Amway makes money by selling nutrition, beauty and home products through a network of independent Amway Business Owners (called IBOs in the US), who earn from their own product sales and from bonuses on the sales of the team they build: a multi-level marketingmodel. Founded in 1959 by Rich DeVos and Jay Van Andel in Ada, Michigan, the family-owned company reported global sales of $7.3 billion for 2025. In September 2026 it agreed a $225 million settlement with the US Federal Trade Commission and Washington State over its recruiting practices, while disputing the agencies’ account.
Top-selling brands Nutrilite, Artistry and XS are sold only through Amway Business Owners, according to the company. Nutrition represented 64% of the product portfolio in 2025.
02
Two ways to earn
Amway says business owners earn by recommending and selling its products and by building a team to do the same. The second stream is what makes it multi-level marketing.
03
Low entry cost
Amway describes the opportunity as low-cost, with no cost in some countries, and its Amway Promise lists zero purchase requirements and minimal sign-up fees for new owners.
04
Scale through people
The company counts more than one million Amway Business Owners and operates in more than 100 countries and territories.
What changed in 2025-26
Sales drifting lower
Amway reported $7.4 billion for 2024, a 3% decline it attributed to the strong US dollar, and $7.3 billion for 2025, which it called modestly lower. Michael Nelson has been CEO since September 2024.
The FTC settlement
On 17 September 2026 the FTC and Washington State announced a $225 million settlement with Amway and two affiliates, World Wide Group and Leadership Team Development. The complaint alleges the affiliates promoted earnings above $40,000 a year that only about 1% reached; Amway said it fundamentally disagrees with the agencies’ characterization of its business.
Rules rewritten by the order
The proposed order requires participants to resell at least 70% of what they buy from Amway each month, cuts recruiters’ pay when recruits buy without reselling, adds an independent audit of sales records and bars affiliates from charging new recruits for training in their first year.
A pivot to healthspan
Amway frames its 2025 range around healthspan, with launches such as Nutrilite AmCell in three Asian markets and Artistry LongXevity in seven markets. It reported 8% global growth in beauty for 2025.
Amway in practice
Sales
What Amway says or filings show$7.3 billion in 2025; $7.4 billion in 2024
SourceAmway press releases
Biggest category
What Amway says or filings showNutrition, 64% of the product portfolio in 2025
SourceAmway 2025 sales release
Sellers
What Amway says or filings showMore than one million Amway Business Owners
SourceAmway, How Amway Works
Ownership
What Amway says or filings showFamily owned, headquartered in Ada, Michigan
SourceAmway, Our Story
Regulation
What Amway says or filings show$225 million settlement and new resale rules (September 2026)
SourceWashington Attorney General
What it means for you
If you are offered an Amway business, ask for the share of participants who earn more than they spend on products and training, not the top earners' income.
Check where your sales would come from: customers outside the network, or your own purchases and those of your recruits.
Read the new order's terms, such as the 70% resale rule and the first-year training ban, before paying any affiliate for tools or events.
For investors and analysts: separate product demand from recruiting-driven demand when you read direct-selling sales figures.
For brand builders: note how much reach a people-powered channel buys, and how much regulatory risk comes with paying for recruitment.
The Business Engineer lens
Amway is a distributionmodel more than a product company: people are the channel, and the compensation plan is the engine. The Business Engineer view is that AI shopping and creator tools now compete for the same trust-based recommendation, so distribution built on recruitment faces both new rivals and closer regulatory scrutiny.
Amway sells its products through independent business owners, who earn from their own sales and from bonuses on their team's sales; the company reported $7.3 billion in global sales for 2025.
Is Amway a pyramid scheme?
Amway describes itself as a direct selling company. In September 2026 it agreed a $225 million settlement with the FTC and Washington State over alleged deceptive recruiting, said it disagrees with the agencies' characterization, and accepted new rules on reselling and recruiter pay.
Who owns Amway?
Amway is a privately held, family-owned company based in Ada, Michigan, founded in 1959 by Rich DeVos and Jay Van Andel.
What are Amway's main brands?
Amway names Nutrilite, Artistry and XS as its top-selling brands, all sold exclusively through Amway Business Owners.
The complete explainer, cleaned up and reformatted for mobile.
Last Updated: June 2026 — Enhanced with AI business impact analysis
Amway, a contraction of “American Way”, is a company with a core focus on the sale of home care, beauty, and health-related products.
The Amway business model is a multi-level marketing (MLM) system where independent business owners earn income through direct sales of health, beauty, and home care products, plus commissions from recruiting and mentoring other distributors. — as explored in the strategic map of AI market players — Founded in 1959, Amway operates in over 100 countries worldwide.
It was founded in 1959 by Jay Van Andel and Richard DeVos, school friends who had started several business ventures together.
With that in mind, let’s take a look at the business model of Amway and the reasons for its success.
