Sunday, July 8, 2012

Why Amway IBOs Fail?

Here is a breakdodown of CORE and why it doesn’t work. Here are the CORE steps. Some groups may have variations of CORE, but this is generally what many groups use. CORE is allegedly the proven system of success. Apologists claims that people who are CORE for at least six months straight will succeed. I doubt it. There are many examples, including my former sponsor who can suggest it doesn't work. 1 - Show the Plan (10-15 per month) 2 - Retail the Products (10 customers @10 PV each) 3 – Tapes/cds 4 - Books 5- Functions (attend all) 6 - Accountability 7 - Counsel with Upline (Be teachable!) 8 - Buy 100% of your own products 9 – Communikate

Many upline will tell you that your success is nearly 100% guaranteed if you follow these steps for 2-5 years. Some Amway enthusiasts will tell you that 6 months of this activity will nearly assure you of a platinum level business. Certain steps are within the IBO’s control, such as reading every day and listening to cds, and attending functions. It is also easy enough to be accountable, counsel with upline, buy your own products, and use KATE (voicemail).

Here’s where an IBO’s efforts will break down. Showing the plan and retailing products. And remember, if you cannot do these steps then you are not considered “CORE” and your upline will likely tell you that it is your own fault and that you simply haven’t been CORE, therefore you did not achieve success. There is some trut

h in this but let me expose the system in a different angle. Amway has a spotty reputation in the US. I don’t think anyone can dispute this fact. Therefore, for the vast majority of people, being able to show the plan 10-15 times per month is a nearly impossible task. If you are able to do this, you are a really good salesman or a good liar. In this scenario, the IBO is already successful, but not because of CORE, but simply because the IBO has the gift of being able to convince people into seeing the plan. But for many IBOs, they may contact hundreds of people and not be able to get anyone to see the plan. Even IBOs who follow upline advice on how to contact will probably not be able to show 10-15 plans per month. Thus this IBO, who is doing the work, will not be able to succeed. The system will blame the IBO, but the reality is that the IBO has too big of a disadvantage to overcome.

Secondly, with high prices (on average) and with a spotty reputation, most IBOs are unable to retail products. Amway itself has admitted that less than 4% of Amway products are sold to customers (non IBOs). Thus most IBOs are unable to sell products, therefore they are not CORE, therefore upline will blame the IBO for failure.

What if an IBO contacts 1000 people and cannot get 10 people to see the plan? Upline will claim that IBO is not CORE and therefore it is personal failure of the IBO. IMO, the only reason why upline can claim that CORE works is because in order to do the CORE steps consistently, you have to already be at a certain level of success. The vast majority of IBOs cannot and will never be able to reach that level.

That is the myth and the deception that many uplines will use to attract recruits. That each IBO can do the CORE steps. When only a fraction of 1% ever reach the level of platinum or higher, the numbers strongly support what is written here. Apologists are welcome to try and prove me wrong, but they can't.

25 comments:

amwayscam said...

Excptionally well thought out as well as practical post this! I will narrate the story in India. Here STP has recognition for five plans a week. I showed it continuously for one month ie 20 plans and followed up with another 7 in next two weeks and all were negative so zero sign ups! How many CDs and books you must have left at the prospects house so that you can collect them back in the follow up? And reality is 90% people do not pick your telephone call. I was on stage getting recognised for 'efforts'! You literally become brainless as long as you are there on system and tools actively. No profit and loss account.
Come to retail, you are supposed to do 100PV. That's about Rs10000 sales every month! How many you have to do demo 3 per week. If it fails, you have to buy atleast 100PV because you can be confident if the PV is there on IBO number, do it if you are loyal to the system.
Then comes tools subscription and you need to listen to them only on travelling and that too if you cannot do contacting! With the amount of traffic in India, your tools could put you in grave.
There are plenty of things not counted for productivity - contacting, reading and listening, attending associations and trainings. And it is claimed to have 10-15 hours work to own a business. Every system will have readymade answers to all of these, simply because they are all prepared speeches for last 50years.
Every brainless cult who follows these 'systems' will always argue, but the only respite is to ask him draw the profit and loss account or income and expenses account from the day of signing up to the business. And be honest about necessity of the various products.

