Friday, April 21, 2017

Join Amway And Become Annoying?

Many people see the Amway plan, and get unrealistic dreams of attaining incredible material wealth and retiring in a few years. I find it strange that nobody has been able to point out anyone who actually got in, worked a few years and then walked away from the business and is now enjoying buckets of cash rolling in while they spend their days on exotic beaches sipping mai tais. The more likely scenario will be debt, higher credit card bills, and boxes of unused cds and other various unused Amway products.

So why would someone joining the business become annoying? It's because to the average person, it beomes clear that to achieve this, you need to find "six" people. Thus to find six people, you need to make contacts to show the plan. Cold contacts of people on the street would be unlikely, even for the boldest of people, so new IBOs start lookin at people they know. They start with people they are familiar with, or family and friends. They may also think their family and friends will want to get rich with them.

Sadly for most new and enthusiastic IBOs, they will find that they are shunned by family and friends. Over the years, IBOs have done too much damage to Amway's reputation and overcoming this challenge is too much for the rank and file IBOs. They will hear stories of failures and opinions that Amway is a pyramid and/or a scam. Of course, IBOs will have "canned" answers to respond to from their upline. One of the humorous ones is that Amway is praised by the BBB or the FTC and is the shining example of an MLM. To those familiar with this line of reasoning, it can become side splitting humorous. Other silly comparisons will be comparing Amway to gym memberships or that 90% of small businesses fail. They forget that more than 99% of Amway businesses fail.

At first, the family and friends may humor the new IBO, but relentless persistence can eventually turn ugly. This is where uplines will teach the new IBOs to avoid "negative" and to shun these family and friends. This is why some people charge the Amway leaders with being cult - like. It's at about this point where IBOs might realize that Amway products are costly and try to sell off some of them to reduce their own costs. Often times, sympathetic family and friends might make a token purchase to show support. but that can get old in a hurry also. Most IBOs will eventually quit and make amends with family and friends, but some lose friendships for good.

To information seekers and new IBOs, hopefully this message is food for thought......

Thursday, April 20, 2017

Bankrupt Following Upline Advice?

I have posted a comment and link to the forum where I unearthed it. Although the commentor doesn't specify which AMO he was involved with, it sounds very similar to teaching I heard (and still hear about) from Worldwide Group or WWDB. I also saw something like this happen to more than one IBO when I was an IBO myself:

http://www.museumofhoaxes.com/hoax/forums/viewthread/11545/

"""I ended up filing for bankruptcy after trying to build a group myself for three years. I ended up having one person become interested, and they decided to sign with someone else when it got to time for me to bring them a start-up package. That was the last straw for me. I am still good friends with my sponsor, but they have also dropped out after their group of people petered out (sorry Peter).

I was encouraged to attend several conferences out of state and spend tons of money on motivational tapes and books even though I was failing to pay my mortgage and credit card bills… when I tried to get better financial advice from my “upline” - they continued to encourage me to spend, spend, spend… “fake it ‘til I make it”... and all that kind of garbage. When I finally filed for my bankruptcy they were nowhere to be found to assist me with life after Amway.

The people at the top of the sponsorship tend to make a decent amount of income while those at the bottom levels of things really have to struggle to make ends meet. I suppose if you are really charismatic you might be able to sponsor a bunch of people and bring in a fair amount of money, but to really make it big, you need to have connections inside… since support is how you make things work when you can’t."""

Wednesday, April 19, 2017

Amway IBOs Fail By Design

When I was being prospected into Amway, I saw the 6-4-2 plan. I am fairly certain that most groups still present the Amway opportunity using the 6-4-2, although I am aware that some groups use different variations of this. The plan sounds so simple. Just sponsor 6. The next layer does less than you and sponsors 4, and the next layer does even less and sponsors 2. First of all, most IBOs don't sponsor a single person to begin with. Many IBOs are unable to even show the plan to another person. So if you cannot achieve even the first step, how can you possibly make the plan come to fruition? The answer is you can't and most people never get past the first step. How do you build an empire that way?

Only a fraction of 1% of IBOs ever reach platinum. Out of those who do reach the milestone, few are able to maintain the business and even fewer ever go on and achieve higher levels such as emerald or diamond. WIth the attrition rate of IBOs so high, even recruiting new IBOs basically keeps you even. The effort required to maintain the business can become a full time job or more for some people. My former sponsor was out showing the plan for himself or for downline every night of the week, save for the functions and other meetings. Amway he said, needs to become your life if you want to succeed, and that's probably true even for diamonds. There is no "freedom" that these diamonds speak of. You switch one full time occupation for another, although you could argue that a diamond's work is still easier than a 9-5 job.