Value Proposition
DescriptionAmway offers the following value propositions for its customers: – Entrepreneurial Opportunity: Providing individuals the chance to become independent business owners (IBOs). – Quality Products: Offering a wide range of high-quality health, beauty, and household products. – Global Reach: A global network of distributors and customers. – Personal Development: Supporting personal and professional growth through training and education. – Community and Support: Building a community of IBOs for mutual support and success. – Income Potential: The potential to earn income through sales and team-building efforts.
Core Products/Services
DescriptionCore products and services provided by Amway include: – Nutritional Supplements: Offering vitamins, minerals, and dietary supplements. – Beauty and Personal Care: A range of skincare, makeup, and personal care products. – Home Care: Household cleaning and maintenance products. – Health and Wellness: Products promoting a healthy lifestyle. – E-commerce Platform: An online platform for product ordering and management. – Business Support: Training, resources, and support for IBOs to grow their businesses. – Compensation Plan: A compensation plan that rewards IBOs for sales and team building.
Customer Segments
DescriptionAmway targets various customer segments: – Independent Business Owners (IBOs): Individuals looking for entrepreneurial opportunities. – Retail Customers: End consumers purchasing Amway products for personal use. – Health and Wellness Enthusiasts: Customers interested in nutritional and wellness products. – Beauty and Personal Care Shoppers: Individuals seeking high-quality beauty and personal care items. – Household Products Consumers: Customers in need of home care and cleaning solutions. – Entrepreneurs: Individuals with a desire to build their businesses and earn income.
Revenue Streams
DescriptionAmway generates revenue through several revenue streams: – Product Sales: Earnings from selling health, beauty, and household products. – IBO Sales: Commissions from IBOs’ product sales and their downline team’s sales. – Online Platform Fees: Fees associated with the use of the online e-commerce platform. – Events and Seminars: Earnings from hosting events and seminars for IBO training. – Licensing Fees: Charges for licensing the Amway brand and business model. – Exclusive Products: Revenue from exclusive and specialty products.
Distribution Strategy
DescriptionThe distributionstrategy for Amway involves a direct-selling model and community-building: – Direct Selling: Selling products through IBOs who directly engage with customers. – Online Presence: Offering an online platform for product ordering and management. – Local Communities: Building local communities of IBOs for support and training. – Training and Seminars: Providing training, seminars, and events to educate and motivate IBOs. – Social Selling: Encouraging IBOs to leverage social media and personal networks. – Product Demonstrations: Conducting product demonstrations and presentations. – Recognition and Rewards: Recognizing and rewarding top-performing IBOs for their efforts.
Multi-level marketing
Amway is primarily a multi-level marketing (MLM) company where goods are sold to distributors and salespeople. There are two core components of the Amway business model:
First, an individual is recruited by a distributor.
Once recruited, the individual becomes a distributor themselves, which the company calls an Independent Business Operator (IBO). IBOs can purchase Amway products at wholesale prices, sell to consumers, and sponsor new distributors.
While the company has been associated with Ponzi schemes for much of its existence, it’s important to note the differences between these scams and Amway’s MLM strategy.
In a Ponzi scheme, for example, the individual on top of the pyramid makes more money than everyone else by referring new people.
Other characteristics of the Amway business model
The profitability of Amway’s MLM model is helped by the following characteristics:
IBO flexibility – independent business owners can make money in several ways. The most obvious way is via selling products to non-affiliated customers, but IBOs may also receive bonuses for exemplary sales volume or travel incentives to exotic locations.
Low investment –
Higher product prices – the aforementioned seller bonuses are paid in the form of points-based commissions. In order to pay these commissions to increasing numbers of sellers, Amway must charge a premium price for its products to make a profit.
MLM network expansion – like any business, Amway must grow its customer base to survive. However, since Amway considers both the end-user and individuals in its network as customers, it must prioritize the expansion of its MLM hierarchy in addition to product development and marketing.
Value Proposition
Quality Products: Amway offers a wide range of high-quality products across categories such as nutrition, beauty, home care, and personal care. With a focus on innovation, research, and premium ingredients, Amway products are designed to meet the needs and preferences of discerning consumers seeking effective solutions for health, wellness, and lifestyle enhancement.
Entrepreneurial Opportunity: Amway provides individuals with the opportunity to become independent business owners (IBOs) and build their own direct selling businesses. Through its business model, Amway empowers IBOs to achieve financial independence, personal growth, and professional success by offering flexible work arrangements, comprehensive training, and ongoing support.
Community and Support: Amway fosters a supportive and collaborative community of IBOs who share common goals, values, and aspirations. Through networking events, training seminars, and online forums, Amway cultivates a sense of belonging, camaraderie, and mentorship among IBOs, enabling them to learn from each other, share best practices, and celebrate achievements together.
Social Responsibility: Amway is committed to corporate social responsibility (CSR) initiatives that promote sustainability, environmental stewardship, and community engagement. Through its Amway One by One Campaign for Children and other philanthropic programs, Amway demonstrates its dedication to making a positive impact on society and contributing to the well-being of communities around the world.