BLS said...

Thanks for your blog - it's really insightful. Amway/Network TwentyOne isn't well known in South Africa but they are here now and it was good to get a fair and balanced view.

BLS said...

Thanks for your blog - really insightful. Amway isn't well known in South Africa but they have arrived and I'm glad I have the full story now

Joecool said...

Thanks for your comments. Glad I could be of help to you!

Anonymous said...

Joecool, I bet you are one of the fail IBO who cannot learn how to do this business the right way. I see many successful people in Amway who are very shy but optimistic. If you learn how to present the plan the right way, about 1 out of 4 people will understand what you are talking about and will be interested in the business. If you talk to 1000 people and can't get any of them interested in the business, it's you who have a problem. Don't blame it on Amway man.

Joecool said...

Read my profile. I was quite successful in pin level and parameters. But the money wasn't there.

Anonymous said...

*finger* to THIS ^ "amway man"

**proud Amway hater**

Anonymous said...

I was briefly involved with Amway. Just opened up my business in the health and wellbeing field after returning from abroad. Got approached by an Amway person and I was interested in the Nutrilite range which would be very complimentary to what I do, please note as a sideline and i'm NOT into hard selling! Long story short, I was completely invaded, constant phone calls, even over w/e's, also just appearing at my door while I'm busy with clients, then the real pawpaw hit the fan as my clients were hounded and harassed, especially if they knew the client had a big network, it was bad to put it mildly. They are networking sharks who will invade and intrude into every aspect of your life, and also VERY arrogant in their ways since they have this network of 'professionals' (they LOVE having doctors and mentioning it over and over to you so that you should know you are inferior and they are superior in their knowledge, but thanks to them you'll be working side to side with them in the network, lucky you!! What a complete and utter lie!!!) I'm so glad to be rid of them, it was an awful experience, and I was only involved for 3 months! The bottom line is, if you're not a doctor or a lawyer who has a trusted network, you will have to hound, harass and invade people's lives in order to make 'the real money' as they love to mention. Just get a real job and do an honest day's work!

Anonymous said...

what a fool to beleive you will get rich quick and retire with amway, have you ever met an Amway millionaire? Amway is a scam which ever way you look at it.

Anonymous said...

Yes, I have had the honor of meeting a number of millionaires through this business.
I have been a part of Amway for a number of years and proudly so, No I am not rich financially, but in all other aspects I have grown, things which money cannot buy, and now after plugging away at the business, I see fruit of what I did over the past 2 years. Having had a business that cost a huge amount to set up, nearly killed my marriage due to stress and lack of time, had no family life..to lose it all. Not all businesses see profit for a good number of years. I would far rather do Amway where EVERYTHING is OPTIONAL! They say it takes 2-5 years Part Time to get to the first main level. So I guess this takes the "Get rich quick" part away.
Hope this takes away some of the negativity out there. Please research both companies before slamming them.

Joecool said...

How do you know these folks are millionaires? Many diamonds live in debt.

Amway is not get rich quick. Amway is not get rich at all.

Anonymous said...

I (a former boyfriend of an Ambot) am tired of hearing them say that if they aren't growing financially, they are growing intangibly (personal growth, finding themselves, finding God, finding real friends, meeting 'nice people'). Who jumps on a business opportunity for these things?
This is, simply put, justification. Excuses. Lying to one's self in order to keep the truth from your own eyes. This is not accountability, credibility, or responsibility, three things Ambots covet and wash, rinse, repeat in the mirror, everyday. "Live without excuses" "Be accountable". Right?
Did you take this opportunity to go diamond and make a mint?
Was it to meet a bunch of people who are all being nice because they are told to? (they will turn on you quickly if you don't fall in line)
Did you take it to call up old friends (and have them lose respect for you)?
Did you take it for the motivational tools, making you a more positive person?
Did you join for the Evangelical nonsense the books try to teach you? To be another good little church goer? Be just like the rest of us?
No personal identity? Just one of the masses? You want to be successful? Be just like the millions and millions of other IBOs No facial hair, cheap suit, tattoos showing, short hair on men (you are a man right?) Shoulder length hair on women, men should be super fit and women should border on sickly? Look at your "Stepford wife" diamonds. Bland. Typical.
Was it to help other people get to diamond, even though you have no idea how to, because you personally have not?

