What Are Your Amway IBO Expenses?

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of th system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for some uplines than the actual movement of Amway volume. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might run them more than $300. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more. Uplines will then justify the expense by saying the IBO is investing in his/her business.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to$500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stay? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

You Amway Upline's Credentials?

I recently read a comment from an Amway zealot on another blog. She mentions that someone's credentials must be considered when looking at information that is presented. I will comment that showing me a sports car or a fancy suit is not proof of financial success. We now know that some Amway leaders have gone bankrupt, lost homes to foreclosure, and some of these high and mighty diamonds are living in dent, only showing the illusion of Amway wealth. No better than a cheap carnival magician.

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 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.

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 personal financials to the entire world, but certainly prospects and some downline should be able to see what 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 IBOs and upline leaders do not disclose that information because it would not be beneficial to them. We would see diamonds losing money, in debt, or having other financial issues. I'll bet most diamonds aren't paying for homes in cash. If diamonds were raking it in, they would likely publish it freely, just as they flash around copies of checks. IBOs and prospects should take this to heart and ask upline the tough questions.

Amway And Personal Responsibility?

One of the disturbing things I have noticed about Amway IBOs and IBO leaders is how they wlll tell downline to trust them. To trust them as they have already blazed a trail. No need to re-invent the wheel. Just ride the coattails of your upline to success. The system is proven. Many IBOs take this to heart and put forth tremendous effort. Then when they fail, upline will shun them and tell them that the failure is their own. That they are personally responsible for failure. This is after IBO's have spent time, money, plus blood sweat and tears.

Now I am not talking about IBOs who sign up and do nothing, or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I do not recall ever seeing an IBO do nothing and then complain that Amway was a scam or anything like that.

I have found, however, that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted, or in some cases, guaranteed. My former sponsor was still active, last I heard and has been in Amway for over 15 years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business. Factor in that time spent by husband and wife and these folks are breaking even or making a fraction of minumum wage. Is this the dream that will allow you to buy mansions with a cash payment?

What is also disturbing is how people will tout the system as responsible for any success, but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every success, there are hundreds if not thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very very few in relation to the number who try. Going diamond is probably less common in the US than winning the lottery.

Succeed and the systems and upline take credit, but fail or quit and it is your own responsibility. Are these the kinds of leaders or mentors you want advice from?
I will pass.

Do You "Believe" In Amway?

I often hear stories and testimonies about how some people (usually newbies) have this incredible belief in Amway, their sponsors and their LOS, such as WWDB or Network 21. Being that many, possibly most IBOs are sponsored by a friend or family member, means that there is an inherent trust in the sponsor or upline. If that were not true, then we would likely see many more complaints about Amway and/or the uplines and lines of sponsorship.

But an important facet of being an IBO is to have a dream. Don't let "naysayers" steal your dream, is what many IBOs are told. But what is that dream? Is is a dream (a long term attainable goal) or a wish such as winning the powerball lottery? Many prospects and IBOs want to succeed. They are willing to work hard, and are very dedicated, I would say that these folks usually will end up failing, not for lack of effort, but for a flawed MLM/Amway system that cannot possibly reward more than a few. The famed 6-4-2, 6-4-3 or some other variation of the plan will illustrate that only 1 in 100 or so can be "platinum". And that's with nobody quitting. Factor in attrition and "do nothings" and it might be 1 in 200 who can reach platinum. Even if the whole world signed up for Amway, that fact doesn't change.

Do you really believe in Amway and your line of sponsorship such as WWDB or Network 21? If you truly believe in Amway and your metors, I challenge you to do one of these things. If you can't or won't, then I question your level of commitment. I question your belief. I'm not here to steal your dream. I am just challenging you.

Take your 6-4-2 or 9-4-2 or 6-4-3 plan to a loan officer at a bank and show them the plan. (Hey, it will help you be CORE) Ask the loan officer for their opinion of the plan and see if you can get a business loan based on the Amway plan. If not that, try seeking the advice of a real millionaire (Someone who has a net worth of a million bucks) and see if they think the 6-4-2 or other Amway (version) plans can work and whether they think Amway is a good idea. Heck, try asking your church Pastor. My church Pastor said Amway had too many false hopes and promises to be considered a viable business option.

How strong is your belief in Amway? Strong enough to take my challenge? Or will you ignore this and go on fooling yourself?

Amway Pleases God?

One of the things some diamond leaders would proclaim at major functions, in front of tens of thousands of IBOs, was that Amway was a God pleasing business. That Amwayers were saving the world and thus, making God happy. Amway major functions generally have a non denominational service on Sundays before they wrap up the weekend. I believe much of this still applies to major functins today. The speakers want to make it look as if joining the business was like taking the moral high ground. There's a lot of irony in that if you think about it.

As an IBO, I never thought much of the emphasis on God and I even attended the Sunday services at functions. I honestly thought IBOs were doing good and bought into the lies told by upline. Looking back at my time in the business actually made me realize that some of our uplines were basically systematically ripping off their downlines in the name of God. I suppose one day these leaders will stand on front of God and be made accountable. They certainly have never been held accountable by their downlines.

I wonder how God would feel about downlines being lied to about their chances of making an honest buck in Amway? I wonder how God would feel about honest hard working people being misled to the benefit of those who claim to own mansions and jets? I wonder if these diamond leaders actually give ten percent of their take to the church? Actually that is irrelevent because the Pharisees in the Bible were careful to tithe 10% but many of the parables in the Bible imply that the Pharisees were headed towards destruction. Sometimes I wonder where lying uplines are headed?

