Saturday, December 11, 2010

Just The Facts?

So many people get duped into thinking that they will somehow get wealthy by becoming an Amway IBO. Many recruiters will tell stories about how they were once broke, but signed up, endured challenges and now they are diamonds enjoying untold wealth and luxuries. People get caught up in "dreams" and are often encouraged to ignore the facts. People running businesses should pay close attention to the facts because it tells you much about your business and your likelihood of success. But what are some facts about the Amway business that many people don't know about? I have outlined a few important ones for those who harbor dreams of going diamond.

1. The average diamond, according to Amway, earns less than $150,000 a year. Yes, some of this may be supplemented with money from the sale of tools, but after taxes and business expenses such as travel to and from the many functions that a diamond attends would leave a diamond living an ordinary middle class lifestyle, not one with mansions and sports cars as portrayed in many functions or meetings. Yes, a Q12 diamond would have more earnings, but a Q12 diamond is the exception, and not the rule.

2. Most IBOs are NEVER able to sponsor a single downline. Pretty hard to develop six (6) downline platinums when most people cannot sponsor anyone.

3. Most Amway products are purchased by IBOs and not sold to customers. Name a real business that sustains itself by having it's own workers or salesforce purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ Amwayers lose money.

4. For most IBOs, the cost of functions, standing orders and other support materials represent the reason why most business building IBOs lose money and it also represents a significant profit for some of the diamonds who sell the materials.

5. Not working hard is not necessarily the reason for someone's failure. But conversely, working hard does not equate success in Amway. I would guess that out of those who work hard, it is still a fraction of 1% of hard working IBOs that even attain a significant profit. Doing nothing won't get you anywhere, but in this business, working hard often gets you nowhere as well. It is my informed opinion that the cost of the support materials is the direct reason why so many IBOs lose money, even out of those who work very hard.

I could go on and on, but these are a handful of facts that IBOs and information seekers should be aware of. I welcome differing thoughts and opinions.

16 comments:

Anonymous said...

....with facts. :)

Anonymous said...

no one commented on this cause your wrong and your stupid.

Anonymous said...

Your such a loser cause you have to spend your time writing about people who don't care about.

Anonymous said...

its very sad that you didnt have success in your business at Amway. But please consider the facts that you have not stated:
1. any business you have will cost money. most privately own businesses do not make a profit for thr first 5 years.
2. The functions are not only to provide training, the are helping inspire people and motitvate them through life.
3. There are very few companies that will encourage people to buy product that will allow them to have a return on thier dollar.
4. there are many people in Amway the have be able to go on all expense paid trips because of the company. This is true of other businesses, however, you still have to be in the office from 9 to 5

i also could go on. but i will stop. i dont feel a company that owns the Orlando Magics has to be defended. However, please think of all point before you discourage someone from seeing the business and making a fully informed choice for themselves.

Joecool said...

Any business costs money. Yes, but Amway is promoted as low risk and low cost. Yet the upline tell you that you need to invest in the business once you get started. Bait and switch tactic.

Functions provide very little practical training.

Overall the oppportunity just sucks people's resources and overall, most groups of IBOs collectively lose money.

Anonymous said...

Thanks for having this website. I wish we had done more research before signing up and spending 3 years of our lives (and approx $20,000) - to end up with nothing.

We signed up because they dangled a 'dream' in front of us - to go on a cruise. If we had just taken the money we blew on this wretched 'business' in the first few months, we could have gone on any cruise we wanted.

Also, they told us that 99 % of the couples in this business stay married - well as we went on the leadership was divorcing left & right.

Thankfully, we eventually quit, and are happy now, with only the horrible memory of those wasted years.

Anonymous said...

anon #2 and #3, SHOVE IT!

Anonymous said...

anon #4 is full of it, too.

Justin said...

I feel for people who had poor leadership and/or upline that might of directed them incorrectly or misguided them and I'm glad your doing better since you left. Its messed up when anyone takes advantage of people with dreams that aren't even of their own. This business is for everyone though and it is very useful but you have to be working with the right people. That's why you hear so many different stories, good and bad, about it. Because of people! We're all flawed in one way or another and we make mistakes. In any business you will find these flaws and successes. The business oppurtunity is great but there comes a responsibility with sponsoring someone and helping them. I personally do more of a retail business since you can only teach what you've done and so I decided to master that before going out and sponsoring people. I qualify people before letting them register because I don't want people to get involved based on hype, I want them to make an intelligent decision to build a business from the ground up and build long term wealth. If its not your cup of tea don't knock it because I don't make fun of your job that takes half your day way 5 days a week. Thanks for the posts, I wish there was more balance though.

Joecool said...

Balance? What balance? Does the Amway corporate blogs post negative stories for balance? Secondly, my posts are not targeted at Amway but at the groups such as WWDB or N21. There's the real scam. But Amway is culpable because of their apparent inaction in reigning in IBO abuse.

John said...

Joecool,
You make a good point saying that the AMO's such as WWDB are the real scam, but the problem with all MLM's is that they present "an intolerable potential to deceive"--that is the FTC's wording, not mine. Most MLM compensation plans are weighted so unfairly toward the uplines that the truth for the entry-level member (new IBO) is very unpalatable. To encourage their fledgling recruits to stay in the business, uplines feel irresistable pressure to be deceitful. The corporation, such as Amway, has little to no control over the behavior of its distributors, so even if they stand for honesty and integrity, their distributors likely don't. Worse yet, there is a major conflict of interests because in terminating abusive distributors, the company risks losing large fractions of its business. This is what allowed the AMO's to persist. I believe Scott larsen said that DeVos made a "deal with the devil" in the early 80's when he threatened the kingpins but had them call his bluff. He decided to save his business rather than do the moral thing. As such, Amway is entirely culpable in the abuses that have been wrought in its network of distributors. They've known for 30 years, and they only take action when forced by the government. See here what swift action Amway UK took when forced by the British DTI:

http://www.jerryandmandy.co.uk/whatsgoingon/what%20is%20going%20on%20link%204.pdf

Anonymous said...

balance? justin, you were doing so well up until that last part of your remark. please don't embarrass yourself.

Anonymous said...

Amway should be shut down, they play on peoples greed and the only one that is making a profit is Amway....I personally know 3 couples who have spent years trying to develop their business and they would get is disappointment after disappointment.

The Problem is your down-line is comprised of people, and there lies the problem......People get in and our for different reasons but the turnover is constant.

I saw a video on Youtube the other day about a young man who quit Amway after his first meeting with his Diamond.

He stated(the diamond) to his new people that he wouldn't be able to get them "materials" until the bank ok'd him a new Credit Card.......The young man says to himself, "If this Diamond is making all this money why does he need "another" CC to buy the materials....

I have another friend who is still in it, I just don't bring it up.....I give it 2-3 more years before he sees the light.....

Anonymous said...

Is it only with Amway??? Thats the same situation with every single marketing organization but any organization with ethical business practices would not hide the name of the company in the first meeting, would not advertise that they dont spend money on promotion (and later on starts doing it), would highlight the name of the company to NW21 or any other..

they would talk about big business plans,cash-flows, life style and so on..would have people speak like students of a kinder garden for few seconds so that you are misguided and attracted for the so called glorified MLM business (considering that it would be your own business) but would realize in some time that you are duped and be-fooled and are painted with "an idiot" mark on your forehead ( the 99% cases) and the remaining 1% of the chunk are called "diamonds" as they had the 'guts' to ride on you to earn that money for themselves...

Mag Daggler said...

Joining this cult is a lot like making a "fully informed choice" to join a doomsday cult with David Korea.

Joecool said...

Agree. For the record, it was David Koresh.