These weren't your goals from day one. These new goals and achievements were placed in your head to replace the loss of your original goal which has failed. Platinum in 6 months? Diamond in 2 years?
My advice to new IBOs if you should decide to join, on day 1, the day you agree to sign up, write down your goals month to month, year to year for 2-5 years. Every month on delivery day (yay! more XS!) get out that notebook and write down what your goals are, and watch how they change, quickly. You go from entrepreneur extraordinaire to philanthropist to book club member, in months.

Anonymous said...

It is not the Way you show the plan and how many people you show the plan to!! It is all boils down to the fact that people just don't have time and money to invest.... Some people work 2 jobs as it is and like myself a 3 is needed.

They all talk in their stories about making time... taking time out of TV schedule to show plans.... Now what if we don't have time for TV.. Some of us are at work.

I have been at this for 4 years now and have not seen a single cent come in.... All the hard work and nothing to show for it... Just an Email from our up line saying thank you for your support and thanks to you we are able to go to Disneyland! (how is that for a slap in the face)

To make things worse, I joined cause I was promised a great team working environment, but now... No one wants to help, just get told it is your own fault you are not successful, what ever happened to team work and "if you fail, it means we have failed"

Been struggling an update business plan sine January 2013 and none of my up line has come back to me since then.... Just a quick point in my direction to say I have failed.

Amway is Great and can work, it is the ABO's (Amway Business Owners)that let such a great company suffer and receive a bad name.

Anonymous said...

MLM works for the parent company and the first few who join... the more down the tree (hierachy) you are the less chances of becoming rich... this the same concept of the 'economic engine'. The economic engine depends on contineous growth... when it does not grow you get a 'recession', 'depression' or 'world war'. If you want be successful in an MLM scheme you MUST be either the parent or the top 3 tiers. It is THAT SIMPLE!!! I am a software systems developer and I have developed business software since 1985, including MLM systems.

Anonymous said...

There was a query elsewhere as to why most MLM participants used bad grammar, the reason is probably that in the USA, Canada it is new immigrants and immigrant-students who join these 'schemes'....

Anonymous said...

I recently joined the Network 21 group in South Africa. Going into my second month and still open minded. I will report back in 6 months as to my experience.

Anonymous said...

I have read a majority of the stupid comments from people online. So far I have held back, because I know this is a waste of my time. First of all I am not in the Amway business. I was many years ago, back in the mid 90's. I will say this, it changed my life for the better, I never really made much money, but what I learned was invaluable. It did not work for me because I did not work it. This is my fault and no one elses....If it was not for my 3 year stay in the business I would not be where I am today. Am I rich? Not money wise, I do very well, again because of what I learned in the business. Am I successful? I think so, I am dept free, managed to marry a beautiful wife, and have a great daughter. The system will teach you to become a leader, a good spouse and a good parent. The system (Ya know the system that everyone complains about, books, tapes etc) thought me all that. It taught me more than a four year degree did. I read all the crap about how people lost their house etc, that is a bunch of crap!! If they did, it is their own fault.. The system taught me to get out of dept, and stay out of dept. and I have done that. even my house is paid for, after 8 years we sent in the final payment. I think that getting into the Amway business is a great thing, even if you don't build it. the cheap and I mean very cheap education that you will receive is second to none. As far as Amway goes, first class company 100%. there is no better.
If you build it, you will need to attend the functions that are put on, again cheap education, business expenses, will run ya about 200.00 a month. show me any business that you can start for 160.00 and only have expenses at 200.00 a month. again cheap education. and the best education you will receive. If you are reading this because you are seeking info on the business, don't go by what you read online. What you need to do is plug into the system, invest some time and a little bit of money, and go to some of the seminars and the rallies. then make a desition for yourself. Only you can decide if it is for you or not. It may be timing. one thing for sure you will learn something. The group I was in never pressured me into doing anything. After you have spent some real time checking the business out then you can decide if it is something you want to do or not. Dont let anyone make that choice for you.
Amway is not a get rich quick business, you will have to work very hard, and wont see results for a while, but that is the case with any business. It is a business like any other business. If you work it it will work for you, you just have to figure out if it is something you are willing to go through. It will show you who you really are, and some people when they find out they dont like it and blame everyone else for their failure, then jump online and blast everyone but themselves for their failure, and that is not just in this business that is in life.... HTH some of you who are looking at it. again I am not in, but really had the time of my life when I was, trust me, even my family was happy that I was in. I would not have the wife I have today, or the lifestyle, I have today if it was not for the BWW system. bye and good luck.... Tom

