If you’re researching Amway as a business opportunity, you’ve probably heard both the hype and the skepticism. On one side, you see success stories of people earning six figures. On the other, you hear warnings about MLM pyramid schemes and people losing money.
The truth about Amway lies somewhere in between and the best source of that truth is Amway’s own income disclosure statement, which they’re legally required to publish.
Here’s what you need to know before joining Amway as an Independent Business Owner (IBO): according to Amway’s 2024 income disclosure, the average annual earnings for all U.S. IBOs at the Founders Platinum level and below was $723 before expenses. For those who actually reported any product sales, the average was $1,199 before expenses.
More tellingly, 38% of U.S. IBOs had no reported product sales, didn’t sponsor another IBO, and received no payments from Amway whatsoever.
Is Amway a scam? No—it’s a legitimate 65-year-old company with $8.9 billion in annual revenue. But is it a realistic way to build income for most people? The data suggests otherwise.
A More Realistic Path to Building Income
Before diving into the detailed analysis of Amway’s compensation plan, let me be straight with you: if your goal is building reliable monthly income without recruiting friends and family, there’s a far better option.
Local lead generation lets you build income-generating assets—websites that rank on Google for local service searches—and rent leads to businesses for $500-$2,000 per month.
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Here’s the difference:
- Amway: Average IBO earns $723/year ($60/month) before expenses
- Local lead gen: Each site generates $500-$2,000/month recurring revenue
Amway: Need to recruit and manage downline to earn meaningful income Local lead gen: Build sites alone, no recruiting or team management
Amway: Inventory, shipping, meetings, ongoing product purchases Local lead gen: Minimal expenses ($10/month hosting per site)
Amway: Income depends on team performance you can’t control Local lead gen: You own the asset completely, full control
I currently own 12 lead gen sites generating $8,500/month combined. No inventory, no meetings, no recruiting. Just websites I built that generate leads for local businesses who pay me monthly.
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Key Takeaways
- What it is: Amway is a multi-level marketing company selling health, beauty, and home care products through Independent Business Owners (IBOs)
- Founded: 1959 by Jay Van Andel and Richard DeVos
- Revenue: $8.9 billion globally (2023)
- Products: Nutrilite supplements, Artistry cosmetics, home care, personal care
- Average IBO earnings (2024): $723/year before expenses ($60/month)
- Average for IBOs with sales (2024): $1,199/year before expenses ($100/month)
- Inactive IBOs: 38% had no sales and received no payments
- Compensation: Retail markup + bonuses based on personal and team sales volume
- My verdict: Legitimate company, but compensation structure makes it extremely difficult for average person to earn meaningful income
👉 RECOMMENDED: See the business model I actually recommend
What Is Amway?
Amway (American Way Association) is one of the world’s largest and oldest multi-level marketing companies, founded in 1959 in Ada, Michigan. The company sells health, beauty, and home care products through a network of Independent Business Owners (IBOs) rather than through retail stores.
The Product Lines
Nutrilite: Vitamins and dietary supplements (Amway’s best-selling brand globally) Artistry: Skincare and cosmetics XS Energy: Energy drinks and sports nutrition Home Care: Cleaning products (Legacy of Clean, LOC, SA8) Personal Care: Bodycare, oral care (Glister toothpaste)
Products are generally premium-priced compared to retail alternatives. For example, Nutrilite supplements often cost 2-3x comparable products at Walmart or Amazon.
How Amway Works
As an IBO, you make money two ways:
1. Retail Markup: Buy products at IBO price, sell to customers at retail price, keep the difference (typically 20-30% margin)
2. Bonuses and Incentives: Earn commissions based on your personal sales volume (PV) and your team’s sales volume (called your “group”)
The emphasis in practice is on building a downline—recruiting other IBOs who also recruit others—creating a multi-level structure where you earn commissions on multiple levels of distributors below you.
The Compensation Plan Breakdown
Amway’s compensation plan is complex, with multiple bonuses, incentives, and recognition levels. Let me break down how IBOs actually earn money.
Performance Bonus (Core Earnings)
This is your primary income source based on Point Value (PV) generated from product sales.
Bonus Structure:
- 3% bonus at 100-299 PV
- 6% bonus at 300-599 PV
- 9% bonus at 600-899 PV
- 12% bonus at 900-1199 PV
- 15% bonus at 1200-1499 PV
- 18% bonus at 1500-1799 PV
- 21% bonus at 1800-2099 PV
- 23% bonus at 2100-2399 PV
- 25% bonus at 2400+ PV (maximum)
Reality: To reach 25% bonus (2400 PV), you typically need $7,000+ in monthly sales volume. Most IBOs never come close to this.