I also wondered how IBOs actually helped others? Much of our spare time and money was concentrated on Amway related activites. While the congregation at church was in service and/or helping with community projects, the Amway faithful are at functions or out in malls stalking new prospects. I don't think I did much that was useful to the community or for others when I was an IBO because I was too busy. I was misled into thinking we stood for something good.

One day after church, I asked the Pastor for a minute of his time and asked what he thought about Amway (after I had quit). The Pastor said Amway and multi level in general are not good ideas because ultimately, too many people are filled with false promises and will end up worse off financially than if they simply took a second job. I believe he was spot on then and I share that same opinion. For those who believe Amway is the only way, try asking your church Pastor, if you attend church. You might be surpised to hear the answer.

Returning Amway Products And Tools?

When I was recruited into Amway, one of the catch phrases was that you are now a business owner. It sounds cool to be a business owner, but in reality, it appears that IBOs are simply salesmen for Amway who are afforded no guaranteed wage or any fringe benefits. In fact, many Amway salesmen do Amway a favor and go out recruiting other salesmen for Amway without any compensation. It makes sense though, because to attain levels of significance, you need to have downline. While it is possible (but nearly impossible) to reach platinum and even ruby without downline, any levels higher will require you to have downline.

So as an Amway salesman, you have no minimum sales requirement. That may seem like a good thing but many uplines will impose a defacto 100 PV requirement for "serious" IBOs. If you are planning to sponsor someone, your upline will likely tell you that your downline will duplicate your efforts, therefore the 100 PV "requirement". 100 PV will cost about $300. While it is possible to sell some products, it would seem that most IBOs simply buy their own goods and do not sell to non IBOs. It's puzzling to me that so many IBOs argue about Amway's superior quality of products, yet so few former IBOs continue to use Amway products at all once they are not IBOs and even those that do, would rarely ever attain 100 PV. So much for that argument.

What many IBOs do not realize is that their upline diamonds are also salesmen. In addition to moving Amway volume, they will be selling you voicemail, standing orders, premiere club, functions, book of the month. All of these materials brings in a higher profit margin than Amway products. Thus it would only make sense that your upline salesmen would want to sell tools more than Amway products because it has more profit. Where this gets shady is when your upline tells you that they have your best interest at heart or that you virtually cannot succeed without these tools. Imagine your reaction if a vacuum cleaner salesman told you that he has your best interest at heart and that you cannot possibly clean your home without his vacuum. In an odd way, that is exactly what is happening when you purchase tools from upline. What's even worse is that the tools rarely ever work out for the IBOs who buy them. What if you bought a vacuum that didn't work? You would return it for a refund. What if the salesman said you can't return it because you used it?

I find it odd that IBOs accept this BS from upline. That you can only return unused tools. You should be able to return a product because it didn't work! Did that standing order actually help you to sponsor new people? Did you sell more products because you attended a function? Whether a tool is used or unused should not matter. You should be able to get a full refund if the tools didn't work. If not, IBOs who cannot return tools should complain to Amway and the better business bureau, and file formal complaints. Many IBOs simply quit and walk away, giving the tool sellers a break. If the tools don't work, you should return them on that basis and demand a refund. I challenge IBOs and former IBOs to do this.

Amway Quitters Are Winners?

I often see commentary about people quitting Amway and Amway loyalists are quick to call them broke, losers, lazy, lacking guts. Ironically, these same lazy and loser types of people were "sharp" and motivated prospects before they signed up for the Amway opportunity. Someone recently left a comment on my blog about how AMOs should conduct exit interviews with departing IBOs to get to the root of the problems. I think these exit interviews would reveal that people are working hard and applying the AMo teaching, only to lose money,

Based on my years of blogging and Amway experiences, I can honestly say I believe that people quit Amway primarily for one reason. The money isn't there. Amway's own numbers show that the average IBO earns just over $200 a month and that is before taxes and expenses, and that number excludes inactive IBOs. Business building IBOs earn most of the bonuses, but business building IBOs generally have the most expenses, often participating in the system of standing orders, voicemail, books and functions.

When I was an IBO, I did as upline advised and I achieved a fairly significant level (4000 PV), but due to the expenses associated with tools and helping downline, I didn't earn net profit. This is confirmed by a study done by the Wisconsin attroney general who examined the tax returns of platinume and found that they averaged a net loss of about $1000 a year. While the study was a bit dated, I would suggest it is still very valid as platinums today, have more tools (business building materials) that they are expected to buy from upline. If I made nothing at 4000 PV, anyone with half a brain can conclude that IBOs below 4000 PV and fully participating on the system would end up with a net loss because their expenses would be similar to mine, but with less bonus money.

The bottom line is that people are very likely quitting because they aren't profitable. If people made a few hundred a month with 8-15 hours of work per week, they would continue to run their businesses. But those who work and make nothing or lose money have no reason or motivation to continue. Thus they simply make a wise business decision and quit. What seemed like a good idea during the presentation simply did not pan out when reality set in. It's also reasonable to conclude that the products are that great either because if they were, those who quit would become loyal customers, thus even if the sales force turned over, sales would consistently rise as former IBOs would become customers. It's apparent that most former IBOs do not become loyal Amway customers. In fact, for those who later discover they were lied to or deceived about the Amway opportunity, become critical of Amway instead.

Why do people quit Amway? I think the answer is crystal clear. The quitters are the winners!