Friday, July 20, 2018

Walking Away From Amway?

One of the things that many IBOs mistakenly believe is that they will build their Amway business and then they will have the ability to "walk away" from the business while the income continues to flow in. I believe if there was such an incredible benefit such as lifelong residual income that could be achieved from Amway, I'm fairly certain that Amway would advertise this as a benefit of being an IBO. But Amway does not. It is very likely that your LOS such as WWDB or one of the others will promote this benefit while telling you that your bext chance to achieve it is by subscribing to their "system".

One thing that goes unnnoticed all too often is that there seems to be nobody who is actually retired and living off the efforts of having built a big Amway business once upon a time. Seems that even the crown ambassadors still have busy lifestyles running from function to function and participating in other business related activities. While many of these leaders may claim they love their downlines or some other bunk, it is my belief that these leaders keep working their Amway businesses for one reason only. That is they need to keep working in order to keep the income flowing in.

The diamond lifestyle that is often portrayed may seem like a great goal or dream to achieve, but the fact of the matter is that a "diamond lifestyle" cannot be sustained on diamond income. The average diamond, according to Amway, earns about $150,000 a year. While that may seem like a great amount of income, it's not nearly enough to sustain the kind of lifestyle portrayed by diamonds. Even if that income is supplemented by income from the sale of tools, you can't fly your family around the country first class to do all kinds of functions and still end up with much leftover to own fancy homes and cars.

If I deposited $1000 in the bank and never touch the money, the bank would pay me a certain amount of interest each year, guaranteed. That is residual income. In Amway, you can basically earn income in two ways. You can sell products for a profit, but there are problems with this. First off, Amway products in general are more expensive than local retailers. It is why you hear so many justifications about quality and concentration, because you are hard pressed to argue cost. Secondly, you are severely restricted from advertising, thus selling can be difficult. The other way to generate more income is to build a downline in hopes that the downline will help you to leverage your volume. But then your downline will have the same problem that you had in moving products. That being said, even if you achieve some level such as emerald or diamond, your business will immediately begin to fall apart once you stop working because attrition will take its toll. It is why there are hoards of "former" platinums. If platinums are not sustainable, then neither is any other level.

There are many many instances of diamonds quitting, resigning, or falling out of qualification. People come and go in this business every day. Do you really think you can bank on retirement and residual income under these circumstances? If you believe that, I have some swamp land in Florida to sell you.

Thursday, July 19, 2018

The Amway Haves and Have Nots?

Anyone who's been prospected or had an experience wih Amway most likely attended a recruitment meeting at a hotel or convention center, or maybe attended a function in a large venue. There might be several hundred to several thousands and if it's a big functions, you may have been sitting with tens of thousands of other Amway hopefuls. My former sponsor told me about a function back in the early 1990's when he attended a function in the (then) Seattle King Dome, which had maybe 40,000 IBOs in attendance. I mean, it must be somewhat exciting to be sitting in a venue with that many people, especially when they all seem fired up about the function. After all, everyone there is going to "go diamond" right?

What unsuspecting prospects and Amway IBOs do not see is that the people on stage are the haves and the people in the audience are the have nots. It's like attending a Bruno Mars concert except that Bruno doesn't lie to the audience that you will someday be with him on the stage making a financial fortune by doing what he does. Very few people are deluded enough to think they will someday be the next Bruno Mars and be on stage in front of thousands of people performing. They pay their entrance fee and enjoy the show. Basically, the same thins is true of an Amway function, except that the diamonds lie and proclaim that "anyone can do it"and that people in the audience will join them on stage.

Sure, once in a while, somebody might break the overwhelming odds and challenges to go diamond, but since I left Amwat and WWDB, more diamonds have left ot died than the number of new diamonds (in North America). Seems the same old diamonds are still there, and apparently teaching the same old tired principles of never quit and dedication to the tool system. And why not? The haves make profits from the tools and the have nots pay for the tools. In a way, Amway is like the real world of haves and have nots, but on Amway and other MLM, the have nots are lied to as if anybody can join the elite and join them on stage at the functions. In case you are an information seeker here, the botto line is that people who sell function tickets make nice profits and people who buy function tickets will make no money, or lose money, most likely because of the expense of tools and function tickets.

