Thursday, October 17, 2019

The Amway Tool Money?

I have been reading some ongoing debates about whether the system income for higher pins is more than their Amway bonuses. I believe the systems such as BWW, WWDB, N21 or LTD, does generate more profit for upline than the sale of Amway products. How the system income is divided though, is still a mystery as it doesn't appear that there are bonafide written contracts explaining how tools income is split up among the higher pins. 

But it's very easy to determine that more income is made from the system than from Amway. If you move $100 worth of Amway products, Amway will pay about $33 back in the form of bonuses. These bonuses will be split among the Amway IBOs (middlemen), depending on your level.  The lower level IBOs getting close to nothing and layers of spline getting the lion's share.  On the other hand, if your group bought say 20 cds at $5.00each, the system will profit about $80 to $90 as cds cost about 50 cents to a dollar each to produce in bulk.  Some folks now use audio downloads so production costs have gotten even cheaper, thus maximizing upline profits.  Some Amway apologists will cite the fact that some groups sell cds/audios for $2.50 or $3.00. While this is true, there is a "member's fee" which must be paid. And when you add in the member's fee, the profit for the system is the same or possibly higher! 

If you buy a major function ticket for $100, the cost of that function might be in the neighborhood of $25 to $30 per attendee, so the system may generate $70 profit on a $100 sale. I believe the smaller functions such as open meetings, books and voicemail have smaller profit margins, but still overall, it's easy to conclude that the profit from the system is greater than profits generated by moving Amway products.  And I might add that fewer people share in the tool bonuses whereas all IBOs have the potential to earn a bonus from Amway.  

The only question is how much each individual earns. I have "heard" that platinums get a discount on the sale of standing orders and cds, but I have never heard of a platinum sharing any profit for functions, voicemail, or any of the other materials. This is puzzling to me as I believe the platinums do the most work in the system. 

So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. And then when you purchase and move tools volume, you receive nothing and some of your uplines enjoy all of the profit. While I don't see any problem in upline making a profit for selling training materials, I see a problem in the fact that the tools don't work. So few IBOs progress to levels where an actual profit is earned. Amway supporters will point out the new platinums emerging each year, but do not mention the platinums who do not re-qualify. 

Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business.  But ten again, the multitudes failing while a few "succeed" is what MLM is all about.

Wednesday, October 16, 2019

Most IBOs Fail?

Most IBOs fail. That is not a wild guess. That is a fact. Failure would mean doing nothing or trying hard and not making a net profit equal to minimum wage for the hours expended. Amway supporters will argue that many IBOs do little or nothing, and while that might be true, even the remaining IBOs who work hard, still find little or no success. The system is set up that way. If you see a diamond "walking the beaches" as the cash rolls in, that means someone is putting forth the effort to make that happen. It is the downline IBOs who purchase Amway products and tools that allow these diamonds to enjoy what they portray as success. By the way, does anyone actually know one of these diamonds who are retired and doing nothing while cash rolls in? 

We also know that some diamonds overhype their success. There has been evidence that the diamond lifestyle is often not what people think it is. If you could truly earn residual income by the bucketload, why do diamonds quit, resign, lose homes in foreclosure proceedings, and even wind up in bankruptcy court? One could argue that some diamonds are failures. The diamond lifestyle is an illusion created by upline leaders as a means to entice recruits. I would venture a guess that many diamonds are living in debt or struggling to make ends meet. 

Many Amway zealots and apologists try to make ridiculous claims comparing a company owner to a diamond. The big difference is that a company owner has employees who get a regular paycheck. These employees generally wanted the job and probably applied for the work. And if and when an employee leaves, there are other applicants who are willing to step in and do the work. Thus the business continues to meet their demands and continues to profit. 

In the Amway opportunity, the IBOs spend money purchasing products, and then upline leaders expect these same folks to spend even more money to learn how to be motivated to do the Amway business. But in reality, if IBOs made profits, that would likely be sufficient motivation to run their businesses. Because it is hard to find enough (suckers) prospects to join the business and fork out cash while they lose money, other IBOs have resorted to trickery, deception and outright lying at times, in order to attract potential downlines. This has damaged Amway's reputation. 

The 6-4-2 system ensures that the majority of business builders must "do the work" to uphold their platinum, who (probably) barely earns a net profit. And then you need 3 or 6 groups of IBOs losing money in order to maintain an emerald or diamond. Amway has revealed that less than 4% of product moves to non IBOs. The absence of non IBO customers nearly guarantees that most IBO groups will lose money or make very little. Most IBOs are destined to fail. And it is not necessarily the IBO's fault. The system itself comes with many flaws which most IBOs cannot overcome, even for those who put forth much effort. It is why most IBOs fail. It is why I hope prospects will find and read this information before making a final decision to sign up or not.

