Wednesday, February 2, 2011

Success Is Guaranteed?

One of the things my upline used to say was that success was guaranteed if you were participating in the system of standing orders, voicemail, books and functions. And I suppose to some degree, it is completely true. However, what the downline IBOs don't realize is that the success is only guaranteed for the people who profit from selling the system. Because the system materials carry a higher profit margin than the Amway products, your upline gets to profit from your Amway volume, and then get an even bigger profit when you buy voicemail, standing order and function tickets from them.

Amway had reported that an average diamond earned about $150,000 a year. A nice income, but not an income that can sustain the lifestyles portrayed at Dream Night or other big functions. However, add in another $200,000 a year or more and that "diamond lifestyle" looks to be a bit more attainable. The sad thing is that so few people ever reach the diamond level in the US, and even those who reach that level are often unable to sustain it. I believe the diamond club function in Hswaii for US/Canadadian diamonds had a total of 160 diamond-ships. Pretty sad for a business that has been around for so long. I also wonder how many fewer diamonds there might be today? It looks like Amway sales in north america has slipped in recent years so it's reasonable to believe there would be fewer diamonds. I wish Amway would just publish the number, but they don't so we are left to speculate and make educated guesses.

New IBOs nearly guarantee themselves of losses if they buy all the business building tools. The newbie IBOs who move 100 PV get about $10 in bonuses. That doesn't cover the cost of their voicemail, let alone the other tools. And since most IBOs are unable to sponsor downline, these IBOs are filled with dreams that will never come true. It is why the attrition rate is so high. Logically speaking, if IBOs were making money, they would stick around. But since most are losing money they quit. Also, IBOs who were deceived or lied to about the tools, will often quit and have ill feelings towards Amway. The Amway Answer Blog recently wrote an article saying they do not turn a blind eye to these abuses, yet we continue to see and hear of IBOs who were deceived by upline. I believe the only solution is for Amway to provide the training and tools. Less conflict of interest that way.

If you are seeking information or are being prospected to Amway, make sure you do thorough research and ask questions. If you hear that success is guaranteed, ask for proof, such as a business tax return (schedule C). Slide shows of mansions and cars are not proof of wealth or success. Keep in mind that the purchase of tools only guarantees success for the tool sellers, not the tool purchasers. I invite as usual, anyone to prove me wrong.


Anna Banana said...

Joe did you monetize your blog or is Google or blogger doing something weird? If it's you I'll click on a link!

Joecool said...

Hi Anna, I did monetize my blog. I figured I would do it for several reasons. I can donate some of the proceeds to charity. I can also make a point of showing that blogging against Amway is more profitable than being an IBO. No use in letting 8000 to 10,000 hits per month go to waste.

Chris G said...

I got my tax statement from Amway. First full year as an IBO. I did very little work. (Parents and friends bought from me). I sponsored 1 person and he sponsored one person. I received $779. If I where on the system at $50 a month plus the weekly meeting of $5 a piece for the whole year I would be at a loss. $840-779 = -61. That doesn't include my gas to and from events. Thankfully I wasn't on the system for very long. I noticed my downline had very few customers looking through my LOS. They mostly bought for themselves.

Anna Banana said...

Hmm maybe I should do that too! I've avoided doing that in case any Amway ads showed up. In the meantime I'll send a few clicks your way!

Joecool said...

It's very easy to do. You click on monetize and set up a payee account. I would encourage you to do the same.