Friday, February 17, 2017

Join Amway To Decrease Efficiency?

Is Amway The Least Efficient Way To Move Product?


I remember seeing the plan as a prospect back over a dozen years ago. I remember the speaker talking about how you can capitalize on distribution efficiencies to make money. We as IBOs would simply cut out the middleman and that savings would be passed onto us as IBOs. In its simplest form, it made sense and the misconception passed onto the audience was that you will actually save money by purchasing Amway products. I even remember the speakers saying that even if the whole world signed up for Amway, even the last guy getting would would have the benefir of saving money. Looking back now, much of it was deception and lies. And to think, people now and back then paid good money for training on how to become, in my opinion, the least efficient manner in which to move products.

We recently enjoyed the Superbowl. And as you know, superbowl commercials can cost millions of dollars. But do you know why? It's because hundreds of millions of people across the world are tuned into the superbowl. Companies probably have their best staff working on developing these commercials because they want to leave a lasting impression on their viewers. And it apparently works because people today are still willing to shell out serious coin for these commercials.

Amway IBOs advertise person to person, one person at a time.

What are the chances of an IBO ever moving a significant amount of products or being able to reach out to potential new downline when they prospect person to person, face to face, one at a time? To me, that is the most inefficient manner of expanding business. And let's face it, Amway's rules don't help when you are not supposed to advertise online without special permissions and you are not supposed to sell product on Ebay or Craigslist. In today's technological society, it seems almost crippling to be so inefficient.

And even your beloved uplines, at your expense, run the most inefficient manner of doing business. Who needs voicemail when we have facebook, email, twitter or text messaging? Not to mention the added expense IBOs face by these outdated technologies. Also, with video conferencing, skype, or webcams, why do people need to travel long distances for meetings and functions? The answer is simple, your upline might not want your success, they simply might just want your money. All of the training and motivation is a profit center for upline and modernizing would simply reduce their tool profits.

Try asking that of your upline. Why do we keep using the most expensive and inefficient means of doing business and communicating? I'd be curious to hear that answer.

Thursday, February 16, 2017

Amway Sales Down Again?

http://globalnews.amway.com/pressroom/news-release/news/amway-announces-2016-sales

ADA, MICH., USA (Feb. 8, 2017) – Amway today announced sales of $8.8 billion USD for the year ending Dec. 31, 2016, a decline of 7 percent when compared to 2015 figures. The direct seller increased sales in seven of its top 10 markets, but experienced softening market conditions in China.

“Across the world, Amway did well in 2016,” said Amway Chairman Steve Van Andel. “We experienced sales growth in several top markets, saw double-digit percentage growth in nine additional markets, and continued to evolve the business in China as we seek to take advantage of shifting market conditions and achieve the market’s long-term growth potential.
- See more at: http://globalnews.amway.com/pressroom/news-release/news/amway-announces-2016-sales#sthash.4g213ipz.dpuf

I find it interesting how Amway spins a 7% decline into a positive. Amway sales were at 11.8 billion in 2013. The Amway defenders were shouting from the rooftops that this was proof that Amway had arrived and they were going to "explode". Well, Always sales in 2014 was 10.8 billion. Their sales totaled 9.5 billion in 2015, a 12% decline, and now 8.8 billion, another 7% decline.

I honestly don't know exactly what to attribute the big decline to. It could be that Amway is reaching market saturation and because information is easily accessible, people are finding relevant information and making wise decisions.

In any case, it will be interesting to see what happens in the next few years. With less sales, I would assume that there are ewer big pins and less tool money for the diamonds. I had heard that some functions were moving to smaller venues which could mean that tools income could be shrinking and maybe diamonds are not rolling in cash anymore. Anyway, stay tuned. Time will tell.

Tuesday, February 14, 2017

Amway Motivation?

I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank.

Monday, February 13, 2017

Ruthless Amway "Mentors"?

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.

As an IBO, the diamonds would 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 ruthless businessmen who will take your last dime if you allow them to.

Thursday, February 9, 2017

Are You A Glorified Amway Customer?

IBO = Independent Business Owner. Most Amway folks consider themselves IBOs, or independent business owners. To some, owning a business sounds cool. It sounds like you are achieving something and it may even seem that there is status involved in being a business owner. It is one of the reasons that may compel someone into signing up for the Amway opportunity. It was a small factor in gaining my interest many years ago when I was pitched the "plan".

Based on what I see and hear from Amway related blogs and forums, most people involved in the Amway opoprtunity are not business owners. They are simply Amway customers. They are customers of Amway and they are customers of the system consisting of voicemail, cds, books, and seminars. Does this sound confusing? Think about it. Many groups teach "buy from yourself" and get others to do the same. If you belong to one of these groups, you are being taught to be an Amway and system customer, nothing more and nothing less. Both Amway and the system profit from your loyal purchases and they fool you into thinking you are getting a good deal by giving you a tiny rebate each month. Only if you are able to lure enough gullible people into your downline will you finally be able to leverage their purchases to make a small profit. If you can get a large following, then you might make some nice coin, but it will come at the expense of the people who trusted you enough to sign up and follow you. It is unlikely to come from product sales since Amway products generally are generic in nature but premium in price.

