Wednesday, June 16, 2010

Amway - How Do You Actually Make Money In Amway?

A recent comment left on my blog asks the question - how does someone actually make money in Amway? It's a great question and one that deserves to be addressed since it seems that so few people actually make any real money in Amway. The Amway corporation reports that the average IBO earns $115 a month. That $115 a month is after disregarding IBOs who "do nothing" and that also includes Amway diamonds. If you have ever been involved in Amway, then you know as a new IBO, you are likely to earn about $10 a month if you are in the lowest PV bracket (100 PV).

One of the things that Amway leaders like to talk about is how Amway returns about 33% of their income to the IBOs in forms of rebates or bonuses. In North America, that turns out to be over 300 million. Sounds like a great deal right? What they don't mention is that for the vast majority of new IBOs, the compensation plan is very unfair, with new IBOs basically getting peanuts while layers of uplines take the lion's share of that bonus. The only way an IBO can move up the bonus bracket is to find downline who will then sit in the unfair positions so you can get a bigger piece of the action.

But it still begs the question. How do you make the serious money in Amway? Apparently, the real money is made by acting wealthy, and showing off wealth, even if you don't have it. By showing off untold luxuries and lifestyles that most people only dream of, you can then get unsuspecting prospects interested and sell them materials such as cds or seminar tickets and convince these nice people that these materials contain the secrets to obtaiing the same wealth that you have attained. Even if more than 99% of the participants never make a profit, you simply blame them for not working hard enough or by claiming that they didn't follow your system exactly how yo prescribed. Then when someone actually breaks through, you tout them as a shining example of success, just as lottery promoters show the winners but not the harsh reality of the masses. Now Amway is not a game of chance, but certainly, the final outcome is eerily similar to that of a lottery. A few winners and masses of losers.

Even when your faithful followers start to realize that your system is not really working, you can keep them hanging on and purchasing more training materials by convincing them that quitting means they cannot succeed in life, or that quitting means you are doomed to poverty for the rest of your life, or that quitting means you are a broke loser.

So to summarize, you can make a lot of money in the Amway opportunity by pretending to be rich and then selling training materials to unsuspecting IBOs who think they can attain the same level of success as the tenured diamonds. Sadly, that apparently is how many diamonds and above make their "real money".


the man said...

so correct me if i'm wrong so far. amway doesnt mind the fact that these companies latch on since they're happy to be selling so much stuff they probably wouldnt if companies like bww didn't encourage buying these products. as a result, in order to encourage selling their products to these suckers who just wanna increase their pv, companies such as best buy and dick's jumped on as well. amway wins. bww wins. the select few people up top win. but the average IBO loses. does this sound right?

Joecool said...

Spot on!

the man said...

alright i see since i'm a semi-new ibo (2 months) and i just rejected my upline's urging me to go to the function this weekend and i'm still not on standing order cause i dont see the point of these cd's. i listened to a few of them and they're kind of stupid in my opinion. but i still have faith in the fact that u can make money off of this. what do u think about my situation joecool?

Joecool said...

"The man", the way I see it, most IBOs who succeed, do so in spite of the system, not because of the system. The system takes away resources without returning a tangible result.

Yes, you can make money in Amway. You do so by selling Amway products, just like any other business. That is the only way you can build a sustainable business.

The fact that most IBOs quit in the first year should indicate that sponsoring will not result in long term stability.

If you build a group of IBOs who sell products, I believe you have a chance of succeeding. But here's the kicker, if you are good at selling, there are probably better opportunities out there than Amway.

Anonymous said...

This is all so true. I do want to warn everyone though that you do not want to talk to the people that just started amway about this. They are so pumped up about all this crap that you will lose friends over it.

Anonymous said...

I started amway about 3 months ago and ive sold a couole of things I dont see no real income in this business and 90 percent of people arent really interested in the business or the products as far as I can it is pretty hard to be successful in this business. open to any suggestions or ideas that may help being successful in amway

Joecool said...

It might be a good idea to just try something else. Good luck in whatever you decide.