Thursday, August 30, 2012

Building Your Dreams Or Losing Your Shirt?

One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 32% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting.

Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.

It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.

Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline?

Wednesday, August 29, 2012

Teenage Blogger "Hates" Amway?

It seems that the blogger says Amway but he's referring to IBOs who lie and deceive:
finally i reached back home at 8pm and get myself prepared before check on some news. later on, an ex-housemate phoned me to check about another housemate whether at home or not and he reached in front of my house because he don't believe the another housemate not inside the house. then he just say "can let me in use the toilet" which i believe he still don't believe me that the another housemate did not at home. after that, he started to talk about how my life about and mentioned a "forbidden word" for myself which is AMWAY. next, he just continue to talk about the AMWAY related stuff that actually it is a business instead of direct sales or MLM business.

actually i don't have the interest to listen anymore about the AMWAY because i just feel not comfortable when listening about the names. besides, there was also a few reason of why i hate AMWAY.

1) I hate Amway because i don't like the way they approach people by "trick us" to come to listen their business plan instead of just telling the name of the company when meet up with us. As you can see how my ex-housemate approach another housemate by telling the reason was to "yum cha" (have a drink) since he just coincidence passing by Setapak.

2) I hate Amway because they was so successful and i am loser/jealous. Do you ever see that most of the seminar you joined in the Amway, they will keep show all those luxury things such as BMW, Bungalow houses, Jet flights and others you can buy when you are successful in the Amway road.

3) I hate Amway because they say no need any education also can be successful in terms of being rich. This is because i will start feeling myself seems to make wrong decision to study in college or university since you can start all this as young as 17 years old. (well, i admit i am a loser in terms of afraid being lost to those SPM leaver)

4) I hate Amway because they are Master of Manipulation. It is because no matter you are success or fail, they will have answer for it which is what we call as "死都咬反生" in Cantonese. Do you ever feel like they will mostly target what your interest/hobby/weakness or anything and start to brainstorming you. For example, if you weakness such as you love faith in love, then suddenly a guy say that actually it is because you're poor, that why the girl don't like you which ended up a helpless moment.

Anyways, the things that mentioned above was just purely what i feel and is my opinions which is no right or wrong, true or false. suddenly i just feel myself like promoting them because can write so much about it. who knows one day i join Amway because i haven rich yet right? (come come who want become my 1000 downline call me? joking~) besides, i do check up whether i mentioned the Amway keyword in my blog and found 12 result since 2008 as shown picture below. (Wahlau 4 years so fast gone!)

Friday, August 24, 2012

IBOFightback - Cyberbully, Now Turned Cyberstalker?

IBOFightback, aka "Insider" aka "David Steadson" in 2008 wrote what he considered an expose' on Joecool. This was in response to my article of having received two emails in which one was a threat. In his usual dishonest manner, Steadson took editorial liberties in claiming that I lied about being threatened. I was later able to identify the threatening emailer as someone from Scarborough Ontario Canada. This person still frequents Joecool's blog leaving snide comments and other threats: Rogers Cable ( IP address Scarborough, Ontario, Canada

An Amway employee's response to IBOFightback's expose' on Joecool was this article:

"As those who frequent the Opportunity Zone know, our conversations here are governed by a philosophy we call "civil discourse."

"Civil discourse means we agree to disagree, but not to be disagreeable. In other words, I accept your right to have an opinion that differs from my own and ask that you do the same. In a word, it means respect. Bullies aren't allowed. I was disturbed to read that someone who has been critical of this business has been harassed and disparaging information about him posted by a cyber bully. While I can't enforce civil discourse in any forum but the Opportunity Zone, I can ask that those who are engaged with this business carefully consider the impact that disparaging those with opposing views has on perceptions of the Quixtar and Amway businesses. As a business, we're about building people up, not tearing them down. Just because someone doesn't support our business doesn't mean they should be criticized for those views or have inappropriate information posted about them. As a former boss of mine used to say, our reputation is built on everything every one of us does and says every day. I'd prefer that our reputation be built on respect for all people of all views." [End Quote]

The other day, IBOFightback wrote another expose' supposedly exposing another anti Amway blogger, the author of Married To An Ambot. The way the article is written in my opinion, hinges on harassment and almost appears that IBOFB has been cyber stalking this blogger. It certainly must have taken many hours of snooping and sneaking around to collect all of that data, not to mention how creepy that is. Ironically, IBOFB had been accusing Joecool of being that very same blogger, and of course, as usual, he was dead wrong. This article is disturbing in many ways. The lengths this man goes through makes me think he is psychologically deranged. What reasonable person would go through all that trouble and spend all that time to harass someone who doesn't agree with his rosy view of Amway? He is obviously obsessed with defending Amway at all costs, even though he insists he is not in anyway compensated for his efforts.

