AMWAY: The Largest MLM Cult in the World #pyramidscheme

hello everyone it's Isabella here and welcome back to the channel so today's video we're going to be doing a dive on a company you guys have been literally begging me to talk about for a long time like I'm talking you guys have been asking for this probably since I started talking about mlms in general like it has been a while finally though I am getting to talking about this company and I am so excited so we are discussing and we're talking about the problems of the company the products where it originated from and other issues lawsuits and legal problems when it comes to this company and how Amway is honestly a huge basis of the multi-level marketing world and a big example of why some emblems exist today so before we hop into today's video don't forget to hit that Thumbs Up Button subscribe the channel and click the Bell button down below without further Ado let's get into it now really quickly before we actually get into the real history of mlms this is the part that many people that are my regular viewers might want to skip through of course and I will have the time stamp to where things start back up so you guys can go click that however for my people who are new here and who don't know a lot about mlms I want to put up a lot of information about MLM so that way you guys can have a little bit of background about what we're diving into and why I don't like mlms so according to the ACT to see majority of people do not make money there are many different statements articles and studies that are backing up this type of information the FTC literally also has characteristics describing pyramid schemes eftc additionally States how most people make no money so if you are wanting to essentially earn some type of substantial income or even any income for that matter more than likely you won't because majority of participants and companies will fail so that's something that we've seen across the board additionally though from what my personal opinion what I have come across with discussing many mlms is the fact that many of these mlms run with a very cult-like mentality or just like a cult in general and so if you guys are very curious about if you are part of an MLM or if the MLM that we're talking about today is similar to a cult and what you think I always have this chart pop up talking about cool characteristics but here's the thing I know that we were talking about a company that I absolutely hate as you guys know and mlms are things that I completely dislike however I want to take a moment to talk about a company that I literally love so much and then it's actually done a lot for me we're going to be talking about surf shark so as someone who researched for a living creates a bunch of content essentially her entire job is on the internet I like to secure my digital life and with that I love using surfshark the internet is an absolutely beautiful place but at the same time there also can be some other dangerous sites as we talk about on this channel many times however with surf shark VPN you can really protect yourself and make sure that everything is secure good to go and you are free of worry while you are surfing on the internet so for example I can encrypt my internet activity so no one can track or steal my data which is very important surfshark offers a change of IP address I can increase my privacy and avoid tracking by using different IP address I have a random IP address so no one can find where I'm at and another wonderful part about surf shark is this is all for unlimited devices so if you are either a person of one like me or if you have many people in your household everyone is covered which is an absolute steal and especially if you are looking to start off the new year right making sure you have everything organized and in check I think this is a wonderful way to get that started by making sure your internet browsing and everything you do is secure it locked in and good to go and you're completely worried for you for the rest of the year because surf shark is absolutely amazing I wanted to offer you guys a phenomenal deal I have the code Isabella that you can use at checkout and you can get 83 off of your order plus three months for free which is an absolute steal so go down to the description below or in the pin comment use the code Isabella for 83 plus three months for free thank you so much to surfshark for sponsoring this video and for offering such a great deal and now let's get into the scary part of this deep dive we are diving into Amway which has been a company that's existed for a very long time again many of you guys might know Amway as one of the mega Monsters of the a multi-level marketing world it was one of the very old and first starting mlms of course we know companies like Mary Kay and Avon who were alive years and years ago but Amway has been an absolute monster from the get-go now we're going to dive into this company with multiple different categories so for example I'm going to be talking about products now if you want to jump to a specific topic specific category or if you have someone or if you are someone who wants to learn about Amway because someone is trying to recruit you into it there are timestamps down the description below so that way you guys can click on the proper section so you can refer back to it you don't have to hunt through my video so you can get the exact information you need whenever you need so like I said Amway is an absolute Powerhouse the multi-level marketing World they pulled 8.8 billion in the year 2020 which is an absolutely insane amount of money to make at a multi-level marketing World Amway was again founded in 1959 by Jay Van Andel and co-founder Richard Davos they both met again in a Christian