Why Do People Quit Amway?

When I was a prospect for the Amway business, my sponsor told me that the diamond was in the top one tenth of one percent in income. Now it may or may not have been true but the audience certainly figured the diamond was wealthy. He (The diamond) arrived at the open meeting in a nice suit and a Mercedes Benz. He spoke about common sense things that people could relate to. That Americans are commonly carrying credit card debt and that inflation and insurance and other things took a bite out of your income. He spoke about waking up when you felt like it, flushing the job and your boss. He spoke about doing what you want when you want.

It sounded great. He explained that with 10-12 hours per week of work, you can do all of this in 2-5 years. With so much to gain, you would think everyone would do this and become "free".

In debating with Amway apologists, they often claim that most IBOs "do nothing". I don't believe that. First of all, I would challenge anyone to explain how they would know if someone did a little, or did nothing. Maybe the new IBO spoke to family and friends about the business and got laughed out of the room and ending up discouraged and quit. Maybe some truly do nothing. Maybe some try very hard only to get negligible results. But to claim that most IBOs do nothing is nothing more than a convenient excuse for Amwayers to justify the miserable results their IBOs end up with.

In my case, I did work hard. I sponsored a dozen people personally. I had some downline who sponsored and we moved volume. But as I moved up pin levels, I was encouraged to buy more tools and do more work. My reward for all that work? I just about broke even or took losses. That isn't factoring in my time and other expenses such as gas money. When I reached the 4000 PV level, I was at break even. My sponsor told me to just keep going and the money would be there. I calculated what my bottom line would be at platinum and I still could not see a profit on the horizon. I eventually decided that the Amway business simply wasn't profitable so I left. Not to mention at the time, uplines lied and said nobody made profits on tools.

So why do people quit Amway? In my experience and from years of contact with current and former IBOs, it is my conclusion that most IBOs at least give Amway a try before they quit. There is so muc negative about Amway on the net and in society that people can get discouraged and even those who work hard are likely to end up as I did. Yes, it's possible to make some money in Amway, but the tools scam will usually negate any profit an IBO might earn. I believe that people quit Amway having tried and gotten discouraged, or having tried, gotten results only to have a net loss. It's not the fault of the IBO. The Amway and the motivational groups such as WWDB or Network 21 are simply set up that way.

You Gotta Believe!

In the past, and I believe still today, some leaders in motivational groups talk about faith and belief. Speak it into existence. Some of this is the talk amongst IBOs who believe they are going diamond. Never mind that statistically, your chance of winning the lottery might be better than going diamond in Amway. In fact, I believe there have been more powerball lottery winners than new Amway diamonds in the US and Canada in recent years. But an honest question for IBOs, prospects, and Amway supporters. Do you truly believe that this business works and that you will succeed? What evidence do you see that supports this belief? My old LOS, WWDB, has fewer diamonds now than 15 years ago. Some diamonds quit WWDB!

If you truly believe, would you feel confident walking into a bank and meeting a loan officer. Tell the loan officer that all you do is sponsor 6 who sponsor 4 who sponsor 2 and you will be a new platinum (silver). Then all you need is 6 of these groups and the money will roll in forever while you sit on a beach in the Bahamas sipping exotic drinks while money rolls in by the barrelfull. And then ask the loan offier for a business loan. If you think this suggestion is crazy, maybe you don't truly believe in the business. Surely a loan officer would have some financial acumen and would be able to determine the viability of the business prior to approving a loan.

Would you feel comfortable talking to your doctor about joining Amway because a diamond makes much more income with less effort? How about a business professor at your local university? Surely someone with an established expertise in business would see the value of an Amway business and join your efforts? Or would the professor laugh you out of his office? Do you truly believe in what you do? If so, do you use the curiosity approach or are you straight up with prospects and invite them to an Amway meeting? If it's the latter and not the former, maybe your belief isn't that strong?

How hard do you work at building your business? If you truly believe that going diamond is the answer to all of life's challenges and problems, why aren't you building it and working on it as if your very life depended on it? Maybe your belief isn't what you think it is? Are you adding people to your downline every week or month? If not, maybe your belief isn't what you think it is?

If you have some doubts about what you are doing, then it is probably because you see IBOs coming and going. Maybe you see monthly losses in your business. Maybe you see people quitting the business regularly. Maybe you see the same old leaders on stage giving the same rah rah speeches. Maybe you see the logic and the common sense in most of the articles posted on this blog. My blog isn't here to make anyone quit Amway. My blog is to provide information to information seekers and to assist people in making informed decisions if they seek information prior to joining Amway and a motivational group such as WWDB or BWW.

Do you truly believe in what you're doing? Joecool truly believes in what he blogs about.

Dead or Broke By Age 65 - An Amway Myth Debunked?

