Friday, May 29, 2009

Amway - IBOFightback Lying And Making Things Up Again?

I recently did a post about prices comaprisons between Costco and Amway:

Of course IBOfightback (David Steadson), an Amway zealot, and apparently failed IBO wants to make assumptions and try to justify what he sees as an unfair price comparison. Of course IBOfightback doesn't live in Hawaii so unless he walked down the aisles of Costco, he cannot possibly know how I arrived at this comparison, so I will explain further.

A few months ago, an IBO who works in my building asked me to drop off a product to a common friend for him. It was a bottle of dish drops and there was a catalog in the package. So I looked at the catalog and wrote down some of the products (and prices) that I felt could be commonly found at Costco.

A few days later, I went to Costco in Iwilei, Oahu, one of the busiest Costco locations in the US. I simply wrote down the prices as I walked the aisles. I was amazed at how I could get the exact same product, or a very similar product that Amway sells, at a fraction of the cost in some cases.

IBOfightback embellishes the truth (Lies) and wants to analyze subjective issues such as the quality of Kirkland toilet paper versus meadowbrook. The Costco brand, Kirkland, is just as good (IMO) as meadowbrook at a fraction of the price (Kirkland is about $11.99 or $12.99 if bought at Costco instead of online). I cannot see or feel a difference, and I have used both brands, something that IBOfightback probably cannot claim. IBOFightback also mistakenly says there is no XS sports drink. That's funny because I drank one before and a quick google search easily confirms it. And IBOFightback has the nerve to call me outdated? LOL

Also, in layman's term's, is the average customer going to give a rat's ass if the meadowbrook brand may or may not be "better" (again, very subjective), or is that customer going to look at the price (Costco wins) and the availability (again Costco wins)? Another item, such as the golden grain pasta, is a well known national brand in the US versus the relatively unknown Amway brand. The golden grain pasta is cheaper and has name recognition. Are most customers going to buy the name brand product that is cheaper than Amway's or will they pay more for shipping plus wait one or two weeks for the Amway product? You decide.

I have clearly explained why I believe Costco offers a much better value in money and time versus Amway's. The vast majority of US consumers apparently agree with me, based on sales figures and basic common sense.

But somehow, IBOfightnack continues to attack and insult not only me, but the intelligence of my audience with his rants, lies, and half truths. IBOfightback
can analyze all of my posts and criticize it, and his kool aid drinking followers will agree with him, but the vast majority of US consumers agree with Joecool and Costco. Spin all you want IBOFB, you only make my case stronger when you do so.

P.S. Hey IBOFightback, why are you using ""? Something to hide?

Thursday, May 28, 2009

Amway - IBOs? Hello? You Are Not Amway!

Amway did over 8 billion in worldwide sales last year. They also have a sales partnership with various big name companies. I believe Bass Pro was one of them. The Amway owners are wealthy and have achieved billionaire status, apparently. That is great for Amway!

IBOs, you are not Amway. Sorry for breaking the bad news to you, but you are not Amway.

IBOs are "Independent Business Owners". Although they are the middlemen for Amway products, they own their own businesses and Amway's Global success means nothing for the vast majority of rank and file IBOs. In fact, is not for IBO purchases, which make up about 96% of Amway's sales, Amway North America would probably have sales of less than 40 million dollars.

So while it is nice to be proud of the company that supplies their goods, Amway's success does not apparently trickle down to most of the IBOs. The average IBO, makes about $115 a month (Amway's numbers) and Amway subtracted out about a third of their IBOs when calculating that figure.

Wednesday, May 27, 2009

Amway - IBO Personal Responsibility

One of the things that I heard, and I still hear today is how an IBO can become successfuly simply by duplicating, copying, or following the advice of their upline. The concept is simple, do as you are told and you will succeed. You don't have to be brilliant, you just need the ability to copy and follow advice. I'm sure many IBOs have heard this from someone in their upline. On the surface it seems logical, just do the same things that your upline did and the results will be the same.

