I had some poor bugger - who I felt really sorry for, actually - try and get me into Amway by inviting me to discuss with him an "online grocery store business" that he was wanting to get going. I hadn't heard that angle before, and didn't realise it was Amway - until he arrived at our home in a suit.Showed me their members website of products ie. everyday consumer items like toothpaste, soft drinks etc which he said were cheaper than the supermarkets.
He foolishly tried to sell it to me using two primary angles that were fundamentally flawed:
1) Save yourself the hassle of going to the supermarket!
Me, immediately: "oh, so you do milk and meat?"
Him: "No, we don't do any perishables"
Me: "So don't I now just have to shop in two places rather than one?"
2) Wouldn't you rather pay wholesale than retail?
Me: "not if buying wholesale is in exchange for selling my soul by trying to sign up my friends and family, no; I'd rather pay retail and sleep at night".
grossreal, I truly mean no offence to you: you get something out of it, good for you. And no, you haven't tried to sign me up. You obviously have found a way to make it work for you that avoids some of the biggest pitfalls of these businesses (ie the pester factor, and secretiveness, etc). But I'd suggest that you are, in my experience, the exception: the vast majority who sign up have an experience very much like pennyk's.
And regarding the passive ongoing income: I've been told - again by several who've trodden this path before - that this is a bit of a myth. Even if you are one of the ones who persists with it, the chances are that a large number of the people that you've recruited will drop out, and with them, your "passive" income. Several people I know who built up incomes (nothing flash, but maybe $1-2K per month part-time) were spending an enormous number of hours maintaining that level. People were constantly dropping out and they were having to continually recruit more people to replace those who fell by the wayside. They definitely would have earned more spending that time packing shelves at the supermarket.