Ok, let me be real here. I think a vast majority of people
have heard about the company Amway in one form or another. Most assume it to be
unethical or illegal. After doing thorough research, I found that Amway is NOT
a scam. So, sit back and let me reveal why it is not a scam to all of you.
1.
They had a tie up with a local polytechnic
here in Singapore
In 2019, Amway had a collaboration
with Republic Polytechnic. Which institution would let a company that is
supposedly a scam collaborate with it? No one.
2.
They have had a presence since 1959 in many
different countries
As of 2011, Amway
operates in over 100 countries and territories, including China (of all
places), Australia and Singapore and, it was founded in 1959,
over 60 years ago. It would have died long ago if it were a scam.
3.
There is a website in Singapore which tells
visitors that it is legal
I quote from this blog:
“Disclaimer: The above list is MLM companies operating in Singapore. Companies
such as Amway and Tupperware are legal and approved by the DSA of Singapore”.
DSA stands for the ‘Direct
Selling Association of Singapore’.
So, it boils down to how you market Amway to others. Amway practices a “reveal
name only at the last moment” due to the negative perception many have about
Amway. This is where I draw the line. Ethics are defined as:
By not revealing Amway’s name at the very start of your interactions with
people and telling them that it is a legal Multi-Level Marketing company (MLM),
that is deception. If you say that you will be guaranteed to earn a six figure
salary from Amway, that is deception.
An example of Amway advertising I find deceptive.
Example of an illegal MLM
Here is how I would pitch it, if I ever
had to: “I have a business, it is called Amway. It is MLM but, a legal one,
here is my proof of research I did (shows research). I am not going to lie to you
and say that this business will get you a six figure salary overnight but, it
rewards you for buying everyday convenience goods that you need like, soap and
toothpaste. The products are of high quality and, Amway members get a discount
on all of them. For example, a box of concentrated meal replacement shakes,
containing for example, 15 packets will cost you $50 instead of $60 for example
if you are not an Amway member. It costs less than $100(or the equivalent of that)
in no matter which country you join in. And no matter what, you can get out of
Amway after a period of trying it out, say for example, a year, unlike illegal
MLMs, where you pay hundreds of dollars on a “miracle pill” which gets you a
lifetime membership you never wanted. So, why don’t you consider joining me for
a year and, see how it turns out. No hard feelings if you decide to leave Amway
after a year. Interested?”
An example of Amway advertising that I support because, this video mentions that Amway is not magical and requires hard work. This is an honest commercial.
As it is stated “Not all issues can be regulated, an advertising or
promotion action may be legal, but not considered ethical and finally, advertisers
must make decisions about the appropriateness of their actions”. At the end of
the day, with honest advertising, the world would be a much better place.
With appreciation from Jay’s Digital Marketing blog, she mentioned “In 2018, Instagram announced its
removal of false likes and accounts so that more genuine experience and
interactions can be held with people and their audiences.”
So, it is up to you
to make an informed decision about whether a proposition is genuine or not. As this website points out the pros and cons of Amway to offer a balanced view of it, this was one of my best information sources for this post.
To
end, what brand has made you feel cheated? Have you come into contact with
Amway? I have seven times. So, sound off! Let’s have a discussion.
Yes I have come in to ccontact with Amway. MLMs generally tend to have a bad reputations. I suppose that is why Amway might feel suspicious to some people.
ReplyDeleteThat's true. Their outdated presentation method does not seem to help things either.
DeleteGood read! Well done ����
ReplyDeleteWhat did you enjoy about this blog post?
DeleteIn my own view, Amway's outdated business model has given rise to a lot of unethical business practices like your post mentioned. So, how can Amway leverage on digital marketing to clear its name as a legit business?
ReplyDeleteI would say the first step to that is honest advertising like my post mentioned.It is through sincerity that a businessman or sales person is successful in my opinion.
DeleteHi Naren, interesting sharing about the blog topic of Amway. In your opinion, what are some strategies you think Amway can leverage on to change this mindset of the consumers?
ReplyDeleteStep 1: Tell people honestly what Amway is all about.
ReplyDeleteStep 2: show them the research to prove that it is legal.
Step 3: Be persistent but not too aggressive. Tell them about Amway once and if they reject, move on to the next person. Come back to the first person a few months later when you feel the timing is right.
Well, i guess Amway started on the wrong foot with a business model of a typical MLM corporation. I am still skeptical about such even till date!
ReplyDeleteWhich is understandable. Now however, it is mainly their outdated business model(the show don't tell approach), which is keeping them from moving forward. The 7th time I heard about Amway was from a caring man who was smart enough to ditch his protocol. I told him that I would consider it.
DeleteBold post. Having been exposed to MLM many times & kind of being in one before when I was young & dumb, I too, like the mass public, am skeptical of businesses that make use of direct marketing models. However, your post has made me consider Amway differently, slightly legitimizing them, in my perception. Nevertheless, my skepticism for MLMs are so deeply seated that I would hesitate to join without further research done by myself.
ReplyDeleteCool Jess. Yes, it's always good to have the motivation to do your own research and then, if someone ever approaches you from Amway in future,you can straight away tell them yes or no to joining.
DeleteInteresting read, appreciate seeing a more honest examination of a MLM company since this is often a very (understandably) charged topic. Hopefully this post can serve as a gateway for anyone to do meaningful research to come to an informed opinion, whether positive or negative, on Amway or it's competitors.
ReplyDeleteI hope it does too. It is very important that people realise to do research and come to a valid conclusion about issues
ReplyDeleteI have been approached by 2 MLM companies whose sales' pitch was so strong that many youths (teens aged 15 and above and young adults) were rushing to join them after just 1 briefing session. While they would always tell you of all the good benefits (hard-selling), they would never tell you what was bad about it. I will be honest here, one of them mentioned that they do not even know what the company even does while "maintaining" that they are not a pyramid/MLM organisation. That sounded the alarm bells for me, as I could see that they were all only too eager to induct us. In my opinion, I have observed during these "briefings" that they do not recognise responsibility towards their "hires/volunteers", nor do they recognise responsibility towards those who buy from their "staff", if you would call them that.
ReplyDeleteI would never trust a scheme that sounds too good to be true. There is always a cost to it, and there will always be consequences. Regardless of whether it is legal, I find it highly unethical.
That's true Mel but, if done right, like the pitch example that I wrote in the article, I believe that slowly but surely, Amway's reputation will change.
DeleteFirst of all, I believe legality and ethnic are 2 separate issues. I personally have come across a 'business owner' from Amway whom said no hard feelings even if I decline to join them and proceed to block me on WhatsApp anyyway. Not like I care but, aside from the fact that Amway is a MLM company, this is this kind of attitude and behavior that contributes to the reputation of the Amway today.
ReplyDeleteThat's true Sky but, if done right, like the pitch example that I wrote in the article, I believe that slowly but surely, Amway's reputation will change. We should not form our opinions by one encounter only.
DeleteI remain skeptical of businesses that make use of direct marketing models perhaps due to several encounters with pushy salespersons and exaggerated promises of riches or "miracle healing".
ReplyDeleteYes, it's sad Hannah. If only marketing were honest
Delete