You have so many factors working against you that it takes an exceptional (and possibly lucky) individual to be able to overcome the challenges to reach a recognized pin level such as diamond. The spotty name reputation of Amway, the higher (on average) prices of their products, the high attrition rate and the fact that any higher level requires a large downline. These factors make it nearly impossible for anyone to go diamond and reach what appears to be the pinnacle of Amway success. Sure, some IBOs may not have such lofty goals, but the "plan" is designed to achieve diamond. I have not ever seen or heard of a plan for an IBO to achieve 600 PV.

In many instances, whether it's a business, or a sports team, or some other activity, you will notice that the winners or the successes often have a great system. Many fast food businesses for example, have a processing system. A great football team might have a great offensive or defensive system. A large business may also have a proven system. This is where the problem lies in Amway. The system is ineffective. The system as shown to many prospects, needs many "lower level" IBOs working in order for someone to achieve the levels such as platinum. Thus most people fail because the "plan" is designed that way.

As you cannot control the actions and beliefs of others, you cannot make people join your business. You cannot make them see the plan. Thus in the past, many IBOs resorted to deception and lies to get people in front of the plan. In college, I was invited to a "beer bust", only to walk into an Amway meeting. The person who invited me said we would do the beer bust after the meeting. Thus my first impression of Amway was a bad one. As one can reasonably conclude, Amway IBOs for the most part, end up failing. But they don;t fail for lack of effort. They fail by design. That's how the 6-4-2 plan is set up (or whatever version your group uses). It is in my opinion, failure by design.

Tuesday, April 18, 2017

Flawed Amway Teaching?

One of the biggest pieces of garbage taught by some upline is the nearly exclusive "buy from yourself" philosophy. I'm not saying that supporting your business is a bad idea, but are you really supporting yout own business? If your upline teaches this, you are being mislead and I will explain why.

When you think you are buying from yourself, you are really buying from Amway. Amway makes the profit from the sales. If you buy enough, they toss you a small rebate. An IBO is in reality, a distributor or a middleman. Also, if you are a new IBO at the 100 PV level, you will receive 3% in the form of a bonus while your uplines and sponsor will split up approximately 29 to 30% in bonuses off your efforts.

The reason why upline teaches this is because most people are not turned on by the thought of promoting and selling products. And that's not to mention that you must also promote the Amway business opportunity if you want to make any significant money from the Amway opportunity. I have never heard of anyone maintaining a large Amway business based only on sales and not sponsoring other people.

But let me toss out a relatable example: Think of it this way. If your spouse was in the business of making and selling cookies, would you make money by eating all of the cookies? Even if you received a small rebate for cookie making materials, you would not profit by eating all the cookies yourself. You would have to sell the cookies to customers to have cash in your pockets. I truly do not understand how IBOs get duped into thinking they can be successful and earn money buy purchasing and consuming Amway products without selling much. Amway's own numbers suggest that IBOs do not sell much, except to their own downline and to themselves. And if you are counting on selling to downline, then you need to have downline, and those faithful downline will be losing money so you can make a profit. It is partly why there is so much attrition in Amway. IBOs are not profitable and cannot easily sell products, and quit.

And uplines who sell tools that teach this method are more than likely selling you a flawed system that nearly guarantees you will lose money. A rare few IBOs will emerge now and then who can overcome overwhelming odds and barriers and reach higher levels in the business, but I would have to say that more than 99% of IBOs who sign up will never even get close to emerald or diamond. Sadly, the buy from yourself system will only profit the higher level distributors, as well as your purchase of tools, which rewards upline for teaching a flawed system.

Monday, April 17, 2017

Amway Dreams Fulfilled?

One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 32% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting.

Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.

It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances and/or how your business is progressing.

Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $150 to $250 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation?
Yours or your upline?

Sunday, April 16, 2017

Why Amway Can Be Dangerous?

Happy Easter everyone!

I normally don't blog on weekends but as I passed a Starbucks today, I actually saw someone "showing the plan" at a Starbucks near my home. I remember being shown the plan the first time. I was in college and invited to a "beer bust" and I show up and my friend who invited me is wearing a suit and I thought WTH? So I was tricked into seeing Amway for the first time and to make it worse, I thought we were going to drink some beer!

But over the years and having personal experience in Amway, I can say that Amway can be dangerous. I don't mean dangerous as like an electrician's job or some other hazardous work, but dangerous because if you get involved in Amway, the leaders try to slowly gain your trust and subtly convince you to do things that you probably wouldn't normally do.