In debating a pro Amway/WWDB dude recently, he claims that his expenses are low, which is entirely incongruent with WWDB teaching. He also claims that his upline Diamond can afford to rent a place for $20,000 a month while he remodels his multi million dollar mansion. Is it true? I doubt it, but even if it were true, I doubt that anyone is generating $20k per month selling LOC or vitamins. But selling function tickets or cd or voicemail subscriptions could generate tens of thousands of dollars per month income. For this reason, upline will show you copies of their bonus checks, but will never show anyone their financials. IBOs and prospects who saw that upline rakes in their fortune from tools, might be hesitant to enthusiastically purchase those tools.

Bottom line is if you sell the tools, you are likely successful and are with the "haves". If you buy the tools, you are likely unsuccessful in Amway. You are a have not. The two rarely mingle and you're folling yourself if you think they do.

Wednesday, July 18, 2018

In My Best Interest?

Amway IBOs, you are called an "Independent Business Owner". This means you are solely responsible for the bottom line of your own business. Apparently, one of the things that commonly happens is that some uplines will take advantage of this by giving advice that is more beneficial to themselves than to their downline. Some of the upline in your group will gain financially from an IBO's movement of product volume as well as tool purchases. So if your upline has a conflict of interest (your interest), do you really think taking advice blindly from them is a good idea? Is it a good idea if your upline diamond hasn't even considered your circumstances involving your business, plus your profits and expenses?

Thus if your upline is advising you to attend a certain function at all costs, or to sell off all your personal goods to buy more standing orders, this kind of advice needs to be taken with a grain of salt and assessed against the performance of your business and the amount of disposable income you have. Also, you may want to consider what you have gotten out of previous functions or standing orders and decide for yourself whether or not expending the cash to attend a function will be cost effective and whether or not you will get a good return for your investment. If the function doesn't directly result in more sales or more downline which results in more profit, is it worth your time and expense to keep attending functions? Same can be said about standing orders and other tools and meetings that upline expects you to attend at a cost.

All too often, it would appear that uplines will encourage their downlines to attend all functions, regardless of whether or not they are profitable, and regardless of whether or not the IBO can afford to attend. In my former LOS, I was a member of World Wide Dream Builders. When I sat in the audience, people were taught how they could put off paying their mortgage or their monthly bills to be able to attend a major function. Or IBOs were encouraged to quit their jobs and find another one if they could not get time off from work to attend. Of course, these same uplines were never held accountable for teaching these bad practices. The result was in a few case, home foreclosures, bankruptcy and massive debt, all incurred with upline's blessing, as long as the debt was in the name of Amway and Amway tools and functions.

IBOs, if you are hearing any kind of advice where tools and functions become a priority over your personal financial or family obligations, I would ask you to sit down and think about whether the said advice is truly in your best interest. If you will fall behind on your bills or mortgage, how will you ever catch up as major functions come up every 3 to 4 months. You will likely face the same or a tougher decision again in a few months. Is your upline's advice truly in your best interest? If so, how so? I urge you to really analyze with an open mind, whether your upline's advice better serves you or him?

Tuesday, July 17, 2018

Amway IBOs Prey On The Needy?

One of the big things that was taught by my upline was to recruit people who are in need. People in need of time and/or money are perfect candidates is what I was told. You look for a need and use it as a chance to show the plan. Someone who may be looking for more income is likely to be more open minded. It is also why the upper level pins will display signs of wealth as an enticement, to get people interested and hopefully excited in seeing the plan, and hopefully to get people to register for the opportunity. IBOs will wave around a copy of an upline's check.
Recruits will be asked about their dreams. Amway recruiters will then show a "best case scenario" of people with trappings of great wealth. Of course they will not show you what is likely, which is a net loss due to the "system".

