Friday, January 28, 2011

Taking Action Can Curb Criticism

One thing that is certain, based on my blogging experience is that Amway is a highly debatable issue. There are some established critics of Amway, as well as established Amway defenders. The difference between the two however, differ significantly. Most critics point out flaws with the business opportunity and the ineffective training systems. Amway's biggest defenders have at times resorted to personal attacks and side tracking the discussions. One of Amway's biggest defenders was even called a "cyber bully" by an Amway corporate blogger. Many issues are very plain for all to see. I will elaborate on these issues.

The compensation plan is set up for many downline to support a few upline. Many IBOs at the platinum level report that they have approximately 100 downline. This supports the notion that only about 1% of IBOs ever reach platinum, and only a small fraction of 1% ever reach levels above platinum. Thus your realistic chance of reaching platinum is much less than 1% when factoring in people who sign up and do nothing or people who sign up and quickly walk away.

The tools systems are highly ineffective. Not counting people who do nothing, even the most dedicated of IBOs have a less than a 1% chance of achieving any significant income from Amway, even if they do what is advised by upline. This is easy to ascertain when looking at the groups as a whole.

Uplines often abuse their downline financially. There is much evidence that some upline teach bad business practices, for which they are rewarded (tool profit). Some of this bad advice is to buy from yourself, channel any profits into buying more tools, and simply advising a failing IBO to continue to dedicate themselves to the system. Amway defenders make ridiculous claims that these abuses don't exist simply because of a lack of testimonies on the internet by former IBOs. We know that functions across the country may have hundreds of thousands of IBOs who hear the same bad advice, but because of shame or because they were sponsored by family and friends, they walk away and do not share their bad experiences.

Amway is apparently aware of some of these abuses, but there is no visible evidence that abuses have been dealt with in any significant manner. (See Postma Memo or Directly Speaking). Although some measures were taken such as accreditation, these measures appear to be cosmetic. The fact that Amway reported that there are about 4 IBOs to every one customer indicates that they must know that IBOs are not making enough sales to qualify for their bonuses. But I have yet to hear about an IBO who was denied a bonus for not meeting the sales requirement.

These are the real issues. If these issues are addressed, most critics, including myself, will go away. In my informed opinion, Amway doesn't need defenders, they need to look at taking corrective actions.

1 comment:

Anonymous said...

oh but then that would mean the "top dawgs" would have to take a pay cut. SHUCKS!