Building Fortunes Radio listening audience enjoys Scott Johnson and Peter Mingils on MLM scandals and MLM news.
This is an interesting interview with Scott Johnson and Peter Mingils as discussions on the news going on in network marketing. Alex Morton and IM Academy updates on the FTC demand for settlements. Bridgette Read book review of Little Bosses Everywhere and even contract comparison of MLM Contracts versus employment contracts such as Astronomer CEO Byron
You can see more of what Scott Johnson has on https://www.facebook.com/stoptheamwaytoolscam
The Amway tools scam is a hidden profit scheme within the Amway multi-level marketing (MLM) structure that exploits distributors, often leaving them with financial losses instead of the promised wealth. Amway, a well-known MLM company, markets health, beauty, and home products through independent business owners (IBOs). While the company emphasizes product sales, the real money for top-tier distributors, often at the Diamond level or above, comes from selling motivational “tools” like books, tapes, seminars, and rallies, not from product sales. These tools, promoted as essential for success, create a separate revenue stream that disproportionately benefits upline leaders while draining the profits of lower-level distributors.Distributors are pressured to purchase these overpriced tools, often costing hundreds or thousands annually, with promises of learning the secrets to building a lucrative Amway business. However, studies and lawsuits reveal that 99% of Amway distributors lose money, with average earnings below $100 monthly after expenses. The tools business, controlled by high-ranking distributors like Dexter Yager, generates millions for the elite, who earn significant markups on items like cassette tapes sold at rallies for up to $10,000 a night in cash. Meanwhile, new recruits face high startup costs—starter kits, training sessions, and product samples—further eroding their profits. This creates a pyramid-like structure where uplines profit from downlines’ purchases, not retail sales, resembling an illegal scheme.
The scam thrives on coercion, with uplines leveraging mentorship and cult-like tactics to ensure compliance, threatening to withhold support if tools aren’t bought. Legal actions, like the 2007 UK investigation, exposed deceptive practices, yet Amway often deflects blame to “independent” distributors. For most IBOs, the dream of financial freedom becomes a costly trap, enriching the few at the expense of the many.