Tuesday, October 15, 2019

Broke Losers?

One thing I will give  Amway some credit for is their customer service. Whenever I called the corp as an IBO to order or for other things, their staff was always courteous and friendly. But IBOs, on the other hand, do not seem to value potential customers that way. What I mean is when prospects are called stupid, or broke losers just because they do not wish to become an IBO. What you have done basically, is ensure that the prospect will never be a customer of yours, and possibly Amway. Some uplines teach that people not in Amway are broke or losers and/or if you quit the ranks of being an IBO, you become a broke loser. 

Imagine walking into a retail store, and realizing that maybe you didn't have enough cash in your pocket, or that the store did not have the item you were looking for, so you leave. As you leave, the stores employees said "what a fool". What a broke loser he is not buying anything from us or wanting to open a similar store. While this may be an extreme example, I believe it is a perfectly valid one. If you value your customers and treat them with courtesy and respect, you have a good chance of retaining them. Calling someone a loser is almost a sure way to fail in Amway or any other business. Why some leaders choose to label people as such is a mystery to me. 

I believe that this comes from two things. Number one is that IBOs are not very interested in selling products. They are mostly interested in sponsoring. And that is the number two reason. IBOs are mainly focused on building their group, because that is the key to moving up the ranks, in terms of a pin. Some groups simply teach IBOs to self consume and then focus on sponsoring. It leads to the opportunity being borderline in terms of whether the opportunity is a pyramid where there are no sales to non participants (pay to play).  

This division between potential customers and potential IBOs is what causes Amway to have a bad reputation with the general public. It is evident here on my blog, where IBOs criticize me, without even supporting their arguments. This is not the only reason, but a contributing factor to Amway's bad reputation in the US. 

IBOs, if you take a hard look at what I have written, it is not negative, it is a perfectly valid reason why so many do not succeed. You need to treat your potential customers and downline with respect, regardless of whether they choose to join or buy products from you right away.

Sunday, October 13, 2019

The Big Illusion?

One of the things my Amway upline taught us ad nauseum was that we needed to have faith in our business and in our upline. That we needed to believe that we were going to be successful. IBOs are told that they should act successful even if they are still working their way up the ranks in the business. It is why they ask (require) IBOs to wear suits and business attire to all meetings and functions. This is one of the weird quirks about the business in my opinion. I live in Hawaii and I remember a function they held in the middle of July in a high school auditorium and there was no air conditioning. I think my suit needed special cleaning because it was completely saturated with perspiration. 

Anyway, with this part of the year, soon (in a few moths) there will be thousands of IBOs shuffling off to a function called dream night, or in some cases, winter conference. The tickets are about $75 to $80 and includes a dinner. What IBOs are often unaware of is that many venues will allow you to run these conferences for $20 to $25 per person. The rest of that ticket prices goes directly into your upline's pockets. Anyway, the dream night function will feature slide shows of mansions, yachts, jet skis, sports cars, fabulous vacations and other trappings of wealth. 

What many IBOs don't realize is that this display of wealth is just that. There is no bonafide evidence to indicate that these diamonds actually own all of those toys and goodies. The diamonds probably won't verbally confirm it either, because these toys and goodies may not really be owned by them. It could be rented, or maybe some upline corwn ambassador may own the mansion, but IBOs will assume that these trappings of wealth are common once you reach diamond. As an IBO, I never actually knew how much a diamond really earned. I just assumed it was a lot because we were shown all of these goodies and just assumed all diamonds had these kinds of lifestyles. 

If I posted a picture of a mansion and a jet and said I owe it all to my earnings as a blogger, people would cry foul, that I am lying or making things up. And they would be right. Well, I would guess that many diamonds are doing the very same thing if they appear on stage and implying that they have jets and mansions. As I said, someone may own a mansion and a jet, but to imply that this is a part of the typical diamond lifestyle is a stretch. The evidence is there. Some diamonds have lost their homes to foreclosure. My old LOS diamonds (WWDB) taught us that diamonds pay cash for everything, including homes. Now confirmed as a blatant lie. Who knows what else they may have misrepresented? 

I ask IBOs and prospects who may be attending dream night, to watch with a critical eye. What is being implied with the display of wealth? Analyze if those goodies can be purchased with a diamond income (maybe $150,000 plus some tool income). Ask yourself if this lifestyle is truly sustainable? Ask yourself if you can live with yourself if deception is a part of earning your diamond lifestyle?

Friday, October 11, 2019

Who Is Responsible?

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. 

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 20+ 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.