School and found similar Fascinations with business and sales and they actually had multiple different companies that were started before Amway so this wasn't their first rodeo they had many different build a business attempts however Amway was the one that actually stuck now Amway is essentially a multiple marketing company where the concept is again you either can sell the products that they have to offer which is a way to make money or you also have the opportunity where you can recruit people into the system in order to make money now here's the problem about Amway so far from what I can just see from some of the parts that I was looking into about this company they are pretty secretive when it comes to certain details about what they have to offer if a company is not willing to be transparent about what they have to offer you and they're kind of sneaking around certain topics or if anything doing false advertising to make you think that this is a wonderful company for products or a business opportunity that's a really bad thing they also had hints in a company called neutral light neutralite is a brand of mineral vitamin and dietary supplements developed in 1934. neutral light products are currently manufactured by axis business group a subsidiary of alticore whose products are also sold via Amway worldwide the new trailer brand is known as neutral way in many other countries then of course like any other MLM company usually does there's there is expansion not with neutral light they've expanded not only to just the health and wellness world but into the house cleaning aspect as well so now we're going to be diving into the income disclosure statement so if you don't know an income disclosure statement is a statement to say hey this is how much money you possibly could be expecting to make according to what a lot of our current promoters now are making in the company this is honestly a really wonderful thing to look at because while not every company is legally required to show it in the U.S United States it's really nice when they have it because what we usually come across and see is a lot of the companies that I've covered they replicate the same data that the FTC Studies have been able to show so ranging from the 90 to 90 of people hardly making anything in 2021 33 of all U.S registered ibos which are their promoters had no reported sales so majority of them did not have any sales at all which I think is again a big big red flag however I also want to be very transparent clear that that could be some people who literally decide to not run this as a quote-unquote business opportunity and so therefore just decide to opt out however the also other part of the reality of it could be that they did try but they just didn't make any money because a lot of the times that pattern is replicated in every other MLM where most people genuinely make no money as the FTC has stated it said then U.S registered ibos at the founders Platinum level and Below was 766 before expenses expenses May reduce your net income as a promoter and can include registration and renewal fees shipping charges taxes and expenses you incur from samples travel and any optional training and support you purchase from approved providers or otherwise for 766 annually that is again that might not sound like a bad idea a literally a little extra hundred dollars a year doesn't sound bad however most of the time we don't consider the fact that most people have to spend money on additional products that they have to purchase a lot of the times when new launches are released in an MLM because you want to be considered a business owner and buy your product you have to have something in order to sell it would be kind of odd for me to talk about a product that I don't use actually so you need to purchase it as well which could add up and then additionally most of the time if you make more than 600 as as an independent contractor you have to pay taxes on that and again just thinking about how all the other requirements that I've personally run into were many different MLM leaders have encouraged people to do certain things and spend money on it it wouldn't surprise me if that number would drop down significantly and when we look at the bigger picture and we think of people who try and run mlms or run the business side of the MLM usually we come across people who want to make extra money especially in the world that we live in now trying to get an extra side hustle or making extra money to Simply get by is a very frequent thing and a lot of people are hunting for that and the problem is is when we look at the amount of money that you possibly could make again small chance but possibly we have to look at how many hours that you have to work and put in in order to even get that small bit amount of money and then we have to kind of weigh that in comparison to other opportunities or a job opportunities for that matter and is it actually worth it to run this MLM business make no money or lose even more or is it more worth it to try other business opportunities and most the time that I've come across it is way more valuable to try out other opportunities these and again just like the chart I showed you earlier you have a higher chance of making money from gambling now I'm not going to encourage that as a side hustle please don't do that what I'm saying though is is the MLM world is an exceptionally risky atmosphere and I don't recommend that for people who are financially struggling because whatever you quote unquote investing yourself can be completely lost now additionally the rest of this says that the top one percent earn on average 87 901 and the median was 55 264. top 10 earning on a median 4 645 the top 50 earning 631 million and again that is significantly low in my