Joecool Headed To Vegas?

 Joecool is headed for Vegas.  I'll be staying in downtown Las Vegas at Circa.  I used miles for my airfare and I got some comps for rooms and some meals.  I just have to not "lose my ass in Vegas"  :).  

In the meantime, I'll leave this article on financial freedom:

When people see the Amway plan, it sort of makes sense. You need to find six people to go direct, in 2-5 years and you have residual and willable income for life. You are then financially free and can spend your days walking on exotic beaches while checks keep coming in. This is what lures many prospects to take a better look and maybe even test the waters and give Amway a shot. After all, who wouldn't be interested in financial freedom and the ability to fulfill some of your ultimate dreams? Only a fool would turn down such an opportunity right?

While Amway looks good on paper, too many things derail this plan for financial freedom and untold wealth. Over the years I've been blogging, I've challenged Amway supporters to name a couple of people who are financially free and walking the beaches while income rolls in. Very predictably, nobody has identified a single person who achieved some high level in Amway and is sitting back relaxing while money keeps coming. We even see crown ambassadors passing away while still working the business.

So why can't IBOs achieve what they aspire to? Because in my opinion, the odds are stacked against them. Sure, a rare individual might go diamond but the occurrence is very rare and almost as rare as winning the lottery, even though Amway is not a game of chance. I will go and list the reasons why IBOs are playing a game they can't win, even though they think they can. That is the sad part, that the upline is motivating downline to "never quit" even though they will "never succeed".

The system is set up for very few to succeed. Even in the common 6-4-2 plan where everyone did enough to earn a bonus, there is one person at the highest level with 78 downline who earn less. In real life, most IBOs do little or nothing. At Amway.com, you can see income disclosures that show how few people reach the higher levels. It's a tiny fraction of 1% that reach the higher levels. Even reaching platinum is a lofty achievement and platinums might not even see a net profit due to business expenses.

Business expenses such as product packs, catalogs, cds, books, voicemail and functions add up to significant expenses in the course of a month. If you're hoping to achieve financial freedom, you'll be expected to participate in the teaching system and more than likely, these expenses will be the reason for your business losses. Beware of upline who encourage you to go in debt to purchase training.

The products in general are not competitive. Sure, the Amway IBOs may give you some pitch about products being concentrated or of high quality but let's face it, consumers don't care about high quality soaps and household cleaners. There is nothing wrong with the similar products that you can purchase at Target or WalMart at a fraction of the cost. When your products can't compete on a level playing field, on what basis do you expect to sell these products? For that reason, many IBOs become "self consumers" and wind up with no actual customers.

Amway's reputation is soured. Most people know or know someone who had a bad experience with Amway. Due to past IBO behavior, people have developed a negative view of Amway. People being tricked or lied to in the past may have contributed to this issue. Add that to the fact that so few people actually make money turns this business into an almost insurmountable challenge. Even those who achieve often find themselves out of qualification shortly after.

For these reasons, my conclusion is that the Amway opportunity is a game that IBOs simply cannot win, even for those who learn from upline and put forth tremendous effort. And the longer you play. the bigger your losses become. Do your due diligence before undertaking any business opportunity.

Debt?

 One thing that many Amway/WWDB IBOs tout is how their upline teaches them to get out of debt. While on the surface that sounds like an awesome thing to do, it's not what WWDB mentors are actually doing. They want to give the appearance that they have your best interest in mind and that they want you to succeed. At least that's what they want you to think. Sadly, many IBOs get sucked into believing this. I will go on to explain why this is and to give prospects and information seekers some food for thought.

If you have an open mind, you will see my point. Prior to someone joining Amway, they most likely didn't buy any Amway products and certainly didn't focus on spending about $200 to $300 monthly on buying household products, especially if they are single people. So how is buying more stuff than you used to, supposed to help you get out of debt? All you are really doing is sacrificing things you used to enjoy to spend on Amway stuff. If you actually made a net profit from your Amway business, that might be okay. But most IBOs are making nothing or losing money while being taught to never quit or that success is right around the corner.

