Friday, February 1, 2013

Who Is Accountable For Amway Failure?

Part of what Joecool perceives as the problem with the Amway opportunity is the utter lack of accountability of some upline leaders. They may tell you to trust them, to submit to them and simply copy or duplicate what they have done, and they imply that you will get the same results. Possibly millions of downlines over the years have put in blood sweat and tears into the business only to suffer massive losses following the system. Upline will take credit for meager success, but place the blame on the downline when success is not there. Upline will claim that they either did not try hard enough, were not teachable enough, or they didn't put in enough time and effort. Despite a shockingly low success rate of system IBOs, nobody seems to fault the system as being flawed. And nobody seems to question whether upline is at fault. I believe it's obvious that the system and the upline advice is severely flawed.

In my observations, I would say that many financial systems are similar. Whether it be BWW, N21, WWDB, real estate gurus or other systems, the success rate is extremely low. Many systems that advertise on television will have a disclaimer that a success testimony is a rare or unique experience. I believe it is similar to the systems in Amway. Dedication or continued spending on the system is not the problem. The problem is often the system itself. It can work for some exceptional people. These people were likely to succeed in other venues anyway. The problem is that is does not work for the majority of people. People who succeed in Amway likely succeed in spite of the system and not because of it.

The bigger problem, is that for many many years, some uplines have lived high on the hog off of the dedicated tool purchases of their downline. All the while, quesitonable or bad advice was given to the faithful downline. Advice such as quitting a job to attend a function, skipping financial obligations such as the rent or electric bills to buy more tools. One upline even said your family can skip a meal because the standing order may contain the one thing you needed to hear to make your business grow. I have personally seen couples lose their homes and go bankrupt because they followed upline advice. Upline to "has their best interest at heart". Granted, the couple has some culpability in these decisions, but uplines who give this advice seem to get a pass.

Where is the accountability? Some of these uplines who give and gave bad advice, are still active today, and some are still giving bad advice to their downlines. Advice that profits upline and drains downline. Even with valid complaints, it appears that many uplines avoid any accountability. For some, perhaps there is poetic justice, such as diamonds having their homes foreclosed. But as many uplines have nobody to hold them accountable, do you really want to do business with these folks? Would you invest your retirement money with a broker who could not be held accountable? Would you have your car repaired by a shop whose mechanics could not be held accountable? I believe the answer is not to these questions, yet many people are asked to trust and follow the advice of an upline who is not held accountable for their advice.

The system is credited for the few successes that are visible, but the individual is held accountable for any shortcomings or failures. IBOs, I encourage you to hold your upline leaders accountable for the advice they give you. If they won't answer tough questions or take responsibility, then one should wonder why the upline should be given your trust.

14 comments:

ExAmbot said...

"The system is credited for the few successes that are visible, but the individual is held accountable for any shortcomings or failures."

That's an established cult trait. It's why MLMs are known as "blame-the-victim-cults."

amwayscam said...

There are always jargons for new and existing IBOs about the other opportunities and financial freedom. When I was a core IBO I was told I have to be accountable to every damn thing and to my upline. But when I was doing everything but with mediocre results, for that also I was accountable. Doing as told does not make teller accountable in Amway! No code of conduct for up lines but only down lines.

Anonymous said...

All the comments say they lost money and no one makes profit, could someone give me an example of that? (not for or against Amway just out of curiosity)

Anonymous said...

Hi Anon - I'm not sure how to answer your question. With MLM it is different than if you were a straight-out sales-person for a company - where one is paid wages or a commission for selling the companies products/services. With any MLM there is a system in place where you gain "points" & go up in "levels" to make an income. My husband has never made a profit due to paying for products/ services/liveleads/phonecalls/petrol-gas/attending meetings or seminars. I would advise you to look-up the "pyschology" (Joe, has an article here also!) of why good working people join & stay in these MLM Groups - my husband is in the process of leaving behind MLM for good due to my determination - I had a "mission" for him to stop due to never making a profit/wasting our well-earned money not from MLM/time & family-life & being starry-eyed & having teams/group unity etc. {Thanks again, Joe & Anna, for your much appreciated help & guidance!} So, Anon, the 1% success-rate speaks for it'self & even then I don't believe that either! Look after yourself & your best interests & don't be mis-led or enticed into MLM please. Cheers; Lady G. (footnote: Sorry Anon, Joe & All, I've become emotional here as it has been a real rollercoaster!)