opinion for all of the work all the trainings all of the traveling all of the products you have to buy and so much more in order to what barely make anything so now let's talk about how you actually start this multi-level marketing business an initial registration fee I think that is 76 dollars so when it comes to 76 that's about it now they are marketing off this opportunity as you just sign up and that's it you don't have to buy products but again I think we have to kind of factor in how you have to to buy products in order to get started because again promoting something that you don't really have or don't have any personal experience with it's not really that's not going to work out so 100 bucks I think would be around what it would cost in order to join this company and so thinking about a hundred dollars to start is not absolutely horrible but when we factor in how many people are hardly making what like 630 dollars and then I'm including any other product cost taxes or anything like that that's gonna drop really significantly and how much work do you want to put in to get absolutely nothing so now let's dive into some of the products that the company has to offer so one thing about Amway is they have many different brands Under the Umbrella of Amway so it's almost like I joke about this it's like a supermarket of mlms pretty much so one thing I would say is kind of a red flag to me is having many different randomized products and under one MLM now again I they might be good they might be bad all I'm saying is I think it's kind of odd how it's not like there's a really specific Niche or category that a lot of these products fall under which I think to me is giving more of a cow scrap because when we have a range of cleaning products to make up to health and wellness it just sounds messy it doesn't sound consistent and one theory that myself and many others have is the fact that many mlms have many different products because they want to have as many opportunities as they can to either get people inside of the MLM to purchase the products or anyone else for that matter as long as there's something that someone will purchase now I'm going to read off some of the brands that the Amway company has neutral lights um maybe it's no by neutralite neutral light Organics Artistry Artistry skin nutrition Artistry Studio XS bodykey satinique g h glister that's a that's a name Amway Home East Spring atmosphere I cook I'm just going to briefly skim through some of these products for you on the screen so you guys can see there are just the most random products in my opinion like there's just there's so much that they have at this point it is almost like a really bad version of Walmart you know what I mean actually I would love to mention this I was listening to a video one time which really inspired me to talk about this company Illuminati which is an incredible YouTube channel phenomenal but there was a statement that Illuminati actually made about these kinds of mlms honestly it was such a fascinating point that a lot of these different brands Under the Umbrella of Amway is almost giving an opportunity for people to indirectly sign someone up for Amway because it looks like a different MLM because a lot of these products from what I can see were originally from other mlms even and they were just brought into the umbrella of Amway so what I'm getting is let's say I don't like Amway right but then Artistry X I've never heard of before but my friends telling me to sign up with it it might entice me more essentially to start because it's a different MLM when in all reality everything is pretty much technically connected and from looking at this all it makes a lot of sense how it sounds like a very easy way to misinform people and mislead people into thinking that they're joining a different MLM even though they're joining the monster Amway and again just some of these products from looking at it it doesn't look like it's something that is super duper unique when it comes to the MLM world or Amway for that matter one thing that I personally come across when it comes to many different MLM products is the fact that a lot of it is highly generic nor are the ingredients usually transformative and so what I'm trying to say is there's a product that you see in the MLM or you really like but you want to find Hadoop a replica something really similar I guarantee you majority of the time you are going to find something quite similar and I'm gonna be honest that kind of goes for any company that even not involved with an MLM there are many dupes for many things so when I say if you are someone who does not want to support the MLM or has the idea that you think that you can only get this product from Amway I am here to tell you majority of the time that it's completely BS and there are tons of different dupes out there that you can find if you just kind of dig around and do a little bit of research most the time we actually see a lot of generic creation engineering products and ingredients so that honestly allows it to where you can find dupes of these emblem products far easier so from my opinion just kind of looking at it I think that they're kind of average price depending on what you buy but I don't think it's necessarily something revolutionary and I think in my opinion it's more of a filler product because it honestly would maybe a little bit more interesting if I saw a product that was more unique and had some type of very special value or something that you can only find from Amway there however I personally think that the products again are just a filler because if you are a no product based pyramid scheme it's going to be really easy to get caught legally whereas there are loopholes and if you were able to have products it's going to