Thursday, October 29, 2009

Amway - Why Do IBOs Justify Their Lack Of Success?

Other than Amway, I cannot think of any business where sales people or IBOs feel a need to justify their lack of success. I hear all kinds of crazy things such as how Amway saved a marriage or how an IBO has become a better person as a result of the Amway business. Now if your involvement in Amway did indeed save your marriage or made you a better person, that is a great side benefit. But the Amway opportunity is supposed to be a business and a business exists to make a profit. This is something that IBOs seem to overlook when they are involved.

I believe these "side benefits" are mentioned by upline as a diversion away from the fact that these IBOs aren't making any money. My upline used to say you get in for money but you stay in for friendships. They may also use the line that the Amway opportunity is not get rich quick. I believe that is because the upline wants you to stay in and expect you to purchase tools for a while.

But a very important question is why IBOs need to constantly justify their lack of success? Is it a good idea to be involved in an opportunity where you aren't turning a profit and need to justify the lack of success? Many IBOs blame themselves despite the fact that your upline may have asked for your trust and blind loyalty. You do what you are told but the upline leaders never take responsibility for an IBO's failure. It like playing a game of heads I win and tails you lose.

If you are new in the business, nobody expects you to be making a fortune overnite, but certainly a business that promote low or no overhead and a low start up cost, why shouldn't you be able to turn a profit within a few months?

Why do IBOs have to resort to rationalizing themselves with claims of concentration and/or quality? Apparently the general public doesn't agree, based on the lost sales to non IBOs. Seems the only ones who see a benefit in regular consumption of Amway goods are IBOs, who are hoping to reap financial rewards for doing so. Either your business is growing or it's not. No amount of justifying or rationalizing will change your bottom line. I just hope more IBOs and prospects will see this before it is too late.

Wednesday, October 28, 2009

Amway - What Level Playing Field?

One of the things my upline always seemed to be talking about was how Amway was a level playing field and that was because everyone starts at zero. While on the surface, that may sound reasonable, but when you dig deeper, you may find that it is not a level playing field and that the deck is stacked greatly in favor of your upline.

One of the points in the Amway plan was to eliminate the middle man in the distribution of products thus allowing an IBO to gain a bigger piece of the profits. While this may sound reasonable, what actually happens is an IBO is a prt of a system with even more middlemen taking a cut out of an IBO's efforts. If an IBO were to simply buy and re-sell a product, that IBO would get all of the profit. In Amway, the corporation pays about 31-33% back to the IBO force in commissions and bonuses. But a new IBO would get only a 3% commission (100 PV) and his sponsor and uplines would enjoy 28 - 30% of the commissions. The new IBO did the work, but got only a tiny percentage of the bonus. What's fair about that?

An IBO can eventually get a bigger piece of the commission by sponsoring downline and moving more volume. However, the newly sponsored IBOs end up in the same unfair position that the sponsoring IBO was previously in. Also, until you are at the 2500 or 4000 level, you probably won't even generate enough income to cover your business and system expenses. Also, because of Amway's reputation, especially in the US and Canada, it is very difficult to sponsor others. Most IBOs never sponsor a downline.

The playing field is not level. Upline may want you to think it is, but a closer looks reveals that it is heavily stacked in favor of the tenured uplines.

Monday, October 26, 2009

Amway - A Comparable "System"?

Many IBOs and Amway supporters adhere to the idea that their system works. As far as I know, there is zero unbiased evidence that the system works. The system generally consists of a website, voicemail, standing orders and seminars or functions, as well as meetings to show the plan, etc. While Amway supporters will claim that nearly everyone who succeeds is on the system, they won't mention how everyone who succeeds also has hundreds if not thousands of downlines who do not succeed, even with earnest effort in building the business using the stsem.

Edward O. Thorpe was a math professor at M.I.T. who studied and wrote a theory on Blackjack, and found that it was mathematically possible for a blackjack player to have an edge over the house in a game of blackjack. Casinos scoffed at the theory and said it was just that. A theory with no real life application. Well, Mr. Thorpe started playing small and found that his theory was correct. He was counting cards in blackjack and making consistent money. His book eventually became a best seller. The casinos were ticked off and started kicking out people who were obviously winning and counting cards. Counting cards is not illegal but casinos can refuse to allow a player on their premises. But what casinos did not notice right away, was that their profits were skyrocketing because so many people knew the theory but could not or were not capable of executing the card counting system.

