Friday, December 2, 2011

Endless Amway Motivation?

I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank

8 comments:

Anonymous said...

Joe;

For all the amway motivational speeches being belched out all over the world, I've never seen so many negative, mean spirited, insulting, foul-mouthed ambots.

Like my dad used to ask when I came home from school every day: "Honey, what did you learn in school today?"

Me: "Oh, nothing."

Dad: "Well, guess you better go back tomorrow, then."

I never did figure out how to say I learned all there was to learn so I could quit going. Guess that's the problem with most ambots. They don't take the message to heart so they have to keep going for the rest of their lives.

Bummer.

CASSETTE TAPE

Joecool said...

I find it ironic that Amwayers are often told to fill their minds with positive. Then they turn around and bash people who aren't in Amway.

ST said...

I've managed to listen to a bunch of amway's motivational tapes and videos, and I have never heard such substanceless pandering in my life. Let me sum up what I've taken away from all of them combined: do you want to be financially free/your own boss/super rich etc? Then you're a genius and everyone else is a stupid zombie moron! You're so smart -anecdote- no one is as smart as you for joining amway. -and repeat- I have never seen or heard a tape or video that had any advice on what to do to improve other than dig in deeper. *facepalm*

Anonymous said...

I have to agree with what I am reading lately - about Ambots and Amway naysayers. I must confess I have attended a few "meetings"--or rather brainwashing sessions - and the speakers basically repeat the same old rhetoric, and go on endlessly about how one needs to focus on "building their business"and the ONLY way to do so - is to "Invest" in yourself and your "business"--therefore, one NEEDS to spend money and invest in themselves by buying books and CD's. By the CD's (which are basically) a thing of the past now--cost about $10-$15 Each! Seminars - that are supposedly ALL about TRAINING - cost upwards of $150-$200+ If this is such a great business opportunity--why is there such "attrition" so early on?? And what "training"--telling people what they must do - is NOT the same as "training them how to do it". Don't throw me a fish--teach me how to catch a fish! That's training.

Joecool said...

Yes, the IBOs brag about how cds now cost $2 or $3 but they don't mention that they are paying for premiere club membership to get the reduced price. In the end, the upline are laughing their way to the bank.

Reina said...

Amway doesn't claim people will make extra money with no effort. They tell you, as do all legitimate direct marketing companies, that you have to work hard.

Direct marketing has its quitters, just like eBay, home businesses, craft fair vendors, etc. As a matter of fact, most new businesses fail within the first 5 years.

People who are willing to do the work and who continue to really work, can retire rich.

Joecool said...

Hi Reina,

Most small businesses do not fail within the first 5 years. About half of them survive and out of thos that don't last, it is not all because of failure. People willing to work will not retire rich in Amway. Can you name even one person who "retired rich" from Amway?

Anonymous said...

Reina --

There's a very big difference between a business that fails because of market conditions, supply problems, price fluctuations, unforeseen catastrophe, or better competition from rival businesses, and a business that is DESIGNED TO FAIL for 99% of those who are in it.

Amway is designed in such a way that the vast majority of IBOs will make no money at all, and instead contribute their cash to enrich a small group of up-line big pins. That's how Amway works, honey.

No one in Amway gets rich selling Amway products. As quite a few pro-Amway types have said here in their posts, you don't sell products; you sell "The Plan" or "The Opportunity."

Do you know what that means, concretely, Reina? It means that the primary business of Amway is the recruiting of new IBOs, continuously and forever. Nobody can "retire" in a system like that.