I cannot believe that multi-level marketing companies like Amway is still around: but an article in Spinoff last year made me realise that they are still very much out there, predating on those of us who live on hope (Gosavi, 2025).
MLMs can be described as "a direct sales channel where independent contractors, regularly referred to as distributors, retail products and services directly to consumers, typically friends and family members" (Groß & Keep, 2025, p. 1). Basically, if we are recruited to an MLM, we buy wholesale products to sell. But where the real money is made is by the person who recruits us: as they take a margin on all that we sell, and a margin on all their other recruits. It is the "promise of earning passive income through recruitment" that drives MLM structures like Amway (p. 1). Become a diamond seller? Sure, recruit, recruit, recruit. Ah, that call of hope.
I have been approached several times over the years, and have noticed that Amway has a distinctive odour in the way that their acolytes don't answer direct questions. Why should a legitimate business need to be so evasive? Additionally, it surprises me that MLMs remain legal, largely because of their lack of disclosure, and the very, very likely lack of profitability (Groß & Keep, 2025; Luke, 2024; O'Donnell, 2011). Like payday loan companies, imho they are unethical, parasitic black holes (to mix a few metaphors).
People who join "are incentivised to build a ‘downline’ network to earn commissions not only from their personal sales but also from the purchases, retail sales, and further recruitment efforts" (Groß & Keep, 2025, p. 1), "creating a multi-tiered compensation structure" (p. 2). Two people I know who joined Amway both ended up with spare rooms full of Amway product in an effort to keep up with the required order level, until they each pulled out. They both then slowly used the product themselves over time. Luckily neither ended up in financial difficulty, but some have, buying ridiculous amounts of product in order to meet set sales targets (Newton, 2021; O'Donnell, 2011).
Some become product bores, boring for Africa on all the benefits of the crap that is sold at extortionate prices for what are pretty ordinary products. I remember the sales schtick of "because we sell direct there are no advertising costs, so there is a saving". So why are the products were more expensive than ordinary ones, then? Particularly as today there are few advertising costs anyway (Luke, 2024). The products are long on talk, but short on performance (Luke, 2024; Newton, 2021).
Amway (short for American Way, btw) has contract-pack arrangements in the USA, in India and in China (Profound-Information, 2019). Then argument that "we save on the distribution because we don't go through distributors" is spurious. Unless we own the entire process from raw materials through to delivery, all products move via distributors: distribution is how we get product from factory to market. Logistics or supply chain are terms that we all might be more familiar with today. Consider the following simple product logistics stages for global export following manufacture: products are warehoused, ordered, bonded, shipped, received, examined and taxed, before being sent to the local distributor. Each stage is one step in the distribution/logistics chain.
And then there are the conferences, where attendees must pay to go, then are expected to buy loads of books, videos and geeing up materials. Many MLMs make pots of money from that act of networking: they are "infamous for their cult-like organisational cultures that discourage critical thinking, perpetuates financial losses and harms both participants and their social" circle (Groß & Keep, 2025, p. 4; Luke, 2024). Ouch.
Anyway. Avoid MLMs. If someone can't show you clear profitability without clipping the ticket on your recruits, then avoid, avoid, avoid.
Sam
References:
Gosavi, J. (2025, October 14). Inside Legacy: The MLM that thrives in secrecy. The Spinoff. https://thespinoff.co.nz/business/14-10-2025/inside-legacy-the-mlm-that-thrives-in-secrecy
Groß, C., & Keep, W. W. (2025). The law and consumer harm in multi-level marketing: a review. Journal of Marketing Management. Advance online publication, 1-48. https://doi.org/10.1080/0267257X.2025.2578617
Luke, B. (2024). Multi-Level Marketing as a Sustainable Long-Term Business Model: A Case Study (Doctoral dissertation, Northcentral University). https://www.proquest.com/pqdtglobal1/dissertations-theses/multi-level-marketing-as-sustainable-long-term/docview/3073874025/sem-2?accountid=8440
Newton, L. (2021). In Pursuit of the Impossible Dream: An analysis of multi-level marking (MLM) schemes and the consumer harm caused by selling a lie. University of New South Wales Law Journal Student Series 10, 1-22. https://www.austlii.edu.au/au/journals/UNSWLawJlStuS/2021/10.pdf
O'Donnell, J. (2011, February 10). Multilevel marketing or 'pyramid?' Sales people find it hard to earn much. USA Today. https://web.archive.org/web/20110213043508/http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_cv_n.htm
Profound-Information. (2019, December 31). Where are Amway products manufactured?. https://profound-information.com/where-are-amway-products-manufactured/














