Some of us have been on the receiving end of questions about whether our business is a pyramid. The answer is an unequivocal NO! Pyramid businesses are illegal.
Amway™ is committed to maintaining the highest standards in business. This month’s Best Practice message is intended to help clear up any misconceptions related to Amway and pyramid businesses.
There are certain characteristics that mark illegal pyramids:
- Payment of head-hunting fees, i.e., money is earned just for recruiting others and not from sales volume;
- Minimum purchase requirements to participate; and/or
- No sales of legitimate products or services to those outside the organization
The Amway Independent Business is distinctly different from an illegal pyramid.
Here are a few of the most important qualities that distinguish us from a pyramid:
- There are no head-hunting fees involved – ever. No one earns money just for registering new IBOs.
- We also have no minimum purchase requirements to register as an IBO. While there is a registration fee (common for direct-selling companies), the purchase of product is entirely optional, though it is recommended in order to learn about the products. And perhaps most important – no one earns money in an Amway Independent Business until product is sold to customers.
In fact, Amway standards like the 70% Rule (Rule 4.12) and Customer Volume Rule (CVR) (Rule 4.13) are intended to require the sale of product to customers. The bottom line is that selling products to customers is essential to the success of each IBO business and the overall Amway™ Business.