At this point, the recruit may start to wonder if he/she might be able to attain the same level of success. The recruit starts to think if he can find "six" as they talk about in the plan. In a 2004 Dateline segment, the show panned in on people in attendance at a function. Some poor saps were in tears. They probably wanted success so badly that they can taste it. They feel that it is definitely within reach. Sort of like how you can see the end of a rainbow but you can never reach it. That's how success is for the vast majority of Amway IBOs. They want suuccess and will work for it, but sadly, it will never materialize.

There are few people on the stage and thousands of people in the audience. That's the way it has always been. Unless the compensation plan changes, that's the way it is likely to be forever and ever. The 6-4-2 plan has 79 IBOs at 100 PV. Considering the people who never do a thing and those who quit, you can assume that you need much more than 78 downline to build a platinum business. And a platinum business is approximately where you start to break even, or possibly make a small net profit, depending on your level of dedication to the teaching system, which drains IBO's resources. That is because of the costs associated with being involved in a system such as BWW, WWDB, or N21.

For most IBOs who decide to try the business and the systems, they will likely end up losing time and money. LOSING TIME AND MONEY. Unfortunately, most IBOs sign up hoping to gain more time and money. Ironically, what they seek is what they have less of due to their involvement with the systems and Amway.

Monday, July 16, 2018

Amway Is Fair?

One of the things my upline always taught was how the business was fair. Everyone starts at zero, we were told. Everyone does start at zero, but it is hardly fair when you break down the compensation and the layers of people between you and your uplines. I will also speak about how the sponsoring is somewhat cloudy as well. Despite the claim that you will be paid if you "do the work", it is not necessarily true. These are catch phrases that upline uses to make it seem fair.

The sponsoring system that Amway uses is a hit or miss. You could have tons of business acumen and insight on running a business, but your sponsor and others upline will always be your upline and will always profit on your efforts - simply because they were there first. In many cases, a sponsor has nothing to offer a downline. They are in no way shape or form able to advise or give sound business advice. But as long as they are in the business, they get to profit from your efforts. Does that sound fair to you?

Also, let's take a new IBO for example. If that new IBO sells and consumes 100 PV, that new IBO will receive a 3% bonus. Amway pays 32% to 33% of their take in bonuses. Thus the new IBO who "did the work" gets 3% and somewhere in the layers of upline, 29% to 30% gets split up among the upline. Some of the upline don't know that the new IBO exists, but they get a portion of the bonus, simply because they were there first. The new IBO has done the work and some of the uplines have done nothing to help this new IBO, but they enjoy a percentage of that IBO's bonus. Does that sound fair?

Tenured upline may also sell business support materials such as voicemail, websites, books, cds, and seminars. None of these materials have been proven to be effective in assisting IBOs in building a business. In fact, some of the biggest crown ambassador types built their Amway businesses before these materials existed. But because they were there first, they now claim to have the expertise on how to build a successful Amway business. Based on some numbers that Amway has provided, we can conclude that less than 1 in 240 IBOs ever reach platinum and out of those who reach platinum, less than 1% ever reach diamond. Not much evidence that the system works. Yes, I acknowledge that some people don't follow the system, but out of these ones who do follow the system, the success rate is still miserably low. If the system is so diffcult to follow and succeed, is it fair for IBOs to have to keep paying for a system that will not help them?

All of the above are reasons a new IBO has the deck stacked unfairly against them. Yes, some IBOs can overcome overwhelming challenges and succeed, but they are few and far between. Is this business set up in a fair manner?

Friday, July 13, 2018

What Are Your Dreams?

One of the things used as a recruitment tool my upline is to get a prospect to think of dreams. Dreams could be extravagant like owning a yacht or it could be simple like taking a cruise ship to Alaska. The recruit is told to dream big and to envision things they would like to enjoy. Perhaps it is not having a job, or perhaps it is being a stay at home mom. These are all great dreams and goals. Dreams and goals are good things to have. The speaker will then tell the audience that these are all possible thru the Amway opportunity. They won't say it is highly unlikely. They only give you the pie in the sky best case scenario.

