Stop The Amway Tool Scam Scott Johnson and Peter Mingils talk about the decision that The Happy Co made to stop paying Commissions.
The show covers a bunch of smaller topics including Scott’s opinion on retail sales and undisclosed profits from tool sales. We have covered this on Building Fortunes Radio and on MLM News https://mlm.news
The recent announcement regarding The Happy Co. (HCo.) has sent shockwaves through the direct selling industry, marking a somber chapter for a company once known for its focus on “elevating happiness.” According to a detailed report from Business For Home, the company has officially suspended all Brand Partner activities and, most significantly, has ceased the payment of commissions on future orders. This move represents a total pivot in the company’s operational structure, effectively removing the network marketing element that thousands of independent distributors relied upon for their livelihoods.
The official communication, sent by CEO John “JT” Thatch, cites a series of operational hurdles that preceded this drastic decision. Over the last several months, the company struggled with out of stock products, logistics complications, and existing disruptions to commission payments. While the company expressed gratitude for the dedication of its field members, the immediate suspension of Brand Partner activities leaves many in a precarious position. The company plans to continue selling and servicing customers directly as inventory becomes available, but the incentivized sales force that built the brand is now being sidelined with nothing more than a 20 percent discount on future personal purchases.
For the distributors, or Brand Partners, this news is devastating. Many of these individuals spent years of their lives and significant personal capital building teams and promoting the HCo. lifestyle. The reality of a “suspension of activities” in this context is that the business they built has essentially crumbled overnight. When a direct selling company stops paying commissions on future orders, the “asset” a distributor has built (their downline and recurring customer base) loses its financial value. This leaves leaders and newcomers alike in a state of professional mourning, as they watch their hard work evaporate due to corporate decisions entirely out of their control.
The impact of this shift is being discussed heavily within the industry. Notably, Scott Johnson and Peter Mingils have taken to Building Fortunes Radio to discuss the implications of this news. Their commentary provides a broader look at the stability of the direct selling industry and the warning signs that often precede such a collapse. For distributors, listening to these industry veterans can offer a sense of community and much needed perspective on how to navigate the fallout of a company’s sudden transition away from the network marketing model.
What does this mean for the future of those affected? For many Brand Partners, the primary concern is the loss of residual income. In the world of network marketing, the promise of long term residual earnings is the primary motivator. With that promise now broken, many are left to figure out their next steps while dealing with the emotional weight of feeling abandoned by a company they supported through previous “logistics issues.”
Furthermore, the relationship between The Happy Co. and its parent companies, Sharing Services Global Corporation (SHRG) and DSS, adds a layer of complexity to the situation. As a subsidiary of larger corporate entities that have acquired various other legacy nutrition and travel brands, the shift at HCo. may be part of a larger strategic consolidation. However, for the individual distributor on the ground, the corporate strategy matters far less than the immediate loss of income and the cessation of a business partnership they believed was a long term venture.
In review, the situation at The Happy Co. serves as a stark reminder of the risks inherent in the direct selling model. While the company aims to survive as a traditional direct to consumer entity, the bridge to its original ambassadors has been burned. Distributors are now faced with the task of rebuilding elsewhere, armed with the hard lessons learned from this sudden suspension. The insights shared by Scott Johnson and Peter Mingils on Building Fortunes Radio remain a vital resource for those looking to understand the “why” behind these events and how to identify more stable opportunities in the future. The “happy” era of HCo. as a network marketing powerhouse has come to a close, leaving a wake of disappointed partners and a cautionary tale for the entire industry.
Direct Selling News https://directselling.news and Direct Sales news sites https://directsales.news are covering this topic as well.
Stop the Amway Tool Scam – Scott Johnson on Building Fortunes Radio
This video features Scott Johnson discussing his personal journey and the specific mechanics of the “Tool Scam” that he and Peter Mingils expose on their radio show.
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.