But hey, the system works so everyone should count cards for a living right? Afterall, it is proven by math that the cards will eventually favor a player and in the long run, you can make huge profits from playing blackjack. Of course not, it is ridiculous for people to think that card counting is a good way to make a buck. Not everyone has the bankroll, the skill, and the patience to succeed in card counting. Most people are better off not even trying this.

In my informed opinion, this card counting system is just like WWDB, BWW, LTD, N21 or other Amway systems. For one thing, card counting is a proven system. The Amway systems are not. But it can be viewed as similar in that very few people can use the system and make it work. Even when hundreds of thousands may try it, very few will succeed in both Amway and card counting. In both "systems", those who do not succeed can lose thousands of dollars. In both systems, doing things right can still result in losses.

In both systems, it is "possible" to succeed, but it is highly unlikely. The vast majority of people simply do not possess the knowledge, skills and abilities to make the systems work for them. You also need some money, some patience, and some luck in order to be a long term success. This article is not about comparing the Amway systems to gambling, it is about a person's ability to make the system work. The difference is that nobody promotes card counting as a good way to make a buck. The same holds true about Amway and their systems. It is not a good system to make money.

Thursday, October 22, 2009

Amway - Beware Of Your Upline?

Over the years, I have encountered many IBOs and they often have a common theme. They trust their upline and in some cases, consider them mentors. Now in a business venture, it might be good to have a mentor or someone to guide you, but in the Amway opportunity, most of the upline mentors make money off those who they mentor. That is a major conflict of interest but IBOs simply fail to see it.

When an IBO sees the plan in a big meeting, the speaker will often be built up as a financial guru, and possibly as an expert on how to succeed in Amway. An IBO may headr something about the trail was already blazed by upline and you just need to follow the trail. Don't re-invent the wheel, just copy what upline did. But as I have said many times before, duplication sounds easy and looks good on paper, but in real life, the vast majority of IBOs run into problems that they simply cannot overcome, such as the bad reputation that the Amway name has in the US.

What is troubling however, is that IBOs are taught to trust upline and do as they say (defacto requirement), but they are also taught that failure is their own shortcomings, even when they do exactly what upline told them. It is also troubling that many uplines will tell their faithful followers that they need to purchase more and more tools (voicemail, cds, seminar tickets). In some cases, an upline may advise their downline to sacrifice basic family needs to buy these tools. Some IBOs were advised to skip meals to buy a cd, or skip paying the mortgage to be able to attend the next big function.

I might also add that as a newer IBO or prospect, you may have heard that "everyone starts at zero", or that it's a level playing field. It is not. As a new IBO, you will likely be in the 100 PV bracket. Since Amway pays out about 31% in bonuses, your upline(s) will split up about 28% in bonuses off your efforts while you get a 3%bonus. That doesn't sound very level to me.

So each IBO should look at things objectively and see if your upline is helping you or simply helping himself by giving you advice that ends up in profit for himself with little or nothing for you.

Wednesday, October 21, 2009

Amway - IBOs Help People?

When I was an IBO, I remember at many meetings, the speaker would talk about how IBOs are helping people by getting them in the business or at least showing them the plan. Looking back, I fail to see how inviting someone into a business where they are virtually assured of losing money (in the systems) is helping them. This is also how some IBOs think that they are suddenly "better" people because they think they are helping people by being an IBO.

On average, Amway products cost more than big retailers so a prospect is not necessarily helped by purchasing Amway products. For IBOs purchasing Amway products, they are taking away from their local economy by purchasing Amway goods, although I guess you could argue that the IBO is helping Amway to succeed.

IBOs who are actively building a business usually have many meetings to attend, and hard core IBOs are taught not to miss any meetings. Therefore and IBOO has less time to spend with his or her family. The IBO has less time to spend at church, and less time to help with any community projects. The IBO will probably miss someone's wedding or birthday celebration because of the hectic schedule of an IBO.

