Thursday, December 27, 2012

Your Chance At Amway Success - Less Than 1%?

Many people consider the platinum level in Amway as a significant achievement in Amway. While it may be nice to achieve that level and gain recognition from the Amway corporation, I will point out that there was a study done in Wisconsin where the attorney general analyzed and found that platinums on average, lost money. The study is somewhat dated, but I will also point out that today, there are MORE expenses associated with running an Amway business than before. (Voicemail, books, functions, standing orders, shipping). I would guess that it's possible that platinums lose more today than when the Wisconsin study was done.

A typical platinum group often has 100 or more downline IBOs. Thus a logical conclusion is that less than 1% of IBOs can reach that level. It is also, apparently rare to maintain that level. Factoring in people who quit, one can conclude that only a fraction of 1% ever reach platinum. My former upline diamond had 7 frontline platinums in his heyday. Actually, 6 of them were ruby level. None of them hold the platinum level today. So you have a less than 1% chance of reaching platinum and then you are unlikely to be able to maintain that level.

What serious prospective business owner would even consider opening a business where you have such a tiny chance of success? Even those who achieve platinum are likely to lose that level. If platinums cannot maintain their level, then it's easy to see why there are former diamonds as well. It seems that people are willing to take a chance on an Amway business because the start up cost is low. But what is the point of doing all of that when the chance of making money is negligible?

To compound the problem, many IBOs spend a lot of time and money building an Amway business that is unlikely to give them any return on their investment. I'd guess that the average serious IBO would spend $250 a month or more on tools. That money invested over a number of years in mutual funds would give you a much better chance of achieving some dreams. Even putting the money in the bank would make you better off than the vast majority of IBOs. A serious business owner would want to know their realistic chance of making money. For some strange reason, prospects and IBOs seem to ignore this reality. They dream of only the best case scenario or what is possible. They seem to ignore what is likely.

It is because uplines are in the business of selling tools and distributorships. They are not truly interested in your long term sustainable success. If you don't believe me, try to stop purchasing standing orders and function tickets and see how much longer you are edified and given help from upline. Seriously, would a real business owner be interested in a less than 1% chance of success?


Anonymous said...

I think people sign up thinking this is easy. Thats the way the plan is presented. But only very strong leaders can build this. The big pins are all such people. In addition they are also able to build the tools business. Most people cant build either. They have no chance of success. I went platinum in 7 months. Its an extremely difficult business needing full time effort. I just read that Jim Janz a canadian crown since about 1980 still works the business. He is stated at 100k monthly gross (probably makes a lot more from tools). So is it worth it to give 40 years of your life for that. So for me a difficult business with little chance of success and even those who reach high pins dont earn that much and for many it crumbles.

Joecool said...

The plan is shown as if the work is pretty easy and that anyone can do it. The leaders always show the best case scenario so people think that success is common when in fact it is rare and often unsustainable for most. My former sponsor is still active for nearly 20 years now and last I heard, he's well below the platinum level now. Sad. Seems to be a waste of life.

Victor Santana said...

I wonder why people even consider Amway as a salvation and fast journey to earning millionaire salaries. The reality is, and should be considered by anyone who enters the business, that Amway —as any other business IN LIFE— is hard to maintain and it's hard to achieve high levels of success. What people need to grasp is that Amway is just another opportunity to win money. It's not different from any other area. Let's analise the picture you're pointing out:

a) Less than 1% reach quantifiable success in Amway, can you demonstrate that this data is disastrous in comparison with any other area of the market? Lawyers for example, there are more than a million lawyers, and as you can do in Amway, there are not many that you can recognize and say "That guy is a millionaire for what he does".

b) If you don't keep active business work in Amway, you will lose your pin levels and will go back to platino level, such a waste of life time. HOW IS THIS DIFFERENT FROM ANY OTHER AREA OF WORK? A doctor for example, he earns money for the job he does DAILY, if he stops working for 5 years, that's 5 years he will not be earning a single money (from the job he did as a Doctor).

