Monday, October 5, 2015

Amway IBO Excuses?

I've been a blogger now for a number of years. I've debated with Amway apologists and they ultimately resort to excuses and/or personal attacks when they run out of defenses. Food for thought, when you have to make excuses about why your opportunity isn't a scam or a pyramid scheme, that should already make you stop and think for a minute. The easy excuse is to say that "my group isn't like that". Yet I see testimonies and statements that indicate to me that things have not changed, even in all the years since I left the Amway business myself.

Even the product's prices need to be justified. That there is concentration or other factors that really make Amway stuff a better value. Strange how that better value doesn't seem to translate further once an IBO realizes that there is no residual income at the end of the rainbow. Many IBOs don't seem to mind paying for Amway stuff when they believe that they will one day walk the beaches of the world while more money than they can count will keep rolling in. When the dream fades, so does the desire to purchase these awesome products. If not, with tens of millions of former IBOs, Amway sales should be through the roof after all these years. But it hasn't. Although Amway recently reported an increase in north american sales, that wasn't the case in the last 10 years. Amway apologists even have excuses about why that is the case.

Amway also reported recently, that they have updated their average IBO income. While it is still miserable, it has gone up, although a clear explanation as to how and why they calculated the "average income" was not apparently given. So the debate continues. Critics analyzing and predicting how and why, and Amway apologists making excuses and justifying their position. Why not just be transparent and end the debate once and for all? I think most people know the answer. The bottom line for most is whether or not they make a net profit. For the vast majority of IBOs, especially the ones on the system, the answer is a net loss. It is predictable and easy to conclude. The 6-4-2 or any other version of the compensation plan clearly shows that very few people can make any decent money. If a platinum IBO typically has 100 or more IBOs, that is your answer there. It should be noted that a platinum might not even be very profitable if they are sold out on buying system tools.

So IBOs and Amway defenders, are you making money (net profit)? Or are you just making excuses?

Friday, October 2, 2015

Whose Best Interest Is Served?

The really insidious part about some of the LOS leaders, such as the ones I had in WWDB, is that they apparently are cutthroat ruthless businessmen with nice suits, and disguised as your mentors and friends. They get you to trust them, and they will tell you that they have your best interest at heart, or that they would never purposely lead you astray. On the surface, you may think this is true, but look at their actions and you can easily discern that some of these uplines are absolutely ruthless businessmen who would take every cent from you if they could. I was in WWDB and I have good reasons to believe that they are still doing this, based on a WWDB IBO blog. On this blog, I see all the same teachings today, that I heard as an IBO and some of the same claims such as buying homes in cash. It's scary.

They may even claim moral superiority such as using religion as a basis for building the business. I heard some leaders say "Amway is a God pleasing business". Really? God likes lying and exploiting others? I would beg to differ. They might tell you lies such as Amway and/or WWDB IBOs have a lower divorce level than the world. They may tell you a bunch of unsubstantiated details. I urge IBOs to verify and confirm claims like these.

As an IBO, the diamonds may tell you to never miss a function, ever. The only good reason for missing a function was for your own funeral. I recall some crossline IBOs rearranging pre-planned anniverssary parties, weddings, and other special family events in the name of being core and attending all functions. Some IBOs actually did quit their jobs to attend functions and they very well may have done so because some uplines taught this. IBOs were also encouraged and told to go into debt to attend a function. This was okay because it was an "investment" into your business.

Our group was also strongly encouraged to buy extra cds every week. To be core, you needed to listen to a cd each day and you cannot listen to the same one each day right? Couples were told to buy their own seperate standing orders. Brad Duncen even had a true north tape (cd) that said sponsors were to eat the standing orders for downlines who quit because it was too much trouble to call upline who calls upline who calls upline to cancel a standing order. Oddly enough, they didn't mind upline calling upline calling upline to add a standing order.

