Quixtar/ multi-level marketing

[heater]

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From what I know about it, the people who make huge bank do so from selling the shiny packaging: seminars, tapes and books. Much bigger margins for those items and only the top of the pyramid gets to sell them.

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True. You have to be Platinum or higher and none of these products are produced by Amway/Quixtar. The top distributors either produce their own materials or buy them wholesale elsewhere.

Back in the 70s or 80s was when this first became a major problem for Amway. It sounds strange, but Amway itself isn't as bad as it's top distributors. Amway didn't like the fact that their people were running this side business of high-priced seminars, books, tapes, etc. Partly because it cut into the sales of actual Amway products and partly because they felt like their new distributors were getting ripped off.

Now you weren't just pressured into spending $100-150 to get started in the business. If you REALLY want to show you're serious about being successful, you need to buy $300 worth of promotional materials and drive 400 miles to the $49.99 monthly seminar in Cincinnati.

So Amway told their top dogs that they had stop their side businesses. Their top dogs told them that they would leave Amway and take their downlines with them. Amway caved because they really had no choice if they wanted to survive and it became the Scamway that it is today.