Tuesday, January 5, 2010

Amway - The Business Is Fair?

One of the things my upline always taught was how the business was fair. Everyone starts at zero, we were told. Everyone does start at zero, but it is hardly fair when you break down the compensation and the layers of people between you and your uplines. I will also speak about how the sponsoring is somewhat cloudy as well. Despite the claim that you will be paid if you "do the work", it is not necessarily true. These are catch phrases that upline uses to make it seem fair.

The sponsoring system that Amway uses is a hit or miss. You could have tons of business acumen and insight on running a business, but your sponsor and others upline will always be your upline and will always profit on your efforts - simply because they were there first. In many cases, a sponsor has nothing to offer a downline. They are in no way shape or form able to advise or give sound business advice. But as long as they are in the business, they get to profit from your efforts. Does that sound fair to you?

Also, let's take a new IBO for example. If that new IBO sells and consumes 100 PV, that new IBO will receive a 3% bonus. Amway pays 32% to 33% of their take in bonuses. Thus the new IBO who "did the work" gets 3% and somewhere in the layers of upline, 29% to 30% gets split up among the upline. Some of the upline don't know that the new IBO exists, but they get a portion of the bonus, simply because they were there first. The new IBO has done the work and some of the uplines have done nothing to help this new IBO, but they enjoy a percentage of that IBO's bonus. Does that sound fair?

Tenured upline may also sell business support materials such as voicemail, websites, books, cds, and seminars. None of these materials have been proven to be effective in assisting IBOs in building a business. In fact, some of the biggest crown ambassador types built their Amway businesses before these materials existed. But because they were there first, they now claim to have the expertise on how to build a successful Amway business. Based on some numbers that Amway has provided, we can conclude that less than 1 in 240 IBOs ever reach platinum and out of those who reach platinum, less than 1% ever reach diamond. Not much evidence that the system works. Yes, I acknowledge that some people don't follow the system, but out of these ones who do follow the system, the success rate is still miserably low. If the system is so diffcult to follow and succeed, is it fair for IBOs to have to keep paying for a system that will not help them?

All of the above are reasons a new IBO has the deck stacked unfairly against them. Yes, some IBOs can overcome overwhelming challenges and succeed, but they are few and far between. Is this business set up in a fair manner? You decide.

9 comments:

Anonymous said...

I'm not an IBO but I am totally for people who want to make money through Amway or any other legal business. People assume that MLM is a get rich quick plan that requires little work. So when they do nothing or very little and make very little money, it is the business that is at fault instead of their laziness. Would people say that the McDonalds or Wal Mart business plan do not work? Think about it: someone from each of those companies had a plan and a product. They started a company then showed someone else how to do the same thing. And on and on the business continued. Is this not similar to MLM? MLM is a business model. Why people feel that they can own a business, not do any work, and still make money is beyond me. It also bugs me when people feel that if they have to put money up to start the business then it is a scam. What business do you know has zero start up cost? I guess paying 200,000 dollars to buy into a franchise is better than paying 200-500 dollars for a similar business model.

Anonymous said...

amway is not a legitimate business; it's a cult. get your facts straight!

Anonymous said...

Cult ha ha ha hows your job treating you when they tell you what to wear when you can take a break and they tell you how mutch you get paid cult maby you need to get your facts strait..what do you call a football team. A cult or a basketball team. A cult why do you call it a cult because everyone dresses in a suit and tie .what do you call a lawyer firm. A cult cause there all lawyers mabey you are not informed well and dont have the intelligence to build the AMWAY buisness .obviously it works and it helps people make money 11 billion in global sales you can either decide to or not decide but people who trash talk amway is cause they are critics and me personally I need more critics around cause the voice of a critic is the death gargle of a non achiver may all you dreams and goals come true merry chrismas

Anonymous said...

Right on man well put

Joecool said...

LOL, your Amway upline tells you what to wear. Or do you attend meetings without a suit on? 11 billion in sales is great for Amway, not for IBOs.

LOL, you yourself are in the ranks of non achievers.

Anonymous said...

As a matter of fact i am an achiver in amway i am a esmerald with saphires and over two dozen platinums in my organization and they all dont work for any one. They are mentoring hundreds of others to build a strong and profitable buisness im sorry it didnt work out for you its not for every body..and for your info if you work some where they tell you the expectations of how they want you dressed and if you dont do it welll see ya..besides who wouldent like to be dressed in a suit and represent their buisness..

Anonymous said...

And amway has paid 40 billion in bonuses back to their ibos how mutch has anyones employers paid them in bonus for moving a product ..hardly any if that ..so be a optimist not a pessimist and hope for the best

Joecool said...

What's your name or are you faking it till you make it?

You dress in a suit because your bosses (upline) tell you to.

Joecool said...

40 billion sounds like a lot but how many IBOs received a piece of that bonus? If there are 4 billion IBOs then everyone got $10. Big whoops!