Unfortunately, it doesn't work that way. You cannot simply re-create your upline's circumstances and copy it. Your upline likely had a different circle of influence in their lives. They knew and associated with different people and had a different set of skills and/or qualities. Some people are more charismatic and are better at interacting with others. Some people are convincing and some are not. Some uplines may have worked with a lot of people, thus having many contacts, whereas someone who works alone at nite may not have any contacts. It is not a simple matter of copying. Even if you can get someone "in front of your upline" to see the plan, you still need to talk to people to make this happen.

Upline leaders will often convince their downline that their tools are the key to success. My sponsor used to always tell our group that "tapes sponsor people". Although a tape may have helped sponsor someone, somewhere, I never saw a single person who got sponsored because of a tape or cd. I also have not heard of anyone who got sponsored by listening to a tape.

The issue at hand though, is for hard working IBOs who work the system, do the core steps only to fail. This is where upline then places blame on the IBO rather than the system. The IBO is taught to accept personal responsibility even though the system may have failed him/her. The system will take credit for successes, but will never take responsibility for an IBO's failure. This is a problem. It's like playing a game you cannot win. The system is touted when 1 in 14,000 or so reaches the diamond level, but noone mentions the system when talking about the 13,999 who did not reach the ultimate level.

Why doesn't the system and the upline leaders take personal responsibility for a change?

Tuesday, May 26, 2009

Amway - Show Me The Money?

I find it humorous when so many IBOs talk about their anecdotal stories of success, or talk about how their system teaches a foolproof way of succeeding in Amway. Yet I have not seen a single IBO who was willing to describe their business structure or talk about how they progressed from zero PV into a profitable structure. Amway's biggest defender, IBOfightback is a good example of someone who can talk a good game but cannot back it up with evidence of any success in Amway. Back in my IBO days, someone who could talk a good game was a teacher, and not a doer. Many IBOs may have a good theory about how to build a business but evidence clearly shows that it is talk and not action. One specific example is how an IBO is supposed to find 20 customers who each buy 20 PV from an IBO. Amway's own numbers show that an IBO who can actually do this is rare or non existent. Less than 4% of Amway's products, apparently are sold to those who are not IBOs. IBOfightback sits in the quiet confines of his blog where his kool aid induced followers blindly agree with everything he says. Apparently, IBOFightback is all theory and no results. So I say - show us the money someone.

Based on my observations, most IBOs have a small business, unable to sponsor enough downline to move any significant volume. They faithfully self consume 100 PV and do most of the CORE steps, except for being able to consistently show the plan and sponsor downline. Why is this? It is because the Amway reputation is stained and getting people to see the plan is an enormous challenge by itself, not taking into consideration that sponsoring is even harder. If you are reading this blog and you can relate to what you see here, perhaps you need to re-think your business situation and ask your sponsor some tough questions.

Now this leads to another question. Other than flashing a photocopy of someone's diamond bonus or the like, has your sponsor or anyone upline actually showed evidence of a profit in Amway? If you asked, what response did you receive? When I asked my sponsor about profit, I was told it was "none of my business". I believe that someone who is asking you to follow their system, which is not free, should be tasked with providing this information. If your upline teaches submission to upline, even more so you should demand to see results.

If your upline or sponsor refuses to show you evidence of profit, it should send up red flags all over the place. Maybe, just maybe, the critics of Amway are onto something.

Friday, May 22, 2009

Amway - Can You Be Successful Without Deception?

I've seen the Amway commercials about two friends starting a company 50 years ago. 50 years ago, the business opportunity was much simpler. People solds things for a side income, often door to door using the little red wagon as their means of transporting their goods. At least that's how it was portrayed in the past. LOL

Later, as people started to build organizations, it was hard to continue to build and motivate groups. That's when the systems were born. The system was created (to teh best of my knowledge) to help build and motivate groups, especially distance groups. That way an IBO leader would not have to be present to motivate his groups, at least not all the time. In the beginning, the system was not a big moneymaker for the IBO leaders. Apparently, with advanced technology, the system became more efficient and the tools could be mass produced at a low cost. That's when greed started to set in and the abuses, now known as the "tools scam" began.