I recall seeing new IBOs come and go and many people are leery about spending money on functions and other high ticket expenses. I'm from Hawaii so IBOs who commit to being CORE are expected to travel from Honolulu to the west coast for major functions (4 times a year). Taking one specific example, the Summer function (Used to be called Family Reunion) was held in Portland Oregon at the (then) Rose Garden where 15,000 - 20,000 may have been in attendance. The cost was $250 which included 2 nights hotel and a lunch. The airfare was about $700 round trip and then you need a rental car and some other incidentals.

The danger in all this was some people only joined to make a few dollars, while others were dreaming of striking it rich. The upline will invite all to try it and eventually, you'll be pitched on buying cds/tapes and other tools. That these materials are vital to making money in Amway. Oddly enough, there was really no individual assessment of one's business before they recommended you buy these tools.

They certainly seemed to be encouraging and wanting you to succeed because they said so and they often love bombed the new IBOs. As if IBOs belonged to some kind of special "brotherhood". And therein lies the danger. If you buy into this feelng of "team" or "family", it's nearly impossible to not participate full on. What IBOs don't realize is once you stop moving PV or if you start to miss functions, you're forgotten and maybe even called a quitter or loser. Because to upline, you are no longer lining their pockets. In other words, when you're buying cds and function tickets, you're a valuable "customer" to the upline. That's why they're nice to you. ut many IBOs fail to recognize this and mistakenly believe that the upline truly cares about you. THey don't.

As evidence of this, a week after my involement in Amway stopped, my dad passed away. All the friends that I had shelved to do Amway were there for me, calling to show support and to offer help of any kind. Not a single Amway friend or "brother" called me or offered any support at that time. You see, I was no longer valuable to upline so I was as old as last week's news.

That's why Amway can be a dangerus game. You think you're doing something special to help people or that you're part of a team or brotherhood but the reality is an IBO is simply a customer of the toll systems sych as WWDB, Network 21 or BWW. You're nothing more or nothing less. Some people do succeed, but in order to do so, you have to overcome overwhelming odds and you'll have to lie and deceive your downline into thinking they're a dedicated team. Most people quickly realize this and snap out of their Amway trance and quit. I was a slow learner and took some months before realizing what was going on. Now I blog so others can avoid the potential pitfall that Amway has the potential to be.

Thursday, April 13, 2017

The Employee Mentality?

One of the really funny things that is taught to IBOs is how they need to ditch their employee mentality and convert to a business owner mentality. Those who truly have a business mentality are unlikely to join Amway the systems because the return on investment wouldn't be worth it. When you also consider that only a small fraction of 1% make any significant money in Amway, it's hard to imagine that any reasonable and logical person would want to divert time, money and effort into a venture where your likelihood of succeeding and making money is so small. A real business owner will want a business where the likelihood of success is good. Amway wouldn't fit that definition.

When you really stop and think about it, many IBOs have an employee mentality but they think they are thinking like business owners because upline tells them so. The relationship between upline and downline is often just like that of a supervisor and employee. The upline tells you what to do and the downline, who is usually less experienced, simply listens and follows their instructions. If an IBO were to do things on their own, it would be considered as de-edifying to upline who has already "blazed the trail" for you. They have what many refer to as the "system" consisting of cds, books, voicemail and functions. Many refer to the system as "CORE" steps.

Basically, the CCRE steps is the "job" of the IBO. They need to immerse themselves in the system, and then they need to show the plan to others and get others to follow them. The really sad thing is that many IBOs do exactly as they are told or advised, and never see a cent of profit, and more often than not, end up losing money despite their efforts and expenses. It's like going to work, and giving your boss $300 so you can get a $10 paycheck at the end of the month. While Amway loyalists will disagree, this scenario is the most common and most likely. All you have to do is take a look at the 6-4-2 or whatever plan they show you. The lowest level IBOs will spend about $300 to purchase their 100 PV and then they get back about $10 at the end of the month. Most IBOs never sponsor downline so their volume never grows unless they consume more themselves. Most IBOs, even dedicated ones, can never sell enough products to cover their expenses. Faced with these obvious facts, anyone can see why you are almost guaranteed failure in Amway with the system.

If IBOs truly had a business mentality, they would be focused on selling products and not desperately trying to sponsor downline. They would also focus on minimizing expenses. But most business building IBOs are selling the opportunity and a dream, which is why some critics claim that the Amway opportunity, lacking a focus on retail sales, is criss crossing into legal parameters of the law. Those who focus on "buy from yourself" without outsaide sales are the worst offenders in my opinion. If you have an employee mentality, then it's likely you will listen to what your upline says and do your "CORE" duties. What kind of menatlity do you have?