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Merchants of Deception

Merchants of Deception

Eric Scheibeler
2009
T3 324 pages ยท about 5h 24m to read OL35182226Wgoodreads

Insider account by a high-level Amway distributor turned critic.

Summary

The reference has not verified this book in detail; the summary states only what the title, author and subject establish.

Eric Scheibeler reached the Emerald level in Amway's distributor hierarchy and then wrote this account of what he found. The book was self-published after legal obstacles, and Scheibeler's central allegation is that the income presented to recruits as achievable from product sales in fact came overwhelmingly from selling motivational materials to other distributors.

His specific claims are that the tools business, meaning tapes, books, seminars and rallies sold by upline distributors to their downline, was where the money in the system was made; that this business was concealed from recruits and in some cases from the company; that the retail product sales presented as the basis of the opportunity produced negligible income for almost all participants; and that the organisation used religious language and social pressure to prevent distributors from examining their own results. He reproduces internal documents and income data.

The book is a partisan account by a former participant with litigation history against the company, and Amway disputed his allegations. It is self-published and has not been through independent verification. Its claims about the tools business are consistent with what emerged from subsequent litigation and from regulatory attention to multi-level marketing income disclosure, and the Federal Trade Commission's later work on business opportunity income claims addresses the same structure. Readers should treat it as a documented insider allegation rather than as an established account.

Key takeaways 6

  1. Income in the distributor hierarchy came principally from selling training materials downline rather than from selling products to consumers.
  2. Recruits were shown income figures that did not distinguish product margin from tool sales revenue.
  3. The great majority of participants earned less than they spent on products and materials.
  4. Religious and community language in recruiting made questioning the opportunity feel like a personal failing rather than an analysis.
  5. Scheibeler argues that the upline's financial interest lay in recruitment volume rather than in downline profitability.
  6. Distributors were discouraged from consulting outside information about the business, which the author treats as deliberate.

Who should read it

Readers examining multi-level marketing economics and income disclosure who want an insider allegation, treated as contested rather than established.

Where it sits in the reference 2

Companies
Business models

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