While all of this activity is happening, IBOs also have less money because the voicemail, standing order, functions and books and other expenses eat away at an IBO's resources. Thus IBOs have less to contribute to charity.

So an honest question. How do IBOs help people by building an Amway business? How are they better people by showing someone the plan?

Im my informed opinion, the nicer and better person is what upline teaches as a side note to distract an IBO from the FACT that they are losing money because of the defacto 100 PV and tools requirements. They also make it seem as if IBOs are "helping" people by showing them the business plan. When you think about it, perhaps just the opposite is happening. This is another tactic, IMO that uplines use to justify an IBO's lack of progress, much like how they tell downline that they are successful just by getting themselves to a function.


Tuesday, October 20, 2009

Amway - Time And Money?

Time and money. When you control both, you are free. At least that's how the business was pitched to me as a prospect. It made sense at the time. If you have enough money, then you don;t have to have a job and go to work every day. Having enugh money allowed you to control your time. It sounded like a great deal to sleep late every day and not have any financial difficulties. It sounds so simple. Join Amway, 2-5 years and there you are.

But for most people, joining Amway (and the systems)ironically robs you of what you desire most. Time and money. For those wanting to build a business, you may be told you need to invest in your business, and while that may be true, I do not believe there is any bonafide evidence that can support the relationship between the investment of time and money into the Amway business and earning a significant income. Many people have invested years and thousands of dollars into the business only to end up with nothing. My sponsor was a physician who spent many days away from his practice (lost income) and his oldest child (son) probably didn't see him very much since he was out showing the plan every nite.

Diamonds give the appearance of being filthy rich with nothing to do but golf abd go shopping but we are now seeing evidence that diamonds may not be all that. Home foreclosures, bankruptcy, former diamonds speaking out, diamonds moving their groups out of Amway, diamonds possibly selling their homes and downsizing. I believe that there are possibly many - a - diamond who is in financial difficulty and they have not escaped the tough economy as they may have implied in a meeting.

Also, if diamonds were so free and filthy rich as they like to portray, why don't any of the bigger pins ever walk away from the business and live on the beaches of the world that they like to talk about? Why are they always attending and running functions? I am guessing tha most of them are working these functions - because they have to. I suspect that some of these diamonds are in debt trying to portray a lifestyle that they truly cannot afford.

If you are joining Amway to gain more time and money, I urge you to make sure you are keeping track to see if you are gaining time and money, but if you look carefully, you will probably find that what you desire more of, is what you actually have less of. That is, time and money.

Monday, October 19, 2009

Amway Apologists Are In Denial?

The battle continues between Amway critics and Amway apologists. The apologists like to cite new platinums, but do not mention that just as many, and possibly more platinums dropped out of qualification. They like to cite Amway's growth, but fail to mention how the growth is apparently in foreign countries and not in the US and Canada. Even if there are more platinums or growth, it doesn'e mean anything and I will go onto explain.

In a platinum group, there are in many cases, 100 downline IBOs. Most if not all of tehse downline are losing money or making nothing, and it is worse, especiialy if they are buying voicemail, standing order and other tools. An IBO who does nothing may still lose money on website fees, or at the minimum, registration fees. Yes, they might be refundable, but many IBOs are not aware of this, or are not interested in asking their sponsors, or simply write up the loss as a life lesson. Thus the more growth, or the more platinums, the more downline there are losing money.

I also understand that Amway is not a game of chance, but your odds of achieving a significant income can be compared to winning a lottery. Even those who put forth an earnest effort are rarely rewarded with upper echelon pin levels and "passive income" rolling in while you walk the nicest beaches of the world. Amway supporters are wanting to show what is "possible", but showing the best case scenario is deceiving and IBOs do not realize "what is likely" until they have already participated and wasted their hard earned cash on tools that do not work.

There doesn't appear to be any connection with the amount of effort an IBO puts in with progressive amounts of income. While you can argue that succeeding takes hard work, there are probably more cases of hard work resulting in financial losses or possibly financial devastation. I personally witnessed a crossline losing their home to foreclosure and a crossline winding up in bankruptcy, all while following upline advice to keep pouring money into tools even while these IBOs made no progress in terms of sponsoring downline.

