Wednesday, February 10, 2010

Amway - Working Hard Makes You Successful?

One of the things that many Amway defenders will cite is that the people who don't succeed didn't work hard enough or didn't put in enough effort. While I agree that one must work hard to succeed in many endeavors, I will also state my informed opinion that working hard and success in Amway may not be related. I say this because I have seen so many testimonies of people who worked the Amway business hard and achieved little or no results.

Psrt of the problem is that many uplines emphasize recruiting as their focus, even though there is no direct compensation for doing so. In fact, recruiting downline often comes with much expenses such as gas, babysitters, and the false belief that an IBO needs standing orders and seminars to learn this. Also, Amway has a spotty reputation in the US, thus making recruiting potential downline a very diffcult task.

An important part of any business is to find customers to buy your goods. Because IBOs already spend much of their time recruiting and not selling, they are already at a disadvantage over many other businesses. Add in the seemingly uncompetetive prices of Amway and Amway partner store products and you give IBOs yet another disadvantage over most other businesses. If there were better value in these goods and services, then IBOs who sell instead of recruit would be much more common. Also, the Amway compensation plan often rewards uplines rather than the IBOs who actually do the work of moving the volume.

I also believe that the Amway business is so outdated and inefficient. While you may have a website to sell your goods, you have restrictions that severely limit the ability of an IBO to drive traffic to their website. The person to person touch may sound nice and flowery, but it is the most inefficient way to make sales. It is why people pay millions to advertise during the Superbowl, because you may have a hundred million people watching the adervtisement and can drive up your name recognition and sales.

While working hard is definitely important to succeeding in any venture, I don't believe there is any bonafide correlation that working hard equates success in the Amway business for the reasons I have outlined in this post.


rocket said...

Great Post Joecool. Working hard means virtually nothing when it comes to Amway.

To say that Amway's reputation in the US is spotty is equivalent to the captain of the Titanic saying, "We might be stopping near Newfoundland for a while".

A tad bit of an understatement.

Joecool said...

It might help if I add some personal experience to this. My former sponsor was a silver when I got involved. After I joined, he qualified direct/platinum. He was never a Q12 as far as I know and he teeter tottered between platinum and 4000 for a long time.

I haven't spoken to my former sponsor, but through collateral contacts, I can say that he has never gone beyond platinum, and have never been to a Q12 bonus trip.

I'm not sure if my former sponsor is even active right now, but how much income does a physician lose by closing his business an extra day per month (on average) because of meetings and major functions?