Friday, April 16, 2010

Amway - If The Products Have Value, Why Don't Former IBOs Purchase Them?

It appears to me that Amway sales in the US have gone down. Globally, Amway sales rose from 8.2 billion to 8.4 billion. However, if Amway sales were rising in China and India, then one can logically conclude that US sales are down. In fact, I do not believe there has been signifcant growth even in the days of "Quixtar". And Amway corporate blogger wrote that less than 4% of Amway sales were to non IBOs, or that 96% of Amway products are sold to IBOs.

Many IBOs and Amway defenders claim that Amway products are simply the "best". Some even go so far as to call Amway product superior to bix box retailer's products. In the past, some unbiased reviews of Amway products compared to name brand had some Amway goods rated as average, some were very expensive, and some were satisfactory. Of course, quality is subjective and it certainly seems that whether or not one is an IBO determines that quality.

But here's the definitive question. If Amway products are so good, why do former IBOs rarely continue to buy them? I mean Amway sales would continue to climb steadily each year if former IBOs kept buying products. And here's another angle on all of this. If some former IBOs do purchase Amway goods, I would bet that they do not purchase 100 PV or more each month as they do when they are IBOs. It would appear that uplines are able to manipulate or create an artificial demand for Amway products amongst the active IBOs. This is a point of contention between Amway defenders and Amway critics because an artificial demand toes the line on legality issues.

There are tens of millions of former IBOs. There are probably less than 200 qualified diamonds in the US. I believe there are more lottery winners than qualified diamonds. But if there are tens of millions of former IBOs and hundreds of thousands of current IBOs why aren't the Amway sales consistently growing? I believe it's because Amway IBOs are the primary consumers of Amway products and former IBOs are not. And because information is easily available on the internet, prospects who are approached an easily google up Joecool's blog or other sites full of information and make an informed decision. I believe that is partly why sales are down in the US, because recruitment and sponsoring of new IBOs is down.

So if Amway products have such great value, why don't most former IBOs continue to purchase them?

24 comments:

Anonymous said...

Very Simple, you need incredible amount of brainwashing to buy products which you wouldn't have bought in the first place.

Porkchopjim said...

As you know, Amway products are bought, and consumed, by Amway Business Owners because no one else will.

$300-$900 a month...'buying from your own busines' of overpriced products...and why do the numbers of 'winners' look so bad?

It's a valid point that if Amway products had REAL demand, then Amway would grow.

Insider likes to pretend that there is 'real' demand, yet likes to ignore that the vast (over 90%) of Amway products in North America are bought and consumed by ABOs themselves...and as you said, once they quit 'buying from their own business' - that 'demand' seems to go away.

If there was real demand, outside of Amway Business Owners trying to consume their way to financial freedom, the REAL consumers would keep ordering through either the website (as advertised!...except that only accounts for 3.4% of all Amway products sold!...) or they'd order from that ABO's upline...it's not like the ABO doesn't know any other Amway Business Owners.

It's a sham. And a scam. The numbers don't lie.

Joecool said...

Mr Chop, good to see you again!

Anonymous said...

My take is a little different. I do think Amway has some pretty good products(although way overpriced) - the bottom line for me after leaving the biz is Amway is really just an inconvenient way to shop.

Really no more complicated than that.

Anonymous said...

We were stupid enough to spend a minimum of $750/month on Amway products when we were CORE IBOs. $750 as Amway used to offer free shipping for IBOs who ordered products worth $750 or more. Now, they dont even have this offer. When we were CORE, we were just following double diamond Kumar's famous statement- WE BUY PV. PRODUCTS COME FREE

I dont think there is any word in English or in any other language which would describe the stupidity if we continued to spend $750 or more per month on products which we dont need and which are over-priced and terribly hyped up.

Anonymous said...

Most important reason- once I got to know the devious nature of my uplines, I did not want to support their business anymore. I dont even use the Amway credit card any more- as I dont want to to be contributing to their PV anymore.