Although some groups and/or IBO leaders may mention tools profits, and that rank and file IBOs may one day be able to share in tools profits at a certain level, the tools business still appears to be shrouded in secrecy. It is not common knowledge among IBOs to know exactly how to qualify and how much profit you may receive from tools. In fact, it was not that long ago when IBO leaders denied making any profit from tools. It seems now that most groups have "taught" their groups that they not only make a lot of income from tools, but that they deserve it!

It brings to be the subject of my title. Can an IBO be successful without some deception? Can an IBO be successful without a lot of decpetion? In my opinion, the answer is NO. The business opportunity has too many problems for most people to be able to overcome the problems and succeed. I will elaborate;

The name Amway has a stigma, and much of that stigma is justified. IBOs have done crazy things such as lying to tricking people into attending recruitment meetings. It is still happening today. IBOs even make up stories about their products. The biggest joke in years had to be the promotion of "perfect" water. The prices of Amway and Amway partner store products are higher on average than retailers such as WalMart and Costco. In fact, for many products, it's not even close with WalMart winning hands down. Yes, Amway offeres aa bonus incentive program, but that bonus does not equal the cost savings alone that WalMart offers. Team are also taught to lie about their opportunity. They denied that Quixtar has any connection with Amway, or they call Amway a franchise, or they associate themselves with a motivational group such as WWDB or N21 and make up ridiculous stories such as "we work closwely with Amway". The reailty is when you sign on the line, you become and Amway IBO.

So can you be successful without deception? Most IBOs are unable to succeed using deception. Therefore, being upfront and truthful probably makes it less likely that you can be successful promoting Amway. IBOs may find this hard to believe, but there are many ways to make a buck. Many of those ways are easier than Amway.

Wednesday, May 20, 2009

Amway - The Business Works If You Work It?

The business works if you work it! That's what many Amway enthusiats 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.

Let me make a disclaimer that some people do make significant money from Amway, but most of those folks are 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 in the US and Canada. Also of note, Amway did not release figures that are seperate between Amway North America and the rest of their overseas operations.

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 tapes/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.

Yet IBOs spend almost all of their time doing ese 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.

Tuesday, May 19, 2009

Amway - How The Plan Sucks In New Recruits

I remember seeing the plan in a hotel setting for the first time. It was quite impressive and by observation, I believe the plan is pretty much presented the same way now as it was back when I was an IBO, save for the online features of ordering products.

The speaker would start out talking about "his" situation. He was in a job, but suddenly realized he wanted more in life. He also talked about how many Americans are living in debt, and that interest, inflation, income tax and insurance ate away at your paycheck. You go from work to home to work to home not thinking about it, but living in a "rut". His life was at the mercy of his alarm clock with weekends off for good behavior.

He says his life changed when some guy he barely knew called him up and asked if he would be interested in seeing a business presentation. A business that can be run part time, in your spare time. A part time business with low risk, low overhead and you can do as much or as little as you want.

The speaker then went on to mention that thru Amway, you can get products at a 30% discount and on top of that, you also get a "rebate" or "kickback" based on volume.
Thus you can either make money or at least save money by getting involved in the business. The speaker also mentioned that through partnerships, they have major brand product, etc.

All of this makes sense on the surface, until you take a more critical look as the business. For example, Amway and partner store products are not 30% cheaper than you can purchase them from Walmart or other big retailers. That is an outright lie. Also conveniently not mentioned was the cost of the foolproof system. (I hear that some groups mention the system now, but downplay the expenses associated with it). How many people would register if the speaker said upfront that you (if dedicated) would need to spend money to register, and then spend about $300 a month on products, and another $200 a month (or more) on the system? Keep in mind that couples expenses are generally double of a single person. All of this expense and work for a fraction of a 1% chance of reaching success?