What are you going to do IBOFightback? Cyber bully, cyberstalk and harass anyone who doesn't agree with you about Amway? You took an out of context statement and claimed it was a threat against you on the Married to An Ambot blog. When I read that comment, it looked benign, contrast to your statement that you would "have our guts for garters", referring to a threat you made to myself and another blogger named "Rocket". And really David, you shouldn't complain about posting anonymously to defame people. You've done that very thing right here on Joecool's blog trying to pass off defamatory comments against Joecool. You just didn't know I had installed an IP and stats tracker, which is how I caught you. You also unsuccessfully tried to post defamatory comments on this blog using a program called "". You know that thing about people who live in glass houses and all.

P.S. IBOFB owes Joecool $50,000. Joecool is not Steve Nakamura.

WWDB Eagle Program?

Eagle Parameters:

Signed Counsel Sheet to Upline Diamond

300 PV personal use/retail for couples, 200 PV personal use/retail for singles

6-5-3 (PB/SO/MF) - Explained below

6 legs at 100 PV or higher

5 legs on standing order

3 legs attending major functions

Being An Eagle Is Profitable? I think not!

I have listed the parameters for the eagle program above. I will provide an analysis and some comments about the WWDB Eagle program. In my opinion, the Eagle program is basically just a program where upline assures themselves of a certain amount of tools sales. The IBO with the eagle parameters is likely losing a ton of money.

First of all, an Eagle with minimum parameters/legs would be at about 1000 PV. That would equate to about $200 to $300 a month in PV bonus from Amway, with differences based on width, total number of legs moving volume, etc. For this example, I will asume the Eagle receives $300 in PV bonus.

200 PV for singles, 300 PV for couples. That’s $600 to $900 in personal use and retail sales. While IBOs may attempt to sell products, we know that many IBOs sell little or nothing. Even if an IBO manages to sell 50 PV to customers, that IBO would still be spending $450 to $750 a month on personal use, and perhaps earning $100 a month for selling 50 PV.

6 legs at 100 PV or higher. That is approximately $1800 a month in personal consumption and retail for these downlines. Assuming they each qualify at 3%, they would get about $10 in PV bonus each month. The $10 does not factor in business expenses.

5 legs on standing order. Depending on whether an IBO is on the premier club, their cost might be about $60 to $75 a month (or more) for standing order, and may vary if extra cds are purchased.

3 legs attending major functions. Major functions generally cost about $125 per person, per event. And the expenses does not include transportation which may include round trip airfare during peak travel months, rental cars, hotels, etc etc.

Let’s look at a single IBO with eagle parameters. And I will use “best case” scenario. Income might be $400 with the 1000 PV bonus plus the retail profit for selling 50 PV. $400 sounds like a nice tidy sum, especially for a single person. But looking deeper, we see that this person also had to consume $450 worth of goods for him or herself ($450 = approximate cost of 150 PV). Yes, he or she received products, but seriously, how many single people actually spend $450 a month on laundry soap, shampoo and other consumables when simply “changing your shopping habits?

Additionally, an “Eagle” would have to be a leader. More than likely, simply buying standing order is not sufficient. A leader should be consuming more cds as you cannot listen to the same cd every day. Factor in the books, monthly open meetings, average out the cost of major functions, gas money, and other business expenses. I would say it is safe to say that an “Eagle” would easily spend $300 a month (or more) on tools and other business related expenses (Tools = Books, cds, standing order, meetings, functions, voicemail workshops). If this Eagle has to fly to major functions, then that cost may be significantly higher on average.

So let’s summarize. In a “best case” scenario, an Eagle IBO would spend about $750 a month on products and tools. I understand that products are not a business expense, but if a single person is expected to consume/sell twice as much PV, I would say half of that expense is a business expense as it would be unlikely that a single person would ever use 150 or 200 PV worth of goods in a month. So lets use that case and say that an Eagle has $475 in expenses per month ($175 for PV and $300 for tools). The Eagle receives $400 a month in bonuses and retail income (best case scenario) with the IBO selling 50 PV worth of goods (which is not common).

In a best case scenario, an Eagle loses money! And what’s more, all of his or her downline, if they are also using tools, will also lose money! The only ones profiting from the Eagle program is Amway in the form of product sales, and the upline in the form of PV bonuses and the profit from the sale of tools!

Do you still want to be an Eagle?

Wednesday, August 22, 2012

Why "CORE" Is A Failure?