The Amway Apologosts can continue to deny the shortcomings of the Amway opportunity, but for me, the results speak loud and clear.

Friday, October 16, 2009

Amway - The Hypocrisy Of Upline Leaders?

Now that the internet is so accessible, information flows freely and some of the dark secrets of the Lines Of Sponsorship have been exposed. Also, as times passes, it is becoming clear that a bunch of upline leaders are major hypocrites, apparently motivated by greed and personal gain. I believe this trend will continue as well.

Many upline leaders appeal to their audience by talking about how the Amway business can save marriages. I remember sitting in an audience when some diamonds spoke about how couples who build the business have a less than 2% divorce rate as compared to the national figure of 50% or so. One major reason cited was the financial stress that J-O-B people had (not enough cash). But now we see some upline diamond leaders getting divorced and in some cases, no explanation is offered, as if the missing spouse was beamed up by aliens.

People also found that some diamonds make a lot of money from tools. When I was an IBO, we were told very clearly, that nobody made profits from tools. That profits went back into the functions to make them better and cheaper. (Has any function gotten cheaper in the last 12 years?) In fact, when I was an IBO, I was told that WWDB was a non-profit entity, which was a bold lie. I will admit that upline later changed their story to WWDB was a for profit company, but nobody kept profits, thus the channeling money to make events better and cheaper.

Some upline leaders also spoke of how utterly stupid it was to take out a loan as the banks make so much money off the interest. We now see some of these very leaders having their homes foreclosed! Some of these diamonds were the very ones who said their pay cash for everything, including their homes and cars.

What's even more amazing is how the hypocrisy of some of these leaders are exposed to downline and the downline simply ignores it and continues to follow blindly without an explantion or questioning the leaders after the incidents are exposed.
IBOs should ask their leaders questions when these kinds of issues arise. And you should think twice if the answer your receive is questionable.

Wednesday, October 14, 2009

Amway - Road to Riches Or Path To Financial Disaster?

When I saw the Amway plan, it was presented sort of as a raod to riches. Yes, the presenter was careful not o say it was "get rich quick", but 2-5 years is relatively quick when compared with working 40 hours a week for 40 years as the business plan was shown to us. And while some exceptional people do achieve diamond, there is a trail of IBOs who suffer losses, some of them staggering. In our own group, I know of at least one couple who lost their home following upline advice, and another couple to ended up filing for chapter 7 bankruptcy. I must state that the bad advice leading to bankruptcy and foreclosure most likely came from upline leaders. I also know of a gal who quit her job to attend a function, faithfully following upline advice from WWDB.

So what is the experience of many CORE IBOs? I'm not talking about those who "do nothing", but IBOs who actually make an effort. Well, if they do their 100 PV, then they are spending about $300 a month and dedicated IBOs will typically spend about $200 a month on average for tools. This is for a single person. A couple or family would be expected to do more, thus spend more. So for these 100 PV IBOs, they will expend about $500 a month and get back maybe $10. Of course if they were not in Amway, they would still have some expenses for household goods, but not anywhere near $500 a month.

Over the course of a few years, these expenses add up and can become staggering losses. Hard core IBOs might expend even more. The only way a rank and file IBO can gain relief is to sell products (which is difficult given the prices and the Amway name reputation) or to sponsor downline who wil then suffer some of the losses for you. It would be my estimate that an IBO might break even at about the 4000 PV level. However, at 4000 PV, you might have 30 to 40 downline. The catch is that only about 1 in 5 IBOs manage to sponsor another IBO.

Over the years, I would suspect that millions of IBOs have come and gone through the Amway opportunity, and probably lost billions of dollars. But many of those who lose money think they are successful, because many upline will edify those who buy tools, regardless of IBO results. After a few months, if your group and PV are not growing consistently, it is highly unlikely that you are headed for success.

IBOs and newbies, are you on the road to riches or financial disaster? Keep in mind that a net loss is not success, despite what you upline mentor may tell you.

Tuesday, October 13, 2009

Amway - Amway's Caped Crusaders!

