Tuesday, June 26, 2012

Amway And Robert Kiyosaki?

Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, all show testimonials of sucessful people. Obviously they do not show you the vast majority of people who try their systems and fail. I believe failure is the norm for people using these system, although they will show off the rare successes and pass them off as the norm.

It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cashflow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials, you will see in small print on the bottom of the screen, "unique experience", you results may vary. I believe that a similar message used to be at the end of Amway diamond recordings as well. If success is a unique experience, then what is the typical experience? The typical experience is probably a loss.

These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the lower level IBOs. In multi level marketing, many comp plans are set up just that way. You need the lower levels to work and eat losses so you can profit. It's shown quite apparently when you the plan, such as Amway's 6-4-2 plan.

So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them.

23 comments:

Anonymous said...

I've always watched those infomercials with bemusement and wondered "why do these guys want to share their secret for success? Out of the goodness of their generous heart?" Of course not. If their secret plan was so wonderful, wouldn't they be better off to just keep doing it themselves to make more and more money? Why would they want to bring in more competition to that market?

The answer obviously is they aren't making their money through their secret money-making plan, they are making their money by getting suckers to send in money to obtain that "plan". Just like in Amway, those at the top don't make their money on selling the products, they make it on all the "accessories". The CD's that motivate (brainwash) the suckers, meetings and functions. Getting the suckers to self-consume overpriced generic products for a ten dollar monthly check.

I'm glad I've always been cynical and suspicious of anyone I don't know promising to share an amazing secret for riches for a small fee simply out of the goodness of their heart. That's probably why I don't own a deed to the Brooklyn Bridge.

~Dave

Joecool said...

Good comment Dave. You're right. If you closely watch these get rich systems type of people, you'll notice the disclaimer that often says "unique experience" when there's a success testimonial being run. There are some questions as to how Kiyosaki actually made his fortune. Some suspect that he's made it by selling stuff to the Amway salesforce and not much elsewhere, save for his Rich Dad seminars, which I heard are not so great.

amwayscam said...

Amway and many self-proclaimed millionnaires who wrote books are practically endorsed by Amway systems. In fact they become millionnaires through the books sold and they really have business and they have all the success and finally writing the book, I doubt. You write the books that the way MLM cults stop thinking and we will sell your books to cults and you become successful. There is no reason why you should read new books for life time success every month forever. In India, a CD costs rs 100 but if education is the only purpose it could be sold at Rs 15 (still in profits) . Biggest bull shit is the 'Eagle' structure designed by various cult systems.

Anonymous said...

Be careful about Kiyoskai, his books are full of "If you want to turn left... first.... you must turn right" nonsense, riddled with inconsistencies, and Rich Dad never even existed (as he himself confessed once under pressure from an interviewer).

Richard said...

It's wonderful to have a committ. I also have one. Being with Amway for many years and being on tape of the week and book of the month and going to so many meetings. Well my gut was right , its coming out now that the real money was there not the good products. For network marketing to work a product has to be consumed each month. Well my sa8 soap lasted long time. Being a point based system u had to spend 5-800 dollars to get a 3 dollar check. We live in a market economy that is broken. You can't have 10 dollar jobs and have an average home cost 200 thousand or an average car cost 18 thousand. I don't believe in zero down and u will make a million dollars. I do believe that network marketing works you need a consumable product or service that is used up each month, a plan that pays for ur work and others and has the ability to bank surplus to be used the following month.
Pyramid that's the fear I guess it's better to work for a dollar amount and the person that sign ur paycheck receive a percentage of ur work. If u are an electrician, auto worker, legal assistant ur employer bills u out at a much higher cost so he can pay ur wage and he directly receives profit from ur labour.
I see the new type of network marketing as one where a resource is turned into a product. So the farmer miner etc will have a better chance of more profit for their family. Then the company that produces the product adds to their worker with a good wage, since it's shipped that helps the profit of these companies and the workers. Then the person doing the sharing of this information most will never make millions, yet as David Bach has said an extra 3-500 dollars per month can give u real wealth.
It's not about leaving ur job most of us like what we do we just wish for a little more. The extra dollars is worth it a now u are a business owner just like GM, DuPont, or another business you now have a way to exercise the right that our governments give to business owners, Tax deductions.
Our dreams we all had a young men and women

Anonymous said...

Are you guys millionaire? What you guys have been saying will just be a crap if the answer is no

Joecool said...

Are you a millionaire? What Kiyosaki and what you're saying is crap if the answer is no.

Anonymous said...

After reading all the comments on here, I just kinda chuckle to myself. And here's why...

1. If you like being an "Employee" and love having your boss or manager tell you what you're worth, thus, your wage, then continue on doing what you've always done.

2. In 5 years, when you look back and all you have amassed is debt upto your eyeballs, a failed marriage, less time with your kids....and have a JOB that you hate - then all you have to blame is yourself for not finding a way out.

3. If you have the discipline and dedication, you could literally make anything work for you. Whether it's MLM or a picking up dog feces business.

4. Quit wasting time on here posting ridiculous comments and work harder to support your family and make something of yourself.

You only have yourself to blame.

Joecool said...

It's even worse to have your upline tell you what to do and you pay the upline instead of the employer paying you.

Gerardo Reyes said...

With all due respect to you all, I think you guys need to stop making excuses and take action to improve your lives, I will admit I am not a millionaire or even close to it but I'm on my way there and its all thanks to the amazing business of Amway. I do understand there is stuff you need to buy and events to attend and that takes up some of your time and money but if you really put everything you learn to practice then there is no way you can fail. The educational system not only teaches you how to win money but most importantly it teaches you to become a great person overall.