Breakdown 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. Some things may have changed but the general premise is likely the same:

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 truth 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. :D

Tuesday, August 21, 2012

Is Amway A Mind Game?

This was a comment loeft on this blog. It is a very good description of what many IBOs experience and how uplines manipulate them.

Amway is totally a mind game. Controlling your mind is the name of the game. Each and everything that is said from the stage, in the done for a reason. When you are in it, you dont think u are being manipulated. Rather you are made to feel like you are a winner..and you are exceptionally better off than the average outside(non-amway) people, whereas in reality you are loosing every day- loosing in the sense, you are not getting the results for the efforts u are putting.

Every possible negative situation that could happen is thought of and covered from the stage, and the cd. For eg: let's say u have been in the business for 5 years and not making profit. You will listen to a cd where the speaker says nothing happened to them for the first 5 years of business- so u will be like, this is so similar to my story..if I stay a little more time, it is going to work for me.

The job world and the outside people (non-amway people) is painted in such a negative color in the system, so u will be like business is not working..but jobs dont work either...let me stick it out and make it in the business...anyway i will not be able to even spend any time with people outside, let me stay in the business.

You are encouraged to have bigger dreams and get pictures of your dreams on your fridge or have a dream board. In a way this keeps u in the biz, b'coz it is your dream and u are like, how can i choose to leave the biz and these dreams.

Big time stroking of ego happens in all associations. At all associations, whoever that is getting results at that time is promoted through the roof. Sometimes when u are not getting any results, some of the big pins, wont even acknowledge ur presence. U will be like...i will show it to u, what i am capable of and will stay in the biz some more time.

The main goal of the system is to keep u in the biz for some more time, until that next function or seminar comes to pump u up or give u hope. In the meantime u will be buying 300PV worth of product and increase Amway's business and will be buying tools and be inncreasing your system's income.

If u have a few people in your group, quitting becomes even more difficult, u will be can i tell these people, whom i gave dreams and got them in...that i am not going to pursue.

If ur upline is in the local area, if u tell them that u dont want to continue, they will come to ur house, spend hours with u and will use every technique in the book to keep u in.

For those of u who have read "How to win Friends and Influence people"- two main techniques are used from that book in amway business: 1) Appeal to Nobler cause- There is no real money in Amway for most people- so what do they appeal to - Impacting people, better marriages, great families, Free Enterprise, Intagible benefits like becoming a better person etc etc etc.

2)Dramatize your ideas- This is what happens in the function- whereas everything is dramatized--incredible fear about economy, job world is put in your mind and incredible rewards achieved by people in the business is constantly talked about( in a crowd of 3000 in a function, at the most 20 so called successful people talk-so there is your ratio of sucess.)

So, how does this business run? why do people stay in? for HOPE...HOPE of making it one day..HOPE of achieving their dreams...They stay afloat with HOPE

Monday, August 20, 2012

Chasing An Amway Dream?

One of the things that get people excited about joining Amway is the big talk about dreams. My former LOS, WWDB, still has a big annual function called "dream nite". At dream nite, the diamonds will display a slide show with pictures of mansions, sports cars, jets, jet skis, vacations, golf outings and other fabulous goodies that will get people excited. For many, the prospect of not having to work 9-5 while still having cash roll in is enough to convince them that Amway is the greatest thing since sliced bread was invented.

The problem is that the diamonds are simply filling prospects and IBOs with false hopes and dreams. Hopes and dreams that will not materialize except perhaps for a very select few.

While some people may attain some of these goals and trappings of wealth, the vast majority, probably more than 99% of people who come and go through the business, end up in failure and most with a loss of money. Even those who may put forth heroic efforts often find themselves at a loss after several months or several years of effort. I suspect that many diamonds themselves, cannot afford the luxuries they show off. There is evidence of this happening. Several diamonds have had homes foreclosed, a prominent triple diamond was in bakruptcy proceedings. Former diamonds have come forth and explained that their income came mainly from tools and that Amway income wasn't that much. Some diamonds have resigned or quit, which debunks the myth of lifelong residual income. Some diamonds even took their entire groups and left Amway for other MLMs. So much for Amway being the best and providing lifelong residual income.

It is a sad thing indeed, that so many innocent prospects and IBOs have been deceived by shady upline leaders into thinking that in a short time frame, they will be purchasing homes in cashm retiring before the age of 40, and "walking the beaches" for the rest of their lives. In fact, I don't know of any diamonds who have done just that. It appears that crown ambassadors and others are all still working! Why aren't there people going diamond and then "walking away" to live a quiet life of luxury unmatched by any other opportunity?