Wednesday, October 9, 2019

Amway IBOs "Talk" A Good Plan?

Having blogged for a number of years now, I have observed that Amway IBOs talk a good game about retailing, sponsoring and doing Amway business activities. They will tell you to set yourself up with 20 customers, sponsor 6 frontline, show a number of plans and set up certain follow ups with contacts, and doing other activities supposedly to build an Amway business. I find if humorous when these same IBOs start throwing insults or diverting the discussion when someone asks if they are actually making money. Of course it would be understandable if a new IBO would admit they had not made a fortune as of yet but it seems that even that response is not forthcoming from IBOs.  

It seems that the Amway business is simple enough. Buy some products, sell products and try to sponsor some downline in order to leverage your volume with your downlines. IBOs mistakenly believe that you can build it once correctly and that the income will flow into future generations. What goes unnoticed is that IBOs come and go with such a high frequency, that a business generating residual income would be like a sandcastle on the beach. You might build it nice and big but the waves of attrition would quickly turn that sandcastle into nothing. The same would be true of an Amway business. The IBOs dropping out would wipe out your business unless you are constantly replacing the people who quit. IBOs like to talk about Amway sales and how the company is growing in sales, but the Amway sales have no relationship with making IBOs more profitable. 

IBOs may also toss in comments about how they are nicer people or how they are improving their marriage because of the Amway business. I often wonder how that can be when functions and meetings take you away from your family and spouse. I suppose it could be because the uplines talk about people being nicer or tossing out lies about Amway and the AMOs saving marriages. I remember a WWDB diamond talking about how WWDB members had a 2% divorce rate while the rest of society has a 60% divorce rate. Ironically, that diamond's marriage ended in divorce. I believe this crap is still taught as a WWDB IBO who blogs, had mentioned this tidbit on his blog last year. I don't believe Amwayers or anyone else has a higher or lower rate of divorce than society but it becomes an issue when uplines teach it and their downlines repeat it. 

So it would seem that IBOs talk a good game. They know what to say and how to act, but they're like poker players who are bluffing. If you call them on it, they are likely to fold in their hands because they don't have the goods. It is why many Amway discussions turn into a insult contest, when the IBO suddenly gets confronted with facts that are contrary to upline teaching. It's usually quite funny but I wonder if these folks question their upline or go on their merry way repeating uplines lies? It becomes apparent to everyone but the IBO when they are repeating crazy stuff taught by their upline. Good luck to anyone who tries to build this business against nearly insurmountable odds.

Tuesday, October 8, 2019

Amway Works If You Work It?

The Amway business works if you work it! That's what many Amway enthusiasts will claim. I do not believe that is true and I will further explain in this post. Many IBOs who claim that the business works are usually new and are unable to show any evidence that the business works, except perhaps to show a photocopied check from an upline diamond or the like. To date, no Amway IBO who posts on this blog as shown evidence that Amway works. And there is no evidence that hard work results in Amway success. 

Let me make a disclaimer that some people might be able to make significant money from Amway, but most of those folks are usually tenured diamonds who are almost in an exclusive club. There is only a short list of new diamonds that I know of in the US, and I have heard that even these new diamonds may have had legs in other countries. It would seem that Amway is not growing much in the US and Canada. Also of note, Amway does not release figures that are separate between Amway North America and the rest of their overseas operations so information is limited.

Ok, so Amway enthusiasts claim that the business works if you work it. Business in its simplest form is selling a product or service for a profit. Yet many many IBOs spend so much of their time doing other things, as advised by their upline "mentors" who sell them training materials that take up much of their valuable time. Listening to audios/cds, attending functions, reading books, and other training activities not only costs the IBO money, but takes up valuable time in non income producing activities. Nobody makes sales reading books or attending seminars. Inviting people to see "the plan" may be a way to help generate volume but with Amway's reputation, even this is a hit and (mostly) miss activity. 

Many IBOs spend almost all of their time doing these activities (the work) when they could be better off not getting the training and focusing on selling the Amway products and services. Even that comes with a handicap as Amway products as a whole, costs a lot more than purchasing similar or the same products as a big retailer such as Costco or WalMart. It is why most IBOs eventually get discouraged and quit far before the promoted 2-5 year plan. 

Few people will even bother to see the plan once you mention "Amway" and for those who are open minded and motivated to register end up having to deadl with a hard to sell opportunity along with high priced common commodities such as soap, vitamins and energy drinks. It's pretty easy to see that the business does not work, even for most of those who actually work it. There are simply too many issues with the business that hanidcaps those brave enough to try. It seems even the fiercest defenders of Amway are unable to provide a shred of evidence that they have actually made a profit from this opportunity.