Wednesday, October 26, 2011

Amway - IBOs Are Legit Because They Sell Stuff?

I've been debating with some IBOs about retail sales to customers. While many IBOs claim to have real customers and to teach retail, the reality seems to paint a different picture. Even an Amway corporate blogger at one time wrote a piece stating that sales to non IBOs were 3.4% of Amway (Quixtar) sales a few years back. Apologists will say that many IBOs are actually customers who only buy stuff and do not build the business. While there might be some IBO customers, I highly doubt that the majority of IBOs are paying renewal fees just to buy soap and overpriced vitamins.

I know some groups have their schtick down. They will say they "teach" their IBOs to have sales to about 20 customers which gives them a monthly income and allows them to qualify for a PV bonus. It certainly sounds great, but I would bet that IBOs with 20 actual regular customers are about as common as a founder's diamond. In many groups, the IBOs are taught to "buy from themselves" primarily. Thus the income generated for the diamonds simply comes out of the pockets of their downline IBOs. Sadly, "serious" IBOs often wind up paying their upline (via tool sales) to learn that this sham is a good idea.

I can prove right here that IBOs are not focused on selling products. The focus is on selling the opportunity. How can I prove it? Very simple. Every single time I have seen or heard about the Amway business, there was talk about the economy, inflation, etc. The speaker talks about his easy lifestyle, and how he made it bbig by capitalizing on an opportunity, the Amway oportunity. Then the 6-4-2 plan or some similar variation is shown to the audience. It is shown as "simple", "reasonable" and "doable". The plan is about making money, typically six figures at the diamond level and a decent income at the platinum level. There is little mention about having to sell products, and little or no mention about the actual products that Amway carries. The hype in the meetings is to sell the opportunity. Sure, after the plan is over, a prospect might be given some samples and such, but the emphasis is still on the business opportunity. The products are usually a side note in the presentation.

While IBOs might talk a good game about selling products, the reality is that many active IBOs have very few actual customers. It is my informed opinion that even the few real customers are often sympathetic friends and family of the IBO, rather then people who are genuinely seeking Amway good and services. I wonder if anyone in Amway has ever "shown the plan" by starting out with product presentations and samples? When you really think about it, unless the business has real customers, all you are doing is exploiting those you sponsor for their personal consumption, which might benefit your business a bit, but won't benefit your downline unless they can dupe others into joining them.

So take a real look at your business. Are you actually selling goods to outside customers are are you engaged in a personal consumption game? My undedrstanding is that an IBO does not qualify for a bonus without sales to actual customers. Are you legit or not?

6 comments:

Anonymous said...

Joecool, your so cool. I really wish you were my upline in any business. If you can build any business on the foundation you regularly state on your blog, you'll be business guru. I've seen Amway plan, and wish a person like you would build the business on the right value and teach others. Rather then talk about it why don't you show it, you would be a rock star if you can build on the foundation you have spoken. We need a savior like you.

Anonymous said...

As far as I know, in China we always do product demo at our plans. Cause you can't be an IBO unless you sell products for a consistency of 3 month.

Lucifer said...

This is what I say too; easy to understand, easy to do!

Anonymous said...

Anonymous, Joecool doesn't want to be known as someone who lies, cheats, and steals, otherwise known to you as an Amway "rock star" who can be your "savior". Do your foolish comments leave any doubt that the Amway "business opportunity" promoted by AMOs is a godless, cruel farce? Eagerly awaiting your retort,

Daniel

Joecool said...

Ah, lucifer aka anon from Canada returns! his panties are knotted up by reading some truthful tidbits about Amway. How's those bonus checks? I hope you're making enough to pay for your voicemail!

Joe said...

Good post