Below, I have posted a recent article indicating that about 1/4 of Americans are working beyond the age of 65. That certainly debunks the IBO myth that 98% of people are dead or broke by age 65. It should be noted that the older folks still working make very good money. More food for thought should be how you as an IBO will benefit from the Amway business if you are not making money or if you are losing money due to continuous purchases of "educational" materials.


http://www.usnews.com/money/blogs/planning-to-retire/2009/7/14/a-quarter-of-americans-still-work-after-age-65.html

A Quarter of Americans Still Work After Age 65
Comment By Emily Brandon

Posted: July 14, 2009

Retirement is a thing of the past for a quarter of Americans over age 65. Just over 25 percent of those between ages 65 and 74 were still working in 2008, according to the latest Census Bureau numbers. And amazingly 9 percent of Americans still go to work between ages 75 and 84. After age 85, the number still working trickles down to 3 percent or about 122,000 people who continue to hammer away at their keyboard or punch in with their time clock.

Most people over age 65 still in the workforce are professionals (20 percent) or hold management positions (19 percent). A large portion of seniors also work in the service industry (18 percent) and sales (15 percent) or have office jobs (12 percent). But a few retirees also manage to do sometimes strenuous jobs such as production and transportation (12 percent) or construction and maintenance (5 percent).

Many of the seniors who continue to work full time have earnings at the top of the pay scale. About 20 percent of those age 65 and over make over $75,000 annually and just over half (53 percent) earn between $25,000 and $75,000 from work. Slightly over a quarter of those working full time in retirement make less than $25,000 annually.

Seems this is just a myth perpetuated by AMO leaders. Possibly to scare people into thinking they should consider Amway as a solution.

Amway Financial Freedom?

When I was an IBO, I often saw my upline diamond driving around town dressed in a business suit. I used to wonder why he keeps working if he can "walk away" and collect residual income? My sponsor told me that the diamond only works because he cares about his downline and wants to help them. So there are two possible scenarios, the diamond is working to help his downline out of a genuine concern for them, or possibly he is working because he has to! The only difference now is that the diamond works the nite and/or graveyard shift, because many IBOs are building the business after the complete their day jobs. This is probably why diamonds sleep until the "crack of noon", because they are working all night!

Now Amway has stated that the average diamond earns about $147,000 a year. That is a decent income, but after yaxes and paying for basic expenses such as medical and dental insurance, the average diamond probably lives a very middle class lifestyle. Keep in mind that a large portion of a diamond's income comes in the form of an annual bonus, thus a diamond's monthly income may be quite small. Yes, diamonds may have other sources of income such as speaking engagements and income from standing orders and functions. But this income depends on the diamond's continued appearances and efforts.

So is it likely that a diamond is "free"? I would have to conclude that a diamond is not free, and may actually have to spend more time maintaining his group than if the diamond simply had a 9-5 job. For one thing, a diamond needs to maintain a personal group to keep qualifying for bonuses. With a poor retention rate in Amway, I am fairly sure that a diamond spends much time recruiting personally sponsored IBOs to maintain this group. Additionally, a diamond must help his six or more groups of downline platinums to maintain their businesses or face the possibility of falling out of qualification. My former diamond dropped down to the emerald level but has since re-qualified at diamond. A diamond must also dedicate time to reward up and coming movers and shakers, to keep them motivated. I got to spend time with my upline diamond when I was considered a promising up and coming pin.

In order to continue to receive tools income, a diamond must also travel to numerous functions and speaking engagements. Although the tools income allegedly doubles a diamond's income, it also adds a lot of expenses, especially if the diamond and his family travel first class to show off the diamond lifestyle, and stays in 5 star hotels. It is probably why diamonds need free transportation to and from the airport and why they stay with friends when traveling as much as possible.

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a middle to upper middle class lifestyle, and probably works as much as a man with a 9-5 job, except that a diamond works nites and weekends. A good portrait of this is shown in Ruth Carter's book (Amway Motivational Organizations: Behind The Smoke and Mirrors). In the book, the diamond had a net income of over $300,000, but lived in debt, could barely pay his mortgage, and was always on the run from one function to the next. It is very expensive and time consuming to travel from city to city showing off your freedom and diamond lifestyle.

Is this the freedom you are seeking?

My Upline Really Wants Me To Succeed?

One of the biggest loads of guano that upline diamonds often tell their groups is that they really want success for their downline IBOs. The obvious to me is that your upline diamond doesn't give a rat's ass about your success as long as you are buying tools and attendin functions. Your dedication is money in the bank for the upline diamonds. They will tell you that you are a warrior or a fighter to make you feel good, but behimd the scenes they could care less.

Now I believe your sponsor probably does care about you succeeding, but technically, your sponsor is supposed to train and motivate you free of cost, which is why your sponsor can benefit if you purchase or move enough volume. The problem with this is that your sponsor is also very likely to be immersed in the tools system which takes away income from his/her business to feed the upline diamond.