The plan is crafted very well. Get the prospect to agree with certain things, such as income tax taking a bite out of your paycheck, then talk about how the speaker was the same way, until he discovered Amway. Then add in some deception such as Amway being 30% cheaper than buying products elsewhere. This is how prospects get sucked in.

This blog was created so prospects can make a more informed decision about joining or not. If the person recruiting you discourages you from researching the opportunity, run for the hills!

Monday, May 18, 2009

Amway - Price Comparison With Costco

Guess who won?

Amway – Prices Comptetive?

Funny Story, the other day at work, I get a call from a friend, asking me to deliver a package for him to a mutual friend. A catalog drops out of the bag. It’s an Amway catalog, and apparently a friend of mine still buys dish drops. Anyway, I look at a few popular items from the catalog and compare them to Costco prices. I am shocked. Just by purchasing Gatorade at Costco instead of quixtar, I already get $14 savings and 80 ounces more product!

Prices Competetive?

XS Sports drinks 24 16 oz bottles = $30.00
Gatorade 24 20oz bottles = $15.95 (at Costco)

XS energy drinks 8.4 oz (case of 12) = $23.99
Red Bull 8 oz (case of 24) $31.30 (at Costco)

Double X (31 day supply) $78.05
Multi Vitamins (3 month supply) $24.80 (At Costco)

SA8 6.6 pound (100 loads) $22.75
Kirkland (5 gallon bucket from Costco) $15.99

Meadowbrook bath tissue 48 rolls $29.99
Kirkland bath tissue 36 rolls $11.99 (Costco)

Smart menu Pasta 12 – 16 oz. Bags = $24.99
Golden Grain Pasta 12 16oz. Boxes = $8.99 (Costco)

Smart menu chunk light tuna 24 6 oz cans $25.99
Coral chunk light tuna 12 6 oz. cans $5.99 (Costco)

Progresso soups 8 19 oz cans $19.99
Progresso soups 8 19 oz cans $11.99 (Costco)

Friday, May 15, 2009

Amway - My Upline Is Wealthy!

I remember the first time I saw the plan at a big hotel meeting. The person who invited me told me to be sure that I was there on time because in business, time is money. I was a bit disturbed when the speaker showed up 20 minutes late. Anyway, the speaker did arrive to a standing ovation. The speaker host really built up the diamond speaker, saying the audience was really lucky as the speaker was sought all over the country and that the speaker was in the top one tenth of one percent of income earners in the US (never confirmed though). This was common practice it seems, and some speakers got into how much money they had. At one open meeting, I remember Bill Britt proclaiming that he was close to being a "billionaire". The crowd went wild of course.

At major functions, the IBOs would line up to watch the diamonds arrive at the hotel in their Mercedes, BMWs, Lexus and other fancy cars. We were told stories of fabulous wealth, early retirement, making large purchases in cash, etc. One major function, now called winter conference, used to be called "dream nite". We saw videos of jetskis, golf memberships, jets, cars, mansions and other toys to the background music of "I wanna be rich" sung by a group called "Calloway".

What went unnoticed by myself, and probably most IBOs was where upline's wealth actually came from. I mean we saw the big checks from Amway and all. At the time, the tools income was not disclosed, but most groups at least mention tools money now, even though details remain a bit sketchy as to who qualifies and how much you can earn. We know from Amway's own information that very few products are sold to people who are not IBOs, therefore one can reasonably conclude that the "wealthy" upline makes much of their income primarily from downline purchases. And the cds, books, KATE, functions and other support materials are bought only by IBOs, thus that source of income is almost soley from IBOs.

Basically, the fabulous wealth that some upline diamond portray simply comes out of the thousands of their downline's pockets. It's no secret that significant profit comes from selling tools. The problem though, is that some uplines gain all this wealth and the tools don;t work for the vast majority.