Anonymous said...

anyone?

Anonymous said...

If you were to just sell these products(might be difficult) or create a big network of people below you who are buying lets say $200 a month of Amway products(not worthless CD's or books that others have been posting on here, but actual household things you may use and repurchase on a monthly basis) wouldn't one make a profit? No following stupid uplines or going to seminars and all that bullshit. Even without purchasing any products myself would I be able to make a profit? Im not talking lots of money, lets say like a few hundred dollars a month? Is that feasible? And please I do not want to hear some story about how someone failed and it ruined their life. I could not care about pathetic decisions that people made. Thanks

Joecool said...

Without the functions, it's possible to make some profit. The question is whether or not you can sell average quality products for premium prices. If you can do this, you are likely to make money selling cars or homes instead of Amway products/

Anonymous said...

Anon 7 38. To answer question an ibo is convinced to auto consume about 200 dollars of product monthly and buy tapes , go to functions etc which costs about 200 monthly also. This give a monthly cost of 500-600 monthly when gaz telephone etc is added in. You need to be at platinum to have income enough to cover these costs. 99% never reach that level so would all make losses. They quit in the first year probably. The high pins have it organised so that there is a net inflow of people. This keeps the thing going and funds flowing to the few at the top. The 400 of costs i mentioned all goes up line for the most part. Hence the lowere levels are constantly feedind those at the top of the pyramid. As only 4 per cent of amway sales are to non ibo, it is obvious that this is scheme whereby a large majority of the low levels in the organisation are needed to finance the top. The low levels losses are the upper levels profits. Hence getting people in and keeping them as long as possible is key for the uplines.

Joecool said...

Good post. You cannot have a king and a kingdom without the peasants.

Anonymous said...

Anon 11 28. I buy amway products ( loc once every few years)from a distributor here in France. They tell me they have 400 customers. They use a net based order process where you order and pay on line. I believe they also have a small amway shop. So they probably earn a couple of hundred euros a month. They have minimal costs. They do not recruit. However they will sponsor you if you ask and will guide you. They do not have any ambition to be diamond. Happy doing what they do . So that may answer your question.

Anonymous said...

Hello Anonymous - first of all are you the same person above who posted on Feb3 at 7.38pm, thanks!

Anyways your comment "pls I do not want to hear some story about how someone failed & it ruined their life etc"
*Our life wasn't ruined - we are moving on from this MlM entrapment.* And, your comment; "pathletic decisions" - we both spent 4yrs in MLM, believe me my husband is a hardworking person who *thought* he could change our life with MLM - I suppose I shouldn't get upset with your comment, as, you haven't been caught-up/invested your time/money, in it to understand where I was coming from?

If you wish to do any investigating/research - google; Datelines MLM YouTube Part 1 & 2. (which I discoverd on, Anna Banana's Blog; "Married to an Ambot" - thanks, Anna!)

Also, I have a link to an important audio featuring Mr Robert FitzPatrick & Mr Eric Scheilbler.

http://pyramidschemealert.org/resources/WhatAboutThisOne.mp3 {...Joe! Could I request please if you don't mind - that this link be posted somewhere at your Blog for better reference for others too find? Thanks!}

That link was the "bingo" for me to get my husband unbrainwashed. Thanks, Joe, for posting my post.

Cheers; G!

Anonymous said...

Im in school so I would not have time to sell homes or cars, so if I can make a few bucks on the side it would be fantastic. I still find it hard to believe people listen to their uplines and go to functions that cost money... Does that actually happen? But thanks for answering my question.

Anonymous said...

Sorry I probably did not make myself too clear. That comment was not directed at you. I just didn't want to someone to reply with my life was ruined or I wasted so much time and money with Amway or anything along those lines. Again I could not care about the ignorant decisions that people made.
Sorry If my comment had offended you in anyway.

Anonymous said...

Hi Anon, sorry also for my misunderstanding & thanks for your sincere words - they are much appreciated! Take care; Lady G! :)