Tuesday, October 5, 2010

Amway - Why Success Is Unlikely

So many eager young people join Amway with the hopes that they will retire early, live a life of luxury and basically enjoy life with no worries. Most of the people who join Amway are very likely to be motivated, hard working and wanting more out of life. Their intentions are great but it leads to the question of why do so few people actually get anywhere in Amway and why are there so few new diamonds, at least in the US and Canada?

I think part of the problem is that the folks who recruit new prospects into Amway often imply that everyone has a chance to be a diamond and they also imply that it's not that difficult. I heard comments once that going platinum was so easy that someone's dog could do it. It's obviously not true when less than one percent of IBOs ever reach the platinum level and even those who do often are unable to maintain that level of volume.

Now let's break it down to numbers. A platinum group is often typically 100 to 150 IBOs. Of course not all of them are busy moving products or recruiting downline. A diamond group is six platinum groups plus some side volume, thus a diamond group is likely to have 750 to 1000 IBOs. Being a platinum can be compared to being the manager of a company and a diamond is like being a CEO of a big organization. In a job, you can work your way up and eventually become a manager or CEO. Some IBOs think they can never achieve those goals at work, but they mistakenly think they can surpass their sponsors in Amway so it's a better deal. But even if you earn more than your sponsor, does that mean you will eventually reach platinum or diamond? I think a better gauge of success would be those who go diamond. Diamond is often portrayed as the pinnacle of success and is the target shown in "the plan".

However, as I stated, going diamond would also be like achieving the level of CEO in a company. There is only so much room at the top. That is true. While there can be many diamonds, you would still need to have about 100 to 150 downline to achieve platinum and you would still need six platinum downline groups equating about 750 to 1000 downline IBOs to be diamond, plus your personal group. Thus a diamond is like a CEO who creates his own company. Factor in that half your group is likely to quit each year, thus you must replace hundreds of IBOs every year to maintain the minimum qualification of platinum or diamond. Add the in name "Amway" that makes some people cringe and maintaining a group is a daunting task. Imagine being a CEO of a company that loses half of their employees every year. That's what a diamond "lifestyle" includes.

It is my informed opinion that a diamond lifestyle is one of hectic schedules, constantly working to help your groups maintain volume and bringing in new IBOs, plus sponsoring and maintaining your own personal group of 2500 PV volume. If you cannot maintain 2500 PV personal volume, I believe you would not qualify for some of the bonuses paid by Amway. Also, because the rest of the workers normally works 8-5 or so, a diamond is out working the night shift and odd hours trying to keep the group intact. Also, factor in the travel to functions for speaking engagements and a constant churning of meetings and you have little time to actually work your business and spend time with family. Sadly, many people join to gain more time and money and they often end up with less time and less money because of their involvement with the constant meetings and functions.

So can someone succeed in Amway? Certainly it has been done, but I believe that many diamonds are possibly busier working odd hours than someone with a job with regular hours. The diamond lifestyle may be shown as fabulous, but I believe the reality is not as nice a picture. See my previous post about visiting with a diamond.

11 comments:

Diamond In The Rough said...

People who don't succeed don't work hard enough and probably don't heed the advice from their mentors in the business. I'm new but I'm determined to make it work.

Joecool said...

Good luck if you are going to try the business but hard work doesn't turn into success in Amway, in many many cases. I know of IBOs who worked hard for years and did not succeed, even when they did everything upline advised. You're new and excited but I only caution you to watch your spending, especially on training. The training or tools is usually what ends up causing an IBO to run their Amway business at a net loss.

Anonymous said...

Hey Diamond in the Rough. I admire your enthusiasm and we have been where you are right now. Please make sure you know the real facts about this business. Most of the training tools are developed to help you dream big and stay positive, however they provide very little help in building this so called business and are also a source of income for your upline Diamond. It is in their best interest to sell you the tools so that they can keep you interested and most importantly keep the dollars flowing from your pockets to theirs.
--- Former Canadian WWDB IBO ---

colin said...

Diamond in the Rough, the only way you'll make any money is by retailing products. Buy any of the tools and you'll just be throwing money in the trash.

Joecool said...

It is almost assured that an IBO will lose money once they agree to get on standing order and attend functions. I don't know how anyone with half a conscience can defend Amway as a great business opportunity. The results are clear. The vast majority of IBOs participating in the system lose money, regardless of how hard they work.

Anna Banana said...

"Diamond in the Rough" you are just quoting what someone upline of you is saying. Working hard is no guarantee of success in the Amway business when the odds are already stacked against you from the start. Take another look at your Amway literature where it shows that less than 1% of IBO's actually make money. How many other business ventures did you look at first that have a 99% failure rate? The only way you make money in this business is by selling products and sponsoring others who will do the same. If you don't want to purchase tools and go to functions, point out to your upline in the Amway terms and conditions it says purchasing these items is voluntary and your upline is still to provide training and mentorship if you decide not to incur this expense.

Diamond In The Rough said...

Too many people do not put in the effort. I choose to work hard at this and make it work. I will choose to succeed. My mentors told me not to listen to the naysayers. None of you will be helping me to feed my family.

Joecool said...

Is your upline helping you to feed your family? More likely your upline is taking food from your family when you buy their standing order and functions. Have you even made a net profit yet? I doubt it.

Anonymous said...

Diamond In The Rough, those are the same canned responses that I remember telling so called naysayers. Are you so brain washed that you refuse to see the facts that are right in front of your eyes. You can work your fingers to the bone in this so called business, draw circles every night but if you do the math the business model is completely ridiculous. There are so many businesses that would actually turn a profit for identical effort. You won't listen to anyone's advice because you have been told that we are all losers and quitters and dream stealers. Don't let your upline fool you, they are only your best friends while you are on standing order and lining their pockets.
*** Former Canadian WWDB Lemming***

Anonymous said...

The only thing I ask is this... if you are to claim that a business system does not work and that there are other things that do, why not voice those and encourage the ones you are "trying to save". I read forums battling back and forth about every detail of businesses and business systems, but I don't hear anyone offer an alternative. Capitalism is about lining pockets, whether or not you choose to be the one with the fat pockets or not is a choice you make on your own. Without risk, there is no gain.

Anonymous said...

wow, THAT was a load of BS if i'd say so myself...