“Is AMSOIL a scam” is a question often asked by people who don’t know about the products or understand AMSOIL’s Business model. I’ve seen comments like these in forums: “AMSOIL is a scam”, a Pyramid Scheme” or “it’s snake oil”.   I wondered the same things, before I researched the company and used the products.

AMSOIL is not is a scam, not a Pyramid Scheme and it’s not “snake oil.”  AMSOIL is a Direct Sales company, that uses Independent Dealers to sell their premium Synthetic Motor Oil and other performance products. They manufacture products for anything with and engine or that needs lubrication. 

Continue reading for more information about the AMSOIL company and its products.

AMSOIL is a small independent company based in Superior, Wisconsin that has been in business since 1972 and its customer base grows every day. They develop and blend multiple lines of 100% synthetic premium motor oil, oil filters and other performance products.

AMSOIL is well known in the racing and competition arena, but AMSOIL products cover all kinds of items with engines including: automobiles, motorcycles, outdoor power equipment, ATV’s, snowmobiles, boats and more. AMSOIL continues to expand its marketing and education about its products, into the daily use customer market.

AMSOIL products not only meet “Industry Minimum Standards” like API and GM DEXOS 2, but continually exceed those “minimum standards”. AMSOIL products are tested and some are API Certified for those minimum standards, while all products are tested at independent labs and shown to exceed those standards. They constantly publish the results of these tests on their website. We will explore the reasons for not testing all oils in another article.

AMSOIL uses the Independent Dealer System to sell their products and continues to support this system. AMSOIL has been approached by companies like WALMART, Target, NAPA and other retailers to stock AMSOIL products other shelves, but AMSIOL has declined. AL Amatuzio, the founder, believed in the entrepreneur and wanted people to have the opportunity to have their own business and the company honors that.

There are those people who disagree with how AMSOIL has chosen to distribute their products. They throw blanket statements out about ” pyramid schemes” and “AMWAY”, with out understanding that AMSOIL dealers never have to “recruit” anyone to join AMSOIL and have no required sales minimums to stay a dealer. In fact the only way an AMSOIL Dealer gets paid, is through commissions on sales of products. They receive no compensation for “signing up” new members. You can read more on the AMSOIL Dealer business with this article.

The one thing that is certain, is that AMSOIL produces and sells legitimate quality products.  So, let me talk some more about the common issues people bring up when talking about this so called “AMSOIL scam”.

Is AMSOIL Still A SCAM?

I was a skeptic about AMSOIL at first, because I saw and read all the comments about  “The AMSOIL scam”. I never saw the products on the shelves of local parts stores and never saw any advertisements on TV about this brand of oil.  I read on auto forums, while researching other vehicle repair topics, about the “relentless dealers” pushing themselves on people to buy AMSOIL.

I was into Royal Purple oils, because that’s what all the car TV shows I watched pushed. That was before I learned that these are paid sponsors and product placements, not that there is anything wrong with advertising your products like this. It actually opened my eyes to researching all the available products to see what fit my needs.

Then I actually researched AMSOIL and their products, while I was researching about “full synthetic oil use” in high mileage vehicles and the infamous “Chevy Lifter Tick” issue.  Then, I had a friend who sold BG products, give me some of the “BG” products to try when we were discussing that “lifter tick” noise I had. That’s what led to even more research on synthetic oils. 

That’s where I learned about how AMSOIL oils are developed, tested and manufactured. I learned about the benefits from using AMSOIL Oils. I learned about the Preferred Customer program and their Independent Dealer business opportunity. I then actually read the forums threads about how people had good results with the products.

I saw a few oil brands mentioned in those threads I had never heard of before like klotz, redline and motul. My question for those who say AMSOIL is a scam, is since you never see Motul, klotz or Redline on the shelf at stores and never see ads for these products, does that qualify them as “SCAM’s” as well? 

So where does this lead?  After reading about the different manufacturers products, how they are made and how they effect your engine components, I made the switch from mobile 1 to AMSOIL as a Preferred Customer.  I used AMSOIL in all my vehicles, my commercial lawn care equipment, boat, ATV’s and other stuff for a few years and I liked they way they worked. They performed as advertised and I am happy with the results. So, no AMSOIL is not a scam.