Now some people may have achieved great success thru Amway. But these people are so few and far between that you could argue that the lottery has the same kind of success or maybe the lottery has more winners than Amway diamonds. Granted the lottery is a game of chance, and Amway is not, but the "likely" results can be comparable. In Amway and the lottery, you have the vast majority accomplishing nothing and losing money. You have some "best case scenarios" where a few are successful. You then focus on and display the success testimonies as evidence that "anyone can succeed", just as anyone with a ticket can win the lottery. The fact that a game of random chance produces similar results as Amway should be a red flag.

Some uplines will often tell their faithful downline that someone who speaks negatively about Amway is a "dream stealer". Of course this is ludicrous. Your dream is in your heart and mind. Nobody can steal that. Secondly, whose dream is being compromised? It is the upline diamond who has all the goodies and the large checks right? The downline are basically ones paying for their upline's dreams. It is fairly well known that the majority of Amway products aren't sold to people who are not IBOs. It is also well known that 99% of tools and business support materials are sold to IBOs. So guess where your upline diamond's success comes from? That's right. An IBO's product volume and an IBO's tool purchases provide the upline diamond with a nice income. Stop and think about it for a moment.

So yes, there are some people who achieve their dreams in Amway. There are also people who achieve their dreams playing the lottery. There are millions of people who tried to build an Amway business and did not achieve. There are millions of people to play the lottery and do not win. Some dreams get built, but chances are they won't be yours. There is a good chance that your upline diamond's dreams will come true if you "never quit" and you stay on the system.

The question is whether you are seeking to build your dreams or someone else's?

Thursday, July 12, 2018

Amway Partner Stores

I wanted to write this post because I'm in a debate with an Amway IBO who is bragging about Amway partner stores. The tag line is Amway certainly does their due diligence, as well as partner stores as partner stores would not want to associate with Amway if they were a scam, etc. After reading this post, you will see that "partner" stores would be insane not to partner with Amway. Before going into that, maybe someone can explain what due diligence was put into partnering with Worldcom (formerly MCI) and Enron, for selling energy products and services. Surely all those high priced lawyers must have know about these epic failures (scams)?

Now, when an Amway IBO refers to a partner store, we are talking about a one way road. What I mean is that Amway sells products for these partner stores but the partner stores don't sell any Amway products and have nothing to do with Amway other than a business agreement (apparently) to allow Amway IBOs to act as commission only sales people for these partner stores. Amway IBOs take on all the time and personal expenses of moving partner store products, often at non competitive prices, and get a small commission only if they meet a minimum quota (100 pv), which is roughly $300 USD.

Imagine that, a partner store basically has the entire Amway sales force potentially selling their products and the partner store can charge whatever they want. The Amway IBOs are often taught to buy from Amway and the catalogs so the entire sales force often becomes loyal customers as well. And to make the deal even sweeter, the partner stores pay nothing unless the Amway IBO sells at least $300 worth of products, although partner store and Amway products can be commingled. In my way of thinking, it's a no brainer for partner stores to hook up with Amway. They have no risk and potentially a lot of addition sales. High upside and no downside.

And the cherry on the sundae for Amway and the partner stores is that Amway IBOs will also recruit and train other Amway and partner store commission only sales people at their own time and expense. Amway and partner stores can't possibly lose!! I almost want to go an create Joecool's widgets and become an Amway partner store myself. If Amway people sell my $100 Joecool widgets that cost me $5 to make, I rake in huge profits and the most commission I would pay is about 25%. It's a great deal because Joecool has zero risk. I only pay if the product gets sold. and I don't pay if products don't move. I might even be able to sell Amway IBOs my catalog so they can sell my stuff. It's heads I win and tales they lose for me.

So if you ever hear about and Amway IBO bragging about how Amway partner stores like Nike, Barnes and Noble or whatever big name company might "partner" with Amway, you can laugh to yourself and to use Amway's own catch phrase: "Now you know".