Amway has a problem, a problem it shares with entire multi-level marketing industry. The result of this problem is that the vast majority of people who join Amway never make any significant money. It’s a problem that leads to low average incomes. It’s a problem that leads to many people not renewing their memberships.
This very same problem occurs with all MLM companies. This same problem, at an industry level, also means that a large percentage, perhaps even the majority, of multilevel marketing companies are not good business opportunities and many are outright scams.
It’s a problem that, thanks to things like above, results in the multilevel marketing concept and companies like Amway having a poor reputation among many people.
What’s the #1 problem with Amway and multilevel marketing problem?
Low barriers to entry and low risk.
It’s (relatively*) easy and (relatively*) cheap to start up an MLM company. You don’t even have to pay much for marketing! You only pay your salespeople when they actually get results! So if you’re an entrepreneur who is low on cash, or got some product that can’t compete in the traditional marketplace, or even if you’ve got some scam in mind … then MLM is the strategy for you. Low risk, low cost, so if it doesn’t work out you live to fight another today.
It’s easy to startup as an agent for an MLM company. It usually only costs a few dollars, nobody checks up to see if you’re turning up for work, you can return stuff you don’t want or can’t sell. Nobody cares what degrees you have or your success or failures of the past. Why not give it a shot for a few weeks or months and see if it’s something for you? What have you got to lose? It’s just an opportunity, not a promise.
Low barriers to entry and low risk. Amway and multilevel marketing’s biggest problem – and it’s greatest strength.
* compared to traditional strategies!