Tuesday, June 22, 2010

Amway - IBOs Drowning In Debt?

One of the things I noticed is that many IBOs who support the Amway opportunity seem to be in debt. I know that being in debt is one of the reasons these prospects are drawn to the oppportunity, because they believe that they will earn so much cash that their debts will go away. I remember seeing a presentation where the speaker touched on how people were in debt with credit cards maxed out. Thus this business is for you because you can earn enough to pay off those credit card bills or maybe go diamond and pay cash for everything.

In my informed opinion, the speakers who promote Amway in this manner are unethical at best, because they will teach IBOs to live below their means, cut expenses, and reduce debt, only to turn around and have the IBOs spend their cash on tools. It's not really debt reduction, but simply redirecting an IBO's purchases towards things that benefits the upline. It is why I often wondered why a speaker would say it was okay to go in more debt, only to invest in their Amway business. I mean, debt is debt and if IBOs are to reduce their debts, they should also be cutting their Amway expenses and focus on selling products, which can result in immediate cash.

I also believe many - a - diamond to be hypocrites. I heard many of them speak about how diamonds pay cash for everything, including their homes. I find it quite humorous and very hypocritical of some of these speakers who were exposed as having their homes foreclosed. One of these speakers, a prominent triple diamond, apparently had some involvement with bankruptcy proceedings because he could not service his debts.

I also believe that many diamonds may be drowning in debt, moreso than the downline that they teach. Why do I believe this? Because they portray lifestyles that are not sustainable on the incomes they have. Sure a diamond may have a $250,000 income consisting of Amway payments and tools. But if anyone does the math and considers taxes and business expenses, these magical diamonds suddenly don't have much cash left over to be able to purchase mansions and sports cars. So how do they obtain these trappings? I believe many diamonds might be financing their cars and homes, and may actually be in heavy consumer debt while trying to portray a diamond lifestyle.

Amway pundits may argue that hey, at least these folks don't have to answer to a boss and wake up early to go to a job. While that may be true, most job people don't have to stay up until 3:00 in the morning showing plans and having nite meetings to motivate their downline. Furthermore, a diamond must have to live in fear that a scandal could tear apart their group or that a disagreement with an upline could get you cut from tools profits.

To summarize, I don't believe diamonds are that different than the rank and file IBOs. They get divorced, they have debts. They may have bigger incomes, but that is all relative. A man with a $50,000 a year salary could live comfortably and debt free while someone who earns $250,000 can be drowning in debt because they live beyond their means while the $50K man lives below his means. The evidence is there, diamonds live excessively and many flaunt wealth. In the book, the millionaire next door, Stanley and Danko say that people who flaunt wealth, often are not wealthy. Are you as an IBO, drowning in debt? Maybe you are simply following the example of your upline diamond? Maybe?


Anonymous said...

and......anon starts the tirades!!!


Anonymous said...

I heard claims during trainings at the open meeting about how (without naming names) emeralds and diamonds in my line of sponsorship were buying million dollar homes. Being a skeptical guy, I did my due diligence. The home value is a matter of public record. So, I looked up their tax records (just find the county they live in) and found that almost all claims were highly exaggerated. That makes any claim about paying in cash highly dubious.

Also, I had a few uplines that worked for government agencies and were at a high level in the business. Often, they claimed how they were at a very high level position at their job making six figures and didn't need the business but built it anyway. They didn't realize that salaries of government officials are also a matter of public record. I took the time to check it out, and found that many claims were highly exaggerated.

It would make an interesting post to start listing all the diamonds, find their addresses, and post the value of their homes.

Joecool said...

If you want to do some of the legwork, I will be glad to write an article about this.

Anonymous said...

It may take me a while to do this work. I will get back to you in a month or so with some starting level information

Anonymous said...

Did you get any Stats yet as 5 Years Passed after your post..Did any Diamond go in Debts ?
Why FTC(Federal Trade Commission) gave certification as best business ? let me know