Leadership Bonus
When IBOs in your downline reach Silver Producer level (25% Performance Bonus), you can earn the difference between their bonus percentage and yours.
Example: If your downline IBO earns at 12% and you’re at 25%, you earn the 13% differential on their volume.
Reality: This is where “building a team” becomes essential. But recruiting is hard, and most recruits quit.
Other Bonuses and Incentives
Ruby Bonus: Additional income at Ruby level and above Personal Group Growth Incentive: For growing your team Frontline Growth Incentive: For personally sponsoring new IBOs Two-Time Cash Incentives: One-time cash awards at each pin level
Recognition Levels (Pins)
Amway has a complex recognition system:
- Silver Producer (25% monthly performance bonus)
- Gold Producer
- Platinum
- Founders Platinum
- Ruby
- Sapphire
- Emerald
- Diamond
- Executive Diamond
- Double Diamond
- Triple Diamond
- Crown
- Crown Ambassador
- Founders Crown Ambassador
The higher levels sound impressive, but the percentage of IBOs who reach them is infinitesimal.
The Income Reality: What Amway’s Own Data Shows
Let’s look at Amway’s 2024 income disclosure statement—the numbers they’re legally required to publish.
Average Earnings (All IBOs)
Average annual income: $723 before expenses That’s $60/month before expenses
This includes the 38% of IBOs who had no sales and earned nothing. But even if we exclude them…
Average Earnings (IBOs with Sales)
Average annual income: $1,199 before expenses That’s $100/month before expenses
Remember, this is before expenses. Typical IBO expenses include:
- Annual renewal fee: $71 ($55 Amway + $16 IBOAI)
- Product purchases for personal use
- Samples for prospecting
- Travel to meetings and events
- Training materials and seminars (often $500-$2,000+/year)
- Marketing materials
- Shipping costs
Conservatively, expenses run $500-$2,000/year. Many IBOs spend far more.
Net reality: Most IBOs earning $1,199/year before expenses are likely losing money after expenses.
Percentage Who Receive Payments
According to Amway’s disclosure:
- 60% of IBOs received at least one payment from Amway in 2024
- 38% had no sales and received nothing
- 2% are unaccounted for (likely minimal activity)
This means 4 out of 10 IBOs earn absolutely nothing.
Earnings by Recognition Level
While Amway doesn’t publish detailed breakdowns for all pin levels in their public disclosure, independent analysis of publicly available data suggests:
Silver (25% bonus): Majority earn $500-$3,000/year Platinum: Average around $15,000-$30,000/year Diamond and above: Can earn $50,000-$200,000+/year
But here’s the critical data point: less than 1% of IBOs ever reach Platinum or above.
The Time and Effort Required
Amway’s own disclosure states: “A small number of IBOs achieve higher levels of recognition and consequent rewards. The typical time and required effort to achieve these levels of recognition are extraordinary. They should not be the basis of your decision to become an IBO.”
That’s Amway themselves telling you not to expect to reach the success levels they promote in their marketing.
Pros and Cons
Let me give you a balanced assessment.
What Works in Amway’s Favor
Legitimate Company: 65+ years in business, publicly traded (in Malaysia), $8.9 billion in revenue
Quality Products: Many customers genuinely like Nutrilite supplements and Artistry cosmetics
Low Barrier to Entry: Free to register, no mandatory inventory purchase
Training and Support: Extensive (though optional paid training is heavily pushed)
Global Presence: Operates in 100+ countries and territories
Some People Do Succeed: A small percentage genuinely earn significant income
What Doesn’t Hold Up
Average Income is Abysmal: $723/year before expenses for all IBOs
Majority Earn Nothing: 38% receive zero payments
High Pressure to Recruit: Can’t build meaningful income without downline
Expensive Products: Premium pricing makes retail sales difficult
Ongoing Expenses: Meetings, events, training materials add up
Time Intensive: Building to profitable levels requires years of effort
Relationship Strain: Recruiting friends and family is uncomfortable
High Attrition: Most recruits quit, requiring constant recruiting to maintain income
Complex Compensation: Deliberately confusing structure obscures poor odds
Why Local Lead Generation Is Better
If you’re considering Amway because you want to build your own business and generate monthly income, local lead generation offers everything Amway promises—but actually delivers.
