Wednesday, May 8, 2013

Amway Quitters Are Winners?

I often see commentary about people quitting Amway and Amway loyalists are quick to call them broke, losers, lazy, lacking guts. Ironically, these same lazy and loser types of people were "sharp" and motivated prospects before they signed up for the Amway opportunity. Someone recently left a comment on my blog about how AMOs should conduct exit interviews with departing IBOs to get to the root of the problems. I think these exit interviews would reveal that people are working hard and applying the AMo teaching, only to lose money,

Based on my years of blogging and Amway experiences, I can honestly say I believe that people quit Amway primarily for one reason. The money isn't there. Amway's own numbers show that the average IBO earns just over $200 a month and that is before taxes and expenses, and that number excludes inactive IBOs. Business building IBOs earn most of the bonuses, but business building IBOs generally have the most expenses, often participating in the system of standing orders, voicemail, books and functions.

When I was an IBO, I did as upline advised and I achieved a fairly significant level (4000 PV), but due to the expenses associated with tools and helping downline, I didn't earn net profit. This is confirmed by a study done by the Wisconsin attroney general who examined the tax returns of platinume and found that they averaged a net loss of about $1000 a year. While the study was a bit dated, I would suggest it is still very valid as platinums today, have more tools (business building materials) that they are expected to buy from upline. If I made nothing at 4000 PV, anyone with half a brain can conclude that IBOs below 4000 PV and fully participating on the system would end up with a net loss because their expenses would be similar to mine, but with less bonus money.

The bottom line is that people are very likely quitting because they aren't profitable. If people made a few hundred a month with 8-15 hours of work per week, they would continue to run their businesses. But those who work and make nothing or lose money have no reason or motivation to continue. Thus they simply make a wise business decision and quit. What seemed like a good idea during the presentation simply did not pan out when reality set in. It's also reasonable to conclude that the products are that great either because if they were, those who quit would become loyal customers, thus even if the sales force turned over, sales would consistently rise as former IBOs would become customers. It's apparent that most former IBOs do not become loyal Amway customers. In fact, for those who later discover they were lied to or deceived about the Amway opportunity, become critical of Amway instead.

Why do people quit Amway? I think the answer is crystal clear. The quitters are the winners!

7 comments:

Anonymous said...

People quit for simple reasons. Its difficult to sell the products. Its difficult to sponsor. Its demotivating when your downline quits. Its a costly business with travelling and tools. Its long hours and in addition to the day job. Commissions are low. So many reasons to quit and what reasons to continue.

Nick said...

What is the comunikate thing people are talking about?

ExAmbot said...

Bottom line is because the reality of platitudinous MLM/scAmway crap is that they are not a business but a puerile, predatory, pretend closed-market, pay-through-the-nose-to play RICO swindles. 'T was never a business, nor can they be, don't matter how much they are whitewashed over and over again with the word business.

Joecool said...

Comminikate or "Kate" is a voicemail system. Funny thing is Amway used to have a voicemail system called "Amvox" but the diamonds replaced it with "Kate". Now the diamonds make money from voicemail and the IBOs get no PV for their voicemail purchase.

Joecool said...

ExAmbot, you are right. IBOs are really just Amway salesmen who get no guaranteed salary or commission. They spend their own time and money recruiting more sales people and trying to sell hopelessly overpriced products. Many people get enamored with the "owning my own business" concept and fail to see the opportunity for what it really is.

Nick said...

I still don't understand. What's the point of it? Does some leave a message and all of that person's downline calls a number and hears it? How do they sell comminikate? I'm not going to pay someone to leave a message when I already have voicemail, text, email, IM, snailmail, actual phone calls, video calls (I could, I suppose, go on to even more obscure stuff like Xbox live and PSN) etc etc, and all of these things either free or already paid for. It seems like an insanely hard sell

Joecool said...

That's why it's a scam. Who needs voicemail these days? There's facebook, email, text, twitter. Why should anyone pay $30 a month plus long distance charges for a voicemail when your upline could easily disseminate messages via some other social networking media?