It was February, and I was tired of the cold, the snow, and ice, and wood heat. I was 28 years old, living with my children, unexpectedly single. I was in shock, although I didn't know that at the time.

A neighbor called one evening. He told me that he was considering starting his own business, was going to be meeting with an associate, and wondered if I would join him and help him evaluate this business as he respected my judgment. (I was a small business owner.) I was not the slightest bit interested in his business ventures, but at this point I was totally starved for adult companionship. I agreed to meet with him.

That evening started a journey -- that lasted for more years than I care to admit to -- of involvement in the Amway business. I was totally involved, or core. I bought the products, I held meetings and sponsored people, I went to all the functions I was qualified to attend. I spent a fortune on tapes, books, and other motivational and training materials. I was a single mom, and I was leaving my kids with teenage babysitters for at least one weekend every month so I could attend a Seminar & Rally three hundred miles away. Several nights a week I would pick my kids up from the babysitter after work, drop them with a different sitter, then run out the door to show the plan, contact new prospects, or sell product. I was broke and getting broker.

My loyalty to the system brought me to the attention of my upline Diamond, who offered me a job in his office. I was flattered, and felt it was too good an opportunity to turn down. With stars in my eyes, I was excited about being able to rub shoulders with the Pearls (now changed to Sapphires), Emeralds and Diamonds in the organization.

Unfortunately, despite my starry-eyed loyalty, I had neglected to park my brain at the door. As I learned more and more about the inner workings of the business and the so-called Diamond Lifestyle, I became more and more disillusioned about the Amway business.

What Is It About Amway?

Few businesses have been as controversial for as many years as the Amway business. What is it about a company, headquartered in the Midwestern United States, that arouses such passionate responses? Anyone who has experienced the Amway business either loves it or detests it -- there seems to be no middle ground.

On the surface, such passions appear ludicrous. It's just a company that manufactures a line of basic household and personal care products, and supplies name-brand products through a catalog. Or is it?

In the pro-Amway camp are those who claim to have developed significant wealth using the Amway multilevel marketing plan, or those who know someone who is successful in the business. Also in the pro-Amway camp are well-known Republican politicians, including Ronald Reagan, George Bush, George W. Bush, Oliver North, Newt Gingrich, Woody Jenkins and Sue Myrick. Conservative Christian leaders James Dobson, and formerly Jim and Tammi Bakker have been staunchly pro-Amway, and claim friendships with Amway founders and high-level distributors. Jerry Falwell, who receives massive donations from Amway leaders, has recently issued statements on the internet, and through Amway's voice messaging system, supporting Amway against its critics. Author Charles Paul Conn, president of Lee College, a small Christian college in Cleveland, Tennessee, has written six books about the Amway business, and was a favored speaker at Amway conventions for a number of years; and a number of entertainers and motivational speakers support the Amway business.

Rabid anti-Amway sentiment is expressed by thousands of former distributors, families and friends of distributors, and many religious leaders and liberal politicians. Since the advent of the World Wide Web and more widespread use of the internet, people around the world, many of whom are former distributors, are actively speaking up about their experiences and what they perceive as illegal or unethical aspects of the Amway business. Amway is often accused of cultlike activity, of using deceptive mind-control practices to control distributors and keep them in the system, spending their money on endless unneeded products and repetitive motivational tools.

At least 18 significant lawsuits have been filed against Amway and the highest-ranking Amway distributors. Amway has pleaded guilty to charges of customs violations against the government of Canada, and paid $25 million in fines and a $45 million settlement. (Wall Street Journal) As of this writing, Amway is defending suits brought by Procter & Gamble of Cincinnati, Ohio which involve charges of unfair competition, fraud, and racketeering. One suit claims that the Amway business is "in reality an elaborate, illegal pyramid scheme." Additional charges include "false and misleading advertising." The suit also charges that Amway distributors are, in fact, "employees and agents of Amway," and are also "commissioned sales agents," not independent contractors, and further charges Amway with "negligent supervision" of its sales force. There have been a number of lawsuits brought by distributors and former distributors against Amway Corporation and specific Amway distributors. One recent suit involves 29 very high-level distributors, who are suing Amway and one of Amway's most successful distributors for $200 million. Another recent suit was brought by a high-level distributor against Amway and a number of other high-level distributors, seeking $50 million in compensation for lost income. There have been class action suits, and numerous individual suits. There are former distributors who claim to have lost their shirts, their marriages and their families because of the Amway business.

Amway itself claims to be a beacon of free-enterprise hope throughout the world. The company's goal, expressed by President Dick DeVos and Board Chairman Steve Van Andel, on Amway's World Wide Web site, is to be "The best business opportunity in the world."2 (Amway, internet) According to a January, 1998 Amway Corp. publication, "Amway has succeeded for more than three decades in a highly regulated industry, because it is a proper, ethical, and honorable addition to the retail marketplace." (SA4400) Amway promises wealth, opportunity and freedom for those who join and are willing to put in significant time and effort.

How do we reconcile these widely divergent views of a business? What inspires the passion about this company, which started out in 1959 selling a single organic cleaning product? What is behind the smoke and mirrors of the Amway business?

Let's look at some case histories, beginning with my own.

Copyright 1999. All rights reserved. No part of this book may be reproduced in any form or by any means, electronic or mechnical, including photocopying, recording or by any information storage and retrieval system, without the prior written permission of the publisher.