Monday, February 8, 2010

Amway - The Amway Compensation Plan?

One of the major reasons why I think Amway is not such a good opportunity is because of the unfair multi tiered compensation plan. I have heard that Amway pays out about 32-33% to their IBOs, but I find it unfair in that you get rewarded for sponsoring people who move volume more than you do for actually selling products. I believe this is why so many IBOs are desperately trying to sponsor people and in some cases, deception and trickery is used in recruiting, which contributes to Amway's bad reputation.

This multi tiered compensation plan also rewards a few people at the expense of the masses. If an IBO works really hard and sold 100 PV worth of goods, that IBO would get $9 or $10 in a bonus from Amway and layers of upline would split up about $90. I fail to see how that is fair, especially when IBOs seemingly say "do the work and get paid". In this case, you do the work and your uplines get paid.

I think Amway would be more efficient by giving all IBO's 20-25% back as a bonus, with the remaining 8-13% in bonus (33 - 20 or 25) going to certain levels os achievers. I believe that this would truly allow someone to change their buying habits and gain some value. It would also be good for retention of IBOs because a 100 PV would get you a monthly bonus of about $60. If you sold 100 PV to customers, you would get the retail profit plus the bonus. I believe there would be less of an emphasis on sponsoring and more of an emphasis on selling. It would put less pressure on IBO's to recruit and sponsor, and I believe that Amway's reputation could be repaired in this manner. While you would have less emphasis on "going diamond", those who did achieve it could still get handsome bonuses.

I believe implementation of this type of compensation would also eliminate the endless need for cds and seminars. Sure, product expos and some teaching on salesmanship might help, but I believe that compensating the "majority" of IBOs would keep them interested in doing business and would lessen the need for tools. I believe this is a win-win for the majority of those in the business.

I'm sure some Amway apologists will find fault in my line of reasoning, but I believe this is a long term sustainable solution for Amway. Comments are welcome.

57 comments:

  1. just took a look at my balance today. $300 less than it was back in october when i signed up, thanks to this so-called compensation plan. not a happy camper!

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    1. Hi Bdjack, I've been in the network marketing business for a year and a half. At first it was a struggle because the industry was completely new to me. But I learned the new skills necessary to succeed and now making good money and even was rewarded with a BMW. Not bragging, just hoping you understand that it takes commitment and time. Losing a few hundred now to learn the business skills later is well worth it. I am actually a trainer so give me a call if you would like to know how I overcame some of the obstacles.

      Noah Phan
      714-519-6312

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    2. you're joking, right?

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    3. ATTENTION BEFORE YOU JOIN ANY MLM YOU MUST CHECK THIS OUT AND THOSE THAT HAVE BEEN BURNED ALREADY PLEASE CONTACT ME.

      for those who are looking for the real deal. Want to live their dream life and earn top commissions any mlm company pays AND who have been burned by amway or herbal life or any other mlm business that have promised you the dream but don't deliver, please contact me because you would want to know about this...email me at ageunlock@gmail.com

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    4. hi bdjack,

      have you been buying products for your own use, have you sold any products, have you shared the opportunity with other people, if you haven't, then your not doing amway, your doing your own personalized business but not amway. If you don't put the effort, u ant getting any out of it. This is the best business opportunity in 200 years of US history with endless amount of earnings.

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    5. congratulations! you've just won a gold medal for best liar in 200 years of U.S. history! :D

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    6. hahaha amway is a joke there are other businesses out there that can actually give you the life style you want and make you financially free and you can actually see results quicker... furthermore amways compensation plan sucks big time its a joke and i see people put so much dedication and effort into it and making shit money smfh... if you really want to be in a business with great benefits, great opportunity, and will be more attractive refer people to the business, and will financially change your life within a few months to a year then you need to email me right now stop wasting your time with people putting in your head like EDUARDO A GONZALEZ that you need to work harder.. the problem is that you can get results by working less just imagine if you put effort... message me for a life changing experience... bookerdarian@yahoo.com

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  2. Hey bdjack, I'd like access to your profile!