Now I already know that some supporters and apologists of the business and the systems will say that all businesses make money from people While that is true, it is not done under the pretense of you buying and using tools that will make you wealthy or buying products for yourself that will make you wealthy. And you can't compare this to a job because everyone is an independent business owner. And besides in a job, everyone gets a paycheck and the income is derived from customer sales. In Amway, the "sales" are primarily from the IBOs themselves.

So prospects and IBOs, when you see your upline's fabulous wealth being flashed about, you no longer have to wonder where the wealth came from. All you need to do is look at your dwindling bank account and you will get your answers.

Thursday, May 14, 2009

Amway - How Many IBOs Must You Sponsor To Get Ahead?

When I was an IBO, our groups used a 6-4-2 plan. I believe many groups continue to use a 6-4-2 plan or a 9-4-2 plan, except for those teams perhaps who emphasized stacking where you basically work 2-3 legs. But the point of this message is how many IBOs must you sponsor to accomplish this plan? I know the Amway recruiters will say all you need is six (6).

"All you need is six". I heard the saying "some will, some won't, somewhere, six will". But what exactly does that mean? MOST IBOs will not sponsor another IBO. Apparently Amway, formerly Quixtar released a figure that stated 1 in 5 IBOs sponsor another IBO. Amway apologist IBOFightback has said many times that most IBOs "do nothing". Thus if only 1 in five IBO can manage to sponsor others and most "do nothing", one can easily conclude that you cannot sponsor only 6 other IBOs. If most do nothing and only 1 in 5 sponsor another IBO, you may need to sponsor 10 or more IBOs just to find a single downline who can sponsor a downline.

Thus if you go by Amway's numbers alone, the more realistic version of the plan would be 30-20-10, based on the 1 in 5 numbers. Does this still sound attractive? Can you fnd 30 people to see the plan, let alone find 30 people to register? Do you get positive reactions when you mention "Amway" or do you get funny looks? Are you upfront with prospects or do you leave out "Amway" when prospecting?

You could be lucky and sponsor say 20 people and go platinum or higher, but conversely, you may have to sponsor 88 people to find 6 downline capable of sponsoring others. If you have not sponsored a single person or have trouble adding new people each month, you should ask yourself an honest question. Is this business working for me? To me this is pretty clear. You will not go diamond sponsoring only 6 downline, unless your downline never quits, or sponsors people before they quit. And even that doesn't guarantee anything.

Realistically, you will need to sponsor 20-30 people personal width, consistently adding new IBOs, or your group will suffer from attrition and backslide. Where are you at?

Wednesday, May 13, 2009

Amway - Never Quit And You Will Make It?

One battlecry I heard as an IBO, and I am pretty certain it is still taught, is that an IBO will eventually succeed if only they don't quit. Uplines may use some superstar as an example, such as Tiger Woods would never quit. It is true that Tiger Woods will never surrender a tournament. He will try his hardest until he completes the last hole in a tournament. The problem is comparing a business to a sport is not a fair comparison as I will explain.

Golf, football or other sports are loaded with stars and champions who will never quit. However in sports, the tournaments, games and seasons come to an end. While Tiger Woods may never give up, the tournament will end and he will not win them all. A football game will end and the players will go home. Sometimes in certain sports, when a game is out of reach one way or another, the substitute players enter the game/ It doesn't mean a team has quit or given up, but have come to the realization that they might be better served to fight again another day.

However, there is absolutely no evidence that someone never quitting Amway will result in success. The only guaranteed success will be your upline pocketing standing order and function profits if you stay in the business. To say never quit may be applicable in the context of don't quit trying. In other words, if Amway doesn't pan out, look for another business and give it a run. If not, it's like telling someone they will eventually win the lottery if they keep buying tickets. It's simply not true.

