Tuesday, April 19, 2011

IBOs = Free Advertising For Amway?

This makes perfect sense from an manufacturers point. You dont pay Advertising.

In a way, Amway IBOs donate/dedicate much or most of their free time to doing advertising for Amway's products and services. They give absolutely free advertising to Amway at work, at school, in the office, at their church, at family barbeques, by trying to start a (fake) friendly conversation with a stranger at the local Barnes and Noble, or at local eateries, or the local supermarket. Some have coined the term "stalking" when refering to IBOs on the prowl for new prospects.

The first is, well yes, that's wonderful for Amway. But where in the world did you get the idea it was good for you? If Walmart or Costco could sell you products for a marked-up cost, and ALSO get you to do all their advertising for them, for free then why wouldn't they?

Most customers/consumers would notice that their time has value, and remember to tack it onto the cost of the products they're paying. Eventually, they would say: "Oh wait! I'm paying more for the product and donating free advertising to the company! In addition to free advertising, it is also the IBOs who recruit other salespeople to join the business and to advertise and push products for Amway.

In Amway's case, most people won't notice this because they have dollar-signs in their eyes. They have "dreams" of walking the beaches while cash rolls in forever. Amway and AMOs such as WWDB or Network 21 convinces people that they're actually making themselves rich by this behavior, not going into debt. They apparently convince people to ignore obvious facts such as your business taking a loss due to standing orders and functions. It will be cleverly diguised as investing in your business, or that you are becoming a better person, or that true success is right around the corner.

Amway now pays for advertising, but I believe it is mainly to give their IBOs some credibility. They can say "see, Amway advertises on national TV. how can they be a scam"? In reality, I don't believe that Amway advertising dollars have made a significant difference in most IBO's bottom lines.

Recently, Amway and some of their supporters reported that IBO retention is up in North America. But their report doesn't provide any evidence or even imply that IBOs are profitable.


Anonymous said...

amway used to brag that they were too smart to pay for advertising. Only dumb companies advertised. They'd laugh at anyone who pad for commercial time.

Hmmm.....wonder what went wrong.

How are those 'positive' amway commercials working out for you?

Me? When they come on, I immediately change channels. I won't watch that crap.

Anonymous said...

Though I agree with you on few points, there are others I don't agree with. Advertising is just one part. It works for some and it doesn't work for others.

In the big picture, as per me, it only helps the people who are in a habit of learning from mistakes (theirs and those of others).

I like to travel and I am into photography. I talk to people when I visit places. And many-a-times, most people are nervous to just talk about their own city or the nearest coffee shop. They have no confidence in themselves!

Amway also has books which help in self-development. So I work at a big engineering company and need talk to customers I have never met before. Practicing to talk to strangers helps.

Also, by doing all this advertising and selling products, the people do get some cash back. Even if it is a $345/month, that is good enough for some.

During recession, I saw people selling entire houses for just a few thousand dollars.

Sitting at home and watching TV (as per the above comment) only gives us a big tummy and time for cholesterol time to deposit in the arteries.

"But their report doesn't provide any evidence or even imply that IBOs are profitable."
This is perhaps the most wrong thing in the article. For an investment of $185, I have been earning over $137 (and increasing) per month for last 7 months. Also, I haven't worked for over 2 hours in a period of 7 months.

It's simple - if I work more, I earn more. Also, since it is a business, the risks are higher but the returns are higher too!!

Taking a step back and analyzing:
1. I can talk better to people
2. My confidence level has improved.
3. I am earning over 130 bucks a month for doing nothing (Walmart Costco don't even come close!)
4. I don't waste my time (I read books, improve vocabulary and all that walking is good for health)
5. I have some financial back-up (if the business does well, I would be happy. If it doesn't, I don't care. I have made much more that what I invested!!)
6. My professional network has developed (I know people in various companies and can pass on my resume if I need a job)

Also, it has been around for 52 years and going strong. You are not the first to talk about it and not the last one either. However, since you have only "heard" thing and not provided any sources, I would dismiss them as rumors.

Amway has a turnover of $9.2billion - much more than this blog for sure!
And is "...No.32 among the largest private companies in the U.S. by Forbes in 2010" (Source: Wikipedia)

All people do is cry that Amway is bad and that they didn't make money.
This is not a traditional business.

And just investing won't get you anything. You need to work for it. There is no free lunch!
But you can get a MUCH better lunch with a very small increase in effort. That is what makes this run!

It may or may not be a career/job substitute. But it is good enough to pay the bills and take your family on a trip to Europe!

Anonymous said...

more ambot BS. gotta love it!

**proud Amway hater**

Anonymous said...

Author = idiot.

I am an Amway IBO. I don't spend every second of my life trying to stalk people. I spend a few hours a week doing some online advertising. That's it. I spend less than an hour each day taking care of my customers. And guess what??? Amway pays me! Some people take it too far and give Amway a bad name. But, if you've never been involved with Amway, how can you really say you know about it. Just another person butt hurt because they aren't successful. Pathetic...

Anonymous said...

you need to be crushed into powder and blown away!

Anonymous said...

I am also an Amway IBO....Last month joined..I am experiencing it is very much hard to get the people for this...and difficult to convincing the people....Please give me some important guidelines that how you will advertise through online...I am waiting for your replay.....
My gmail id is :


Please reply me as soon as possible.....I am waiting for your reply

Anonymous said...