If you stop for a minute and truly think about a business, what business can thrive without a whole lot of customers? I cannot think of any businesses where there are little or no customers. Why would the Amway opportunity be any different? If you are your only, or your own best customer, then maybe you are not even a business owner, but simply a customer of Amway and a customer of the system. Think about this for a moment. Certainly WalMart or Target would be out of business if they relied on sales nearly exclusively from their employees.

Without any sales to customers, or to people who are not Amway IBOs, any profit simply comes out of the pockets of the people in the Amway system. When you receive a rebate, you are simply getting some of your own money back. You have not generated any real profit. The only way to generate real profits is to sell to outside customers. This brings money into the system or Amway economy if you will. If not, an IBO is just a glorified customer bringing profits to Amway and the tools systems.

Wednesday, February 8, 2017

Job - Trading Hours For Dollars?

One of the ways that Amway diamonds would put down jobs was to toss in the phrase that a job was simply trading hours for dollars. As if it were demeaning to have a job where you got paid for your time. I believe it's all relative. Being that many IBOs are young and maybe working in more entry level types of jobs, then yeah, your hour's wage might not be that great. If you earn say $10 an hour, then you might be struggling financially and it may take time before your skills and knowledge increase to a point where your experience is worth more money. What if you had a job paying $1000 an hour and earned $160,000 a month? Is that a lousy deal trading hours for dollars? I'd take that offer in a second!

Conversely, having a business can be good or bad also. If you have an Amway business earning less than $100 a month and you spend $200 (or more) on functions, standing orders and other training and motivational materials, then you are losing money. You would be better off doing nothing. That is still a better alternative than working a business where you are losing money. I think most people agree that a platinum group typically has a 100 or more IBOs. Thus a platinum is in the top 1% of all IBOs. I have heard that the platinum level is where you start to break even or make a little profit, depending on your level of tool consumption. If platinums are barely making a profit, then the other 99+% of IBOs are likely losing money. How much is that worth per hour?

I think uplines cleverly trick IBOs into thinking that a job is bad. Trading hours for dollars, afterall, sounds like some kind of indentured servant of sorts. But in the ned, what matters is your bottom line. If you are an IBO with little or no downline, and/or not much in terms of sales to non IBOs/customers, then you are losing money each and every month if you are attending functions and buying standing orders. Your 10-12 hours a week of Amway work is costing you money! But if you spend 10-12 hours a week, even at minimum wage, then you might be making about 300 to 350 a month groww income. After taxes, you make about 250 to 300. At least trading hours for dollars gets you a guaranteed net gain at the end of the month.

Uplines trick you into a "business mentality" where you think that working for a net loss is just a part of business. IBOs should realize that a business promoted as low risk and no overhead should be one where you can profir right away. Instead, IBos are taught to delay gratification, or to reinvest any profit back into their business in the form of tools and functions, which results in a net loss. If that's the case I would choose trading hours for dollars.

Remember, trading hours for dollars is not a bad deal if you are making enough dollars per hour. And even those who make less, are better off that those who "run a business" but end up with a net loss. It's all relative and hopefully, this message will help new or prospective IBOs who are being enticed to join the Amway business opportunity. Good luck to those with jobs and those with businesses. You can be successful either way. Remember that!

Monday, February 6, 2017

Amway Retirees?

I have heard or read that Amway has something like 3 million IBOs worldwide and several hundreds of thousands of IBOs in the US and Canada. Over 50 plus years, Amway must have had tens of millions of IBOs. One of the selling points that many people use in promoting Amway is how you can build your business once (and right) and walk away from the business and collect residual income forever, willable to your future generations and recession proof. At least that's how it was presented, and still apparently presented these days.

What I find extremely odd is how these Amway retirees seem to vanish off the face of the earth. I mean the diamonds either quit, resign, or continue to work. Even all the crown ambassasdors are still working. Seems odd that someone can have the option of walking away from their Amway business while boatloads of cash keep rolling in. Freedom to golf, travel, have fun and do anything you want, whenever you feel like it. But why do diamonds quit or resign? Why don't any of the big pins exercise the option to walk away? Various defenders of Amway claim there are many people who have excerised this option but nobody has been able to name ever a few of them. Keep in mind that the folks making this claim are likely lying or making it up because only Amway would know who is getting paid, although Amway wouldn't know what kind of effort was made to maintain the business. In other words, claims of people building an Amway business and then collecting significant residual income is a claim that cannot be substantiated, not even by Amway. And I will say this: Amway doesn't advertise this as an IBO benefit. Current IBOs and prospects should think long and hard about this.

I know of retired firefighters, teachers, lawyers, doctors, government workers, accountants, business owners and just about any occupation you can think of. A friend of mine recently retired from a construction material salesman position. Most of them have their homes paid off, and live comfortably on pensions, savings and other assets and investments. They are not dead or broke by age 65. Sure I do know of some people who are around the age of 65 who are not doing as well financially, but none of them are starving, needing government assistance or working at WalMart out of necessity. I believe ths is a scare tactic used by Amway promoters who want you to think that your only hope for financial security is by running an Amway business. Sadly, for most, the result is net losses because of the "systems".

I've asked before, I'll ask again. 50 plus years, possibly tens or hundreds of millions of IBOs. Where are these Amway IBO retirees? Do they actually exist or are they as legendary as the Sasquatch?