Ex Eagle said...

Would products like Double X or Artistry be heavily promoted, and pushed if they were not high PV items??? When there is no need to build up ur PV every month, why would inactive IBOs buy products from Amway even if they are great quality products.

By the way you should watch IBOs justify the cost of Double X with statements like- " you think double X is expensive, chemotherapy is very expensive too... If you dont pay for Double X now, you will pay for chemotherapy later

Anonymous said...

You bought products you didn't need, you hate Amway credit card because of evil PV... you guys seriously need a psychiatric check.

Anonymous said...

Just happen to stumble on here because I was looking for how to buy products here in France! Let me know if you are in paris france!!! I need some SA8!!! Post w/ info and I'll email as I dont wanna get spammed.

I love amway products! I LOVE artistry and won't use anything else on my face!!!! I'm not doing the business and I buy the products from my mom, not because she sells them, but because I've tried them, and I love the products. So do many of my mom's customers from what I've seen. They're not in amway, but they buy the glister toothpaste and mouthwash and SA8 laundry detergents and more, etc.

Anonymous said...

I do to. For example I use to have problems with sensitive teeth, I was using sensodyne toothpaste but did not work and somebody recommend me the glister toothpaste, and I am telling you is the best and I am not in Amway business, also I use SA8 laundry as well.

Anonymous said...

I think the whole Amway Point system is very unfair to people in the Caribbean region. If an american had to spend $200 to reach a PV of 300, it will cost someone from Saint Vincent and the Grenadines approximately $700 ECD to reach 300 pv. And besides that fact, most vincentians make around $1000 a month salary. And thats just in consuming from their own business. Now when it comes to sell these high priced products, very few people will buy. Because one perfect example is the soap. Now poor people will buy a soap that costs $1 ECD instead of a soap from Amway that will cost $10 ECD. Logically, IBO's in Saint Vincent and the Grenadines and the rest of the Caribbean islands wont make alot from Amway, they are actually spending more than they're making. So we see a classic system where the rich are getting richer and the poor getting poorer. And they try to get people hyped up on 'yes you can make alot of money once you sponsar others and buy from your own business.' This is all lies.....lets do some math. Lets say a Caribbean person made a PV of 300, and Amway sends them a cheque for $200 USD equivalent to approximately $700 ECD. Remember, that amount made is actually going back to purchase more products for the next month, so the person is probably making at least $50 ECD monthly, which is equivalent to approximately $20 USD. Not much to brag about huh????

Anonymous said...

Hi

Are you an Amway IBO now or still a customer?

nickkzzy92 said...

Im sorry u guys complain too much , open ur door and try to see the bigger picture , if u dont work for ur not makeing anything 100% agreed but i run this a as a business so if its not working for you cause ur lazy and pretty much dumb yes i sound like this cause stop complaning and get of ur ass and do some work :)

Anonymous said...

you're a poor excuse for a human being.

Anonymous said...

Been some time since something was posted here but I'll just state some things I've gone through in my last year doing really nothing in the business but buying the products. Being a very active teacher I currently use rhodiola and double x everyday. Yeah the cost is a bit heavy but I don't ever have the feeling of being sick, I only take one dose of double x in the morning which has cut the cost of buying it every month to once every 2 months. I hear so much complaining from people mainly online who were once in the business. Since I've gotten in I've seen 2 19/20 year olds who got to platinum (7500 monthly points). I know the business works and also doesn't work. It just depends on how you're working the business I guess.
I've been losing and gaining my focus on the business while teaching and all I can say is no work means no money, but I find people all the time who do love the products.
The reason I stick to the rhodiola is due to how well it controls my stress as well as keeping me energized, considering I've been able to live without coffee and sodas for the past year I honestly wouldn't bother trying anything else. Being that I only take one in the morning it's only at a cost of $20 a month for energy and stress control. I used to spend more every month on eating out. Too many people out there complaining about prices these days when it used to be they would complain about low prices killing all the other businesses. Most companies revert to less quality materials when they have to make their prices lower to keep up with other *competitors*. Now that I got my little rant out I can head off to bed.