I heard a good statement on the “Under the Hood” podcast recently and I think it was a good way to look at things. What was basically said is that we need to combine modern oil technology with old school mechanic theory. Take that however you want, but I take it as embracing advancements in motor oils to improve our old school mechanic practices. Its companies like AMSOIL that help the oil advancements.

Is AMSOIL Snake Oil.

No, it is not “snake oil”.  AMSOIL Synthetic Motor Oils are premium, 100% full synthetic motor oils. They are designed for every day use and tested in extreme race environments. They are really only sought after by racers and auto enthusiasts who understand the full benefits of using synthetic oils. 

Most people don’t understand or don’t care to understand all the functions that motor oil must perform in todays modern engines. It is these advancements in synthetic oils that help increase fuel mileage, reduce emissions, help engines last longer and help protect the environment. These advancements come from a lot of research and testing and using premium additives in the formulations.

It’s easier to call it “snake oil” than to understand how car manufactures rely on these oils to address serious issues effecting modern engines like LSPI. Why would you want to understand how modern synthetic oil works and the benefits it gives you?

Fact: AMSOIL motor oils were the first products on the market that had 100% prevention of LSPI (low speed pre ignition) events. LSPI causes your pistons to break apart and destroy your engine.

Read the articles on motor oil basics, Functions of motor oil and classifications of gas motor oils and diesel motor oils for more detailed info.

Why The Cheapest Oil On The Shelf Isn’t Good Enough

For most people, “oil is just oil” and “cheapest is good enough”.  Thats how I used to be, until that day I went to drain the oil in my truck for an oil change and had to use a screwdriver to break the sludge in the oil pan drain hole to get the oil to drain out. The “not always on time” maintenance schedule using the cheapest oil routine I did.  That was my AHH HAA moment.  

The base oil stocks for oil manufacturing today have advanced with technology, but there are still molecular level things you can’t change about conventional oils. No matter how much refining there is with conventional oil, the impurities and uneven molecular shapes and sizes will always remain.

Synthetic base stocks have advanced too. They are able to change molecules and produce clean base stocks for the best performance and protection qualities oil demands.  Also, additives give oil most of the performance qualities sought after. So using the best additive package is also a must. 

I’ve seen people on youtube compare certain levels of additives or chemicals in “virgin oils” (unused oil) to say who’s the best oil, but they fail to mention that its the blend of all those chemicals working together that have the greatest effect on the performance of the oil and not a single chemical.  They also fail to mention that cheaper quality additives are used up faster and stop providing proper protection.

That’s why companies test many “formulation blends”, because they try to find best blend of additives that provides the minimum protection that licensing companies like API require. However, AMSOIL continues to try to stay ahead of new auto engine technology advancements and to be ready with new oil protection requirements while providing the longest protection.  

So while the cheapest oil may be good for some people, the reality is, you are harming your engine no matter how often you change your oil. If you can afford to buy new vehicles every few years, then yes the cheapest oil is good for you. If you you need to make your vehicles last a while, then use synthetic oils like AMSOIL. Why continually waste your hard earned money on a car payment.

AMSOIL Is An Expensive Oil.

What’s the difference between Whole Foods and Walmart Products?  It’s the quality of the product.  The same goes for motor oil.  There are many groups of base stocks and even more grades of additives.  AMSOIL uses fully synthetic base stocks and top tier additives that focus on high end performance over lowest price. 

Most mass marketed oils or cheapest oil on the shelf, use “ok” or lower cost additives. While they make decent products, their focus is on the lowest final price of their product. Mass marketed oil’s main market is the majority of US consumers who aren’t into the performance of the products, but are most focused on the price.  

AMSOIL makes 3 tiers (product lines) of motor oil and each has its own price point that focuses on different market segments.  Signature Series is the top level product. It is the highest price in AMSOIL’s lineup, but also provides the best protection on the market for the longest time which is up to 25,000 miles or longer with a used oil analysis.

