Monday, January 3, 2011

Amway - There Is No Defense?

I've been blogging for many years now and one of the conclusions I have made is that there really is no defense for debating the merits of an Amway business when the IBO is participating in a system such as WWDB or Network 21. I have no issues with IBOs who sign up and sell actual products to non IBO customers, but these sales oriented IBOs are very rare. Most IBOs who are entrenched in a system are often focused on sponsoring downline because that is the only way an IBO can achieve certain levels such as emerald or diamond. The emerald or diamond level is the goal of many because it is allegedly the level where an IBO can "walk away" and enjoy barrels of cash rolling in for the rest of their lives. I find it ironic that even crown ambassadors keep busy schedules and have not walked away into a quiet life of retirement and uncountable amounts of money.

In general, it would take about 100 IBOs or so to make up a platinum level business. That's 1% at best and even less when you factor in IBOs who do nothing or IBOs who start and quit. In my estimation, a very dedicated hard core IBO would only begin to break even or make a little bit of income at the 4000 PV or platinum level. Of course, your business structure would be a factor in determining how much you can earn. Sponsoring width gives you more profit and sponsoring depth allegedly gives you some stability. Thus you could reasonably argue that about a fraction of 1% of IBOs break even or make a little bit of income. What real businessman would even consider opening a business where your chance of making a profit is less than 1%? Yes, you can argue that Amway is a business and not a game of chance, but a prudent decision also factors in your chances of success.

Other factors that would make Amway unattractive is that the products are priced higher (in general) than comparable or the same products that are available at people's local retailers. Yes, Amway folks will argue quality and concentration factors but those arguments are simply justification for the higher prices. The vast majority of people are satisfied getting cheaper prices at Walmart. Also, IBOs are restricted from advertising their goods, thus are relegated to person to person advertising, which is probably the least effective methos of getting the word out. Higher prices and unfamiliar products results in what many groups have - IBOs who "buy from themselves" in order to earn their bonuses. Also, any bonus that is earned by most IBOs is just a partial refund on having overpaid for a product. Not to mention unless you are at a higher level in the business, your upline(s) get most of the bonus, whether they helped you or not.

Yes, it is possible for some people to make some money in Amway. Yes, some people do make some good money from Amway. It is not possible for all IBOs to make money unless they are selling products to non IBOs and we know that most IBOs don't sell anything or sell just a few items to others. We also know that the tools systems generally eat away any small bonuses IBOs earn and leave them with a net loss. For the truly dedicated IBOs, the losses can mount into thousands of dollars and more.

Can someone make a living with Amway? The answer is that it's possible but not likely. But as to whether the Amway business and associated tools is a good idea? For thet there is no defense.


Anonymous said...

the tools were what caused me to walk away, and unless they get rid of them and let people use their OWN tools for motivation (as if they really need ANY tools for motivation other than motivation itself), i'm not touching this stuff with a ten-foot pole!

Anonymous said...

Tools or not a IBO needs to have a business plan and goal. If you rely on tools then you have failed before you even started. Do your research Amway sales products that are in the top of their certain class. Granted you can get a SIMILAR product at Walmart. Look at the ingredient list. Nutrilite for example controls their manufacturing process 100%. There are a lot of plusses people ignore to join the 'Amway pyramid-scheme' class when majority of that class is from IBOs who failed. We are not limited to just face to face advertisement we have access to everything but selling our products at auction sites like eBay or Amazon. Amway stresses to sell to customers as they track IBOs through the system.

Anonymous said...

so that should be the number one selling point of this entire operation.