Thursday, February 24, 2011

Amway, Kiyosaki and Other Financial Systems?

Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, all show testimonials of sucessful people. Obviously they do not show you the vast majority of people who try their systems and fail.

It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cashflow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials, you will see in small print on the bottom of the screen, "unique experience", you results may vary. I believe that a similar message used to be at the end of Amway diamond recordings as well.

These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoipng for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the lower level IBOs.

So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them.


Anonymous said...

and it's funny that those who argue this cannot substantially prove otherwise.

John said...

The business self-help industry has absolutely no regulation on its claims. As such, Kiyosaki can spew vitriolic about how bad it is to save money, but the truth is, for the majority of people, saving is the only way they can ever hope to have any measure of wealth.

There are numerous good online critiques of Rich Dad, Poor Dad. I'm not saying it's completely devoid of good advice, but it probably has more flaws than merits, and most readers won't find it positively affects their lives. The only one who's guaranteed to get rich from the book is Kiyosaki.

Joecool said...

What is very concerning is that some uplines actually advise their faithful followers to hypeconsume these tools for their benefit. I know my former LOS, WWDB was one of the abusers.

Anonymous said...

Wrong. Saving is not the way to create wealth. Saving is a backup plan for the rainy day. The only way to create wealth is to generate influx of cash preferably from multiple sources.

Joecool said...

Where does it say anywhere on this topic that saving is a means to create wealth?

In any case, saving is better than losing money on standing orders or functions.

Anonymous said...

anon, come on. get your facts straight!