XL is the mid Level product line, geared for the average consumer. XL’s product line is moderately priced for about 12,000 miles of protection. Then there is the OE product line for the cost conscious consumer or those wanting to try synthetic out. OE provides great protection for the recommended car (OEM) manufacturer oil change interval. 

If you were to actually compare prices, AMSOIL is in the ballpark on price with other brands of oil. As an AMSOIL Preferred Customer, you get discounted pricing on products, which makes it cheaper than what’s available at the parts store.

I look at the choice of oil lines (Performance Qualities) and the price points the same way I just looked at price and quality of treadmills for my wife. Do I go with the $599 version because its cheaper or do we get the $2000 treadmill?  I know build quality and options determine the price and the same goes for motor oils.  Like the saying goes, “you get what you pay for”.   

Is AMSOIL A Pyramid Scheme?

AMSOIL is not a “Pyramid Scheme”.  Pyramid Schemes are illegal in the US.  There is no specific law making pyramid schemes illegal, however there are numerous laws about fraud and business practices that the FTC and individual states use to prosecute and close down “illegal pyramid schemes.” Yes multiple companies have been closed using these current laws.

It’s hard for people to understand that there are differences between legitimate MLM, direct sales companies and pyramid schemes; when they don’t want to learn the actual definitions based on law. It’s easier to just say it’s a “pyramid scheme” when you don’t understand how a company operates or like the way a company distributes its products and no one will actually correct you.

AMSOIL is A Direct Sales Company With A Few Traits Of An MLM

So what’s the difference? According to the FTC ( Federal Trade Commission) it is the fact that AMSOIL, like other direct sales companies and MLM’s, have a legitimate product to sell to the general public. Pyramid schemes don’t have a product to sell or the “product” is sold only to people in the company and not to the public.

AMSOIL produces legitimate products. The API, American Petroleum Institute, tests and approves it to use their seal.  Secondly, AMSOIL makes its money by selling its products to the public, not by recruiting new dealers. Dealers commissions are based on product sales and not signing up new dealers. AMSOIL Dealers do earn small commissions on product sales of dealers in their sales group, which is a trait of an MLM.

Have You Ever Been To An AMSOIL Party?

No, because AMSOIL doesn’t do stuff like that. AMSOIL focuses on their other sales programs available to its dealers like the Preferred Customer, retail sales and commercial accounts programs. These types of programs are not available to MLM’s or “pyramid schemes”. With these programs, dealers go out and talk with small local parts stores, hardware stores and companies with fleet vehicles or heavy equipment and work with them to become either a retail seller or commercial user of the products.

AMSOIL does have a Preferred Customer program, catalog sales and online retail store that is available to the general public as well. In fact any person or business can buy through the corporate website if they want. sales opportunities not available with MLM’s.

Note: Did you know that as of the end of 2018, AMSOIL was the largest worldwide supplier of synthetic gear box oil to the wind turbine industry? This includes being the “factory fill” for over 50% of all gear boxes world wide. Not bad for a pyramid scheme or snake oil.

Here Is How AMSOIL Is Like An MLM

Here is the actual Paragraph from the FTC General Counsel report and the link to the Full Report she wrote about pyramid schemes:

“Some people confuse pyramid and Ponzi schemes with legitimate multilevel marketing. Multilevel marketing programs are known as MLM’s,(4) and unlike pyramid or Ponzi schemes, MLM’s have a real product to sell. More importantly, MLM’s actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. MLM’s may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not for new recruits.” 

AMSOIL’s commission structure mimics that of an MLM. That’s as close to an MLM as AMSOIL is. In fact, anyone can register to be a PC, dealer, retail or commercial account and never buy or sell a product for as long as they want.

AMSOIL has a MEMBERSHIP fee for their Preferred Customer Program.

Yes, they do charge $10 for 6 months or 20$ for 1 year membership to its preferred customer program, where you can save up to 25% off full retail prices and get free shipping.  Its the same business model as COSTCO ($50), SAMS Club($45), AMAZON Prime ($113) and all the other paid memberships for price discounts businesses. They also sell at full retail price to anyone who wants buy without becoming a preferred customer. 