In the end, I was lucky enough to have been progressing up the pin ranks so my losses were not that devastating. I ended up losing in my early months of the business but mostly broke even when I was at 4000 PV. Sadly though, my crossline did not fare so well. I know of one couple who declared bankruptcy. I don't know how much their WWDB involvement contributed to bankruptcy, but I am certain it was a major factor and I know of two couples who had homes foreclosed, and I believe that their allegiance to WWDB was a factor in those foreclosures. But I guess hey, two WWDB diamonds had homes foreclosed so maybe they were duplicating?

Do not be fooled. The diamonds may have a nice smile and a nice suit, but they are cutthroat wolves in sheep's clothing who will take your last dime if you allow them to.

Wednesday, September 30, 2015

What If Everyone Was An IBO?

The point of this blog post is to illustrate that the Amway opportunity is simply not sustainable and that the market is basically saturated in North America. I know Amway recently released some propaganda on the average IBO income being up, but once again, a clear explanation of how they derived the numbers was not given. For all we know, they have hve simply excluded more IBOs by declaring them as "inactive". Anytime I heard the word Amway, it frequently draws funny looks from people. I know that Amway proponents will claim that Amway is not saturated, but in real life, you aren't going to have people lining up to join. It is why there are countless stories of people being lied to or tricked into attending recruitment meetings.

So in reviewing the common 6-4-2 plan, there are 79 IBOs and one becomes a platinum. And that is with the generous assumption that all of these IBOs are moving 100 PV consistently each month. Factor in some folks who do little or nothing and some who order infrequently and anyone can reasonably conclude that a platinum business will commonly have well over 100 downline IBOs. Now with that being said, what if everyone in the entire world suddenly had an epiphany and decided to join Amway?

Well, the structure of most platinum businesses won't change. You will still likely have more than 100 downline in each platinum group. The platinum will make some money and most downline, especially those on the system of cds and functions will lose money. Thus less than 1% of the IBO population can realistically be a platinum at any given time. Whether is now or whether the entire planet signs up for Amway, it will always be less than 1% of the IBO population at the platinum level. That is how the system is set up. The only exceptions to this rule would be for IBOs to sell enough PV to make up for a lack of downline. But there is ample testimony and evidence to indicate that many IBOs simply self consume their PV because they cannot or do not like selling. Some AMo groups teach IBOs to almost exclusively consume their own volume. My former LOS, WWDB did not emphasize selling, but focused on recruiting. And why not? The reality is you cannot go emerald or diamond without many downlines.

So even if every person on earth joined Amway, there would still be less than 1% of IBOs at the platinum level and very likely that less than 1% of IBOs would be at a net profit. Some proponents argue that many IBOs sign up and do nothing or sign up and don't order products. So what? They are still IBOs and even if you didn't count them in averages, what I have posted above explains why the success rate (platinum) still cannot amount to much more than 1% even at the best case scenario.

Still thinking about registering for Amway? Do your research and you may want to think about this article.

Monday, September 28, 2015

Financial Freedom Via Amway?

Financial Freedom! That was one of the major battle cries when I was recruited for the Amway business. You gain control of time and money by creating residual or passive income. That is true financial freedom. You wake up at noon, no job, and just do whatever you please, whenever you please. I remember the speaker saying that broke/unemployed people also had freedom, but it was different because they were broke and could not afford to go golfing or do other activities that required money on a regular basis.

I am assuming that this is still the case for many IBOs. Of course, upline leaders may toss in a disclaimer that you don't get rich quick as an IBO, but the pitch apparently still contains the financial freedom and residual income theme, based on my experiences with IBOs. IBOs still think they will be rich. Also, 2-5 years sounds like "get rich quick" to me.

But hey, financial freedom would be a great thing, don't get me wrong. Who wouldn't want to be 35 years old with enough cash to never have to work again? I mean I could spend some time imagining how fun that would be. It would also be fun to imagine what you would do with all the cash if you hit the powerball lottery as well. But for the starry eyed IBOs, I simply have a few questions for you to ponder. A few realistic questions that you should be asking yourself. The answers to these questions will tell you a lot.

