Quoted from http://searchwarp.com/swa3579.htm:
Despite the "No Selling" credo that was touted as one of the "Advantages Of Amway," this perception is false. When you are shown the "plan" there is a suggestion that you really don’t have to do much selling—just recruit other people to sell for you, and thus making the commission from the "down line" you build…The one exception to this rule is if you make to "direct distributor" status. You then have to carry a certain amount of product and supply for your down line.
Someone has to sell something, or nothing happens. In order for an individual to make money from the Amway/Quixtar model, your down line has to have "deep legs," and they need to be selling a lot of product in order for you to increase your point value, or "PV." Also, if you do make your mark in the business, and start getting a lot of people under you, eventually you will have to help other people sell the plan to their potential downline!
My sponsor had over 100 people in his down line, and he only made (as he later admitted) around 80 to 100 dollars a month. If no one sold anything that month, he would get nothing at all. If you took the high number (100 dollars per month) then it would fall in line with some of the average yearly income of most Amway/Quixtar distributors—about 1200 a year. Not the 250,000 part-time that Fredricks and other recruiters might tell you..
I never bothered to ask about what happens when you don’t work the business anymore, and you have a large down line. Do you still make money from the people under you? While I did not know the answer to that question, I did know this. If you have a small down line (like my sponsor did with 100 people) if just twenty of them decide to defect to another group, or sponsor, there goes your income!
Defections are another negative aspect of the business. My sponsor ran into that exact problem. Another distributor convinced some of my sponsors down line to join his organization. The rules might have changed since then, preventing people from jumping to another down line. However, if it hasn’t , and you build a substantial organization, then it can be wiped out in a matter of weeks due to mass defections to another down line.
"IS THE AMWAY BUSINESS A CULT?"
It has been suggested that the Amway/Quixtar business is a "cult." I would say that the "Heaven’s Gate" consortium of UFO nuts, started by a man named Marshall Applewhite, a.k.a., "Do" (pronounced "Doe") by his disciples, was a cult. In addition to their bizarre beliefs about "other beings," they came to the conclusion that the "Hale-Bopp" comet was a spaceship, and a sign from another planet that this was their ride into the "Heavens" beyond the earthly realm.
In order to get your ticket punched to "galactic nirvana", they needed to check out from planet earth. Over 30 of it’s members committed suicide in the belief that their spirit, would be whisked aboard the ship that was passing through galaxy, via the "Hale-Bopp" express.
IN NO WAY does the Amway/Quixtar business come close to that kind of "outer limits" thinking. In the time that I was involved with Amway, the message was the same. Keep negative influences out of your life, limit your exposure to news, and television, attend seminars and buy tapes.
I never witnessed any extreme devotion to the Amway business. Most of the stories of people who have went broke spending money on tapes and seminars are purely anecdotal. I am not saying that they are not true, I am saying that I never personally experienced that type of extremism. Such experiences can be found at websites like MLMSurvivor.com.