Is Amway a financial scam in India

POSTED BY Ram ON October 26, 2012 3:13 pm COMMENTS (11)

I understood Amway is a multi level marketing scheme, wchich sells a variety of products including home care products, personal care products, jewelry, electronics, food supplements etc. 

I also understand AP and Kerala Govts have put a ban on the AMWAY operations in thier states.

Can somebody give inputs on the AMWAY operations. Can we beleive Amway and invest in their products.

Thanks, Ram


11 replies on this article “Is Amway a financial scam in India”

  1. Christopher Kwa says:

    Ram, I also don’t think Amway is a scam… But it definitely is those traditional Multi level marketing MLM companies whereby there’s no potential in building this business already…

    If you are keen to explore new age online business and not those traditional MLM, u can feel free to contact me because I’m an online entrepreneur and I’m expanding my new age online business into India this month. My new age online business allows u to be the pioneer for India market and allows u to earn from 140+ countries worldwide also. Anyone interested, feel free to contact me. Welcome!

  2. Jha says:

    I think Ram is correct in saying AP & Kerala Govt put a ban on Amway operations. I think some thing is problem with Amway operations. They sell products at very high price and keep on looting general public. I myself always prefer to keep away from products like Amway.
    Regards, Jha

  3. Dear Ram, can we know your views also on AMWAY?



  4. suhel desai says:

    Oops guess i pressed enter before i completed my reply…

    so they willtell u all sorts of thing like once u join u can retired at 35, then they will tell u that they had some ailment and it got cured by amway and all such things…

    so in a way MLM is not a scam but they way it is run is definately is..!

  5. suhel desai says:

    MLM in itself is not duping but the way it is done to get more people in it is definately is…

    If you see their training they will ask you to present people in such a way they will tell you all sorts

  6. Ram says:

    Thank you all for your views. I understand even though, AMWAY is not a financial scam, it is one of the MLM scheme to loot common man’s money.

    Thank you all for your views.

    Regards, Ram

  7. Matter says:

    Have any one compared Amway products cost with those in the market? Certainly they much costlier than competitive products in the market. Once joined you need to stick to the same brand, no question of competition and quality, we have to bet on the MLM company.

  8. Anirudha Bhadoriya says:

    I think the most misleading argument in their sales pitch is that there are no wholesalers involved. But then products should be cheaper for consumers, shouldn’t they? Distributors model is clearly worse as they collectively take a far bigger cut then any wholesaler.

  9. BanyanFA says:

    I won’t classify it as a scam. It is one of the marketing / sales approach taken by the companies. Instead of having wholesalers, direct sales shop, they have Amway distributors and the distributor earn margins.

    Amway products are pricey but of good quality. Hence it may be difficult to get initial customers (as Indian customers would generally at times avoid high price tags), but once you have tried Amway products, you are more likely to get repeat using them.

    Banyan Financial Advisors (BanyanFA)

  10. I am doing an article on MLM this week 😉 monday .

    COming to your point, you need to udnerstand that all the MLM schemes (like AMWAY) , will benefit only those who join it in START and as the tree grows , it then becomes tough and tough to be successful . Products which AMWAY makes are good overall , but they are pricey ! . but products are the main revenue stream which gets passed on to the above level and thats how people make money .


    1. Anirudha Bhadoriya says:

      There is one more MLM GQI which I came to know a while back. May be you would be intereseted to know for your article. It was far worse then Amway as one has to pay about 30k in 2007 for some useless product like a coin (that too not gold). They said in their presentations multiple times that it’s not the product but business which you are paying for. Much worse pyramid scheme:

      But somehow forbe’s has promoted it recently:

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