Monday, September 27, 2010

Amway - What Residual Income?

One of the things that got me interested in the Amway business was the talk about residucal income. Residual income is something that keeps coming in even if you don't do anything. For example, if you put $100 in the bank, you would earn interest every month. The problem is that $100 would only get you a few cents each month and it would not be enough for you to retire and enjoy the trappings of wealth. But what is a reality is that you will very likely be unable to achieve this in the Amway business.

The IBO retention rate is less than 50% of IBOs last even a year and only about 5% of IBOs last more than a few years. Thus any hopes of "residual income" is unlikely. You cannot get repeat customers and downline when they are quitting faster than you can recruit them. And certainly, you can conclude that you cannot receive residual income when you cannot retain IBOs. In fact, I don't know of any IBOs who have ever "walked away" from their Amway business to enjoy residual income. Have you even wondered why diamonds and crown ambassadors are still working and none of them have quietly retired? I would guess that they don't retire because they cannot. Once you stop, more than likely your income stops. A diamond lifestyle would take a lot of income to maintain. Thus how can someone walk away and expect to sustain their lifestyle? The answer is obvious to me. You can;t walk away a retire. It is probably why even crowns and all the diamonds continue to work busy schedules. I highly doubt they are working because they "love" their downline.

It's no secret that diamonds earn income from the sale of standing orders, voicemail and functions. But once you stop appearing at functions, I do not believe you would continue to share in tool profits. Also, Amway has a requirement of "side volume" in order for an IBO to receive certain bonuses. How can you maintain a level of side volume without being active and recruiting IBOs? My upline said your downline will do what you do. If you "walk away", so will your downline. The only way for your Amway business to survive is to keep working. Sometimes I wonder if the diamonds even have a plan and enough savings and investments to actually retire someday?

Breaking down a diamond's income is basic math. Even a $250,000 annual income isn't that much when you break down all of the expenses associated with a diamond lifestyle. The diamond lifestyle is an illusion of wealth. One that looks flashy, but I am not convinced that these diamonds are living large behind the scenes. Many professional athletes end up broke within years after their playing careers are over. These athletes earn much more than Amway diamonds. The difference is that diamonds can keep working while pro athletes cannot. But the common denominator in my opinion is living a lifestyle that your income cannot sustain. I hope you see the similarities. To me it is crystal clear.

19 comments:

Anonymous said...

Man, aren't you getting tired of this bullshit serenade of yours? It's really getting annoying. You would have gone at least Platinum by now had you been as insistent in growing your business all these years.

Joecool said...

What are you gonna do about it? Come on here and whine about it some more? Why don;t you work on fixing the problems?

Anonymous said...

Excuse me?! I have good reason to believe that you're the one who is whining and refusing to work on fixing the problems. All you do is complain about how bad Amway is but you have never stated what actions you have undertaken to improve Amway. Or is that your mission? By the way, you still have to call a Diamond couple to request spending a week with them to learn about Amway the right way. When are you going to call? It's over a week now.

Joecool said...

Anonymous from Canada, it is apparrent that Amway and the US government are not going to do anything about the Amway scam. Therefore my goal is not to shut them down, but to provide information to information seekers and prospects so they know what they are signing up for. If they get full disclosure and decide to join, then it's up to them. I'm not here trying to make people quit or prevent anyone from joining, but just to provide information.

What diamond couple should I call? When will you provide names and phone numbers?

Anonymous said...

Anonymous Amway supporter, the issue is whether or not the Amway business can provide you with a residual income. I believe that JoeCool is correct and that residual income in Amway is just a fable as too many people quit each year for this business to be able to provide you with the sustainability (residual income) that diamonds talk about. Also, it is a good point to note that all of these diamonds are still working.

colin said...

Amway Diamonds n above remind me of the mafia. None of them ever retire from the business.

Anonymous said...

anon from canada, two words: SHUT UP. what part of that do you not understand???!!!

kiwi said...

Does anybody know anything about Amway expanding in Jamaica? My inlaws are desperately trying to find someone who knows someone in Jamaica just to make a connection there. Can we say desperation? I am thinking of telling them that Michael Scott likes to vacation in Jamaica.. since they don't watch tv anymore they may not understand it's a joke. Bahaha, ok, that was mean.

Anonymous said...

JoeCool, you write a bunch of words and numbers in sentences and paragraphs and draw conclusions that are unsupported.

Are there people in Amway who have done bad things. Of course... there are bad people in every industry. I've met MANY honest, hard working people in my Amway experience.

To say there is no residual income in the Amway business is crazy. I have proven to myself that people have built and are building profitable business (When done correctly). Some have chosen to "retire" and still have great incomes without any "Tool" money that you're so upset about.

I think you need to start a hate blog about the banking industry scamming consumers and ruining our economy... or how about a hate blog about Walmart (where you probably shop) and how they don't pay a working wage and only sell stuff made in China.

Anonymous said...

I see, Amway and the USA government are not going to do anything about Amway. Awesome! I love that! Why would either one of them seriously listen to a blogger who claims that Diamonds are frauds and is able to list names of Diamonds but to me pretends to not know of any names and phone numbers? You're playing a cat and mouse game. Have you heard of your lunatic brother, Scott Larsen at http://amquix.info? Apparently he was able to call some of these people and inquire about their businesses. Has he learned much? Apparently not but why don't you try it? Is the phone too heavy? Are you too lazy or too afraid to find out if you're wrong?

Joecool said...

Anonymous at 10:39, why are all the crown ambassadors still working? Who are these illustrious people who are receiving residual income? Why doesn't Amway advertise this residual income as a benefit?

Joecool said...

Anonymous at 10:55. When I was an IBO, I spent time at my diamond's home. It was a modest 3 bedroom home in a middle class neighborhood. Big whoopie. What else do you want?

Tell you what, post your real name and contact info and I will call you.

Anonymous said...

The crown ambassadors are not still working jobs. They are checking to see how their businesses are doing. Big difference.

Joecool said...

Who said they were working jobs? They are still working a full schedule doing Amway related tasks. Why don't any of them "walk away" and enjoy the good life? You know the answer but you are acting ignorant.

Anonymous said...

Where's the anon from Canada? U gonna post your number and talk to JoeCool or are you chicken?

Joecool said...

Anon from Canada has disappeared from sight. I think he quit Amway and became a broke loser. LOL

Anonymous said...

Joecool: A 4000 PV business is not bad for a part-time job. Had you insisted and persisted, rather than spending time giving up, by now, more than 5 yrs later, you might be a Diamond. But since you chose to spend those 5 yrs complaining needlessly and wasted that time, what can I say, other tham poor you. So sorry!

Joecool said...

At 400 PV, I wasn't making and profit and I had eagle parameters. Amway is a lie. You don't make any real money until you're getting paid from seminar tickets and standing orders.

Yonedi Ayabarreno said...

Its still worth working towards
something...than nothing...right.