Maybe it is a big lie or a myth? IBOs are basically dedicating their time and money to chasing an unattainable dream? How many IBOs do you know of that achieved those dreams?

Thursday, August 16, 2012

What's Great About Amway?

Over the years I have been debating with Amway supporters, I cannot see what is so great about the Amway opportunity. Are some of these Amway defenders that stupid or dense that they truly believe that a business where one out of a few hundred people might make a profit and most of the remaining IBOs will lose money is a good opportunity? I'm not talking about people who sign up and "do nothing". Many IBOs sign up and put in a great deal of time, effort and money, only to find out that the system simply does not work (especially in the US) and they make a business decision to quit and/or to do something else.

Of course there are some people who make money in Amway. If nobody made money, then the opportunity would cease to exist. But it is basically exploitation of the downline that accounts for upline success. Amway's admission that sales to non IBOs are low, confirms this. Thus certain upline make their income from their downline's PV volume, and on tool purchases. I mean even a lottery has winners. Even ponzi schemes and other questionable opportunties have some winners. This is not to suggest that Amway in not legal. Amway is perfectly legal, but the way the opportunity is set up, those who profit, primarily do so at the expense of their trusted downline.

There are no groups that I know of where all the IBOs can win and earn a profit. I would guess that there might be a few rogue groups who only focus on retail sales, and while these groups can be profitable as a group, they are few and far between. This is because most IBOs fall under an LOS such as WWDB, BWW, LTD or N21, and these groups all seemingly focus on recruiting of new IBOs. Yes, they may sprinkle in some suggeestions about selling goods, but generally speaking, their "training" materials consist of motivation speeches, feel good stories (whether true or not), and the theme of never quitting while continuing to purchase more tools.

Some upline have the nerve to start teaching downline that their Amway business is not about making money, but to save your marriage, make you a nicer person, or some other diversion to make you forget that you are losing money month after month after month. Some groups even mix in religion and politics into their functions and meetings. As far as I can see, the typical business buildiing IBO signs up, gets some of the tools and attends a few functions, and finds that the products are hard to sell because they are not priced competetively with other retailers, and that a damaged reputation is nearly impossible to overcome. These IBOs realize they are not going anywhere, and they walk away, chalking up the losses as a life lesson. But apparently, many uplines who lied and deceived in the past are continuing to do so today, often just revising history for their benefit (i.e. lying about making any profit on tools).

Many IBOs, prospects, information seekers and critics read this blog. My question is very simple. What is so great about the Amway opportunity? For most, it is just a bad use of time and money. While some may exist, I don't know of a single person who "did the work once" and sat back collecting barrels of Amway money while sipping Mai Tais on the beaches of Jamaica. I see crown ambassadors working as hard today as they did many years ago. Diamonds losing homes to forclosures, a prominent diamond in bankruptcy proceedings, and a hoard of WWDB diamonds apparently selling off mansions that they allegedly paid for in cash. (It os quite possible that their lifestyles are simply not sustainable).

Where is the benefit in the business for the typical IBO? Just as there are some diamonds, there are lottery winners. Displaying a lottery winner doesn't make it prudent to spend your money on lottery tickets. Displaying a diamond's lifestyle doesn't make Amway a good opportunity. While Amway is a business and not a game of chance, the results of either, sadly are eerily similar - that is a few winners and millions of non winners.

What is so great about the Amway opportunity? I don't see it.

Tuesday, August 14, 2012

How To Make Money In Amway?

I have been reading some ongoing debates about whether the system income for higher pins is more than their Amway bonuses. I believe the systems such as BWW, WWDB, N21 or LTD, does generate more profit for upline than the sale of Amway products. How the system income is divided though, is still a mystery as it doesn't appear that there are bonafide written contracts explaining how tools income is split up among the higher pins. However, based on some know numbers and some reasonable and informed estimates, it appears that clearly, the real money is made on tools.

It's very easy to determine that more income is made from the system than from Amway. If you move $100 worth of Amway products, Amway will pay about $33 back in the form of bonuses. These bonuses will be split among the Amway IBOs (middlemen), depending on your level. On the other hand, if your group bought say 20 cds at $5.00each, the system will profit about $90 as cds cost about 50 cents each to produce in bulk. Some Amway apologists will cite the fact that some groups sell cds for $2.50 or $3.00. While this is true, there is usually a "member's fee" which must be paid monthly. When you add in the member's fee, the profit for the system is the same or possibly higher!

If you buy a major function ticket for $100, the cost of that function might be in the neighborhood of $25 to $30 per attendee, so the system may generate $70 profit on a $100 sale. I believe the smaller functions such as open meetings, books and voicemail have smaller profit margins, but still overall, it's easy to conclude that the profit from the system is greater than profits generated by moving Amway products.