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  3. Hey bdjack- so you are part of amway? why are your funds less? I am looking to possibly join but doing my homework first. Let me know Thanks

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    1. I agree with the blogger, you work hard to recruit have to convince them of buying 100 bv what is that like $300 or so and get $6 to $9. I got in a different mlm that pays $800 residual for 12 in your group. Check it out http://xcallen.wakeupnow.com

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    2. I agree with the blogger lots of work for very little pay. I started another mlm that pays $800 residual for recruiting 12 check it out. http://xcallen.wakeupnow.com

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    3. I agree with the blogger, you work hard to recruit have to convince them of buying 100 bv what is that like $300 or so and get $6 to $9. I got in a different mlm that pays $800 residual for 12 in your group. Check it out http://xcallen.wakeupnow.com

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    4. No clue where you get your info from but I have been a part of Amway for 7 years now and the average new person that just sells 100pv worth of products receives around $150 for that effort.

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    5. NO CLUE WHERE YOU GET YOUR INFO FROM!! FIRST OF ALL, YOUR TERMINOLOGY ISN'T EVEN RIGHT SO I KNOW YOU HAVE NO CLUE WHAT YOU ARE TALKING ABOUT. IT'S 100PV NOT BV, BV IS THE BUSINESS VOLUME (DOLLAR AMOUNT) PV IS THE POINT VALUE. ANY PERSON THAT GETS STARTED AND JUST SELLS 100PV WORTH OF PRODUCTS MAKES BETWEEN $140-160!!!! SO.......LITTLE MORE THAN $6 to $9. AMWAY HAS PAID OUT $25 BILLION DOLLARS IN BONUS MONEY TO THEIR IBOs. FIND ME A COMPANY THAT HAS DONE HALF OF THAT OUT OF THE 1000s OF MLMs OUT THERE!!

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    6. JoeCool,

      You have tremendous insight. I like your compensation plan the best and think it would work for the majority of people.

      Something to think about:

      With Amway/Quixtar, the cult-like atmosphere, made me feel like I had no freedom. All trips, daily living, "friends and family", no free thought all adds up to giving up your life for Amway and all roads end up leading to Amway. Everything from what you wear, consume, paper you write "the plan out on", political party, is dictated to you. Instead of having freedom at the end of the tunnel, you become greed-driven and sell your soul to Amway/Quixtar and, thus, are not free at all. You can never retire. You constantly have to maintain and continue helping others "maintain and build their businesses" so you can remain at your level (includes Crown Ambassadors) of which there are only a handful, by the way.

      Thank you, Joe. You are Cool!

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  4. check out Mona Vie's plan its the best and continually getting better. GOD bless Mona Vie

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    1. I AGREE!! Mona Vie just got better! It's now LIFE and it is amazing! Full of integrity, ambitious people, welcoming environment team. Not to mention great information for improving your marriage, parenting, and yourself!

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    2. Of course the compensation plan is better, who wants to buy some magically fruit that cures every sickness you ever had. You better pay more to convince someone to sell some crazy stuff that people dont normally buy.

      Amway your buying products like toothpaste, vitamins, shampoo, make-up. People spend money on this anyway, but not they get bonuses back for it.

      When you talk about environment we have the same, and I'm sure all MLM's do as well. Who would be part of a bad environment. That is the standard. But in the end Amway has the best credibility. Our company owns the Orlando Magic, Has partnerships with the New York Mets, Detroit Red Wings, & Miss America.

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  5. Upline taking such a big chunk of the money wouldn't have been such a big problem had the prices not have been so stupidly high that it was virtually impossible to retail anything, as the money could have been recouped by sales.

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    1. I have to agree with you on that point Anon UK. If people do not perceive "premium value" of Amway products I suppose the sale hasn't been made.

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  6. Attention crybabies. I would rather earn 5% of 100 peoples earnings than earn 100% of the average mans earnings. Until you understand that you should remain an employee who does what he is told and if he does not he is fired and you can have the simple things in life working as a grunt.

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    1. YOU ARE PROBABLY RIGHT, BUT YOU NEVER CONSIDER THE ENORMUOUS EFFORT OF A LOT OF PEOPLE WHO HAVE BEEN HURT BY AMWAY SO, FOR ONE PERSON THAT GETS ALL THE MONEY 100
      PEOPLE GET NOTHING, AND YOU CALL THAT A FAIR COMPENSATION PLAN PLEEEEASE!. I REALLY BELIEVE YOU DON'T CARE AS LONG AS YOU GET WHAT YOU WANT. AM WORKING WITH ANOTHER COMPANY THAT AT LIST DOES'T HURT ANYBODY BY PROMESSING FAKE DREAMS.