The intesnt of this post is not to encourage someone to up and quit their Amway business, but to get IBOs and prospects to take a critical look at their businesses. Are you able to do what is needed to progress? Are you finding people interested in the business or have you resorted to deception? Are you able to sell the products? If you can't, then chances are your downline can't. Are you keeping track of expenses and making a net profit? A business exists to profit, not to make you a nicer person or to takes losses month after month.

If you are not achieving what was promoted by your sponsor, you should think about your future prospects. If it doesn't look good, don't quit, but consider another opportunity. Amway is not the only business opportunity out there. There are many ways to earn extra money, you just need to find them.

Tuesday, May 12, 2009

Amway - Is Amway Relevent?

Many IBOs join Amway after seeing a presentation. These presentations are crafted to make people uncomfortable with their current situations and/or jobs. Some dream building is done where prospects are given thought provoking messages such as what would you do with an extra $40,000 a year for example. On the surface, it seems to make sense and it seems plausible. The problem usually occurs when IBOs get out in the world and try to build the business.

But in the big picture, is Amway itself needed? I mean you buy products and if you move a certain amount of volume, you get a performance bonus. The goal of many is to sponsor six (6) platinum legs and become a diamond. Some diamonds in the past spoke about how you could technically bury Amway products in your backyard, as long as you did your 100 PV. I guess in a strange way that is true.

In my opinion, the Amway business itself is irrelevent. The Amway business exists to legitimize the motivational businesses of many LOS's such as WWDB, BWW, N21, for example. The motivational business in itself is a huge business. However, the content of much of the material cannot be sold to the general public as evidenced by caseloads of these tools being sold for pennies on the dollar on ebay. The tools only serve to enrich the upline leaders who own the tools business off the backs of the Amway IBOs. Do the math. It costs very little to produce tapes and/or cds, seminars are big money makers. Check and see how much it costs to rent a convention center or arena. You could probably find one where $20 to $25 per person would more than cover the cost. Also, there is little evidence that the tools are effective, despite what upline leaders or Amway apologicts may claim.

There are also groups who have left Amway for other MLM businesses, which also suggests that Amway is a sidebar in the real business for these upline leaders. But still, Amway or another MLM is needed because LOS's cannot simply sell cds and functions without some kind of product to pimp. Thus, together with Amway, upline leaders and Amway handsomely profit together. Upline teaches 100 PV, and that tools are vital to your Amway success. But in the big picture, Amway is not relevent. Think about this seriously for a minute. Next time a function or standing order ir promoted, I urge prospects and current IBOs to digest this post and to think about this.

Monday, May 11, 2009

Amway - Sign Up With WWDB and Make $80,000 Easy!

This is a contact I received from a WWDB IBO a few months ago. Notice the tapespeak and wild income claims. And to think Amway apologists deny that this stuff still goes on..........

Hey, thanks for the reply, I would be happy to tell you what i do, and who i work for.

I am what you call an IBO or independent business owner, its a franchise you can buy in for only 60.00 dollars. Basically the key to making money and plenty of it is to recruit other people to sign up and start their own business. With starting your own business you sell Quixtar's products, and they have everything, so its not hard for anybody to find something they like, also Quixtar has 30 partner companies such as: Circuit City, PacSun, Nascar etc.

Sure, to start your own business you sign up with WWDB or World Wide Group is a company that provides you your website plus learning and training materials to make sure you become successful in the business. They pretty much hold your hand until you become successful. As far as what i have accomplished in owning my own business i have only had my business for 1 month now and am very happy with it. My mentor or upline, the guy that sponsored me into getting my own business started is my girlfriends father, and he is very successful in the business, which is why i joined, if i told you how much he made a year you wouldnt believe me.

The plan that World Wide group puts you on is mapped out to make you earn 80,000 dollars your first year, which means you would become a platinum member, it goes all the way up to diamond members which make in the six figure incomes

World Wide is not free, but it pays for itself because you will see customers sign up to your website to buy products, you will sell to your family, friends etc., plus if your like me you will try to sign as many people up in your first month as you can, so no, world wide isnt free, but it will pay for itself.