The only question is how much each individual earns. I have "heard" that platinums get a discount on the sale of standing orders and cds, but I have never heard of a platinum sharing any profit for functions, voicemail, or any of the other materials. This is puzzling to me as I believe the platinums do the most work in the system.

So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. And then when you purchase and move tools volume, you receive nothing and some of your uplines enjoy all of the profit. While I don't see any problem in upline making a profit for selling training materials, I see a problem in the fact that the tools don't work. So few IBOs progress to levels where an actual profit is earned. Amway supporters will point out the new platinums emerging each year, but do not mention the platinums who do not re-qualify, nor do people know whether the platinums are profitable or not.

Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business. I welcome opposing views on this issue.

Monday, August 13, 2012

Diamonds Pay For Everything In Cash?

When I was an IBO, I was always taught that diamonds pay cash for everything. That one day, after following the foolproof WWDB system, that I too, would be strolling on the beaches of the world, with cash rolling into my bank account with no worries in the world. We were told that diamonds pay cash for all purchases, even homes and other large ticket items. As evidence, the diamonds would show slideshows of mansions and sports cars, golf club memberships and other lavish items. All paid for in cash we were told. I have reason to believe that WWDB still teaches this except that it is probably a bunch of lies.

First of all, in looking back, the group really had no way of knowing what was paid for or not. We just assumed that diamond paid so much money that everything the diamonds spoke of were true. However, there have been events, some very recent that exposed some of the apparent lies told by these diamonds. There were two (2) diamonds whose home foreclosures became public knowledge and a prominent triple diamond who was involved in bankruptcy proceedings. Now your home cannot be foreclosed if it's paid for in cach right? Technically, nobody would care whether a diamond's home was mortgaged or paid for, but when diamonds parade in front of a crowd bragging about wealth, and then telling the audience that they too will achieve the same success by following the system and upline advice, well that's a bit misleading in my opinion. So many people in the audience are practically crying because they want what the diamonds are flaunting, except that possibly, many of these diamonds don't even have what they are selling.

A average diamond might make about $150,000 (according to Amway) and let's just say another $150,000 from selling support materials. When you factor in taxes and business expenses such as travel to and from functions, what's left over certainly is not going to allow you tp purchase million dollar mansions. Some higher up pins might make a bit more, but still, purchasing mansions and other luxuries in cash is a stretch. It would be my guess that most diamonds indeed have a mortgage on their homes and may even have car payments. That's not a crime but it is unethical to lie about your income in order to recruit new downlines.

For IBOs and other newbies, if your uplines are bragging about paying for homes and other things in cash, ask them to show proof of these claims. I can show you pictures of multi million dollar mansions and sports cars, it doesn't mean that I paid for them in cash. But then again, admitting to having a mortgage or having monthly car payments are quite as attractive or exciting as paying for these things in cash.

Friday, August 10, 2012

Success In Amway Is Possible But Unlikely?

So many eager young people join Amway with the hopes that they will retire early, live a life of luxury and basically enjoy life with no worries. Most of the people who join Amway are very likely to be motivated, hard working and wanting more out of life. Their intentions are great but it leads to the question of why do so few people actually get anywhere in Amway and why are there so few new diamonds, at least in the US and Canada?

I think part of the problem is that the folks who recruit new prospects into Amway often imply that everyone has a chance to be a diamond and they also imply that it's not that difficult. I heard comments once that going platinum was so easy that someone's dog could do it. It's obviously not true when less than one percent of IBOs ever reach the platinum level and even those who do often are unable to maintain that level of volume.

Now let's break it down to numbers. A platinum group is often typically 100 to 150 IBOs. Of course not all of them are busy moving products or recruiting downline. A diamond group is six platinum groups plus some side volume, thus a diamond group is likely to have 750 to 1000 IBOs. Being a platinum can be compared to being the manager of a company and a diamond is like being a CEO of a big organization. In a job, you can work your way up and eventually become a manager or CEO. Some IBOs think they can never achieve those goals at work, but they mistakenly think they can surpass their sponsors in Amway so it's a better deal. But even if you earn more than your sponsor, does that mean you will eventually reach platinum or diamond? I think a better gauge of success would be those who go diamond. Diamond is often portrayed as the pinnacle of success and is the target shown in "the plan".

