Amway has held a prominent position among the world’s top network marketing companies for many years.

If you’re wondering what Amway is, what kind of products it sells, what business model it uses, how big the company is, and how to become a distributor, this in-depth analysis will give you all the answers.

Let’s dive in!

Insights

  • Amway is a prominent multilevel marketing (MLM) company that sells cosmetics, personal care items, and household goods.
  • Amway is the world’s top MLM company by revenue, with over $52 billion in sales revenue from 2016 to 2021.
  • The company operates in over 80 countries with more than 3 million Independent Business Owners (IBOs).
  • While Amway has faced scrutiny regarding pyramid scheme allegations, it has not been proven guilty.

Section 1 – The Company

Amway Logo (MLM company)

In this section, we focus on the company, delving into what Amway is, what data help understand its value, and what history it has behind it.

What is Amway MLM?

Amway (short form for American Way) is a multilevel marketing (MLM) company (Amway Corp.) that sells products such as cosmetics, personal care items, and household goods. 

Based on official budget figures for 2021, it is the world’s top company by revenue (8.9 billion U.S. dollars).

Harvard Business School described Amway as 

“one of the most profitable direct selling companies in the world”

Market

Amway and its ‘sister’ company Alticor operate worldwide, with specific detachments for the American, Chinese and Australian markets.

The company has offices worldwide and manufacturing facilities in China, India, Mexico, and Brazil. 

Amway has successfully expanded its reach into international markets: it now sells over 500 products in over 80 countries worldwide.

Amway's market areas
Areas with greater interest in Amway.*

Who founded Amway?

The company was founded in 1959 by Jay Van Andel and Richard DeVos.

How old is Amway?

Amway has been in business since 1959. The company will be 63 years old in 2022.

Who is the CEO of Amway?

As of January 2, 2019, the CEO of Amway is Milind Pant.

Who is the owner of Amway?

Amway Corp owns Amway.

How big is Amway?

From 2016 to 2021, Amway reported worldwide sales of more than $52 billion in revenue.

Amway's Infographic: sales revenue
Amway’s sales revenue Infographic*

Where is Amway headquarters?

Amway’s headquarters are located in Ada, Michigan.

Section 2 – Business Model

Amway business model

In this section, we focus on the business model used by Amway, explaining the profit mechanisms of the company on the one hand and the business opportunity for individuals on the other.

What type of business is Amway 

Amway is a multilevel marketing (MLM) company that sells cosmetics, personal care items, and household goods. It was founded in 1959 by Jay Van Andel and Richard DeVos.

In Amway’s business model, people who join the company become “independent business owners” who sell products directly to consumers via parties, home sales, and online sales. Amway members can also recruit others into their organizations as distributors/salespeople, who then qualify to receive a commission on sales made by those they recruit.

Most of Amway’s revenue is derived from sales commissions paid to Independent Business Owners (IBOs). 

They must purchase at least $100 worth of products annually to maintain active status. IBOs also earn income through recruitment fees charged by the IBOs they recruit.

How many Amway distributors are there?

According to the company’s data, Amway operates through a network of more than 3 million Independent Business Owners (IBOs).

The company has about 15,000 employees worldwide. This figure refers to 2020 and is down slightly from the previous five years.

Amway's Infographic: employees worldwidePin
Amway’s employees Infographic*

How to make money on Amway 

To make money on Amway, you must be an Independent Business Owner (IBO). An IBO will buy products from Amway at wholesale prices and sell them at retail prices to consumers.

An Amway IBO will also be able to earn indirectly from the sales of the network of distributors he recruits.

How to sell Amway products?

As an Independent Business Owner, you can sell products offline (to acquaintances or door-to-door customers) or online through your e-shop.

You can use traditional or digital marketing strategies, and you will benefit from the training courses that Amway itself organizes for its distributors.

Amway Compensation Model explained (Video)

How to join? 

To become an Independent Business Owner, you need to fill out an application form with your contact information, including your name and address, along with bank account information so that you can receive payments from customers who purchase your products.

Due to Amway’s distribution and sales structure, the best way to become a distributor of the company is to contact another IBO, who will personally follow up with you and get you signed up.

How much does it cost to join Amway?