be harder to prove that you're a pyramid scheme if you have all these other products and fillers essentially it's a way that I personally think that a lot of these emblems are able to get away with hiding the fact that they are running things a lot like a pyramid scheme because if they have products it's just a good cover in my opinion I don't see any uniqueness I don't see any proper marketing I don't see anything at all seems a little overpriced in some areas some properly priced I would say but at the end of the day it doesn't look like it's something that is standing out and I feel like again that this is screaming that this is kind of just a front to what's really going on now I would love to talk about the compensation plan I think I really want to briefly highlight when it comes to a lot of MLM companies is I think there's a big red flag when it comes to again if a lot of bonuses or ways of earning money is dependent on if you have a team I think another big red flag is if majority of people that are at the top of the company aren't strictly doing sales and being good at it and if they just have mainly a downline again they could be selling but if a lot of their downline is the one that is buying the products or if they have majority of the downline and they aren't able to easily produce those sales by themselves and essentially I think that that is a huge red flag to me and so with just looking at some of this information briefly a lot of the bonuses from what I am seeing it looks like that yes you can have points but your group points count towards it which adds to additional monthly bonuses and then getting extra cash and trips can also be added because of recruitment from what I can see and then it looks like there's a retail margin that you can earn money for customer price minus your price equals retail margin I just don't feel like this is going to be a sustainable company my opinion from I'm looking at this it doesn't look like it's going to allow you essentially to make money without having a good amount of downlines now again this is going to vary you could sell products and do affiliate marketing style absolutely but when we look at most the time with a lot of companies and if you talk to a lot of people that are in Amway usually you notice a pattern from what I've personally seen of you need to recruit in order to hit these certain ranks in order to grow in order to make the actual legit money and again as we saw at the beginning of this video when we were talking about income disclosure statements majority of the people that were at the top 50 of the company were hardly making anything I think that also speaks volumes because if not money people can get to the higher parts of the company they're still hardly making anything this looks like it's literally profiting the most people at the top and majority people are losing everything at the bottom so one thing that I really want to talk about is the legal issues when it comes to Amway because I feel like this is honestly the most telling when it comes to the entire multi-level marketing company of course the income disclosure statement MLM statistics and everything else is super significant but looking at some of these cases I think is a huge red red flag in itself now of course I want to be very clear and say that anyone can pretty much get sued it's a matter of if there's a case or not and depending on the case if it's actually reasonable it may or may not be reasonable to be concerned about or nothing to be concerned about but with these I truly think that there's something to be concerned about Amway is all across the world many different mlms run in different countries as well first of all though I want to talk about the 1979 Amway versus FTC case now this is a case where the FTC actually went after Amway because they truly believed that Amway was running as a pyramid scheme it alleged that they had pyramid scheme practices and were actually a mega scam now throughout the case it took a long time to have everything completely sorted out they weren't actually found guilty however there was a settlement so now another article is discussing how there was another suit and why this morning announced a deal to pay 31 million dollars in cash and provide 22 million worth of products to settle a 2007 class action suit alleging the company in some of its top level Distributors operated an illegal pyramid scheme the proposed settlement filed Wednesday would cover former Amway distributors whom the company calls independent business owners between 2003 and the day the settlement is approved the suit alleged the company used unfair and illegal business practices that misled Distributors about their ability to make money and how much it would cost to be part of the business which is actually something that we usually see when it comes to mlms is the false advertising of what this is going to take claiming that you can actually make really good substantial money well most of the time that's not true and so much more the case was filed in California in 2007 by former Distributors quick star the name multi-level marketing giant Amboy used in its U.S baseball operation at the time sediment does not constitute an admission of guilt but settlement language says the company stipulates its certain reforms in its business instituted after the filing of this case have been motivated by the case the deal was announced via a brief press release and an email to Amway employees Wednesday nevertheless the company and its and its promoters take responsibility for all past issues and we take responsibility for fixing them we regret that the experience of some promoters fell short to the high standards that have allowed us to help many people from all walks of life started successful