1. Who in your group or upline truly has achieved financial freedom? Have you seen their financials or simply a display of wealth such as mansions and fancy cars? Mansions and fancy cars could just be a massive pile of debt. Not too long ago, there apparently were diamonds who had their homes foreclosed, and a triple diamond who was in bankruptcy proceedings. Find out if anyone in your group/upline has actually achieved the success that they are using to recruit you. Also, if they are financially free, why do they work at function after function? Traveling and speaking might not be a traditional job, but it is still work, nonetheless.

2. Even if you find someone who is retired and golfing everyday because of Amway residual income, ask yourself what the likelihood is that you will be able to achieve the same results. If diamonds are still working, what chance do you have of success if you are new or experienced in Amway, and have few or no downline. More than likely, your chance of winning the lottery will be greater than your chance of achieving a significant residual income from your Amway business. Also, I don't know of any Amway retirees who built their business once and walked away with any significant residual income from Amway. Do you?

Thursday, September 24, 2015

Winners Join Amway?

One of the things that my upline taught, and I believe is still taught today in various groups is that winners join Amway and losers do not. Kind of makes me wonder about the "most" who "do nothing" after joining. I also heard that you're a winner because you were doing something to better your financial future and those who didn't were losers or broke minded. Of course the upline who said this had no knowledge about those who were not in Amway. Some of them may already have been financially sound or may have been doing something to better their financial future. I'm not sure why these uplines, who promote "positive" thoughts, had to resort to calling people losers simpy because they did not agree that Amway was the greatest thing since sliced bread.

In many games or sporting events, there will be someone or a team that wins the game and someone or a team that loses the game. Losing a game doesn't make you a loser and certainly, a team that wins the game would not say the losing team were losers. Can you imagine a pro football team's coach taking the podium after a game and saying his team won because the other team was a bunch or broke minded gutless losers? That would never happen, yet we see that frequently in the Amway world. The owner of Amway, Rich DeVos had once said in a recorded message that just because people do not agree with you (paraphrased) about Amway, does not make them losers and that IBOs should not call people losers.

In all of this, people's jobs are also criticized. That a job stands for "just over broke" or "jackass of the boss" and other blurbs. Many IBO's goals and dreams consist of ditching their job so they can sleep all day and live a life of luxury. Ironically, it is most IBO's jobs that continue to produce income so they can pay their bills and feed their family. It is also an IBO's job that funds their Amway and AMO expenses such as product purchases and functions and voicemail, etc. Without having a job, most people could not even join Amway or pay for any tools. Sadly, most IBOs won't make any money in Amway either, and will have to continue to work at their jobs. I do not believe that someone earning an honest living working a job is a loser. Ironically, the folks calling people losers are often not even netting a profit from their Amway business!

Yes, in this business or the sports world, there will be winners and there will be losers. The question is whether you are the one who is allowed to be the judge of who is and who isn't. I would also suggest that IBOs are completely shutting down potential future business by their behavior. What if I went to a store to purchase something but the item was not available on that particular day, so I don't purchase anything and leave. As I leave, the store owner says I am a loser for not buying something there. Will I go back? Very unlikely. If an IBO truly sees themselves as a store owner, all prospects should be seen as potential business, whether future or present. If your upline tells you that people not interested are losers, you should kick him where the sun doesn't shine.

Only winners join Amway? Think again!

Tuesday, September 22, 2015

The Amway Bait And Switch Scam?

One of the crafty things that some uplines do is basically a bait and switch scam on potential recruits and prospects. During a meeting or a presentation, it's common for the upline to talk about the untold wealth they have as Amway diamonds and how they wake up when they are done sleeping and they do what they want when they want to. That they used to be in the 40-40 plan which is working a job 40 hours a week for 40 years. They they'll mention that they suddenly has a revelation about the business and how they made it happen. But they'll often mention how it started with a dream. They might then ask the prospect what kind of car would they buy if money was not object? Or what kind of home would they own if they could buy one in cash?

So the prospect begins to rekindle some hopes and dreams about some things that may have been suppressed by the realities of life. Most people aren't going to purchase sports cars and mansion in cash afterall right? But hey, maybe, just maybe I can be like that diamond and retire at the age of 28 and have cash rolling in abundantly so I might have all those trappings too. That little spark is what the uplines use to capitalize on the recruits.