Yeah I’m still in it, i probably work with it about 8-10 hours a week. No, I’m not on pace to make $80,000 in a year, but it’s my own fault, I did not work hard enough. One good thing though, I know I am a better person and getting a check every month helps, even if it’s a small one.

Friday, May 8, 2009

Amway - IBOs Help People? Not!

When I was still an IBO, we were taught that the business was really about "helping people". Thus many in the group believed we were helping people by showing them the business. That the world will collapse if only good people didn't do anything. Thus sharing the dream and sharing the business was indeed "helping people". It was after I left the business that it truly started to sink in that the AMO teaching was 100% wrong and we were never helping anyone.

The reason why showing someone the business is no help is because if the prospect joins, then that prospect has a fraction of a 1% chance of making any money, and if on the system, that same person has more than a 99% chance of losing money. Is that helping someone?

If someone declined to join or buy Amway products, chances are an IBO never saw or spoke to that person again. This same person, seen as "sharp" before the plan, is now seen as negative, or a loser because they did not see the business as their savior.

What I also realized is all the time I wasted in prospecting people, showing the plan, and attending meetings and functions, could have been better served in actually helping people. For example, when I was sitting in a weekend function, I could have been doing outreach with my church to feed the homeless. The Amway business, while it is promoted as part time, perhaps 8-10 hours a week, it is much more involving than that. If you are a business builder, chances are you spend nearly every waking moment trying to meet new prospects, or trying to show the plan to someone.

So how exactly do IBOs help others?

Thursday, May 7, 2009

Amway - Duplication Works Better In A Copy Machine!

One thing many MLMers and Amwayers in particular think, is that duplication is the key to success. Just get others to copy you, I have heard. I remember upline leaders talking all the time that anyone can "copy". Copy is all you need to know and do and you will be successful. But it is very apparent that it is not an easy thing to get followers and to get people to copy.

It's not like you drive to a local UPS store or Kinko's and use a coyp machine to make duplicates. If Amway was such a great business opportunity, you would probably see diamonds breaking in 2-5 years. The fact is that since Quixtar, and now back to Amway, the number of new diamonds has been insignificant compared to the number of IBOs that have come and gone. I believe a year or two ago, an Amway sponsored blog stated that 160 "diamond-ships" attended the Quixtar diamond club in Hawaii. Those were suppopsedly currently qualified diamonds. I'm sure not all diamonds attended, but 160 doesn't sound like much after 48 years in business.

But back to the topic. Duplication doesn't work in Amway because people either already have a bad impression of Amway or the AMOs, or new recruits register and quickly realize that the products cost too much when compared to similar products they can purchase at their local grocers or WalMart. Then you factor in the additional cost for IBOs who participate in the "system" and you have what you have. A low retention rate for IBOs, and IBOs who sign up on the hype and do little or nothing, and IBOs who want to succeed, but simply cannot because of the baggae they carry associated with the Amway name. According to Amway (formerly Quixtar), only 1 in 5 IBOs are able to sponsor another IBO.

When you sit down and really think about these facts and numbers, you can easily see that the 6-4-2 or 9-4-2 or whatever is taught today is nearly impossible, let alone finding downline who can achieve and maintain a group based on these plans.
You can much more easily duplicate Amway by writing Amway on a sheet of paper and going to a copy machine!

Tuesday, May 5, 2009

Amway - Listen To Your Upline?

When I was recruited for Amway, one thing I vividly remember was how I should listen to my upline. That they had my best interest at heart and would never advise me to do anything that would hurt my business. In fact, one of the steps of "CORE" is to be teachable or be coachable. We were to submit to upline. People who can humble themselves to take advice from upline would be successful. I believe that in many groups, this is still taught and emphasized. There are pieces of evidence on the internet that some major groups still teach this.

