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.
10 comments:
I think those attrition rates are about right. So you need to keep showing the plan. You do have the multiplier impact that when you get a group of 100 people all doing the same thing then the numbers of people working the business at any one time is increasing . I think the diamond level would give a decent income but not enough to walk away; It could do if you had a number of diamond legs which I think from a business view is what people should aim for. I also think the tools nonsense should not be part of what you tell new recruits; It will run up losses for them and they will both quit and not stat loyal to the products because they will feel robbed.But the big leaders seem to think tools are worth it and it seems it works for them so why would they change
They almost had me, not by flashy pictures but by showing me how it worked. They never tell you about selling the product. Even if you sign up prospects, if they make nothing, you make nothing. They are selectively honest, or maybe 100% but they dont share everything. The thing is, I felt this way before reading the blog, but I actually got a hand on a inspirational cd before paying a dime. They let you know right there what really goes on lol. I do not like it, but its similar to any other book. Scam, nah, morally wrong, YES!! If they really wanted to help they would give us info for free like you do
I think people need to keep recruiting and use a few products and avoid spending money on tools. Doing this would reduce attrition rates and make this whole thing easier on new recruits.drop outs will always be high as anybody can join. If there was a selection process many people would not be allowed to join and those joining would be less likly to quit early. The overall result would be the same but it would look different.
I dont think you can walk away from this business and maintain income no matter what level you are at.maybe the crowns can. I would say if you build to diamond and above you probably will be fairly comfortable. You dont need a multi million dollar home etc.most people would be happpy to be mortgage free and get to middle class income status.
Joecool, funny thing was the 'couple of years that takes'! Whenever you ask those cults they keep saying about, 'last couple of years we could replace this that and so on'. Forget about whether or not it is true, but I know at least 10 platinums and 25 plus less than that level even after 10 years in Amway! I really like those fools, who still do what does not work.
Just ask this question. If there are people who built Amway and walked away, where are they?
Exactly, if upline truly only made money when their downlines made money, they would teach you for free. But instead they make their money selling the training regardless of the results. Stop buying tools and see how much love and attention you get from your beloved Amway leaders.
I have recently joined amway but still i have some queries and not fully in confidence with it, can somebody suggest and give the correct guidance.
GET OUT! :)
Amway is a GIANT SCAM! The products are amazing though, but you can't make any real profit selling overpriced products & getting 7-10% comissions
No one can be successful in Amway. NO ONE!
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