Tuesday, October 26, 2010

Free Enterprise Day?

As an IBO, I attended a function called Free Enterprise Day (FED). It was held in a convention center in San Diego. I remember being excited when attending, and participating in the hype. But looking back with an objective eye, I can honestly say that it did nothing to help build my business. Sure, we got some motivation out of it, but being from Hawaii, a mainland trip in October, plus rental cars and hotel costed me over $1,000. It simply is not worth the expense versus what my business got out of it. I would rather have enjoyed a vacation somewhere else.

Also, the Amway business as an IBO is not free enterprise. An IBO is a commissioned salesperson with no guaranteed salary and no fringe benefits. Hard work does not equal success jus as in other sales occupations. It is possible to work very hard to receive zero dollars. What's more, much of an IBO's business expenses are not for business but for training and motivation. An Amway IBO's duties are to sell goods and to sponsor downline. Basically that's it in a nutshell but IBOs have fooled themselves into thinking that they are real business owners with real expenses. If only more IBOs knew this, they could actually make a net profit (without tools) and they would be motivated by net monthly ptofits.

Sadly, upline leaders lure their downlines into thinking that IBOs are engaged in free enterprise when they are not. At best an IBO is a middleman distributor and at worst, a commissioned salesperson. That is not free enterprise. What is also sad is that I did some research about renting space or convention centers and these can be rented or leased free or even cheap if the convention will bring many tourists to town. Go check for yourself. If it is free enterprise, it is your upline's tools business that is free enterprise. Sadly, for IBOs, free enterprise day is not free.

22 comments:

Anonymous said...

i went to F.E.D. once, and i had a blast--when i got home from the event. HAHAHAHAHA

colin said...

I read your blogs all the time. Not sure how people in hawaii can afford to go to the major functions and spend one grand. I know the jobs i had i would have no problem saying no to my upline. I remember theresa as a new diamond having a bunch of people from hawaii come over to vancovuer canada for a fed. They where all excited and everything. Quite a few of us after a meeting where talking about how crazy the hawaii peop are for spending all that money. My upline diamond Rod Jao looked annoyed at the comments and couldnt really say that much.

Anonymous said...

the truth hurts.

Joecool said...

Colin, the IBOs in Hawaii got killed because the major functions were three times per year. FED, Family Reunion and Leadership all took place on the mainland and it costed over $1000 for each event. Add that to standing orders and other tools and the average monthly cost is very high.

colin said...

What % of the group from hawaii would go to the feds or other major functions on the mainland? Cant imagine too many who would dish out 1k to attend one

Joecool said...

I believe, if I remember correctly, that well over a thousand people attended FED from Hawaii. Our upline diamond was thinking of chartering his own flight. Probably to make more money off the downline I suppose....

Anonymous said...

I know quite a few personally that attend these functions from Hawaii. I don't know how they manage it either to be quite honest. That's what credit cards are for eh? Oh and tax breaks of course. Somehow they have been brainwashed into thinking a tax write-off=full refund in April. About that...

Joecool said...

Yes, upline don't mind you going in debt if your debt allows them to profit.

Yoyo's Boutique said...

It is funny reading these comments. I have gone from a struggling IBO for 2 years, I made sure I took out the money for all the events because there is no one (including myself) who is an Emerald or higher without the system. It is impossible. But now I care less about how high gas prices are, or if retirement age is raise. The business is open for anyone who is willing to work their asses off for two year the leasts. Lazy and negative people aren't compatible with Amway. Now I don't work, travel the world and stay at any place without budgeting or worrying to pay a credit card. Whew!

Anonymous said...

^ more BS from an ambot...

**proud Amway hater**

JBFree said...