What is the idea you are to understand here? Amway is not easy. Let us understand that money and success in life (legally) won't come easy in ANY AREA. Of course you will be presented with an idea that SEEMS to be easy. Why? because it's an opportunity, it's another way and in fact, it doesn't restrict you from continuing to be employed in whatever thing you were doing before you started the Amway business.

What does Amway assure you? That the business structure you create, if you manage it correctly, it will sustain itself for a certain period of time, giving you more LIBERTY in comparison with any other business were you need to be employed or self-employed to earn the money you create. Of course, this does not mean that you can go away for 2 or 3 years and the money will still be there, no. It means, that you won't have a boss or a schedule that mandates that you check in every day at 8am, or that every 2nd of January you have to go back to work because that is the company's policies. You're independent, and the success you obtain from such business will be directly proportional to the effort you employ in making it self-sustainable and well structured.

Anonymous said...

So let's look at it this way; it took you 7 months to go platinum! Awesome! So what are you complaining about? Jim Janz has been in Amway for about 32 years and is now making about 100K monthly, not yearly but monthly. So let's compare that to working a job for 40 years. Ask your grandpa; grandpa when was the last time you were making 100K a month/year at your job, was is the the 39th or 40th year there? Maybe grandpa did make that in a year and I say maybe. So to me, it's a far better deal to be spending 32 years working Amway to make 100K a month. That beats down someone working a job for at least one lifetime.

Anonymous said...

Thanks for your comment. Let me expand. I mentioned i went platinum in a relatively short time to establish where i was coming from. I submit i was not a do nothing type and may i say i must have grasped some fundamentals to get there. I mention Janz not to complain about his success but only to bring realism to what effort is needed to have success. The plan is shown as 2 - 5 years 15 hrs a week. I submit its full time for the rest of your life. People are fooled by the plan and deliberately so. There is no freedom. Thats why i quit even though my business seemed to be booming.That was 25 years ago. Everybody from that time have quit except a handfull of high pins then who are all still working the business. An honest way to show the plan would be to say its an extremely difficult business where a small number make money but need to work it all the time for the rest of their lives.

Anonymous said...

Thats exactly the point we are making. This is a very difficult business , small ratio of success and you need to work it all the time. Thats not how it is shown. Thats why naive people get involved for a short period and by doing so generate income for their uplines. They are fooled into it.

Anonymous said...

My former up line was 'honoured' with Silver pin exactly 24 months back and I know for sure he has not gone past to 'gold' level yet. He talked about how I could start platinum qualification in six months time and my pin level was six percent! Hilarious...

ExAmbot said...

They become the predictable fodder %age lot for the upline who is killing it. And they are a lucrative $$$ source while they stay.

ExAmbot said...

When it is convenient ScAmway apologists will use all the contrasts they can comparisons made to conventional businesses. Otherwise the latter get bashed with such impunity it would make a two dollar whore blash.

"Of course you will be presented with an idea that SEEMS to be easy"
Thank you for capitalising the word SEEMS. We know in whose interest it is for that perception not to be understood otherwise.

"That the business structure you create, if you manage it correctly, it will sustain itself for a certain period of time..."

Period of time? I thought it was supposed to provide residual income?

Secondly, no so called IBO business can sustain itself. Even the diamonds fly all over the place to speak because 15-20k fee per major is easier to make than selling over priced wampum to earn the same amount. But I will concede some maybe self sustaining - if you are Bill Britt & own a factory that makes and supplies ambots with cds @ $8 a pop weekly x 4 weeks. Psssss.... that income eclipse any from ScAmway many many times over, but don't tell your uplines you saw this here. Even they don't know this unless they are emeralds and above.

ExAmbot said...

It's a good thing he hasn't gone past gold. It takes so many ambots to part with their hard earned cash (pro'ly at a Jaaay Ohhh Bheee somewhere) for one person to be called "they are making money." It's a closed market swindle with none to negligible income generated from legitimate sales to outsiders. The income of the so called successful therefore has to come from ambots below them. IT's just a money channeling pyramid. The products are nothing more than incidentals to keep hoodwink the authorities, ambots and prospects.