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    2. What you all need to understand is that before Rich & Jay the MLM industry was nothing but a few small companies trying to push a few products using word of mouth. Now there are hundreds of companies starting up a month because of Amway's success. I am a lucky second generation Amway IBO and spent many hours, days, & years learning from the real founders on how to build a real team and group. I even tried other companies to see if what they taught me was real. What I found is that most other companies are the real issue not the plan. I have been on top of 3 other companies bonus plans only to see them change either the product or the plan. I have seen companies go out of business and CEO's go to jail. Why would anyone join a unproven or group floor company? Do the real homework and learn how Amway has been offered many times to buy out those other MLM companies but felt that it was not in their best interest.
      Amway has proven itself time and time again. Yes, there are many group leaders whom think selling books and tape is the way to build their business. They have made millions selling books, tapes, tickets, and speaking fees. But that is not the Amway system nor is it a MLM system either. Many of them have caused the black eyes given to the Amway name. But I have seen Amway each time take the heat and still give the great business it has always given. Before you tell the world about how much you hate Amway, why don't you take that easy little ride to Grand Rapids Michigan and see how much Rich & Jay have done for those great people. Then drive down the road east to Ada, Michigan and see what that little box of soap has done. Next NBA basketball season watch the Magic play which is owned by Amway. They don't even have to worry about their building because that is Amway's also.
      In closing, learn the keys to becoming a master MLM team leader first then understand the words you speak. Now if you want to learn how to become a master my new training site will be up in days. Timothyallman.com I also have started several small business also which I learned while in this Amway thing "LOL"!
      So the real question is do you want what you think you know or do you want the truth? If you want to become a top earner then I will see you on my site. If you choose the other then I will see you on my site because I know you will be there just to prove yourself right.

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    3. I truly believe that to be very successful in this type of industry you have to have a little knowledge of what you're getting yourself into before you join. There are some good MLM company out there all you have to do is a little research about the company before you get in. I'm a trainer for a company and here is my thing, If you're new and just join a company you make sure that your upline is walking with you in this because people join people, people are not join company. When I recruit a downline or a new business partner I make sure that he/she succeed first then I will be successful. In simple term I make sure my dowline make money then I will make mine.

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    4. I'm currently looking for a MLM company at the moment and I have to say that Amway is still at the top of the list. Regardless of the compensation plan a lot of other companies that I have seen you really need to spend between $1k to $5k to set up. With Amway it's niece-where near as much since I don't have the cash or a credit card to use.

      If I do join I won't be encouraging "The System" to much, whilst some things are usefull there is a lot of hype junk out there that's feeding money to those at the higher levels. I have a system that I'll be trying out.

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    5. If you are really looking for a company that will fit the compensation plan that you are looking check Organo Gold, you could start earning 20 % as you start, amways compensation plan its old news, go to bussinesfoforhome.org and check who's number one in only 4 year, not 54, amway its number 3 and 6 out of the very first 10 belong to Organo Gold regarless whatever amway people says, numbers don't lie. . .

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    6. Anonymous: how do you make so much with a limited product range at Organo?

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    7. I have studied the Amway compensation plan and it appears to reward consistent work when real time is dedicated and professionalism is applied. A lot of the information here represents half truths (probably for lack of full understanding) generated from people who probably should never be in business. If you think that there's a scam in Amway. Well then you have to believe that virtually any undertaking for financial gain has some level of "scam" in it. The stock market is a great example of scamming many to enrich the fewer cunning. And ethical behavior - you don't often it on Wall Street or in thousands of conventional companies that have hit the exchanges.

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  7. Who's crying? Dennis, it sound like you admit you don't mind ripping off your downline. That's where the 5% will come from, off 100 of your downline.

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    1. When did anyone go into business as a benevolence? Go throw money in the collection plate if you don't want to get something out of someone. I too believe in socialism to a degree, but there must be balance.

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  8. Let the liberals keep trying to change what the owners of businesses want to pay. If you do not like the compensation quit crying and go somewhere else or better yet , start your own company and if you are right you will win their sales and if you are wrong you will lose your money. You don't pay the bills so you do not get management say so. Nor have you invested any capital in starting the company. Amway has created one of the most successful companies in the world. My guess is that they have proven they have a winning compensation.

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  9. your guess is wrong, o great one!

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  10. Well folks. Amway is the hardest job in the world; with the greatest potential. Yes, at first you struggle because you are not wide or deep with your downlines. Eventually you promote new people and benefit from their success (this promotes your interest in their success and learning). Everyone takes time to get the gist of a job, once you get it you are ready to branch out and then you can be the mentor and get more money. Commitment is honored in this plan. Obviously the plan works folks; this company has made more millionaires than any other company in the world; no changes are going to happen to the compensation plan.