If your upline or mentor is teaching you to get out of debt, are they also advising you to invest any "extra" money into investments? Are they teaching you to plan for the future, in case the Amway business doesn't pan out? Are they advising you to save money? More than likely, the answer is "no".

Your upline will be advising you to use any money you have available to invest in tools and functions. WWDB premiere club, download audios (at a charge), standing orders book of the month and attend all functions. You will be advised to do this even if your business has not made a cent in profit. But you say your sponsor or upline loans you tools and pays for your functions? That might be true, but guess what? Once you sponsor someone, you will be the one loaning tools (that you paid for) and/or paying for your downline's functions because with a downline, you are now a "real business owner". It's amazing how so many people get fools into believing that upline wants you out of debt for your own good. Upline wants to out of debt for upline's good. For that reason, you might be told to get to the next big function at any cost, no matter what. That your business will be set back months or years if you miss it. The reality is missing a big function might be your wisest financial decision.

Your upline may want you out of debt, but they more than likely have their own interest at heart and not yours. Look at it objectively and ask your trusted friends who are not in Amway what they believe. This is advice from someone who has no reason to lead anyone astray. I experienced this and fell for the trick as a young and hopeful dreamer. Now I am hopeful that my experience can prevent others from falling into the trap that I fell into.

Upline Credentials?

 I read a comment from an Amway apologist on another forum. She mentions that someone's credentials must be considered when looking at information that is presented by critics. I will comment that showing me a sports car or a fancy suit is not sufficient evidence of financial success. Telling the audience that you buy homes in cash is not proof either. In fact, some of these boasting diamonds were found to have their homes foreclosed and some had financial difficulty, even though they at times had shown off pictures of their lifestyles. I believe that many diamonds are likely to be more like the general US population - in debt. In debt trying to portray a lifestyle that is unsustainable with their Amway and Amway related income.

I find this subject ironic because not one single upline leader, as far as I know, has ever supplied Bonafide credentials about themselves. The audience assumes that the person on stage has financial  success and certain credentials, but do they really? I will say that certainly, if someone is wearing a diamond pin for example, that this person has at least achieved the diamond level as recognized by Amway, but the level may not be current, and the level doesn't indicate the kind of income this person earns from Amway. (Joecool is criticized for being outdated even though I was at 4000 PV at one point in my Amway career)

What many people assume is that the diamonds buy homes and cars in cash, that they wake up at noon every day and participate in leisure activities all day while the cash rolls in. I have heard from some new IBOs, that their upline makes more money taking a crap in the morning than a critic makes in a whole year at a job. That IBO became quiet when some critics offered to take that bet. (Do the math people)

But the truth of the matter is that as far as I know, only former diamonds have come clean about their Amway income. They are the only ones who spoke of credentials and accomplishments. Even critics of Amway will often openly speak about their experiences and achieved levels in the business. In the REAL business world, showing business tax returns and credentials are a normal part of doing business. It appears that only in the world of Amway is the supply of credentials and financial statements a big secret. Now I am not suggesting that IBOs or upline leaders should disclose their financials to the entire world, but certainly prospects and some downline should be able to see how their upline is doing financially in Amway, especially if that is the basis for purchasing their standing orders and function tickets. And I refer to business (Amway and Tools) income and expenses only, not from other personal sources.

I believe that Amway IBOs and upline leaders do not disclose that information because it would not be beneficial to them. If it were, they would likely publish it freely, just as they flash around photo copies of checks. IBOs and prospects should take this to heart and ask upline the tough questions

Time And Money?

 Time and money. When you control both, you are financially free. At least that's how the Amway business was pitched to me as a prospect. It made sense at the time. If you have enough money, then you don't have to have a job and go to work every day. Having enough money allowed you to control your time. It sounded like a great deal to sleep late every day and not have any financial difficulties. It sounds so simple. Join Amway, 2-5 years and there you are. But can anyone name a diamond who did the 2-5 years and walked away to enjoy financial freedom? I can't think of a single one. I did see diamonds and crowns quitting or dying on the job.