Anonymous said...

I love Amway products . I run this as a business and it has been pretty good to me.

Anonymous said...

I am an ABO. I use products of Amway cause I find them simply great and I don't have plans to change that fact. People who don't know about working system of Amway (which I see is a lot of people) let me inform you, we work on three SIMPLE steps:
1> " I " use Amway products.
2> If " I " like the product I recommend it.
3> If " THEY " like the product I sponsor them into the Business as an ABO.

That's it.

Now, considering the fact that there are millions of ABO's, I really don't understand the concept of "AMWAY is a bad business" or "Amway has bad/overpriced products" because millions of users can't be wrong at the same time.

- Regards from INDIA.

Joecool said...

Million of ABOs are the Amway customers. How many Amway products are sold to people who are not ABOs? Not a whole lot.

Amway is a bad business. Less than 1% of ABOs make a net profit equal to working an entry level job.

Anonymous said...

Since I cannot get to you and show you how many people are buying amway products you wouldn't believe. In here we believe to use and recommend the product. Its natural non-ABO's might be getting the lesser part of the benefit cause we first try out the products ourselves, get them to use in our own household then sell them. we teach new sponsors to do the same.
In short, if I want to make money through this mlm system I HAVE to work hard in showing people what good is there in amway products. People who can do more of this get in return more profit.
This basic system is a part of every marketing system. We show what we have. Difference is we have genuinity and trust.
Since it seems you know a lot about this system can you explain how you got hold of this information ? (Were you an ABO before? What happened and why did you leave?)
If you were not an ABO there is no point in talking about it someone who hasn't experienced this system outright.

Joecool said...

Even if the Amway product is good, who's going to buy it when you can get something exactly the same or similar at a discount retailer for a fraction of the price?

Edward said...

Majority of ABO's who quit the business would have some manner of grudges towards the upline, team members or Amway itself. Continued usage of the products would mean having to liaise with either one of these entities. Hence the reluctance to continue purchasing the products. There are however many who decide not to continue doing the business but retain account to purchase. As for the claim of upline creating false demand for expensive and substandard products, I recommend you go to China where the people can purchase directly from Amway without having an account or having to go through and ABO. It's easy to see that Amway's products ARE superior than the typical products available in the market.
Another thing to keep in mind is Amway only provides the platform for people to a direct selling business. Amway neither teaches the best way, nor gives much training beyond product knowledge. There are many groups in Amway that provide these how-to-build-Amway systems. These systems are mostly the culprits when people get duped into believing the impossible and such.
" Less than 1% of ABOs make a net profit equal to working an entry level job." Well, less that 1% of ABOs put in the same effort as an entry level job in the first place, right? How many of those 99% who make less than entry level salary put in 8-9 hours a day working the business? If a person has not put in the required time and effort, that person has no right to expect desired results.
"Who's going to buy it when you can get something exactly the same or similar at a discount retailer for a fraction of the price?" This statement quite obviously shows lack on product knowledge. Compare just about any Amway product with what's available in the market and you won't find a similar product of same quality at the same lower price range. Mercedes and Honda are both cars manufacturers, but Mercedes quality and features puts it at a different level from Honda. Hence the justifiable price difference. However, if you have no need for the features of Mercedes, then a cheaper Honda will do. Just like if a person doesn't realise the need for the quality and features of Amway products, that person won't understand how the higher price is worth it.

Joecool said...

Hi Edward, as an IBO. I put in tremendous effort only to make no net profit so your comment is bullshit. I also know many people who put in serious effort only to suffer losses. And while you say a mercedes has greater quality than a Honda, you provide no evidence other than saying it. What quantifiable diifferences does a honda have from a mercedes? I bet you can't answer because you're just parroting what your upline told you, which is bull shit.

Ben Dover said...