businesses for more than 50 years so the settlement provides up to 20 million in pay plaintiff's attorneys from the 34 million cash fund up to 5 million from the cash fund to refund registration fees paid by people who did not continue with Amway after their first year up to fifty thousand dollars in payments to some Distributors who lost more than two thousand five hundred dollars with Amway up to 100 worth of Amway products with shipping costs for those products coming from the cash settlement pool to former Distributors Amway ended up paying millions of dollars for this Amy did actually state that they were going to make some changes with helping and improving the company but at the end of the day in my opinion well yes I can absolutely acknowledge that the changes in this lawsuit made but for Amway has definitely improved the company that is not something that I want to say though is still an ethical or good company for you to join considering still even with all these changes the amount of people who do not make money or lose money is still significantly high and even still when we had lawsuits from back in the day against the FTC and other lawsuits filed by other former promoters in my opinion we have one lawsuit pop up before alleged pyramid scheme issues then we have another one pop up for again alleged pyramid schema issues it sounds like there's a pattern and they're almost this close to getting pretty much exposed for their problems additionally another thing I wanted to mention was an Amway India chairman and two directors granted bail for Pyramid Scheme again this is Amway India a local court and Kerala has granted bail to three senior Executives at the Indian Arm of Amway whose arrest on Monday sent shockwaves across the fledging direct marketing sector and once again race concerns about the country's image as an investment destination so the three were reprimanded to 14-day custody by the chief judicial magistrate 2011 complete that accused the company of running a pyramid type operation and selling overpriced products to customers the court granted bail on Tuesday afternoon the main charge against Amway India is that its operations have violated a money circulating scheme Act of 1978 a lot primarily aimed at Ponzi schemes that involve taking public deposits and offering promise returns companies like Amway sell its products by enrolling new members the sales by the members are at the low level will bring in returns for the members at the high level which is in the violation of the ACT said p EA balson is superintendent of police in the superintendent economic offensive wing of the crime branch and amway's response to this situation they made a statement that said they were shocked at the sudden and unwarranted Detention of its officials especially when they were fully cooperating in the investigation now again I would like to say there were other cases registered against the company in other districts which ultimately led to the arrest of the three Executives it said a routine consumer redressal issue or complaint had been misinterpreted and booked under the 1978 pcmcs law which is a scourge of the direct selling industry because it was conceived at a time the direct sales business model just didn't exist so am I again additionally was saying how there were old laws in place and there needed to be change and how Amway does not offer false promises and isn't taking deposits with absolutely no returns I'm just saying again I'm just reading off examples of things that Amway has been involved with again of course you can make up your own opinion on that I just wanted to display some of these issues with some of the legal matters when it comes to Amway now let's kind of wrap it up what have we learned so far the income disclosure statement shows that not a lot of people make a lot of money and what money they do make That's not including expenses taxes or anything else that are needed in order to run these so-called business opportunity again most people lose money which is a really large alarming red flag right there Amway has been involved in a plethora of legal issues regarding them being called a pyramid scheme the Compensation Plan looks quite confusing but to me just for my Overlook on it it looks like that a lot of dependency for my opinion is based off of recruitment in order to grow hit certain ranks or even get specific bonuses you have to have a team underneath you which to me is a big red flag and then of course random thrown in products in my opinion just looks like kind of a front for something else that's really unethical and problematic but again that's just kind of my review over this company so from what I think I think there's a lot of red flags with it I recommend people stay far away from the company but that was it for my little mini deep dive on some of the information about this company don't forget to like comment share and subscribe the channel if you guys have a personal experience with Amway any other information or details or stuff that you would like to share in the comments section please do so because I would literally love to hear it thank you so much for watching don't forget to like comment share and subscribe the channel and I will see you angels in the next video bye

Channel: Isabella Lanter

Views: 68,791

Keywords: amway, amway usa, amway pyramid scheme, amway scam, what is amway, antimlm, isabella lanter, pyramid scheme, morphe, morphe downfall, morphe drama, morphe brushes, jaclyn hill, the rise and fall of morphe, morphe is facing bankruptcy, morphe lawsuit, morphe bankrupt, monat, igenius, monat compliance, monat pyramid scheme, amway cult, network marketing, amway mexico, amway brasil

Id: Ar4bYqbF4b8

Length: 22min 37sec (1357 seconds)

Published: Fri Jan 13 2023