But for most people, joining Amway (and the systems)ironically robs you of what you desire most. Time and money. For those wanting to build a business, you may be told you need to invest in your business, and while that may be true, I do not believe there is any bonafide evidence that can support the relationship between the investment of time and money into the Amway business and earning a significant income. Many people have invested years and thousands of dollars (or much more) into the business only to end up with nothing or massive losses. My sponsor was a physician who spent many days away from his practice (lost income) and his oldest child (son) probably didn't see him very much since he was out showing the plan every nite. You can make more money but you can't ever get back lost time.

Diamonds give the appearance of being filthy rich with nothing to do but golf and go shopping but we are now seeing evidence that diamonds may not be all that. Home foreclosures, bankruptcy, former diamonds speaking out, diamonds moving their groups out of Amway, diamonds possibly selling their homes and downsizing. I believe that there are possibly many - a - diamond who is in financial difficulty and they have not escaped the tough economy as they may have implied in a meeting. Many Americans are living in debt. Why would diamonds who show off a lavish lifestyle be any different? Seriously, think about this very carefully.

Also, if diamonds were so free and filthy rich as they like to portray, why don't any of the bigger pins ever walk away from the business and live on the beaches of the world that they like to talk about? Why are they always attending and running functions? I am guessing that most of them are working these functions - because they have to. I suspect that some of these diamonds are in debt trying to portray a lifestyle that they truly cannot afford. A diamond lifestyle seems to be one of luxury and excess But can a few hundred thousand dollars a year provide that? It's clear that even many professional athletes who make bank, wind up broke or in debt within 5 years of retirement. Maybe that's why diamonds can never retire. But they pretend to "love" their downline and keep working?

If you are joining Amway to gain more time and money, I urge you to make sure you are keeping track to see if you are gaining time and money, but if you look carefully, you will probably find that what you desire more of, is what you actually have less of. That is, time and money.

Millionaire Thinking?

 A comment left by an anonymous site visitor:

"I love Amway. I just don't understand why people have to be negative about it. I don't hurt or steal from anyone yet I make money. I'm not a millionaire as of yet but working towards that goal. It's called "millionaire mentality". Joecool, you will never succeed with penny mentality."

Joecool's commentary:

Most diamonds do not have a millionaire mentality. If you see how they spend money and how they flaunt excessive wealth, I see people who could win the power ball lottery and wind up broke. They might earn a nice income (even if it may come by lying and deceiving), but they spend it all, and possibly more by portraying the diamond lifestyle. In my opinion, the diamond lifestyle as portrayed in functions such as "dream night" are not sustainable for this reason, we are now seeing evidence of this such as a triple diamond who participated in chapter 7 bankruptcy proceedings, diamonds losing homes to foreclosures. We are seeing diamonds selling their mansions. Sure, they might be downsizing or liquidating their assets, but if these homes have been paid in cash as they claim, why sell them in a bad real estate market? Why not wait a few years?

In the past, I have posted some articles showing the traits and characteristics of millionaires. Many of these articles cite saving, investing, and living below your means. Many wealthy people drive regular everyday cars and live in the suburbs. They don't commonly have Porsches, and jaguars. And for the record, the average diamond income, as reported by Amway, isn't all that much when you factor in business expenses and taxes. So why do diamonds try to show off wealth?

I believe diamonds show off wealth because it is a way to attract recruits. Because the Amway opportunity has a high turnover rate, nobody can reasonably "walk away" from their business and have cash rolling in for long. Attrition would eat away your business in a matter of days or weeks. It is why I believe diamonds do not walk away from their businesses, because they can't afford to. The business requires constant attention, or it will crumble faster than stake cookies.

Most IBOs are simply fooled into thinking they are developing into having a millionaire mentality. An honest question for IBOs. How do you even know if your upline diamond is a millionaire? Anyone, even a broke guy can wear a nice suit and show off pictures of mansions and sports cars. For that matter, how do you know if your upline diamond is currently qualified as a diamond? Amway doesn't release that information except for new pins.

In my opinion, diamond's displays of excessive wealth and luxury portray something, but it's not the millionaire mentality.  It's interesting but flaunting wealth is not necessarily a trait of millionaires.

Just Make More?