What is interesting though, is how upline takes no resonsibility for IBOs who do what they are taught but fail. The system and upline are often credited for the few successes that they churn out, but they absolve themselves of any responsibility for IBO failures, which is almost all IBOs who get involved with Amway. In fact, upline "love" often turns to de-edification to an IBO who fails. If an IBO gives their all and fails, and subsequently quits, suddenly that once up and coming star IBO is now labeled as bitter, loser, or negative. Upline justifies this by saying that the IBO walked away from the group and the "friendship". Never mind that the failed IBO was faithful and did what was taught, only to be led astray by an upline who profited from that IBO's efforts. This also instills a fear in current IBOs. They fear quitting as they do not wish to be labeled or ridiculed should they decide to walk away from a business that is siphoning their bank account in the form of overpriced products, cds, function tickets and books.

For many if not most IBOs on the system, the upline leaders are ruthless conmen with nice suits and nice smiles. They will "love" you when you are gung ho and dedicated to their foolproof system, but will quickly shun you if you start to see the flaws and question the system. It is why I started blogging, to inform unsuspecting prospects and current IBOs of what they may be experiencing.

Monday, May 4, 2009

Amway - Justifying Failures?

One of the things the speaker talked about when I first saw the plan at a big meeting was how people justify their position in life. For example, a father may say a certain school was good enough for him, therefore, that school is good enough for his children. Another example was a wife wanting to take an Alaskan cruise so her husband says look in the freezer if you want to see ice. The speaker went on to say that people justify their position in life to make up for a lack of income or resources.

Thus when you join Amway and go diamond, it was implied that you no longer have to justify these things. That you can now afford the Alaskan cruise, send your kids to exclusive schools or colleges. The sky is the limit for a diamond. All you need to do is find your six directs and life will be rosy. That message was loud and clear. You start to think that finding six can't be impossible. You start thinking that you will be the next diamond adn reap these rewards.

The point of this message however, is for IBOs. Are you justifying your losses in Amway? Are you spending $250 to $300 a month on Amway products and making $10 a month? Are you additionally spending $100 or more on tools? What justification are you using to assure yourself that spendi9ng $400 or more each month is a good idea in exchange for $10? Are you getting good value for your dollar or are you simply willing to part with that money in the hopes of going diamond? Are you on track to make some money in Amway or are you participating in a hobby that slowly drains your resources? Are you actually successful in Amway or are you faking success in the hopes of attracting new prospects? Are you really successful or justifying a business that is losing money?

Take a good look around yourself at your next meeting or function. Are people progressing or do you see the same speakers month after month, meeting after meeting. Are you growing or justifying your continued participation in the business? Are you justifying failure? Businesses exist to make a net profit. If you aren't, then what are you doing?

Friday, May 1, 2009

Amway - What Early Retirement?

I recently read comments by an Amway IBO that totally cracked me up. He said when he was recruited, he was told up front that Amway is not get rich quick nor is it easy. Then in closing, this 22 year old said he will be retiring at the age of 27 and living large. It is very redundant for IBOs to claim that they think AMway is hard work and will not allow them to get rich quick. It that were the case, why would they join in the first place instead? Obviously something appealed to them in the pitch.

But it brings me to another point and that is this. Do IBOs actually know anyone who is retired early because of the grand Amway income? I do not claim that nobody has done this, but I have not heard of anyone, nor do I know anyone who can make that claim. In fact, apparently, even the "Crown Ambassadors" are all still working their Amway businesses. It may seem glamourous to travel the country to speak at functions, but I can see how that can be tiring and at times, boring.

If these folks could actually "walk away" from their Amway businesses and collect residual income forever, why don't you hear about anyone doing it? Let's examins this possibility for a minute. Amway IBOs have a very low retention rate. Thus once anyone "walks away" from their business, it will immediately decline unless you have growing downline leaders in each of your legs. I will guess that this is not true of most diamonds and above. This can be concluded by the fact that most diamonds and above are not of the "founders" variety.

So I will ask prospects and current IBOs. If you are in the "biz for early retirement, are you on track to accomplish that or are you only dreaming about it?