However, as I stated, going diamond would also be like achieving the level of CEO in a company. There is only so much room at the top. That is true. While there can be many diamonds, you would still need to have about 100 to 150 downline to achieve platinum and you would still need six platinum downline groups equating about 750 to 1000 downline IBOs to be diamond, plus your personal group. Thus a diamond is like a CEO who creates his own company. Factor in that half your group is likely to quit each year, thus you must replace hundreds of IBOs every year to maintain the minimum qualification of platinum or diamond. Add the in name "Amway" that makes some people cringe and maintaining a group is a daunting task. Imagine being a CEO of a company that loses half of their employees every year. That's what a diamond "lifestyle" includes.

It is my informed opinion that a diamond lifestyle is one of hectic schedules, constantly working to help your groups maintain volume and bringing in new IBOs, plus sponsoring and maintaining your own personal group of 2500 PV volume. If you cannot maintain 2500 PV personal volume, I believe you would not qualify for some of the bonuses paid by Amway. Also, because the rest of the workers normally works 8-5 or so, a diamond is out working the night shift and odd hours trying to keep the group intact. Also, factor in the travel to functions for speaking engagements and a constant churning of meetings and you have little time to actually work your business and spend time with family. Sadly, many people join to gain more time and money and they often end up with less time and less money because of their involvement with the constant meetings and functions.

So can someone succeed in Amway? Certainly it has been done, but I believe that many diamonds are possibly busier working odd hours than someone with a job with regular hours. The diamond lifestyle may be shown as fabulous, but I believe the reality is not as nice a picture. See my previous post about visiting with a diamond.

Thursday, August 9, 2012

Losing Money Is Success?

Looking back at my IBO days, I can now laugh at some of the weird stuff we did and believe it or not, I have reason to believe that my old LOS, WWDB still teaches some of this and some other major groups also teach it. I believe some of these practices were the reason why some people refer to the Amway business as cult or having cult like qualities. If you recognize some of these practices, you might be in an unethical group and you should ask your upline the tough questions and possibly reconsider or reprioritize your involvement in the business.

Submission to upline was one of the things we were told. Our group was told that upline would never purposely lead us astray so we should trust them and never try anything without checking upline. Afterall, upline had experience and probably had all the answers. Some of this checking upline included asking permission to get married, buy a car or a home, or even something as small as purchasing a camera. The upline said maybe someone upline might have advice on how to get a good deal on a camera so no harm in checking upline before making a purchase. It is my guess that upline didn't want your disposable income being spent on anything other than standing orders and functions.

Late meetings. Our upline was into late meetings, many occuring after midnight. I suppose it was a show of loyalty and dedication to the upline and the system. In reality, it made most people angry at their jobs because they had to wake up early to go to work. For me it made me mad at our upline because the meetings taught us nothing of substance and it just made us tired. Our upline used to talk about time being important but it was never important enough to make him show up on time for his own late night meetings. Another cult like factor - sleep deprivation.

Secrets. Anytime we asked about how much income uplines may have been earning, we were either told it's none of our business or shown a photocopy of a 5 year old bonus check that someone upline may have received. Our proof that the business worked was upline showing off pictures of sports cars and mansions. Of course we now find that some WWDB diamonds had homes foreclosed, and one prominent triple diamond had some dealings in bankruptcy court. Looking back, I suspect that many diamonds have mortgages, which would be nor problem except that these leaders scoffed at the sutpidity of having a loan. That diamonds pay cash for everything, including homes. My former sponsor still lives in a run down rented home beause he won't purchase a home unless he's got the cash. My former sponsor is a physician so I find his position on buying a home preposterous. His oldest child, a son probably grew up deprived of his parents because of dedication to the system and the functions.

Losing money is success. Many times, our group was told that losing money was a sign of success. It was success because we were investing in our futures. That the business really is not about money but about friendships. I suppose upline taught this because everyone was losing money so it was nice to hear that success was around the corner, and that we were all nicer people and on our way to success if we just attended more functions and bought more standing orders. People who sold off some of their personal property were edified if they did so to attend a function. Obviously these folks were not advised to run their business within their means. Upline even said that going into debt was okay, but only if the debt was to invest in the business or to buy extra function tickets.

While some of these practices seem bizarre, I believe it is because the upline advice was self serving and meant to channel their downline's dollars into tool purchases. It is the only conclusion I can make. What's your conclusion?

Wednesday, August 8, 2012

Success In Amway Is A Choice?

Many IBOs seem to think that success in business or in other aspects of life is simply a choice. They mistakenly believe that you can actually choose to succeed or not. They apparently believe that persistence and choosing to win will eventually land them a premiere spot at diamond club. If that were truly the case, wouldn't we see hoards of new diamonds each and every year? Instead, we see one here and one there, and while there are a few new diamonds in the US every so often, we see others quitting, dropping out or leaving Amway for greener pastures. Make you wonder if the prize is worth pursuing in the first place.

