Wednesday, August 17, 2011

Amway Critics?

To this day, Amway has many critics and supporters. Many supporters become critics if they leave the Amway business. Some Amway apologists are claiming victory recently as they say there are fewer new internet critics. But funny enough, there aren't any apparently new Amway supporters on the net either. But still, it doesn't appear that Amway is suddenly growing by leaps and bounds. The name Amway doesn't bring visions of sugarplums in most people's heads. In fact when you google Amway, you'll see many critical sites and the words scam or pyramid often associated with the name "Amway".

What does the Amway name bring? People often think of "pyramid" or "scam". Some people are negative about the Amway opportunity and they don't even know why. Many people however, were involved in Amway at one time, or knows someone who had a bad experience. While many people's experience may have little to do with the Amway corporation, surely the motivational groups such as N21, BWW, or WWDB has had an impact on people's experience with Amway. Getting tricked into attending meetings or being lied to will lead to a bad experience. So will ridiculous snake oil campaigns like perfect water. Most people are recruited by family or friends, thus these victims are often reluctant to file complaints against their family and friends to authorities.

But has Amway done anything significant about IBO abuses? Surely they must know something about this. Someone from Amway routinely visits my blog to see what I am writing. But as far as I know, even the most abusive uplines have gone unpunished. Amway implemented an accreditation program, but thus far it appears to be mostly a toothless tiger.

I have some suggestions to curb Amway criticism. Transparency. Why not inform prospects of how many diamonds are currently qualified? Why not say how many IBOs are active or registered? Why not report North American sales? Why not say what the typical IBO earns? It would prevent critics and supporters from extrapolating information and making their own possibly inaccurate conclusions. Of course Amway is a private company and therefore will probably release only information that is required by law. And that is their right. But if that is the case, then criticism will continue......


Like the AMO saying goes, insanity is doing the same thing over and over and expecting different results. With no apparent changes forthcoming from Amway, the valid criticism continues........

22 comments:

Anonymous said...

amway is crap.

Prabhakar said...

I wanted to know how exactly the 4% royalty is given. If what I understand is correct, then after a few levels, commission exceeds sales. If what I understand is not correct, then there is actually no residual income. Here is what I have been told:

"When you sponsor more than 2 legs which are at platinum level(21%), you are entitled for 4% royalty commission."

If that is true, after 20 levels, total commission will be higher than BV. Let's say X has 3 emerald legs, and each of those 3 legs have 3 platinum legs. According to above statement, each emerald receives 4% on minimum of 30,000PV(10,000PV for 21%), and X gets 4% on 90,000PV, and so does every upline which has more than one platinum leg. But if that is correct amway wouldn't sustain even one year. But if they don't give a royalty income, I don't see a single reason to join Amway.

Joecool said...

It's not a royalty. It's a bonus based on volume and structure. But since so many IBOs quit every year, I highly doubt that "residual" income is something you can count on in this business. Once you stop qualifying, the bonuses stop. In a real business, with real customers who want products, your sales can be pretty consistent. Not so in Amway.

Joecool said...

You're right about not having a good reason to join. Unless you want about a half percent chance of making enough money to break even.

Anonymous said...

Where are the Amway Defenders???? There never has been any residual income in Amway! Its all a myth and a lie that Diamonds talk about.

There never has been any supporting facts of a residual income, and why in the hell are Triple Diamonds like Brad Duncan still showing the Plan at all?

Where are you Amway Defenders? Shouldn't Brad Duncan be retired and living free rather then traveling to stupid events to show the plan.

Oh yea thats right he is making money off showing the plan and well the tools business. No wonder why his ass is not retired.

Joecool said...

Retired Amway diamonds are like bigfoot/sasquatch, everyone has heard about them but there's no bonafide proof that they exist.

You could get residual income for a short while, but once you stop building, your business will erode very quickly. Anyone who thinks otherwise isn't thinking.

Vermix said...

Wait a minute Joe, you just said that bonuses are paid based on volume and structure. Therefore, there's money to be made in Amway. There's money to be made even before, hence that's why they are called bonuses. I'm sorry to hear that your lazy bum kept you out of the business but that was your choice. As for you Prabhakar, I can tell you that if you think about being in this business only if Amway gives you a royalty income is the very attitude of someone who wants a free lunch together with a free ride. Don't even think about it buddy. My advice to you is; QUIT before you even BEGIN. Save yourself the embarrassment!

Joecool said...

Yes, there's money to be made, but no much of it. In a job you trade hours for dollars but in Amway, you trade hours for losses.