So if the recruit gets excited enough to sign up as an IBO, the upline will likely loan the recruit some cds or have them attend a function. But at some point, the new recruit will be asked if they are a serious business owner. If the response is yes, then the bar will be raised and there will be expectations of them. They will be taught that Amway is their only hope and that the only way to succeed in Amway is listen to cds, read books, and attend all meetings and functions. In reality, all that has happened is the new IBO has become a dedicated customer of the upline who sells cds, books, voicemail and seminar/function tickets. And dedicated customers of the "system" are nearly assured to lose money because of those expenditures.

It's a big bait and switch scam. Get someone to think about hopes and dreams, which by itself is not a bad thing. But the sad reality is those kinds of dreams are not realistically achievable. Then the recruit is taught that Amway is their best or only way of achieving those hopes and dreams. And to succeed in Amway, you "need" to purchase the tools and functions. After all, a carpenter can't build anything without a saw and hammer right? But conversely, a carpenter doesn't need a new saw and hammer every week and the ones he does have actually helps him build things. The cds and functions are ineffective as new diamonds and big pins are practically non existent in the United States and Canada. Yeah, there's a few here and there but I believe there are fewer diamonds in my old LOS (WWDB) now than when I was an IBO 17 - 18 years ago. There is no evidence that the tools or the "system" works for IBOs. The system only works for those who profit from it.

I started and maintain this blog for the sole purpose of providing my experiences and knowledge to information seekers. Many many people have found the information on this blog helpful or useful and occasionally, I've had Amway supporters and IBOs come to debate with me. But not a single one has ever come back to tell me they made it to platinum or a higher level. And keep in mind that since 2009, more than 625,000 visitors have seen this blog. If you're a prospect, read all you can if you are considering a run at the Amway business. Ask me questions in the comments or look up my contact information which is on this blog and please make an informed decision if you are thinking about joining Amway. It might be in your best interest to look at facts instead of hype. Good luck.

Monday, September 21, 2015

Is Amway "Easy"?

One of the reasons why upline and Amway presentations still manage to get people into the business is because the Amway opportunity is made to sound easy. Sure, the presenter of the plan might mention that it takes work, but prospects walking out of the meetings will get the impression that all they need is six, or that the task of going diamond is very manageable. It isn't until a prospect signs up and gets to work that he or she will find out how difficult it is to build an Amway business. In fact, the business in itself is not mind boggling, but overcoming the reputation issues that Amway has will doom most of the eager new IBOs.

Even seasoned IBOs who have been trained to counter attack people's objections about Amway will struggle when presented with the simple facts that Amway products are not necessarily the greatest and are not necessarily the best value. If this were true, Amway could move much more product simply by marketing these great products and selling them in stores. But since IBOs move and market Amway products for no salary and at their own expense, it's a great deal for Amway. I wonder what Amway sales would be if they did not count sales to IBOs for self consumption? Seems many of these IBOs will loyally buy Amway products while they are building the Amway business but that loyalty seems to fade once the dreams of early retirement and going diamond fades away.

One glaring problem that IBOs seems to ignore is how often platinums and high level IBOs like diamonds fall out of qualification. Yes, Amway has many new platinums, etc, but what about the people who worked their tails off just to end up falling out of qualification a year later? The income stops when your volume stops. There are countless stories of diamonds quitting or leaving Amway. IBOs should do some research and look for answers as to why this is. I think they would not like the answers. They will find that some diamonds are broke, in debt and struggling. In other words, diamonds are like the rest of the world, but have been elevated as special in the Amway world. Do you really think you can live a jetset lifestyle on 100K per year? Many people think $100K is great because they might earn far less, but $100K or $200K is really just a middle class lifestyle, and maybe less if the diamond is in debt because they show off a diamond lifestyle. Behind the smoke and mirrors of the diamond illusion, I think prospects would be shocked at how diamonds really live.

Amway may sound easy but the reality paints a very different picture. Go find out for yourself.