But IBOs and information seekers should understand quite clearly. You cannot simply "choose" to win or succeed. In a football game, both sides can believe and choose to win, but still, only one can be the victor. In Amway, it is common for a platinum to have 100 to 200 downline. Thus to be a platinum, you need to be in the top one half of one percent of IBOs. To be a diamond, you will need to be in the top 600 to 1200 IBOs, not counting the masses of IBOs who register and do nothing or register and do a little and quit. Only one in about ten to twenty thousand will ever reach diamond in North America.

Sure, IBOs may cite some touching story like "Rudy". Basically a nobody who dreamed of playing for Notre Dame. He busted his butt and did whatever it took to make the team and the movie ends with him getting in a game, making a sack and being carried off the field by his teammates in a blaze of glory. A great and inspiring movie. But what you don't see is the possible tens of thousands of young men who had the same dream, may have worked every bit as hard but circumstances and situations prevented them from achieving the same limited success. Uplines want you to think these kinds of stories can happen to everyone, but the fact is that there is only a little room at the top. If stories like Rudy were common, then there would have been nothing special about it. An elite athlete like a Michael Jordan or a Tiger Woods only comes along once or twice in a lifetime. It is like achieving diamond. It happens but it is a rare occasion, especially in North America where Amway appears to be shrinking instead of growing.

In the Amway business, many prospects and IBOs are motivated and driven to succeed. Many of them are fine young men and women who want more in life. But the vast majority of those who try will not achieve their dreams via the Amway opportunity no matter how hard they work and no matter how badly they want it. The reason is because there are too many variables that are not in direct control of the IBO. The Amway reputation in North America is spotty at best so sponsoring downline is nearly impossible. And when you can sponsor, chances are your downline will do little or nothing. Many new IBOs will work hard, but quit because they are faced with the challenges I just mentioned. And even if you can overcome the overwhelming odds, you still need to keeping working hard constantly to maintain the business, all for an unstable average diamond income of $146,995, which doesn't consider taxes, medical insurance and other perks you may receive at a job. All told, I believe the diamond income is not all it's cracked up to be when you consider the charade you must play to display the diamond lifestyle. Do the math and you will be able to see for yourself.

In the end, it seems as though the prize isn't as great as it seems, and the trail to success is one that most cannot endure. And even if you achieve diamond, you can lose it quite easily as others have discovered. The bottom line is that you cannot simply choose to succeed in Amway or any other endeavor. Good luck if you decide to attempt it anyway.

Monday, August 6, 2012

Better Than Amway?

One of the silly comments I often receive on this site is that Joecool should offer suggestions about what might be better than Amway since I make comments against the Amway opportunity. First of all, I would like to make clear that most of my point of contention is against the tools companies and not Amway itself. Having said that, I believe Amway can and should have done more to prevent IBO abuse by upline and tool selling companies. But I believe Amway has not because the uplines are the ones who recruit new IBOs and teach (defacto) 100 PV quotas to new IBOs, thus keeping Amway sales consistent. Uplines also teach product loyalty.

But what can be better than Amway? Well, since most IBOs earn less than $25 a month, there are many things better than Amway. Working part time for a wage would be more benefioial to most people who get involved in Amway. Buying and selling items for a profit on Ebay is likely to get you more income than selling Amway products. Heck, a lemonade stand on the roadside is likely to get you more income than an Amway business.

What makes the Amway business financially dangerous to many, is not Amway and Amway products, but the involvement in Amway training such as voicemail, standing orders, functions and other materials. This training is promoted as the key to Amway success, but as far as I know, there is ZERO unbiased documented evidence that any of this materials work. In my old LOS, Worldwide Dream Builders, or WWDB, the same leaders I saw 12 years ago are still there and there are no new diamonds that I know of. I would guess that there were "some" new diamonds, but there are also many diamonds who are no longer in business. Kind of makes me wonder why diamonds would quit or resign from Amway if they could "walk away" and continue to collect "residual income". Perhaps this residual income is a myth prepetuated by your LOS. Afterall, Amway doesn't mention anything about residual income and income from your business would come from Amway.

What is really discouraging is that so many eager and motivated people get caught up thinking their financial dreams and goals will be achieved by their involvement with the Amway opportunity. Sadly, most will end up losing money because of the very training that was supposed to bring them success! Even the fiercest of Amway defenders have no documented proof of success. It appears that Amway success is elusive even to the most dedicated of IBOs.

