Sunday, May 6, 2012

Amway - Just The Facts?

So many people get caught up in hype about Amway. Perhaps not from Amway the company, but the Amway groups leaders such as WWDB, N21, or BWW. They may present themselves as the ultra rich, or you may be shown pictures of wealth such as jets, mansions and nice cars and jewelry. Amwayers dress up in suits and business attire. It is all to give prospects the illusion of success when the reality is a stark contrast. I remember as an IBO, seeing all kinds of IBOs driving clunkers to the meetings but dressed up in a nice suit. But the reality was cars on their last legs and (probably) car payments. These nice folks were probably just misled that Amway's opportunity could lead them out of debt, or they could earn enough for their wives to be "job optional" or they might even make enough to walk the beaches of the world while residual income rolls in. The audiences see hope, but it is false hope.

That fact is that IBOs on average earn a gross income of about $100 a month. Amway says the average income of IBOs is $204. But their small print also says only 46% of IBOs are considered active, and therefore, Amway did not count inactive IBOs. So that representation is not a true "average". I might also add that the $204 is gross income, and IBOs who attend functions and purchase voicemail and cds are more than likely operating at a net loss.

Amway presenters also like to talk about the money you can save by shopping with Amway. The fact is that you can get a great deal more value (and products) by shopping at Walmart or Costco. Some Amwayers will say that Walmart doesn't sell Amway products, and while that is true, Walmart does sell some similar or same products which will almost always be cheaper than obtaining them from an IBO. I can't imagine that laundry soap or shampoo would be cheaper through Amway. In past price comparisons that I posted, you can get up to 4 times more product for the same price. This is very plausible when you factor in the real money added to Amway's cost because of the IBO bonuses that they pay. That's not to say that you can't find a single Amway product that might be competitive, but overall, there is no comparison. If you use a cashback credit card like I do, then you too, can be "paid" for shopping at Walmart or Costco.

It is also a fact that diamonds are not the care free uber wealthy people they would lead you to believe they are. As time passes, we see examples of former and current diamonds who spoke of their incomes and in some cases, foreclosures and bankruptcy also revealed through public documents, some background on what a diamond might earn and spend. It is my educated guess that many diamonds, if they try to keep up with the Joneses, are in financial difficulty. Ask your diamond for the facts. In real business, financials are verified, but alas, diamonds and Amway presenters are secretive about their income. Because they don't want you to see the facts? '


David said...

Hi Joe:
It would seem to me that the diamonds and other leaders in the Amway business would welcome scrutiny of their financials in the spirit of openess and honesty. Afterall, isn't the compensation package of every CEO of every major company in The US public knowledge? I'd be willing to venture that Warren Buffett's financials are public knowledge. Why is the compensation package an Amway diamond "none of anyone's business", especially when they espouse the ideals of openess and integrity?

Vik said...

Have you heard "Average People don't join Amway!". That's right! Average people keep their money with themselves and enjoy!

Anonymous said...

My ex and I were part of WWDB for 13 years (1989-2001) during their heyday when we literally would've done anything to be in the presence of their majesties, the big pins. Looking back it's funny-sad how we almost drooled over the right to listen to people like the Britts, Puryears, Duncans and Heads speak to us. Of course, that was before I came to my senses and began to wonder why we were shelling out an average of $700 per major function when we could barely afford to clothe our children for school. We lost thousands of dollars on the Amway scheme, sucking up the lies like the good droids we were, until we were broke and their was nothing left between my ex and me except bad memories of "Amway discussions" because our business wasn't growing.

Anonymous said...

Sounds like the truth and reality of Amway at its best!!. I don't like every aspect of Amway. It drains your fricking money, and its a hopeless opportunity.

My Gosh give me a break!! I could be much more of an asshole, and tear apart IBO scum, but I think Joe Cool is doing a decent job of that, otherwise I will go on a tirade at its best. I will be around.