I have been blogging for a number of years now and over the years, I have encountered a number of Amway defenders. One of them resorted to sending me a threatening email, and some of them have been trying to find my identity, I suppose as a way of harrassing me. What I have found in nearly every case is that the "fired up" IBO will criticize for a while,, and then completely disappear. I presume that the luster of the Amway business fades and more than likely these folks end up quitting, and thus quit blogging.

But as I stated elsewhere, other big companies such as WalMart has critics. But Amway is the only business I know of where their salesforce independently defend the company by attacking and criticizing their critics. What's even more astounding to me is that many if not most of these "caped crusaders" don't even earn a net profit from Amway, yet they fiercely defend their beloved opportunity.

I have yet to see an IBO Amway defender be able to describe or reasonably explain, how they have earned a net profit from the business. I know that some people make a nice living from the Amway opportunity, but that is the exception, not the rule. I would guess that most IBOs, even dedicated ones end up with a net loss if they are fully subscribed to the teaching system of cds, books, voicemail and functions.

Lastly, many of these IBOs have misguided criticism. If you carefully read through Joecool's blog, you will notice that most of my articles do not focus on Amway the corporation, but the AMOs, or the companies that promote and sell the tools to the IBOs. I believe the upline diamond leaders are in a position of conflict of interest in selling these tools, and basically screw over their downline in some cases, especially when the advocate for IBOs to have their families skip meals so buy more cds, or to dekay paying bills or the mortgage to attend a function, or to qui a job to attend a seminar.

It is these abuses, which apparently still go on today, which is what I am against. And while these abuses continue, so does Joecool.

Monday, October 12, 2009

Amway - Prospects And IBOs Deceived From The Outset?

I was thinking about how propsects are invited to see the plan. In many cases, there will have been a bit of deception or half truths told in order for an IBO to get a prospect in front of the plan. But then I thought about the plan and how much deception was used in the plan itself by the speaker.

Thus, IBOs and new prospects are deceived right from the beginning. The speaker might make some small talk, and get the prospect to agree on certain issues, such as income tax and insurance eating away at your paycheck, etc. When a prospect hears this, it will make sense and they will agree and trust the spaker somewhat. Afterall, the speaker has been built up to be a financial whiz and all.

Then the deception begins.............

The speaker might talk about IBOs saving 30% on products righ from the start, which is false. Here's some information debunking that age old myth:

Then the speaker might talk about 98% of people being dead or broke by age 65, which is not true. The speaker might talk about 90% or more of small businesses failing in the first year. These little factoids (which are untrue) are apparently used to make other opportunities seem flawed in comparison with the Amway opportunity.

The speaker might then talk about how the Amway opportunity is cheap to get started, and has little or no overhead. But the problem is that many dedicated IBOs will get hosed as their upline will begin to teach them that they need to invest in their business in the form of voicemail, book of the month, standing order and attending all meetings. These expenses nearly guarantee that an IBO will end up with a net loss of income. What's more, upline may teach that this is success! Appalling!

So a question for IBOs and prospects. Is it a good opportunity when you have been lied to or deceived right from the outset?

Friday, October 9, 2009

Amway - Contradictions By Upline?

What I noticed as an IBO, and still observe today is the contradictory teaching my many upline. I see it as sort of a bait and switch technique where IBOs may be prospected by being told one thing, and then having the teaching changed after they register. There are many examples, but one of the main issue is when the plan is presented, many promoters will talk about how an Amway business has little or no overhead, therefore you should be able to profit quickly.

A quick profit is definitely a pitch that prospects are enticed by. But what I have observed is that the teaching quickly changes to a real business owner must invest in his business. Usually this means that an IBO must invest in tools and other cost items allegedly needed to run a successful Amway business. IBOs will often claim that a business owner should not expect to profit for 5 or more years. But wait, that's not what was said in the opening presentation right? This is just one example of the bait and switch used by uplines.

Another one I have heard, and quite commonly, is to tell IBOs that meetings are not required. While it may be true that meetings are not required, uplines will tell prospects that they "need" to attend, but only if they wish to be successful. Does that sound optional to you? It sounds like a (defacto) requirement to me.