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    1. PLEASE, IT IS NOT THE BEST YOU HAVE TO GO AND FIND OUT ABOUT SOMETHING ELSE. I AM WORKING WITH A VERY GOOD ONE AND IT MUCH MUCH BETTER THAN AMWAY YOU WILL KNOW ABOUT IT SOON. IN THIS COMPANY ABSOLUTELY NOBODY GETS HURT AND IT DOES NOT HAVE SUCH A BAD REPUTATION LIKE AMWAY

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    2. So your saying that if a person pays $164 to start amway, gets a bonus of $150 and a $30 gift card they are losing money. How is that even remotely possible. I'm not an amway IBO but my cousin is. She made $3000 in three months in the business, after 8 months in the business she qualified as a Emerald which gave her $5000 per month on top of her $2500 bonus, three months later she got another bonus of $80k and again in six month of $122k for making emerald gold. I see allot of bashing on here but no proof that it doesnt work. In any business you get what you put into it. I've served in the Army for the last 12 years and this compensation plan is beyond. This company pays you to buy your own products, no selling required. So if you want to just buy for yourself you can do that and save 3-25% on top of your 30% discount the company gives you to buy your goods. On top of that if you have a downline you make an additional 3% of the business volume. Thats a double bonus. I dont know but it doesnt take a genius to run this IBO thing. What I calculated was 50 people @ 150 PV points which qualifies you for 25% makes $1875 off his downline and himself plus your $2500 bonus. Wait, do that two more times and get $122k bonus plus $5,600 per month. That is only with 150 people. I dont know but I take showers everyday, brush my teeth, put on deoderant, shave, use baby wipes for my kids and more and walmart for damn sure doesnt pay me a dime back!

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    3. A person can lose money in Amway even with a decent income because of business expenses. In particular, the cds and functions can result in people running their business at a loss even if they get decent bonuses.

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    4. Actually, you don't need cd's and functions to succeed, but they help many of the IBO's. Some of the "association" stuff is repacked from the Amway corporate materials. But "associations" in MLM are also additional revenue streams for leaders aka the CEO's of direct marketing. We don't need to hate them - it could be envy.

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  11. Body by vi the best by far they actually give you a BMW the second rank of the business so there for you actually have a vehicle for success its a no brainer.

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  12. Hi every body. I'm a fulltime network marketer. I'm totally not agree with whoever saying something about ripping off downline. Let say you recuiting your friend. You actually gave him an apportunity to change his financial situation for the better. Then you have to help him from knowing nothing to know everything about the bussiness. Then you have to train him and show him some nessecery skill to be success. With all the work that you do, if he fell you will earn nothing at all. But if he success do you think that you should have the reward. YES YOU DO. That's what I call self interest. Not ripping off.

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    1. So he comes to work for you, the friend, and his compensation for this is an opportunity and training? If this is the kind of business you are running perhaps you should call yourselves a school and not a business opportunity. Business is about making money.

      and self-interest is just greed lite.

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  13. Hey ya , the comp plan isn't the best by far , once u really understand it , email me and let's discuss something else with a real Residual payout , thx... Seanctc@hotmail.com

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    1. well, that email timed out even on it's own server.

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  14. hello to all bloggers. It would be my honor to share information on my network marketing opportunity, I would love to tell you about the company I beling to, wich has paid out in 5 years over 100 million dollars in commision, and not just that, I dare to say one of the most aggresive compensation plans. email me or skype me at ecmbmax@gmail.com , esai10

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  15. hello to all the bloggers present in this post. i'm here to tell you all it would be my pleasure to share my network marketing opportunity to every single one of you. This company in just 5 years has paid over 100 million dollars in commision, at this moment using a very easy and most important duplicative system. I also dare to say this company has one of the most or if not the only most aggresive compensation plan, If you would like to hear about this information email me or skype me at ecmbmax@gmail.com, esai10.