Vermix said...

Oh yeah, there's money to be made, but not much of it! What kind of frigging idiot do you take me for? Go suck a carrot buddy! Stop using your laziness as an excuse why the business doesn't deliver!

Anonymous said...

vermix, one word: DIE!

**proud Amway hater**

Prabhakar said...

And I found perfect answer myself.

http://www.amway.com/en/ResourceCenterDocuments/Visitor/ops-amw-gde-v-en--BusinessReferenceGuide.pdf

From Page 14 of 17 of Amway Business Reference guide (from official Amway website), amway tells exactly how monthly bonus is calculated. They are quite confusing at first. To be eligible for that bonus, you should generate more than 2500PV (when you have only one silver leg) or average of all your "above silver" legs (i.e. more than 7500PV, if you have more than one silver leg) by your personal PV or non-silver legs. So, the chances of qualifying for this bonus is very low, and it decreases as you move up in LOS (as the average PV of your legs will increase due to high turnover). To generate that 7500 PV (it will be much more, if you have an emerald or diamond below you), IBO has to work. That is exactly why there can't be a retired diamond. It explains why those triple diamonds still show plans.

To generate 7500 PV by personal groups, one has to work very very very hard. Amway people tell that legs below silver are not yet "independent" - means you have to work on those legs. I think most people prefer to get income from the "system" doing seminars & selling CDs instead of doing this.

Also "an IBO’s conduct must not negatively affect the reputation of Amway, its related businesses, or IBOs affiliated with Amway and its related entities", means Amway can deny this bonus for anyone.

If I can do 7500PV personally, It's better to sell something else, which will bring many times more income.

Emily Stenner said...

To answer the residu income question. Dimonds are ytill showing the plan and speaking at function because to keep the game fair they still need to make 50 personal pv a month one. And two they show the plan to start new legs and add personals to.increase there business and keep qualifying for dimond and higher levels im an amway supporter and an ibo.

Emily Stenner said...

U dont have to do 7500 peronally its 50 pv personal to quaily for the ibo point beneath u to count. If i do 50pv and the ibo down line to me total pv points adds up to 7500 im 21%. Top of the rebate scale. Now or if the team below me is at 18% and with my pv from retail sales and my shopping is 21% im elegable for a 4% differntaal on top of my 21%. So im getting 25% of all the bv ( money spend by those below me and my own). Thats how i make my income and gave up work. Part time work, big rewards, more time with my kids. Is time and money freedom. In the begining i made 120 a month if i dropped that in the street id pick it up. Would u?

Emily Stenner said...

Oh and it dosent erode away. The point is support u support ur doen line awser questions and help out. U meet ur 50pv a month and pay registration every year ur in passive income then u use this as a cash vehile. Invest ur earning live off profit.

Emily Stenner said...

To answer the residu income question. Dimonds are ytill showing the plan and speaking at function because to keep the game fair they still need to make 50 personal pv a month one. And two they show the plan to start new legs and add personals to.increase there business and keep qualifying for dimond and higher levels im an amway supporter and an ibo.

Anonymous said...

should have known by the robotic tone in your postings...

Anonymous said...

Loss can however be profitable.... tax wise, if you were to infact loose money that "buisness" expense can be recorded as net loss and then that amount is deducted from tax's you need to pay

{at least in australian tax law} other countries i dunno.

as for makeing money, ive seen some people make alot, but they work Like Crazy,for what they get and ive seen people botom out because of it. Perhaps it just takes the right kind of person to make it work?

Anonymous said...

I'm no expert at all, and i only recently found out about Amway. Although i'm still skeptical i have a question: Even though the chances of one making a lot of money through this system MIGHT be slim, are you not still saving on the products you buy from them? So even though you're not making all the money back that you are spending on the products, you're still spending less than you would have if you were not with them?
Just a thought and if i'm wrong please explain to me

Joecool said...

Hi, what I have found is that the savings is a myth. You won't save money on Amway products. You can always find something similar at a better price at WalMart.

Ask the person prospecting you for a catalog and do your own comparison.

KUNTAL MONDAL (BUNTY) said...

Only in Amway Business all time up-lines want to pull-up his down lines, for this reasons Dimonds also work with his down line. Its a team work. Love Amway, it will give more that u want.

Anonymous said...

robot :p

CHOUDHARY RATNAKARA RAO said...

Just only I ve seen all the posts. instead of wasting time like this anyone of you please do the business religiously for two years spending only 02hrs a day on average and come back. Mere speaking won't have value dear friends.