A big take also told my many upline is that an IBO should get out of debt. Now on the surface, this is good advice for most people, including business owners. But while upline will teach get of of debt, they will at the same time, say it is okay to go in debt if it is to buy standing orders of to attend functions. Huh? Why would it be okay to go into debt when upline is teaching you to get out of hock? Maybe they only want you to spend money you don't have if it will benefit upline?

Now these are just a few examples. I have many more, but you can see from these examples, that contradictory advice basically is to get you enticed and involved in the business, and then a seperate set of expectations are set forth for IBOs. Another one is how most people would never spend $300 a month (100 PV) on household goods, yet they see it as a component of getting wealthy so they will do it while they are "building their business". Once an IBO does not see it as a component of getting rich, they stop using as many Amway products, and in most cases, do not even buy Amway products after they quit.

The discrepancies are there. It's a matter of whether an IBO will recognize and question it or not.

Thursday, October 8, 2009

Amway - Fake Success Is Easy To Achieve!

Success and achievements. It is what most IBOs strive for. I know that Amway apologists are famous for justifying fake success, which is why I decided to write this blog post. By "fake success" I am talking about how apologists will say an IBO sold a can of XS for example, and will proclaim success. Now sure, selling products can be a step in the right direction, but the way IBOs act and the way their actions are reinforced, suggest to me that IBOs are given questionable ideas about success.

Prospects who attend a formal board plan or open meeting will very likely see a 6-4-2or 9-4-2, or some version of a plan. The plan generally will talk about going platinum where you make $40 to $50K annually, and all you need is six and then you are a diamond, etc etc. It all looks easy on paper. Duplicate yourself and you will be diamond in 2-5 years.

In real life, many IBOs cannot even find people agreeable to seeinng the plan, much less be able to sponsor others. Thus it would seem that uplines need to create "success" milestones that will help to retain an IBO in the business, and in particular, the tools business. So you might hear that meeting new people is a success, or showing someone the plan is a success, or showing up at the function is a success. When I was an IBO, I heard that the most important person to bring to the function was yourself. IBOs were edified for selling some personal items so they could afford a ticket to the function.

On our voicemail system, I heard all kinds of testimonies of success. Looking back, it was all just fluff by upline to reinforce an IBO's efforts to build and stay in the business, even if the bottom line results were futile. For example, I recall one IBO being edified when he ran out of satinue and used LOC to wash his hair. Or someone selling their car to make sure they could buy a plane ticket and attend the next major function. One IBO was called dedicated because she quit her job to attend a function (her boss would not allow time off).

Folks, fake success is easy to achieve. But at the end of the month, when you look at your Amway bonus, and then you subtract the cost of your voicemail, website, standing order, and function tickets, do you have a loss or a surplus? If it's a loss and your volume is not growing, I hate to break the news to you, but you are not succeeding. Fake success is easy, real success requires applying real business principles.

Wednesday, October 7, 2009

Amway - Your Business Dashboard?

When you drive a car, you have instruments on your dashboard that let you know how your car is running and possibly whether you need repairs. For example, you have a gas gauge so you know when to refill the gas tank. You may have a oil pressure gauge, tire pressure, and an indicator to show how warm or cool your engine is running. My car has a light that comes on when I need to change the oil or service the engine.

Your Amway business also has some gauges. Unfortunately, many IBOs are taught by upline to ignore these indicators or made to think that warning signs are not to be heeded. I will explain further, but I believe too many IBOs see the signs, but simply have been trained to ignore these vital warning signs.

Selling products. Are you buying more PV than you are selling? I believe most IBOs do, and AMway numbers confirm this as there is on average, about 1 customer for every 4 IBOs, and only about 4% of Amway goods are sold to non IBOs. No business can sustain itself without selling to customers. Why IBOs think they can succeed without customers is because of bad upline advice or teaching.

Non income producing activity. If you spend a lot of time listening to standing order, reading books, attending meetings and prospecting people, these activities do not produce any income. In fact these activities cost you money. Sure, eventually prospecting may pay off, but are you getting a fair return on your time and money spent doing these activities. If you pay for standing order but are unable to do more than 100 or 200 PV, then your business is not even covering the cost of standing order, not to mention the other costs that your upline may have told you was "needed".

