

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MYTH: The majority lose money

Critics of network marketing, and Amway and Quixtar in particular, often make the claim that while some people may make money in networking, it's at the expense of the majority who lose money. Now, assuming you are not talking about an illegal pyramid scheme, where you actually make money by recruiting people rather than product sales, how can you lose money? The only way is if your business expenses are greater than your business income. 

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