What about other MLM’s like Scentsy, Rodan and Fields, AVON, Young Living Essential oils, Doterra, Isogenix and Advocare where you buy a starter kit for usually over 100$ and then have to place monthly orders?  AMSOIL doesn’t require any monthly purchase, in fact you never have to buy or sell AMSOIL products if you choose.  

Read more on the Preferred customer Program

They Pay Commissions, So Do Other Businesses

They do pay commissions to dealers on sales that are made.  It’s no different than my wife getting commissions on the sales of training packages she makes, in our pet care business (dog training, boarding and retail pet supplies) on top of her regular pay.  All our employees get the opportunity to earn commissions on the sales they make and earn a referral bonus if a customer uses / bundles more than one of our offered services.  Call it an incentive or a bonus, but no one is required to sell anything. The same goes for AMSOIL, there are no requirements for sales or purchases.

Tell Me More about how AMSOIL Sells Its Products

The other difference with AMSOIL is they give you 6 ways to sell products and you never have to sign up (Recruit) people as dealers under you.  There are 7 ways to earn money if you include having dealers under you.  Those 7 ways are:

1. Catalog sales – people get a catalog and order from it.
2. Online – your own website or through the corporate site.
3. Retail accounts  – a retail business can use you as their wholesaler / supplier for their store stock.
4. Commercial accounts – businesses can use you as their supplier for the oils they use in their work equipment. They can’t sell it to anyone else.
5. Preferred customers – people can join the savings membership program and you are their servicing dealer. You help answer any questions or help them order if needed. 
6. You as a dealer can keep a personal stock ( in your garage) and sell to people that would like AMSOIL. Its kind of like having your own retail location and some dealers do open an AMSOIL store.
7. Signing up other dealers – you can help new dealers start their own business and become part of your downline, but you aren’t required to.

No MLM company gives you as many ways, or the freedom, to run your business they way you want like AMSOIL does. 

You just called AMSOIL a business.

Yes I did, because AMSOIL wants you to be a legitimate Independent small business. They want you to be registered and licensed with your city or town, having business insurance and representing the company in a professional way. In todays terms its your side hustle, to earn extra money to pay for a vacation, boat, ATV or to pay off some debt.  And yes, some dealers can make a full time living with their AMSOIL business.  I don’t see too many scams asking people to get involved with local governments and bring more attention to themselves.

Read to learn more about the dealership business.

I will admit that in the early days of AMSOIL, it was like the wild west and dealers did get overzealous and pushy and yes there are still a few who try this tactics, but for the newer 99% of dealers those times are over.  Today, AMSOIL the company, is continuing to work on changing the image of dealers away from those early days black eyes. They are trying to create a more professional dealership business.

Its difficult for some people to understand why AMSOIL chose to use this independent dealer distribution model and stick with it.  It was the founder of the company who believed in the entrepreneur, the small business owner and wanted to continue to give people an opportunity to own a business for little money and succeed on their own.  However, it does take hard work just like any other business out there.  AMSOIL is not a get rich quick scheme and any dealer or corporate person will tell you that. In fact it says that on the AMSOIL website when you read about their dealership opportunity. 

The Cult of AMSOIL People

Sounds like any other brand loyal group of people……CHEVY, FORD, DODGE, TOYOTA, GM, and Apple product owners come to mind.  What about those sports team fanatics………. Better yet, how about those “CHEAP OIL” fanatics, who constantly proclaim their love for the cheapest quart on the shelf and will never pay “high dollar” for oil.  

In today’s business world we call these “fanatics” brand ambassadors.  Customers or Business Owners who are promoting AMSOIL products or services for us. We try to cultivate our customers and employees to promote our business for us.  In our Dog Training company, “Word of Mouth” advertising from our “fanatic customers” is a major way we advertise. 

In the end AMSOIL is not a scam, not a pyramid scheme, not snake oil and is competitively priced for comparable quality oils. I hope this helps you understand a little better about AMSOIL oils and its Dealership business model.  You can always see more info at the Synthetic Oil Depot or the AMSOIL corporate site.  As I said earlier, its up to you the consumer to learn about the products you use and choose whats the best product for you.