Joecool said...

Thanks for your comment. Even though you say you learned stuff and are now successful, you were still scammed and ripped off my the Amway uplines. Whether you care to admit it or not, you lost time and money trying the Amway business and I'm pretty sure you were shown a plan where you'd make "residual" income in a few years, which you did not. So yes, it's good that you got something out of it but you could have done the same without Amway.

Ankit Dwivedi said...

Why didn't you purchase those books and read all of them 3-4 times, as they pursue to do so. Without even getting into a fraud company's money making ways you could have learnt a lot. First of all you should introspect why did you join Amway ? to read books or to be business leader or to earn money. After having failed you don't have any choice except to blame your self for your failure. But atleast don't drag others into the gloom from where you just came out...

Joecool said...

The truth is gloomy because that's the reality of Amway.

Anonymous said...

Mmmmmmmmm mm, interesting comments. I'm in SA and I heard about Amway this morning and decided to Google the company. I love sales work and I thought I'd see if this could work for me but now I'm 50/50...

Joecool said...

If you're good at sales, you can make more money in other areas.

Anonymous said...

I completely agree with the blog presented here. I am a son of a full time amway distributor.
The education system is really really good, but that's not something for which any business is meant. Both my father and mother were wonderful intelligent and were city toppers in their respective stream of science but what the basic they forgot is a simple P&L account. One cannot simply keep on accumulating expenses in the hope that there will be income in the distant future to write off these expenses. I never realised as to why my parents failed despite such a hardwork, but today after 12 yrs, I see some of the annoying issues with this business:

1. The uplines will simply want you to keep on purchasing these products which are very costly despite you don't need them. The motivation is to such a mad extent that you will start sacrificing your family needs and fulfil the uplines purchasing requirements. This is with the expectation that someday, you will have a group that will purchase for you and you also would be having free lunch. I mean com'on what business sense is this- you don't want to work, still want to earn lavishly. My parents got indebted to such a bad extent - that for almost all of childhood life, I was either watching picnic photo of my friends without me or a family tour video of our relatives. For those who are new joinees, please prepare a P&L account.

2. One of the argument that the IBOs give is that the products were too costly to be not accepted in the Indian market. I mean com'on how can you defy the basic economic pricing theory. You cannot expect an iphone made of gold to be purchased by everybody. That's your fault of not accessing the pricing properly.

3. Mathematically, I am convinced that in such pyramid structures, if you are not among the earliest level, you will never make money. But this is something the management never wants anybody to know. What all you are supposed to do is follow the CORE steps blindly. But its not at all possible to achieve success at the same level (of those at the earliest) in these businesses where market has reached not just the saturation, but people are running away from the IBOs.

Without any dispute, the britt system is good, but that's not for what you do AMWAY !!! Some distributors argue that there are people who have achieved success. But they are in fractions. By rule of averages, some people will always be ahead of the curve, but that doesn't mean the system is right.But in this system, who were left behind, didn't took any money from the system, but became heavily indebted towards their future.

dhara bhatt said...

Amway is world's no 1 trusted business.amway is best of the best business.

Anonymous said...

AMWAY is a scam and you will not make any money.