Edward said, "Majority of ABO's who quit the business would have some manner of grudges towards the upline, team members or Amway itself. Continued usage of the products would mean having to liaise with either one of these entities. Hence the reluctance to continue purchasing the products."

This is probably the only statement I will agree with from Edward. I am also assuming ABO means the same as IBO, and that Edward is from a different country where Amway decided to use a different acronym.

Edward said, "There are however many who decide not to continue doing the business but retain account to purchase."

This is utter BS...there is no statistical evidence to suggest this, but rather the complete opposite as North America sales are trending downwards which parallels the downward trend in new recruits.

Edward said, "As for the claim of upline creating false demand for expensive and substandard products, I recommend you go to China where the people can purchase directly from Amway without having an account or having to go through and ABO. It's easy to see that Amway's products ARE superior than the typical products available in the market."

Okay Edward the burden of proof is on you. If you are going to make outrageous claims that Amway somehow has superior quality products, then you need to supply evidence to support this. Simply stating Amway has some magically better shampoo or energy drink does not make it so, and without providing evidence this statement makes you look like a biased idiot.

Edward said, "Another thing to keep in mind is Amway only provides the platform for people to a direct selling business. Amway neither teaches the best way, nor gives much training beyond product knowledge. There are many groups in Amway that provide these how-to-build-Amway systems. These systems are mostly the culprits when people get duped into believing the impossible and such."

W T F MOMENT!!! You cannot offer a business opportunity and not explain how it works...For the record, Amway existed LONG BEFORE Lines of sponsorship (LOS). They didn't get those early recruits in without teaching them how this stupid scheme works, and they certainly helped create the secondary scheme (the LOSs) by having them emulate their own business model and substitute it with "Teaching" and "Materials". You can't have it both ways Edward, and to pretend like the LOSs are somehow a separate evil is completely absurd. This is clearly some propaganda trash Amway is feeding to you guys in whatever country you are residing.

Ben Dover said...

Edward said, "How many of those 99% who make less than entry level salary put in 8-9 hours a day working the business? If a person has not put in the required time and effort, that person has no right to expect desired results."

Ah, the hard work fallacy. It does not matter how hard you work if the work you are doing is doomed to fail PERIOD. There are no statistics to verify that the 99% of people that fail in Amway also fail at everything else because they are lazy, worthless, beings. There is a reason for this, because it isn't the person's fault...it is AMWAY and the LOS!

Edward said, "This statement quite obviously shows lack on product knowledge. Compare just about any Amway product with what's available in the market and you won't find a similar product of same quality at the same lower price range. "

Edward...it has been done MANY times. Just because you choose to not do any research and simply parrot what your uplines teach you does not make it so! In fact, I would implore you to get your upline to PROVE the quality is better in Amway products. Put them on the hot seat.

Edward said, "Mercedes and Honda are both cars manufacturers, but Mercedes quality and features puts it at a different level from Honda. Hence the justifiable price difference. However, if you have no need for the features of Mercedes, then a cheaper Honda will do. Just like if a person doesn't realise the need for the quality and features of Amway products, that person won't understand how the higher price is worth it."

This is not proving that Amway has better quality, and your analogy is horribly flawed. I'm not sure why this car analogy has been coming up so regularly, but it appears to be working for deception purposes. Mercedes and Honda target different parts of the market with very little overlap. That is not the same as comparing XS energy with Monster energy (Which I have previously done here, http://themlmsyndrome.blogspot.com/2016/12/mlm-and-product-value.html). Mercedes has very different engineering, styling, components, and brand value from Honda, and Honda chooses, for the most part, to target a lower income group. Let's be clear about something, both companies have GREAT quality, but they have very different markets. A much better comparison would be Mercedes and BMW as they both target the same market, both come from Germany, both have been in existence for a long time, and both have similar price points.

The main point to focus on is the lack of critical thinking going on here. Joe nailed this, you are just parroting garbage that sounds like it should mean something on the surface but really has no substance.