Wednesday, November 16, 2011

What If Everyone Joined Amway?

The point of this blog post is to illustrate that the Amway opportunity is simply not sustainable and that the market is basically saturated in North America. I know Amway recently released some propaganda on the average IBO income being up, but once again, a clear explanation of how they derived the numbers was not given. For all we know, they have hve simply excluded more IBOs by declaring them as "inactive". Anytime I heard the word Amway, it frequently draws funny looks from people. I know that Amway proponents will claim that Amway is not saturated, but in real life, you aren't going to have people lining up to join. It is why there are countless stories of people being lied to or tricked into attending recruitment meetings.

So in reviewing the common 6-4-2 plan, there are 79 IBOs and one becomes a platinum. And that is with the generous assumption that all of these IBOs are moving 100 PV consistently each month. Factor in some folks who do little or nothing and some who order infrequently and anyone can reasonably conclude that a platinum business will commonly have well over 100 downline IBOs. Now with that being said, what if everyone in the entire world suddenly had an epiphany and decided to join Amway?

Well, the structure of most platinum businesses won't change. You will still likely have more than 100 downline in each platinum group. The platinum will make some money and most downline, especially those on the system of cds and functions will lose money. Thus less than 1% of the IBO population can realistically be a platinum at any given time. Whether is now or whether the entire planet signs up for Amway, it will always be less than 1% of the IBO population at the platinum level. That is how the system is set up. The only exceptions to this rule would be for IBOs to sell enough PV to make up for a lack of downline. But there is ample testimony and evidence to indicate that many IBOs simply self consume their PV because they cannot or do not like selling. Some AMo groups teach IBOs to almost exclusively consume their own volume. My former LOS, WWDB did not emphasize selling, but focused on recruiting. And why not? The reality is you cannot go emerald or diamond without many downlines.

So even if every person on earth joined Amway, there would still be less than 1% of IBOs at the platinum level and very likely that less than 1% of IBOs would be at a net profit. Some proponents argue that many IBOs sign up and do nothing or sign up and don't order products. So what? They are still IBOs and even if you didn't count them in averages, what I have posted above explains why the success rate (platinum) still cannot amount to much more than 1% even at the best case scenario.

Still thinking about registering for Amway? Do your research and you may want to think about this article.


Anonymous said...

Hi Joecool,

I just started with my research about Amway for about 2 weeks. And I wonder how you know all of these information? It seems that the upliners (I don't know how you have to call them) had make promises to each other to not saying anything how the Amway-system actually works untill you start to buying their stuff, am I correct? I just feel sorry for those who got disappointed in Amway.
Helping people is good, but it has to come from the heart right..instead of for your own profit.
1 Thing is sure, God is counting our good deeds on earth and we will certainly get 10X more from Him.

Hope you can answer my questions.

just a regular person.

Joecool said...

Hi Anon,

I know much about Amway because I lived it. I was an IBO and found that much of what my upline were lies or at best, dishonest. They always show you "what's possible" but not what's likely. It's like showing off lottery winners without telling you that one in ten million tickets wins the lottery. I also built the business to a sizable level and did everything my upline told me and I still did not make a net profit. I made a business decision to quit and I have been better off ever since. Read more of this blog and you can see what else I have experienced. Thanks for commenting.

ST said...

Best example yet Joe. I like it bettEr than the amway island example which is a bit more conceptual. I'm going to keep this one in my pocket for the debate that will eventually ensue with my amway friends. Good on ya.