Income Comparison
Amway average: $60/month before expenses One lead gen site: $500-$2,000/month after minimal expenses
Amway path to $5,000/month: Recruit and manage team of dozens, years of effort, <1% achieve this Lead gen path to $5,000/month: Build 5-8 sites over 12-18 months
No Recruiting Required
Amway’s compensation structure requires building a downline. That means:
- Recruiting friends and family
- Managing team dynamics
- Dealing with high attrition
- Constant pressure to recruit
Lead generation: Build sites alone. No recruiting. No team management. No relationship strain.
You Own the Assets
Amway: You’re an independent contractor for Amway. They can change terms, adjust commissions, or modify the comp plan anytime. You don’t own anything except your product inventory.
Lead generation: You own the websites completely. No company can change your earnings or take your assets. Can sell sites for 15-25x monthly earnings.
Predictable Income
Amway: Income depends on:
- Your sales (variable)
- Your team’s sales (can’t control)
- Team retention (most quit)
- Constant recruiting
Lead generation: Once site ranks and client is signed, income is predictable monthly recurring revenue. Client pays $1,000/month? That continues until they cancel (rare if you deliver quality leads).
Lower Expenses
Amway expenses:
- $71/year renewal
- Product purchases: $100-$500+/month for many IBOs
- Training/events: $500-$2,000+/year
- Travel, materials, samples
Lead gen expenses:
- Hosting: $10/month per site
- That’s it
Real Example
Amway path: Join, recruit 10 people, help them recruit, attend meetings, buy products monthly, spend thousands on training, work 10-20 hours/week for years… maybe earn $2,000-$3,000/month if you’re in the top 5%.
Lead gen path: Build 3 sites over 6 months, rank them, rent each for $1,000/month = $3,000/month recurring. Total time: 60-80 hours upfront, then 3-5 hours/month maintenance.
The economics aren’t even comparable.
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Common Questions
Is Amway a pyramid scheme?
Legally, no—Amway has survived multiple legal challenges and FTC investigations. The key difference: Amway IBOs can earn retail profit from selling products to customers, not just from recruiting. However, the practical reality is that most IBOs focus heavily on recruiting because that’s where meaningful income comes from. The structure resembles a pyramid even if it’s technically not illegal.
Can you really make money with Amway?
Some people do, but the odds are terrible. Amway’s own data shows average earnings of $60/month before expenses. About 60% of IBOs receive at least one payment, but most earn less than $100/month. Less than 1% reach income levels that would replace a full-time job.
How much does it cost to join Amway?
Registration is free for your first year. After that, renewal costs $71/year ($55 to Amway + $16 IBOAI membership). However, this doesn’t include product purchases, training, events, or marketing materials—which can run $1,000-$5,000+/year.
Do you have to buy inventory?
No, Amway doesn’t require inventory purchases. However, there’s heavy cultural pressure to use the products yourself (“be a product of the product”) and to maintain personal volume, which often means buying $100-$300+/month in products.
Why do people stay in Amway if they’re not making money?
Several psychological factors: sunk cost fallacy (already invested time/money), belief that success is “just around the corner,” social pressure from upline and team, and the community/belonging aspect that Amway fosters.
My Honest Verdict
Amway is a legitimate company selling real products. It’s not a scam in the legal sense. But is it a realistic way to build meaningful income? For 99%+ of people, absolutely not.
The data is clear:
- Average IBO earns $60/month before expenses
- 38% earn nothing
- Most who earn anything still lose money after expenses
- Less than 1% reach income levels worth the effort
Who might succeed with Amway:
- Exceptional salespeople comfortable with heavy recruiting
- People with large existing networks willing to join
- Those who genuinely love the products and don’t mind the MLM structure
- People treating it as a hobby, not income replacement
Who should avoid Amway:
- Anyone seeking reliable income (the odds are terrible)
- People uncomfortable recruiting friends and family
- Those without $1,000-$5,000/year to spend on a “business opportunity”
- Anyone wanting to own their business (you’re a contractor for Amway)
The bottom line: Amway’s own income disclosure tells the story. When the average IBO earns $723/year before expenses, and 38% earn nothing, the math doesn’t work for the vast majority.
If you want to build a real business with recurring income, asset ownership, and predictable growth—without recruiting or managing a downline—local lead generation offers everything Amway promises but actually delivers.
👉 Click here to build a real business you actually own

Mark is the founder of MarksInsights and has spent 15+ years testing online business programs and tools. He focuses on honest, experience-based reviews that help people avoid scams and find real, sustainable ways to make money online.