Thursday, May 27, 2010

Amway - Eagle Parameters Are Great For Losing Money!

Eagle Parameters:
Signed Counsel Sheet to Upline Diamond
300 PV personal use/retail for couples, 200 PV personal use/retail for singles
6-5-3 (PB/SO/MF) - Explained below
6 legs at 100 PV or higher
5 legs on standing order
3 legs attending major functions


Being An Eagle Is Profitable? I think not!

I have listed the parameters for the eagle program above. I will provide an analysis and some comments about the WWDB Eagle program. In my opinion, the Eagle program is basically just a program where upline assures themselves of a certain amount of tools sales. The IBO with the eagle parameters is likely losing a ton of money.

First of all, an Eagle with minimum parameters/legs would be at about 1000 PV. That would equate to about $200 to $300 a month in PV bonus from Amway, with differences based on width, total number of legs moving volume, etc. For this example, I will asume the Eagle receives $300 in PV bonus.

200 PV for singles, 300 PV for couples. That’s $600 to $900 in personal use and retail sales. While IBOs may attempt to sell products, we know that many IBOs sell little or nothing. Even if an IBO manages to sell 50 PV to customers, that IBO would still be spending $450 to $750 a month on personal use, and perhaps earning $100 a month for selling 50 PV.

6 legs at 100 PV or higher. That is approximately $1800 a month in personal consumption and retail for these downlines. Assuming they each qualify at 3%, they would get about $10 in PV bonus each month. The $10 does not factor in business expenses.

5 legs on standing order. Depending on whether an IBO is on the premier club, their cost might be about $60 to $75 a month (or more) for standing order, and may vary if extra cds are purchased.

3 legs attending major functions. Major functions generally cost about $125 per person, per event. And the expenses does not include transportation which may include round trip airfare during peak travel months, rental cars, hotels, etc etc.


Let’s look at a single IBO with eagle parameters. And I will use “best case” scenario. Income might be $400 with the 1000 PV bonus plus the retail profit for selling 50 PV. $400 sounds like a nice tidy sum, especially for a single person. But looking deeper, we see that this person also had to consume $450 worth of goods for him or herself ($450 = approximate cost of 150 PV). Yes, he or she received products, but seriously, how many single people actually spend $450 a month on laundry soap, shampoo and other consumables when simply “changing your shopping habits?

Additionally, an “Eagle” would have to be a leader. More than likely, simply buying standing order is not sufficient. A leader should be consuming more cds as you cannot listen to the same cd every day. Factor in the books, monthly open meetings, average out the cost of major functions, gas money, and other business expenses. I would say it is safe to say that an “Eagle” would easily spend $300 a month (or more) on tools and other business related expenses (Tools = Books, cds, standing order, meetings, functions, voicemail workshops). If this Eagle has to fly to major functions, then that cost may be significantly higher on average.

So let’s summarize. In a “best case” scenario, an Eagle IBO would spend about $750 a month on products and tools. I understand that products are not a business expense, but if a single person is expected to consume/sell twice as much PV, I would say half of that expense is a business expense as it would be unlikely that a single person would ever use 150 or 200 PV worth of goods in a month. So lets use that case and say that an Eagle has $475 in expenses per month ($175 for PV and $300 for tools). The Eagle receives $400 a month in bonuses and retail income (best case scenario) with the IBO selling 50 PV worth of goods (which is not common).

In a best case scenario, an Eagle loses money! And what’s more, all of his or her downline, if they are also using tools, will also lose money! The only ones profiting from the Eagle program is Amway in the form of product sales, and the upline in the form of PV bonuses and the profit from the sale of tools!

Do you still want to be an Eagle?

18 comments:

Anonymous said...

Yes I want to be an Eagle. Can you show me how to be a successful Eagle by you, changing the Eagle structure so that I can benefit from? Thank you!

Joecool said...

I can't show you how to be a profitable eagle. I have an idea though, you would be better off buying products at WalMart, and sending your upline a monthly check for $50 and not doing anything!

Anonymous said...

Let me just be a little bit more clear to you. Are you able to change the existing Eagle structure parameters to make the new Eagle structure profitable and then to submit your changes to Amway Global for implementation? Notice that I haven't requested any options, ideas, deals and so on besides your answer to the question. I'm not interested in anything else. Thank you!

Joecool said...

The eagle program is not run by Amway. It is a program created by WWDB.

Anonymous said...

Fine. Now, going back to the original question, what have you done to change the existing Eagle structure parameters to make the new Eagle structure profitable for starters?

Joecool said...

Why would I do anything about it? I am doing my part by pointing out that Eagle is a scam run by WWDB and that people should avoid it.

Anonymous said...

Why would I do anything about it? What kind of question is that? Aren't you concerned about making the lives of new Amway IBOs better? Or are you maybe more concerned about the demise of Amway?

Joecool said...