  One of the things my (WWDB) upline frequently told us, was to "just make more money". This was about how our lives are impacted by rising prices of things. For example, a friend of mine who works for a gas company has said the price of gas in the US is likely to keep rising until it exceeds $10.00 a gallon. Your Amway upline will probably just say you need to make more money by working your business harder. My upline certainly did.  But what does it mean to work harder?  Reading more books, attending more functions or many of the upline recommended activities are non-income producing activities.  The only things that make you money are selling goods and services for a profit, and to sponsor downline who actually move some volume. 

Now for most IBOs, you are likely losing money due to the "system" consisting of books, meetings, standing orders, and functions. You cannot simply "make more money" just because you want you. There was a time when I had that mindset, because it was taught by WWDB leaders. Amway was supposed to be the answer to that problem, but for most, the Amway opportunity ends up being the reason for more debt rather than a way for people to make more money. You are programmed to think you just earn more money to solve financial issues, if only you will "be core" and work your business hard. Sadly, most hard working IBOs will end up with "less money" because of the advice of their trusted "mentors and business coaches".

Ironically, in WWDB (my former LOS), some of the leaders and mentors may have been exposed as frauds as some of them experienced financial problems, including home foreclosures, thus exposing them as liars and frauds as many of these very leaders stood on a large stage claiming that WWDB diamonds pay cash for everything and that people who make loans are "stupid". Makes you wonder about the integrity if such leaders. These leaders are for the most part, still teaching this garbage today.

You may think earning more money is the simple answer to many of your problems, but you are unlikely to solve these problems by attending functions and listening to standing orders. Seriously.  Instead of blindly following upline advice, do the activities that generate income, not ones that cost you money such as standing orders and functions.

WWDB Lies?

 Joecool was an Amway IBO in WWDB back in the late 1990's. I got into the business because a close friend had gotten in and had achieved the "direct" level, now called platinum.  He told me it was "easy" and that he could guide me and mentor me to do the same thing. I didn't really know too much about Amway but I trusted my friend and believed he could lead me to the riches he talked about. I had a bad experience with Amway prior to that where I was invited to a cocktail party/beer bust only to find out it was a board plan. It kind of pissed me off and left a bad taste in my mouth.

But my friend was a direct and I could use his experience to do the same. It sounded like a good deal on the surface. I saw "the plan" and decided to sign up. I signed up and went all in. Based on my sponsor's advice, I got on standing order and book of the month club. I also dedicated myself to attending the functions. I didn't realize how much these functions would cost but it was supposed to be worth it. Afterall, nobody succeeded without tools (a lie). My sponsor told me that nobody succeeded without tools and that Greg Duncan, a multi millionaire, said that tools are vital, but you can try to succeed without them. (I believe Mr. Duncan filed for chapter 7 bankruptcy in 2009 or so). Being a newbie, how could you not follow that advice?  

At the functions, I was also told that WWDB was a nonprofit organization (a lie) and that profits were used to make future functions cheaper (a lie). In fact, some of the WWDB leaders stood on stage and proclaimed that NOBODY MADE MONEY ON TOOLS AND FUNCTIONS (a big lie). Eventually, WWDB leaders admitted they made money on tools but were never held accountable for their lies and they never really explained how you qualify and how much you earn from tools.  WWDB leaders simple re-write history or don't mention the falsehood they previously told.

Some WWDB leaders spoke and taught how long you could skip your mortgage before foreclosure, all so you could attend that next function. They were so nice to even teach how long the electric company might allow you to skip paying before you got cut off. They even recommended you quit your job if you could not get time of to attend a function. They said you could just get another job.  That's such a farce because an employee who invested time into a company can't just quit and easily go to a similar position with equal pay unless the job market is hot and your position is in high demand.

They also LIED and said that WWDB IBO's had a 2% divorce rate as compared to 50% for the rest of the country. Talk about bullshit. The WWDB diamonds alone had a greater that 2% divorce rate, not to mention that nobody that I know of is actually tracking divorce among WWDB IBO's. Nobody really cares but when WWDB leader LIE and make these claims, nobody questions them.

I wonder if these charlatans even own the mansions, cars and jet skis they show off on slideshows at the functions where they pretend to be financially free with money to spare? Ever wonder why these diamonds never "walk away" from their business? Maybe they can't afford to?