So what's better than the Amway opportunity? Seems just about anything. In fact if you are involved in the training system, donating $100 a month to charity and doing nothing else would make you better off financially than particpating in Amway and the related training. Doing nothing would make you better off. Watching football games would also likely make you better off financially than Amway and the training systems. My recommendation (but you must make your own decision) is to simply find part time work and invest your extra income wisely. It isn't quick or flashy, but you are likely to benefit long term. Of course, your mileage may vary. Good luck on whatever you choose to do.

Friday, August 3, 2012

Amway IBOs In Denial?

One thing that appears to be common amongst IBOs is how IBOs are in denial. They truly believe that their uplines are working in their best interest and that upline wants their success. I don't believe that to be true. If uplines were truly making a fortune from Amway, why would an downline IBO have to pay for practically every bit of help they get from upline leaders?

To show the plan, you would need to pay to attend an open meeting, and pay for your guests, even if they do not register as a result of the presentation. You pay for voicemail to communikate with your upline and downlines. You pay for standing orders and you may end up paying twice if you were in attendance at the function when the standing order was recorded. You pay for books and other materials as well.

What's more, many IBOs turn their heads when ugly facts rear their heads. For example, some IBOs deny that a prominent triple diamond was involved in bankruptcy proceedings. They continue to edify and pay for financial advice from someone who could not even manage his own finances. They believe that Amway saves marriages even when the leaders who speak this may be getting divorced. It's like upline simply revises history and downlines buy it without question. Many IBOs do not even see it as a problem that some upline boldy lied and said there were no profits from tools in the past. I find this odd because tool profits are still shrouded in secrecy and downline simply believe that they will eventually get a cut, even without a written compensation plan and agreement.

I believe too many IBOs are simply in denial. They give upline their trust and upline abuses it. IBOs are told they are successful for attending a function even when they might be losing money month after month. They may be told that the Amway business is not about money but about making friends. They may be told that they are nicer people because of their participation in Amway. What too many IBOs do not see is that they are in denial about their business. Most IBOs are losing money, a little at a time, perhaps $100 or $150 a month. For the hardcore, maybe more. But they are taught to ignore these simple facts and deny that there is a problem.

It is my hope that exposure of some of these tactics will be beneficial to information seekers and perhaps new IBOs who have not yet been fully indoctrinated. I encourage people to ask tough questions, demand answers and use due diligence when checking out this oppportunity. The fact is that very few people every make a profit and people should know this before getting involved. Don't deny the obvious.

Thursday, August 2, 2012

Bad Upline Advice?

We have had some really good discussion on this blog recently about how someone can build a business in Amway without abusing downline. I was an IBO in WWDB, and I was given really bad advice from upline. These uplines are still around and apparently still giving some of the same bad advice to downline. Having said that, I believe there are some factions within WWDB who may be operating differently. I contributor on this blog, James C. has explained in some of his comments, how he operates, contrary to the mainstream WWDB teachings. Thus I was inspired to write this post.

My sponsor and uplines were Harimoto, Wolgamott, Duncan. We were taught that Amway saves marriages, and that the rest of the world gets divorced. Ironically, I believe Wolgamott is now seperated and possibly divorced or in the process of getting divorced. Greg Duncan was touted for his financial acumen and told the audience that only stupid people took out loans, even to purchase a home. Then we find out he was in bankruptcy proceedings with interest only loans. This is just a side bar. I will further explain what other advice was given to rank and file IBOs.

My sponsor and uplines told us that we should never miss a meeting. Period. That missing a meeting was setting a bad example for your group. In fact we should always purchase extra tickets to meetings and functions as an incentive to bring guests. We were taught that in addition to standing order, we should be purchasing 5-7 extra tapes/cds each week. Afterall, you can't listen to the same recording each day if you are core. We were told that if you had downlline who quit, you could not cancel a standing order because it was too much trouble to call upline who called upline who finally reached Greg Duncan to cancel a standing order. I found it ironic that they NEVER complained about calling upline who called upline who finally reached Greg Duncan to ADD a standing order. Our group was also told that nobody made a cent of profit from the tools. A lie that nobody has ever been accountable for to this day. If selling products were ever mentioned, it was only so IBOs could earn money to buy more function tickets and/or standing orders.

Our upline also enjoyed holding meeting after meeting, AFTER the functions. Thus IBOs went home after 3:00 in the morning at times, even on nights when the job was waiting for them the next morning. Our upline also taught more tenured IBOs that money wasn't important in the business because we are friends for life. The group was taught that we could have our families skip meals in order to buy more tapes/cds. IBOs were told that they should NEVER quit, unless they give up on life as they would be doomed for financial failure.

This is some of the bad advice I heard from some WWDB leaders. These leaders are still around today and I believe some of this is still taught. What does your upline advise?