I was in Amway (Quixtar) for several years, including having the privilege to live in our Diamond upline's house with my family and see what "real life" is actually like for the people who have been in Amway/ QUixtar/ AMway for a LONG time...here is what I have found:

- the money is real, and yes a lot of it is made by being on the stage, BUT one must rememeber, that they didn't just get "placed" there. These Emeralds, Diamonds, etc worked hard "just slinging" Amway products and encouraging others to do the same, for years before they had enough credibility to speak off of that stage
- if you want to be succesful, you DO need tools(only partly because of the teachings, though they are great, but mainly because you have to overtone all the nay-sayers in your life that are so freely giving their negativity away.)People to weak to follow their own dreams will always do their best to try to destroy yours...just saying. Take a look at the people around you, adn take Amway completely out of the picture...the negativity will still be there with any other dream/ ambition as well.
- you need to go to functions! To be around people who fire you up and challenge you, to network, to "get fed"
- Upline are ONLY PEOPLE and human. They have not been bestowed with perfection by an "Amway God". They make mistakes and have problems too.
All to often, IBO's try to find their identity in their upline. It is imperative to find your identity in Christ, trust God and then seek people who are where you would like to be (emotionally, physically, in business, etc) for wise counsil in tehir particular area of expertise.

Through a series of significant life events, I am no longer in Amway now, though I still love the business and its products, and would recommend it to anybody who wants more out of their life, financially and spiritually.

Anonymous said...

no longer in amway? could have fooled me...

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

I understand the changes it can and has done for me-dont stop dreaming

Anonymous said...

u make me sick

Val Campbell said...

I was in business for many years as a manufactures representative. There are many thousands of them in the United States alone. They market products to every single store, restaurant, and company. In exchange for their efforts, they receive commissions on what ever is consumed in their territories. Usually, those territories are geographic, but sometimes not. In network marketing, the territories are not geographic, which is a benefit. People increase the markets, they get paid. To believe that this is not free enterprise is ignorant. I'm not saying that Amway is the best deal out there at this point in time, it is not. You could say the same thing about the Model A Ford; it was great for it's time, but technology allows for a better vehicle today. At the time the Amway compensation plan was developed it was state of the art and many people have benefited from participation.

I was never interested in the excuses of failures. It is more beneficial to know what the people did that succeeded. If you would like to know more about ways to be successful in network marketing, visit me at makebigmoneywithcoffee.com

Angelo Schiro said...

It's solid

ron said...

This business like anything else, is what you make of it. Your attitude is what stopped you finding the success you were seeking. Had you allowed the input you received from your coaches and from events like this to inspire and train you. Then perhaps you would have succeeded like those who came before you. I find That most people find exactly what they're looking for. If you went with the attitude that you were getting ripped off then guess what you found.

ron said...

I find people get out of this business exactly what they put into it. I also find that people see exactly what they expect to see. Had you chosen to see the good in the business you are involved in perhaps you would have succeeded like those who came before you. Everyone starts at zero and have to work their way up. You chose to decide that I was not going to work for you and found a reason why wouldn't work. Too bad for you!

Joecool said...

Ron, the level playing field and you get what you put in is what upline wants you to believe. It's not true. Some people do not start at zero. I guess you don't know how upline can manipulate PV to create "qualified groups".

Also, many people work very hard and get nothing in return.

Have you noticed how upline profits from every function you attend and every cd or book you purchase, even if your sales don't go up as a result of listening and applying their teaching?

Unknown said...

Unfortunately my son got involved in this and I can't open his eye. As an FYI, I've worked for fortune 500 companies most of my adult life and none have asked me to pay for training. The better one's will even pay for your college and professional certifications.

MaryAnn Dunham said...

yep, had boxes full of cassette tapes before I realized the money the upline was making off the tools. Good information, good teaching, but got more sales training at college. Anyone can do their own due diligence and see where the big bucks are made. I still do network marketing but found a better system would be an actual marketing system. And I can make a small amount of money from it on the side, but have a free version to offer downline. An actual system to get leads and build a customer base and downline. No one needs to spend 60.00 on books and tapes. A good marketing cd or pamphlet to hand out to prospects are good. But for personal development,the upline would be doing more justice for their team by suggesting a book of the month.