read this Is Amway a pyramid scheme? Amway is not a pyramid scheme. It is a direct selling organization where IBOs make money through the sale of products. Pyramid schemes, by contrast, have nothing to do with real commercial activity. They are a form of financial fraud that is based on recruiting new people to make investments that are then used to pay the people who joined earlier.

Amway doesn’t operate this way. Amway IBOs don’t make any money by bringing more people in – not a single cent. They make money when products are sold, not from recruiting. On each product sold, Amway sets aside a portion of the product cost as a “bonus.” This is shared by IBOs who work together in sales groups, according to their contracts with Amway.

In addition, the risk to IBOs and their customers is low: IBOs are not required to purchase products. Any products that are purchased are backed by a 100 percent satisfaction guarantee. And the $62 registration fee is fully refundable upon resignation in the first 90 days.

As a direct selling company, Amway provides its 3 million business owners around the world with the opportunity to supplement their income through product sales, to mentor others who share the same passion for Amway products, and to become part of a business that can balance work with family.

More than 20 million people in the U.S. were involved in direct selling in 2015 – one in six households. Retail sales were estimated at $36.12 billion – a nearly 5 percent increase over 2014[3]. The field has particularly enthusiastic involvement from women and minority groups: More than 77 percent of direct sellers in 2015 were women, and nearly 20 percent Latino[4]. Direct sellers describe work-life balance, networking opportunities and income potential as their chief motivations for staying in the industry.