Tools. If your expenditure on tools (cds/meetings/voicemail/website fees) continually exceeds your monthly income, you need to take a look at what it will take in order for your business income to grow. If not, you will simply take a loss month after month. If you are not sponsoring or finding more customers every single month, you are simply running in place and you will expend energy (money) and not get anywhere.

Are you showing the plan? If you are having trouble finding people to see the plan, then you will be unable to sponsor enough people to expand your volume. Also, an inability to show the plan also restricts your ability to recruit potential customers. Do people flinch when you mention Amway? These are signs that should warn you that the opportunity is not palatable to most people, despite what you hear from upline.

The warning signs and gauges are there. IBOs simply need to believe their own eyes.

Tuesday, October 6, 2009

Amway - What Is The "System"?

One of the things I was told by my upline was how we needed to follow the system. That the system would guarantee our success if only we applied it. As far as I know, there is no unbiased documented evidence that the system works. Even if there is an occasional platinum or diamond, you must consider the hundreds or thousand who did not succeed when evaluating the viability of a system. Let's look as some of the system components with Joecool's commentary.

Website: This is obviously necessary to have an online business. The question is whether you are getting good value out of it. For example, if your website costs $20a month and your bonus is $10 a month, you need to move more products or sponsor more people to increase your volume. Of course, your downline will then have the same problem you just addressed.

Functions: IMO, this is the biggest waste of money associated with the Amway business. For one, functions (including major functions) are the most expensive part of the system. And despite the cost, it takes an IBO away from his business for a time period, and returns very little or nothing in many cases. Additionally,
many IBOs will wind up pay for a standing order which was recorded at this very function!

Standing order: Another big waste of money. A weekly cd or tape subscription wher you hear some diamond or higher up talk about how he was nothing but never quit and is now a diamond. Often, the speaker will emphasize never quitting and attending more functions. My sponsor used to tell me that standing orders can sponsor people if you give them away. I know fo nobody who was sponsored by listening to a standing order.

Books: Some books may have value as they may offer self improvement ideas or relationship advice. However, oftentimes, books can be purchased cheaper at Barnes and Noble instead of from your upline. And not all books are useful.

Voicemail: It can be a good tool, but IMO, it is useless for the way people use it as IBOs. If you are using it to allow customers to place orders or leave messages for you, that is fine. But if it is only to contact your upline, I don't believe it is worth the price paid.

All in all, some tools can be helpful but in most cases, an IBO will not make enough of a bonus or cover any one of these expenses. IBOs need to analyze for themselves and information seekers should take this to heart.

Monday, October 5, 2009

Amway - We Don't Make Money Until You Do?

One of the things upline used to say in meetings was that they (upline) don't make any money until you (downline) do. Of course we know that is a full blown lie in most cases because once you register (many groups have a starter kit including products), upline makes some money. Once you purchase a cd, a book, or pay to attend a function, upline has also made some money off of you.

It would appear that most uplines will try to lure prospects into Amway by showing them the best case scenario of going diamond or higher, and all the alleged trappings available at the diamond level such as mansions and fancy cars. Once they get a prospect excited about the possibility of not working while cash rolls in, they then pitch their "foolproof" system of voicemail, cds, tapes, books and seminars. Although it is VERY RARE for any IBO to reach a level where they can net a profit, much less buy mansions, the upline will convince you that these goals are only attainable through the system teaching.

The sad reality is the upline makes money if you succeed, fail or do nothing, as long as you continue to purchase tools from them. However, you may be edified as being a committed IBO. It is why they may tell you that the most important person to get to the function or meeting is yourself. In an open meeting, there really is no point in attending if you have no prospects as your business cannot grow as a result of your attendance, but your attendence costs time and money.

If you as an IBO or a prospect really observes carefully, you will find many activities that will cost you time and money and will not result in your business volume growing. For example, reading a book might be good for you, but it is a non income producing activity. Attending an open meeting without prospects is another good example. Listening to standing order is another example. With all of these activities, an IBO is expending resources and not getting a return. Frankly the worst investment is attending an out of town function where your expenses are great whiley your business is left unattended to at home with no growth in downline or in product volume.

Don't buy it. Your upline makes money from you when you buy tools, whether you do a lot, a little, or nothing.