Amway’s selling strategy – A pyramid scheme or a genuine one?
Amway sells its products by direct selling by its agents. The agents are recruited by agents recruited earlier. A slice of the income generated by each seller is paid to his or her recruiter. This gives every seller an incentive to hire ever more sellers and to encourage every new recruit to hire new recruits themselves. Sellers higher up on the hierarchy of recruitment receive a slice of the income generated by sellers down the hierarchy of recruitment. In this respect, it looks very similar to a pyramid scheme.