Revenue Model
Product Sales: Amway generates revenue primarily through the sale of its products to consumers through its network of independent business owners (IBOs). IBOs purchase products from Amway at wholesale prices and earn retail profits by selling them to customers at suggested retail prices. Amway also offers incentives, bonuses, and commissions to IBOs based on their sales performance and business growth.
Membership Fees and Starter Kits: Amway earns revenue from membership fees and starter kits purchased by individuals who join the company as independent business owners (IBOs). These fees provide new IBOs with access to training materials, marketing tools, and support resources to help them start and grow their businesses effectively.
Training and Events: Amway offers training seminars, conferences, and events for its independent business owners (IBOs) to enhance their skills, knowledge, and capabilities in sales, marketing, and business management. These events often require registration fees or ticket sales, contributing to Amway’s overall revenue stream while providing valuable education and networking opportunities for IBOs.
Online Sales and E-Commerce: Amway operates an e-commerce platform where customers can purchase products directly from the company’s website. By offering online ordering and delivery options, Amway expands its reach and accessibility to customers beyond its network of independent business owners (IBOs), generating additional revenue through direct-to-consumer sales.
Marketing Strategy
Word-of-Mouth Marketing: Amway relies heavily on word-of-mouth marketing and personal recommendations from its network of independent business owners (IBOs) to promote its products and business opportunity. IBOs leverage their personal networks, social circles, and customer relationships to introduce and recommend Amway products to potential customers, emphasizing product benefits, quality, and value.
Social Media and Digital Marketing: Amway utilizes social media platforms, digital advertising, and content marketing strategies to reach and engage with consumers online. Through targeted ads, sponsored content, and educational materials, Amway raises brand awareness, drives traffic to its website, and generates leads for its network of independent business owners (IBOs) to follow up and convert into sales.
Direct Selling Events and Demonstrations: Amway organizes direct selling events, product demonstrations, and home parties where independent business owners (IBOs) showcase Amway products and share their personal experiences with potential customers. These events provide an interactive and hands-on experience for consumers to learn about Amway products, ask questions, and make informed purchase decisions.
Incentives and Recognition: Amway incentivizes and rewards its independent business owners (IBOs) for their sales performance, business growth, and leadership achievements through incentive programs, bonuses, and recognition. By recognizing top performers and providing incentives such as trips, prizes, and exclusive events, Amway motivates IBOs to achieve their goals, drive sales, and build successful businesses.
Distribution Channels
Independent Business Owners (IBOs): Amway’s primary distribution channel is its network of independent business owners (IBOs) who serve as authorized sales representatives and brand ambassadors for the company. IBOs purchase products from Amway at wholesale prices and sell them directly to customers through personal interactions, home parties, and online channels, earning retail profits and incentives based on their sales performance.
Retail Stores and Outlets: Amway operates retail stores, experience centers, and product showrooms in select markets where customers can purchase Amway products directly from the company. These retail locations provide consumers with the opportunity to experience and sample Amway products firsthand, receive product recommendations from trained staff, and access exclusive promotions and offers.
E-Commerce and Online Platforms: Amway offers online ordering and e-commerce capabilities through its official website and digital platforms, allowing customers to browse, shop, and purchase products online. By leveraging technology and digital channels, Amway enhances accessibility and convenience for customers to purchase products anytime, anywhere, while also providing additional sales channels for its network of independent business owners (IBOs) to expand their reach and customer base.
Strategic Partnerships and Alliances: Amway collaborates with strategic partners, retailers, and online marketplaces to extend its distribution reach and access new customer segments and markets. By partnering with established retailers, Amway expands its presence in brick-and-mortar stores and online marketplaces, enabling customers to discover and purchase Amway products through trusted and familiar channels.
Key takeaways
Amway, a contraction of “American Way”, is a company with a core focus on the sale of home care, beauty, and health-related products.
Amway is primarily a multi-level marketing (MLM) company where goods are sold to distributors and salespeople.
To ensure it can continue to pay commissions to an expanding network, the company’s products also tend to be more expensive.
Key Highlights
Founding and Focus: Founded in 1959 by Jay Van Andel and Richard DeVos, Amway focuses on selling home care, beauty, and health-related products.
Sales and Growth: Achieved $8.5 billion sales in 2020, with 80% of 100 worldwide markets experiencing growth despite the pandemic.
Multi-Level Marketing (MLM):
Recruitment: Individuals are recruited by distributors, becoming Independent Business Operators (IBOs).
IBO Role: IBOs purchase Amway products at wholesale, sell to consumers, sponsor new distributors.
Registration Fee:
Different from Ponzi Scheme:
Amway Business Model Characteristics:
IBO Flexibility: IBOs can earn through product sales, bonuses, travel incentives.
Low Investment:
Higher Product Prices: Premium prices charged to accommodate commission payments.
MLM Network Expansion: Amway grows both customer base and MLM hierarchy.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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