Thursday, July 14, 2011

Amway Island

Imagine an island with 100 adult residents. One guy gets sponsored into Amway from a cousin in another area off the island. Well, the island residents are a pretty tigh knit group so the one IBO immediately sponsors his six best friends and eventually, all 100 island residents. They are all dead serious about the Amway business so they all work hard, but because everyone is an IBO, they can only self consume 100 PV each. Thus the 100 IBOs move 10,000 PV each month. The group as a whole generates about 30,000 BV and the group receives $7500 in bonus money from Amway. Of course, the first IBO sponsored is now a platinum receiving most of that money with the rest of the group receiving smaller bonuses.

Being serious IBOs, they all get standing order, books of the month, and travel by air to functions. They pay on average about $250 a month for their Amway training/tools. Thus the group pays about $25,000 a month for the training that will one day allow them to retire and quit their jobs. The island community is losing a net of $17,500 from their local economy each month. However, there is one resident IBO who is making a nice income urging everyone one. Let's evaluate the group.

The platinum IBO is making a nice income and will receive a $20,000 bonus at the end of the year. His 6 downline friends make just about enough to break even (approximately 1000 PV) or lose a little. The rest of the residents have lost over $200,000 ($17,500 a month). The guy who owned the local grocery store went out of business and all the entertainment related business went down because the residents had no disposable income to spend money on anything except for Amway related activities. Eventually they all quit, including the platinum because once his group quit, he too, began to lose money.

Now Amway defenders will cry that this could never happen, but it shows that even if you could get everyone in the US to join, this scenario is what would happen. I believe the Amway name and reputation is for the most part, saturated in the US. Nearly everyone will have heard the Amway name and/or will know someone who had a brush with Amway. Because of the tool peddlers such as WWDB, BWW, or Network 21, there are likely millions of people in the US who ended up with a bad experience, perhaps tricked into attending a meeting, or lied to about something related to Amway.

While this story is fictional, it is what would happen if there was a city where everyone joined the business. It is what happens today. Few people benefit at the expense of their downline. And as usual, it is the tools that drive people to lose money - on Amway island, or anywhere else.


Anonymous said...

By all definitions, Amway is a pyramid, even though thru supposed "rules" that Amway has (that aren't followed or enforced) they don't "legally" fall under the definition of a pyramid. A sort of "wink wink, nudge nudge" loophole.

And like all pyramids, there will ALWAYS be a majority of people who lose money or, at the very least, find themselves barely breaking even after back-breaking work. That is just the simple mathematics of them.

The whole thing they push of it being the "best opportunity" out there and that everyone who joins Amway, if they work hard enough and follow the plan exactly as given, can become a millionaire is just plain fantasy. A pyramid doesn't work that way. The only millionaires in Amway are the VERY small select few at the very top of the pyramid, and where they got THEIR money is from selling all the expensive CD's, books and speaking at seminars... things those wide-eyed hopeful IBO's just don't have access to being part of.

Eel said...

So anon, did your Amway business cross 150 PV this month? I'm asking since you seem to talk with such authority but maybe my eyes deceive me as to how much authority you have.

Anonymous said...

Hey, Eel;

There's no such thing as 'authority' in amway. If you've been in longer than 15 minutes (my guess since you use the term 'cross' in regards to pv) and you are C.O.R.E., you know all there is to know about amway.

Show the Plan
Personal Use
Amvox/Kate (whatever)

C.O.R.E. is your amway university. It is also a sure-fire path to losing money.

Exactly what is your 'authority' in amway?


Anonymous said...

eel? yikes, what a name!

Eel said...

My authority in Amway is to be a good leader by example; a leader who has earned the right to teach, to train and to motivate others succeed in their businesses. In order to do that, you first have to be a student so to become a master. As you said, the CORE steps are the system to follow to succeed in this business. One uses the system and applies the system, one doesn't just use the system and expect success. If you just use the system I guess that you're right, the venture is a sure-fire path to losing money as much as a college student who skips classes and doesn't learn yet he expects to graduate with top marks just because his name has been put on a paper that shows that he is a college student. Same with Amway, some people get it, do little inconsistent work or next to nothing yet they expect to have what the Diamonds have by doing what they are already doing. The CORE steps make sense to me but if they don't to you and most certainly to Joecool then I already know a bit a bout you based on the last 2 CORE steps: you are unteachable and you are unaccountable. To conclude this posting, your authority is given to you when you fit these 2 CORE steps and you prove you fit them by example meaning that you are an active student of the business which graduates you to a master and then you become a leader.

Anonymous said...

eel, you're full of crap. end of story.

Chirag said...

Hi Eel,

I think you know way too much about AMWAY, but what a permutation and combination you are setting. A village of 100 people, all hundred join the biz and then there is nobody. Does that mean that those 100 people are all isolated people in this world and knows no one else in this world except the 100. What a thought. Anyways great thinking.

Anonymous said...

it sounds like u have had experience in amway. maybe if u actually worked hard u coukd suceed in it

Justin Medlen said...

I find it hillarious that you all in less then ten comments talk about permutations, and resort to name calling. IF you do your actual research, you will find that its not "Fantasy" for an amway IBO to become a millionaire. Amway, as reported by Forbes, in 2012, is second ONLY to Microsoft in million dollar earning employees in America. Youve also failed to refute the fact that EACH and every real business reporting or government agency more than clears the legality and legitimacy of the business. Your beloved comfort stores do NOT have an A+ rating by the BBB.

You talk about losing money from the local economy. Do you NOT UNDERSTAND that each major chain takes a MAJORITY of its profits out of the American economy because most of the lines are not made on US Soil? Do you understand that Amway is 100% American made, giving hundred of jobs, and power back to the state of michigan, and providing reliable income for 10s of thousands of people?

Your beloved stores are downsizing, cutting benifits and jobs as quick as they can, directly laying off people, and Amway is verifiably giving people the opportunity to save money via product, Tax writeoff, and earnings?

It is difficult, requires a backbone, and some different thinking. But the fact is the people that whine are the people who dont have the guts to try anything in the first place. Its always the coward that does the most talking, the fool that flaps their gums. Why not reply with substance? I dont see you being massively successful at your job, what validity do your ignorants have verses an intelligent and rational analysis of REAL business structure.

Joecool said...


Do you realize the BBB rating has nothing to do with Amway as an MLM business opportunity? By the way, where did you hear the BULLSHIT story that Amway created the most millionaires save for Microsoft? Of course you have links to this reputable information? I'll be waiting here with no expectations that you will ever return.

Anonymous said...

Each morning, for years and years, Rich and Jay would fall to their knees and pray, "Dear God, please don't let the FTC find our we're a pyramid scheme."

Anonymous said...

rofl LOVE IT!

Anonymous said...

fuck u