If you take a close notice, you will see that the advice given from stage at functions o big meetings are so generic that it usually does not apply to you as a person and if so generic, then you can get that same advice on an MP3 or a cd. Yet, the diamonds expect IBOs to attend major functions every three months. I suppose to supplement their Amway income. These diamonds are not mentors. They don't analyze individual businesses and your personal skills. How can they guide you in this type of business without knowing these details? They can't.

Think about it. Your upline wants your success or do they want your money? Practically anytime you receive "help", it costs you. Open meetings, attitude sessions, functions. Every one of these has a cost of time and money with no direct cause and effect of people succeeding and receiving the mythical residual income. If your upline says this, ask how they can assure that it happens, aside from a dedication to functions and cds?

Food for thought. If you actually went diamond, your leaders would get less tool money. Do they really want your success or are they just saying it?

Amway IBOs Miss The Obvious?

It is my feeling that most IBOs and prospects are likely nice people, motivated to want more out of life, and willing to do some work. Sadly for most, their experience in Amway is making nothing or losing money, likely because of the tools and functions that are promoted by the upline. I applaud IBOs and prospects for being willing to do something to make more money for their families, but all too many IBOs and prospects simply miss the obvious red flags and get sucked into a system where they cannot win.
I was an IBO at one time. I had ambitions and dreams, many of which I accomplished after leaving Amway.

Let me explain. If you buy some lottery tickets, you do so hoping to win but you know realistically that your chances of of winning the big jackpot or some significant prize is slim to none. While Amway isn't a game of chance, your chance of success is very slim. We know that many IBOs sign up and do nothing. We know that many IBOs may try but end up quitting very soon after starting. We know that few IBOs ever last more than a few years. Knowing that, you can assess that long term sustainable success in Amway is difficult at best.

But it's obvious to those in the know when you see the "plan". If you see one person become a platinum with 78 downline (in the common 6-4-2 plna), and you know that many do nothing or do a little and quit, then you know that you need to have maybe 200 IBOs go thru your business to become a platinum, and who knows how hard it will be to maintain that level. My former sponsor was a platinum but never hit Q12 and often fell below 7500 PV. Last I heard, he was 2500 PV after nearly 20 years in the business. Factoring in tools and business expenses, I believe the net losses of my former sponsor is staggering. And my former sponsor was able to personally sponsor over 100 downline.

The next obvious thing that IBOs and prospects miss is the functions. If you've been around or attended functions, you'll likely see an audience of thousands with one or a couple of speakers. That will probably never change. ANd if you can assess that situation, you can see that only 1 in thousands will ever reach thet coveted diamond level.

While Amway apologists claim that many people sign up to get products and to make a few dollars a month, I think that is total BS. Have any of you ever seen a presentation where your option was a buyers club membership
or where you make a $100 a month? I saw yachts and mansions and talk about the diamond being financially free (a myth). To those who see thru the deception, the reality is obvious. It's just a matter of whether you see it or not.

Just The Facts About Amway IBOs?

So many people get duped into thinking that they will somehow get wealthy by becoming an Amway IBO. Many recruiters will tell stories about how they were once broke, but signed up, endured challenges and now they are diamonds enjoying untold wealth and luxuries. People get caught up in "dreams" and are often encouraged to ignore the facts. People running businesses should pay close attention to the facts because it tells you much about your business and your likelihood of success. But what are some facts about the Amway business that many people don't know about? I have outlined a few important ones for those who harbor dreams of going diamond.

1. The average diamond, according to Amway, earns less than $150,000 a year. Yes, some of this may be supplemented with money from the sale of tools, but after taxes and business expenses such as travel to and from the many functions that a diamond attends would leave a diamond living an ordinary middle class lifestyle, not one with mansions and sports cars as portrayed in many functions or meetings. Yes, a Q12 diamond would have more earnings, but a Q12 diamond is the exception, and not the rule.

2. Most IBOs are NEVER able to sponsor a single downline. Pretty hard to develop six (6) downline platinums when most people cannot sponsor anyone.

3. Most Amway products are purchased by IBOs and not sold to customers. Name a real business that sustains itself by having it's own workers or salesforce purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ Amwayers lose money.

4. For most IBOs, the cost of functions, standing orders and other support materials represent the reason why most business building IBOs lose money and it also represents a significant profit for some of the diamonds who sell the materials.

5. Not working hard is not necessarily the reason for someone's failure. But conversely, working hard does not equate success in Amway. I would guess that out of those who work hard, it is still a fraction of 1% of hard working IBOs that even attain a significant profit. Doing nothing won't get you anywhere, but in this business, working hard often gets you nowhere as well. It is my informed opinion that the cost of the support materials is the direct reason why so many IBOs lose money, even out of those who work very hard.

I could go on and on, but these are a handful of facts that IBOs and information seekers should be aware of. I welcome differing thoughts and opinions.