Is Amway a Business? Unpacking the Truth Behind MLM and Franchise Models

The question of whether a company like Amway or Multi-Level Marketing (MLM) can be considered a personal business is a common one. Traditionally, MLMs have been viewed with skepticism, but as we delve deeper into the nuances of these business models, the lines become blurred.

The Nature of MLM and Amway

When it comes to MLMs, including Amway, the landscape is complex. These networks operate under contracts that allow the overall business to terminate the relationship at any time and without notice. This means that, technically, your involvement in the business is not entirely your own. Additionally, these business models often operate outside the strict regulations of labor laws, which can make the ownership feel less secure.

Historical Perspective

Over the years, my views on MLMs have evolved. Initially, I was entirely anti-MLM, but with time, my perspective has softened. This shift can be attributed to a better understanding of the various dynamics within these networks. For instance, during my time with Young Living, I observed teams branching out and creating their own marketing materials, books, training sessions, and other side projects. In a sense, these teams did have their own small businesses under the larger Amway framework. However, the overarching control still lies with the main business.

Controlling Your Own Business

One of the main arguments for the legitimacy of MLMs is the fact that you have control over many aspects of your involvement. You decide how much effort to put in, how many people you help, and how many products you sell. Your income level is largely within your own hands. Sure, there might be some guidelines around marketing, but these are not unique to MLMs; many businesses, including traditional ones, have similar constraints.

Comparison with Franchise Models

There is a distinct parallel between MLMs and franchise models. Just as a franchisee has certain guidelines and responsibilities, so do MLM participants. The franchise model also involves a significant investment of time and effort, albeit in a different form. Similarly, an MLM can require substantial dedication and initiative.

The Digital Age and Changing Business Norms

One of the most significant shifts in modern business is the rise of the digital age. With this comes a reevaluation of what constitutes a successful or legitimate business. The stigma around businesses that require 100-hour workweeks and significant investment has diminished. Many successful businesses now operate on a smaller, more manageable scale and do not necessitate extensive capital or manpower. This brings us to the core question: why is there still a qualitative difference between an MLM like Amway and a more traditional business model?

Shame in Stereotypes

The perception that MLMers are shirking work or responsibility is largely based on stereotypes and misunderstandings. While some may be in it for the long haul, others might be starting small and scaling up gradually. Just as any business, MLMs require commitment and effort. The fact that one model might not fit the traditional mold does not diminish its legitimacy. The digital age has ushered in a variety of business structures that cater to different preferences and lifestyles.

Conclusion

Ultimately, whether Amway or an MLM is considered a business depends on the level of control you have, the risks you bear, and the efforts you put in. Just as with a franchise, an MLM is a legitimate business venture that requires your time, energy, and dedication. It is important to recognize that there is no one-size-fits-all model for success. Each individual must find the business model that best suits their lifestyle and goals. The debate around the legitimacy of MLMs should be based on a more nuanced understanding of the realities of these business models.