The Eagle program is not Amway. It was created by WWDB to bilk money out of downlines. You should ask Ron Puryear that question.

Anonymous said...

Not at all. You're the one who is concerned with the Eagle program and to be more precise, with the problem, rather than the solution. If you were looking for the solution, you would probably ask Ron Puryear by now. Funny thing for you to mention that I should do that instead. It seems that you're not interested in finding a solution but always in looking for a problem and have a downright "don't care" attitude, coupled with a high dose of cockiness.

Joecool said...

Anonymous from Canada, I am not interested in solving the problems associated with Eagle. I am pointing out that while eagl eis something IBOs srtive for, it simply is not a profitable level to attain.

Anonymous said...

Yes, I can see that you're not that interested in solving the problem but you're equally interested in finding and creating new problems. You're an excellent critic but I don't know of any critics who have been praised and well remembered for criticism alone. Real critics are innovators, the others are just barking dogs. So keep on barking in the wilderness. Let us take our Eagle flight high in the sky and we'll come down and eat your body remains once you'll have died of barking exhaustion.

Joecool said...

How can I change Eagle? WWDB invented it and they run it. I am simply pointing out that Eagle is a stupid program designed to rip off IBOs. It is not some special rank for which Amway compensates you. And there's a thought, why doesn't Amway do anything about it?

I don't know why you're concerned. You're not an Eagle, not even close.

K Templar Business said...

The Eagle program is right where it needs to be. You have not obviously ever ran a business. Sounds like you have a work for someone else mentality. And crap on something you dont truely know. See on avg, most small business lose money for the first 2 years before they make a true profit. Quoted from the Harvard Business School. Second Not Amway businesses but run of the mill kind 9 out of 10 small business fail within the first 5 years. Business is all about structure and margins. The eagle program sets up the structure for the business to grow and for the business owners to learn, adapt, and grow as a business leader and person.Create a business mindset, a leadership attitude, and a value and servant driven understanding. This has always been set as a part time business and right now with the Amway products at and around even the Wal-mart prices for many of the products, clients are easier than you think. I am a single person with a full time career, 100PV is very easy to do and manage for my home. Spending $300 for products is a proven plan when i was shopping at all the other retail/wholesale outlets. Its hard not to spend more as to run a house and car is $300 a month easy. Having a 300PV personl use and clients is almost to simple. IF you learn how to have a owner mentality, and a servants attitude it will be easy and profitable. People love to buy local. So 300pv would get you just over $300 in your personal +client side, then we have 6 at 100pv so thats 600pv so were at 900pv min, and if they have client base of at least 50pv then thats an extra 300pv for a total of 1200pv. Now the total for the leader is $520-$600 with $550 being that average. Now with all the tool or system products and needed locations your looking at about $250/month for membership standing order, communikate, rallys, and car time. with about $250-350 in pure net profit. Now with the avg of major functions being $500 for travel lodging and food and ticket for a 3day event, theres 3 a year, that would be that a eagle would equal out and profit would remain and no out of pocket expenses will arise as he/she builds the business and continue to create clients and busines builders to increase the profit and create a true business and income producing company. Your ideas and numbers are not correct. You dont really understand the conpansation plan, you dont know the retail margins of products and looks like you cant even show a better system, but rather falsify a business that creates income for everyone in business. You want facts talk to me!!

Joecool said...

What a crock of lies. First of all, the SBA says about 50% of small businesses laast more than 5 years. Of the ones that close, some are due to retirement and not failure, or the owners move onto other businesses. And while some new businesses lose money for the first few years, the Amway business is promoted as one of low risk and the ability to profit right away. Then after you get sucked in you get fed the line about business losing money for a few years. Eagle does nothing except to ensure that upline maximizes tool profits. Amway is about volume. Eagle is about tool volume. A great way to lose money.

Anonymous said...

Sure looks like you know alot about losing money.

Joecool said...

Yep, Amway and the systems might be the best way to get taken to the cleaners!

Anonymous said...

Amway makes none of the promises you suggest they do. Amway specifically prohibits any IBO from falsely advertising their business as a "Get rich quick" scheme or easy money. Amway is, specifically, a flexible opportunity for every level of ambition. You have the option to skip out on all the seminars, books, disks and business support materials. If you only want $100 per month to help with the groceries, everyone can get that. If you want a personal retiement plan derived from residual sales, everyone CAN have that but it takes WORK, and that is why most fail.

Bottom line, Amway IBO's derive all income from moving products. They are "Independent Business Owners" who make their own choices about how they invest in their business. And they are rewarded or indebted only by the risks they were willing to take, not through any form of deception. There is no false advertising of a "Dream without work." In the end, the ROI from your work at any job will bring far less personal reward than if you invested the same amount of work and money into your Amway business. Any IBO spending several hours a week doing exactly what their upline is doing - will necessarily be exactly where their upline is in time. Common sense.

Anonymous said...

lmfao