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  16. I was in Amway many years ago and found the compensation plan to be very unfair.
    I'm now in a very good company that pays 100% commissions on everything. Really unbelievable.
    You can contact me about this if you like. I will be more than helpful with info. kenmcalisteren(at)gmail.com

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  17. this information is not accurate, yes amway business requires a lot of woek (specially at the beginning), but it does pay off in the long run when you grow your legs.

    the reason why i say it is inaccurate is because:
    1. up line do not get compensated that much, they only get 5% BONUS CHECK
    2. it is a bonus check, not money out of down line pocket.

    any person that can do simple math and reads amway's compensation plan will tell you it is not an unfair compensation in terms of down line, meaning down line people are not being robbed by up line. if you have any questions email me at ali_hihi1@hotmail.com ill try to answer you

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  18. I am in a health and wellness company called Organo Gold which it is revolutionizing the coffee industry, it is a golden opportunity where it is capitalizing on the $90 billion coffes industry, Organo Gold offers the perfect opportunity at the right time.

    Check out these 2 websites:

    www.ogshow.com

    www.navarro-gonzaga.organogold.com

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  19. wow i feel like i'm an MLM "job fair"....kinda freaks me out!

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  20. ItWorks! I was afraid to join because my parents did Amway and I wasnt impressed however this company amazes me! And their products are getting ppl including my ADHD son offf their medications! Check it out! https://angiecripe.myitworks.com get in on the ground floor! 24,000 distributors paid last month. Avon over 6 million which means the market is wide open for ItWorks!!

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  21. Erimu john robert

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  22. We are all networkers here so All that matters is finding a company with the products and compensation plan that appeals most to you. Here is mine which has a cooperative (not competitive) business model and you get paid within 3-5 minutes of making a sale.

    Watch the presentation here: www.worlddomains.ws and email me if you're interested in knowing more at collin@worlddomains.ws

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  23. It's funny how all the companies say all the time...it's just like amway only better. LMAO

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  24. It's hard work recruiting and training downline while selling products to my own customer so if I get a small bonus from the company from sales generated by my team it's not unfair... Especially when it is you spend so much of your time coaching newbies.

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  25. Wow im glad I chose the right company, because its easy and its simple.

    yoolins@gmail.com

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  26. I'm just reading this post for the first time. Joe, I think those of us choosing to voice out against the 'opportunity' are doing it all wrong.
    Reading the large amount of "nuh-uh, my MLM is better" comments on here, maybe we should just let them go at each other. Open the floodgates. They have been coerced to believe that everyone not involved in their MLM are negative losers (probably by the exact same training material).

    Well HEY, you're right anonymous blog commenter, everyone involved in another MLM is a loser!
    -Jerry

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  27. Amway is not a scam, but it sure is one of the toughest MLM business out there and the least profitable for a new person. Here's some thoughts for someone wanting to join Amway. Ask an IBO what was there business income "last" month. Because they always tell you their "best" month, which is misleading because it could be years ago and they've since fallen backwards. If you really want to see a clear picture of how the business is working...then attend the weekly meetings on a regular basis. While attending, please keep track of the people who are "rocking" the business. They usually will edify and promote these guys heavily, especially if they are new! The truth is, in the next 2-6 months these guys are gone. Find those guys and ask them why they quit and you'll usually hear the same old story. And if you pay attention in the meetings, you'll hear more talk about PV (pins) that are achieved rather than profits. If you don't understand the comp plan, you'll think this is a good thing...but, pins do not equal profit, especially PV pins! (I guess this is what some people call smoke and mirrors) For instance, they may recognize a new 1000pv person and if they don't ask him how much he made, more than likely, he didn't make much at all. And if he did make, lets say $500-$700, then ask him how much PV was from customers, b/c if it's less than 1/2, then he spent a whole lot of money to hit that pin level (this happens A LOT). One last thing...they always say, you can build this business on a "shoe string budget" ...ask them this..What's your idea of a "shoe string budget." Of course I can go on and on, but you all get the picture. Anyways, Amway does work, but it's gonna be tougher than they make it sound. If you just want some positive people to hang around with, Amway is your best bet. If you're a quick learner and an aggressive person with no fear, then Amway will work for you sooner than later.

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  28. i dunno about any of you but i really have zero time or patience to run around trying to sell lotions potions or silly drinks that 9 times out of 10 do not even work. don't get me wrong i'm sure there are people out there who will buy into the products but i found trying to sell things is so out dated. I'm not going to sit here and boast about an opportunity i was in or currently in being better but i will ask this can you name name a company where thousands of average people are making money with little or no network marketing skills a kid who just turned 21 is now making $20,000 a month only after 9 months..... contact me if you'd like to chat about what i am involved in!!

    leave925alone@gmail.com

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