Becoming a distributor requires that you purchase a starter kit from the company for $100, which includes all of the tools you need to sell their products: samples of their product line, business cards with your contact information on them, and other promotional materials such as catalogs for retail stores. 

You can then decide whether or not to continue selling Amway products in order to earn money from it after buying your starter kit.

How do I find an Amway distributor?

If you’re looking to join the company as an Independent Business Owner (Amway distributor), you’ll need to find an Amway distributor willing to sponsor you. You can find them by searching for them on the Amway website or by contacting the company directly.

Once you’ve found a potential sponsor, you’ll need to complete a short application process that includes providing information about your background and business experience. 

If accepted into the program, you’ll be eligible to purchase products at wholesale prices and sell them to others at retail prices—earning money through sales commissions.

How to quit Amway 

To quit Amway, you must terminate your business relationship with the company. 

You can do this by contacting customer service and telling them that you want to cancel your business. This simple process can be done over the phone or online.

Alternatively, you can contact your sponsor or stop renewing your membership (at the end of the year).

Section 3 – Products

Amway products

In this section, we focus on products sold by Amway. In particular, we review the most important product lines and where to buy what the company sells.

What does Amway sell?

The four areas covered by the Amway product range are:

  1. Nutrition
  2. Beauty
  3. Personal care
  4. Home

In 2019, the most profitable market segment for the company was nutrition (with 54 percent of sales share worldwide).

Amway's sales share Graphic

FURTHER READING – Best Amway Products: Top Picks and Recommendations

Each of these four market segments is divided into internal categories.

Nutrition:

  • Energy drinks
  • Sports nutrition
  • Vitamins & supplements
  • Weight management

Beauty:

  • Fragrances
  • Makeup
  • Skincare

Personal care:

  • Bath & body care
  • Hair care
  • Oral care

Home:

  • Air treatment
  • Cookware
  • Dish
  • Disinfectant cleaners
  • Laundry
  • Surface cleaners
  • Water treatment

In addition, Amway sells featured brands through its distributors in the territory or the company’s e-commerce channels:

  • Nutrilite
  • Artistry
  • XS
  • Amway Home
  • Satinique

Where are Amway products made?

Amway products are made in various countries, including the United States, Canada, China, India, and Brazil. The company has manufacturing plants in Michigan, New York, Ohio, and Florida.

Where to buy Amway products?

The products are sold through the company’s website and other online retailers, but many physical Amway storefronts are also located throughout the world.

Frequently you can buy these products at Walmart and Amazon, but you can also find them at smaller, local retailers like Target and even online stores like eBay and Etsy.

Section 4 – FAQs About Amway

Amway FAQ

In this last section, we highlight the most common questions users ask about Amway.

What kind of business is Amway?

Amway Logo (MLM company)Pin

Amway is a direct-selling company that sells home care products and other goods, and it is based in Ada, Michigan. The company has expanded to over 80 countries worldwide and has over 3 million independent sales distributors (or “independent business owners”) in over 80 countries.

What products does Amway sell?

Amway sells products in these areas: Nutrition (energy drinks, sports nutrition, vitamins and supplements, weight management), beauty (fragrances, makeup, skincare), Personal care (bath & body care, hair care, oral care), home (air treatment, cookware, dish, disinfectant cleaners, laundry, surface cleaners, water treatment).

How many products does Amway have?

Amway sells over 500 products through its own website and direct salespeople who represent the company at events like home shows or parties. The four main market segments it deals with are nutrition, beauty, personal care, and home.

Is Amway a pyramid scheme?

Amway has been under investigation for suspected pyramid scheme operations in several jurisdictions and by organizations, including the Federal Trade Commission (FTC). However, it has never been proven guilty.

Sources*

2 thoughts on “What is Amway? Company, Data, Products in 2022”

  1. Amway is not and has never been a pyramid. The latest authoritative book about the network marketing industry generically , though much of it is relevant to Amway, is by Rudge and called: Network Marketing, the Best Game in Town (but Check Before you Choose). Excellent analysis of all the issues and will put the pyramid to bed once and for all. Probably Amway is the only company that can tick all the boxes in the Opportunity Checklist at the end of the book – a brilliant idea.

    Reply

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