In the end, we are all entitled to our personal opinion so I respect all the negative ones, i'm just here to say that Amway is helping me tremendously because when you have a big enough dream and the education/motivation there is nothing that can stop you from accomplishing all your goals.

Best of luck to everybody in whatever you guys do in life and God bless you all!

Joecool said...

Who said people need Amway to improve their lives?

I'd like to know how Amway is "helping you"? When I was in Amway I felt the same way until I realized it was all just a scam.

Anonymous said...

sometimes it just depends on which point of view u are from...

MLM is just like a legal robbery if offered with goods since they can bypass the laws. Go Amway if u think it is right to get people moneys to be yours and for amway boss by selling seminar and dream.

Ask urself, if u really capable, do u need to attend the seminar regulary??? No doubt, we need to think positive in order to success, but do we need to go thru the same process again and again to spend money? If u really good, after u grab all the ideas u can maintain the sales without spend money on support materials but if u do that your upline will eat shit.

The reality of business is Sales - All form of Cost = Profit

If u need to spend back money to buy books,buy tapes, buy shirt, buy seminar ticket, travel to meeting, buy big house, big cars and their products just to show u are successful then where all this things fall to?? Liabilities is an answer(as kiyosaki said,the house that u buy is a liability until u pay it off). House can be pay off,but can all the above be pay off as long as u in the system??

The worlds is just cruel, cant u all just admit MLM flaws?? If u say,i understand how it goes but i think it best suit me ( by killing others to make ourselves successful is the right way ) then go ahead...nobody will stop u all...

What is the point of keep argue how saint is MLM business is...Pyramid pattern business means top eat bottom,we even learn that in our primary school science " pyramid food chain ".

Anonymous said...

i agree with Gerardo Reyes. The talks and seminars are there to show us the way to succeed in the business. I dont know which country are you from or which team are you from in Amway. In my country in SEA, my team don't practice the same thing your upline do. We do not need to buy cds and books from our upline. In fact one of my upline is from nearby country. They comes in once a month to teach us knowledge on the products etc. We don't pay them a single cent. The only remuneration we received is from Amway itself. They only encourages us to attend more talks when Amway invite speakers. But the fee for the talk is minimal which is equivalent to a day's economic meal only. As I mentioned, they encourage, they don't force nor using certain scheme in getting money from us by enticing us to attend these seminars. Perhaps, Amway has given us a good compensation plan but it is up to the individual teams to play around with it. But my team is filled with integrity. Hence, I am blessed to be in this team.
Whatever Robert Kiyosaki experienced are so many years ago and system may have changed by now. My country has strict rulings with all the MLM businesses hence whatever Amway's compensation plan is definitely acceptable here.

All the best and God bless you for all those in Amway business.

Anonymous said...

dunno bout' you but,
i'm from amway too, and i agree with anonymous from before..
my upline always giving me free learning and even the free seminar ticket..
She oftenly come to my house and told me many stories and even look at her winning moment with my eyes...

coz Joecool, even in amway, there still many unqualified upline too...
don't generalize everything only because of one experience, but rather after many trials first...

thx and God bless u all, keep success in amway for some people who run toward to their dream ^^

Anonymous said...

all you dumb fucks have no dreams hahaha keep working your ass of for ur stupid boss and while the owner to all these business are living life to the fullest thanks to all you worthless dumb idiots that think life is about working and school ahaha stupid idiots

Joecool said...

Your upline gave you a ticket because you're not a leader. When are you going to be a serious business owner and buy your own ticket? Even if you didn't pay for the ticket, your upline still had to pay. No free lunch.

Anonymous said...

go to hell you fucking piece of scamshit!

**proud Amway hater**

Anonymous said...

Shame Joe. Such bitterness and resentment. I've owned numerous companies. Some succeeded and some failed. So, when I was approached to see the Amway business I treated it just like my other businesses. I invested, took it seriously, worked hard, followed a system and succeeded. It was no different to my previous experiences in business. I wasn't forced or convinced to buy anything. I just know, that as in any business there's investment and hard work and it takes time. I'm no Amway fanatic. It was just another vehicle to create wealth and it worked

Joecool said...

It's a shame that you believe a scam is a good way to make money. Bernie Madoff was just running a business until he got caught. The real business is not Amway, it's selling tools to the distributors. Kiyosaki has never proven he's made a dime off of what he teaches. He too is making his money selling books and seminars.

Anonymous said...

Joecool are you such a person like Donald Trump, John Maxwell or Charles king??

Joecool said...

No, I don't earn money by telling people what they want to hear.

Anonymous said...

when i was in amway, i cant remember his name, an austrailian? james beacham? he said he asked his upline what to do, they told him "over the next 3 years you need to show the plan 1000 times" and he did so, and went diamond.... i failed at amway, but you know how many plans i showed in 3 years???? TWO, i was to scared to phone people because they might laugh at me, and i was affraid of what people would think, i could be saying its amways fault, i lost money, the products are too expensive, but i got involved in a business that from day one says "in order to make this work, you have to show the plan or it wont work" im pretty certain, that people who fail would show anyway from 1 to 50 plans and wonder why its doesnt work.... if i talk to most people they are lazy, and live in some delusion and wouldnt do amway because it involves GUTS and WORK, because they dont have that, how is it amways fault? you cant deny the fact, if you showed a plan a day for 5 years, you would be a multi millionaire in the amway business, for sure.

Joecool said...

The problem is that most people don't like selling and don't want to show the plan, or can't show the plan. How can anyone build an empire under those conditions?