Tools For Amway?

As an IBO, I was told that I "needed" to attend all functions. Attending all functions meant "all" is what I was told. Brad Duncan once had a tape in the true north series where he said that downline should not cancel standing orders even when IBOs quit, because there would then be an urgency to replace that person. I was in WWDB and while not everyone in WWDB may have taught this, our group was told that we should purchase 5-7additional tapes/cds in addition to standing order because we needed to listen to new material daily and because we should be passing out these materials as they will sponsor new people. To date, I do not know of anyone who passed out a tape or cd and had someone decide to join the Amway business as a result of listening to that tape or cd.

When I was in the business (In WWDB), our group was told that WWDB was a non profit organization. That was quickly retracted, but still, the WWDB leaders stood on stage in front of tens of thousands of IBOs and said nobody made a profit from tools. We now know that it was a lie. We also know that many of these leaders are still teaching, and as far as I know, not a single WWDB leader has ever been accountable for these lies. Some of these lies may have caused untold financial damage to downline. I'm certain I would have been less dedicated to tools if I had known that some uplines made most of their income from tools and that their advice was a conflict of interest. Some Amway defenders are currently talking about how some negative misinformation about Amway is hurting their business, but ironically, it would appear that most damage to Amway has been done by IBOs themselves, such as tricking people to meetings. As far as I know, not a single person has ever been held liable for the financial damages to downlines and former IBOs who lost money by being told lies about Amway.

Now I also would like to emphasize that I do not believe the tools work and do not produce any results. While Amway defenders will claim that most if not all new emeralds and diamonds are on the system, they fail to mention that there are also tens or hundreds of thousands of people who work the system without results. As far as I know, there is no bonafide unbiased evidence that suggests that the system produces any results. It is why IBOs end up later talking about being a nicer person of how their marriage was strenghthened by joining the system. While these are nice side benefits (if true), these reasons are not why you started a business. A business exists to make a profit, yet uplines make all kinds of excuses as to why IBOs did not profit, even placing the blame on the IBOs who trusted them.

It brings me to the real purpose of having tools. The REAL purpose of tools is to make profits for your upline. I believe the tools were invented as a way to motivate and train new and distance IBOs, but apparently, GREED eventually set in and many uplines started emphasizing tools, not because they wanted downline success, but because their tool businesses were wildly successful with thousands of captive downline dedicated to the system. I believe it is why I saw many IBOs who worked hard, never missed a meeting or function, did nto sponsor any downline, but were still told they needed more and more tools.

I believe the real purpose of having tools is so your upline's tools business can be

Believing In Amway?

In the past, and I believe still today, some leaders in motivational groups talk about faith and belief. Speak it into existence. Some of this is the mantra amongst IBOs who believe they are going diamond. Never mind that statistically, your chance of winning the lottery might be better than going diamond in Amway. In fact, I believe there have been more powerball lottery winners than new Amway diamonds in the US and Canada in recent years. But an honest question for IBOs, prospects, and Amway supporters. Do you truly believe that this business works and that you will succeed?

If you truly believe, would you feel confident walking into a bank and meeting a loan officer. Tell the loan officer that all you do is sponsor 6 who sponsor 4 who sponsor 2 and you will be a new platinum (silver). Then all you need is 6 of these groups and the money will roll in forever while you sit on a beach in the Bahamas while money rolls in by the barrelfull. And then ask the loan offier for a business loan. If you think this suggestion is crazy, maybe you don't truly believe in the business. Surely a loan officer would have some financial acumen and would be able to determine the viability of the business prior to approving a loan.

Would you feel comfortable talking to your doctor about joining Amway because a diamond makes much more income with less effort? How about a business professor at your local university? Surely someone with an established expertise in business would see the value of an Amway business and join your efforts? Or would the professor laugh you out of his office? Do you truly believe in what you do? If so, do you use the curiosity approach or are you straight up with prospects and invite them to an Amway meeting? If it's the latter and not the former, maybe your belief isn't that strong?

How hard do you work at building your business? If you truly believe that going diamond is the answer to all of life's challenges and problems, why aren't you building it and working on it as if your very life depended on it? Maybe your belief isn't what you think it is? Are you adding people to your downline every week or month? If not, maybe your belief isn't what you think it is?

If you have some doubts about what you are doing, then it is probably because you see IBOs coming and going. Maybe you see monthly losses in your business. Maybe you see people quitting the business regularly. Maybe you see the same old leaders on stage giving the same rah rah speeches. Maybe you see the logic and the common sense in most of the articles posted on this blog. My blog isn't here to make anyone quit Amway. My blog is to provide information to information seekers and to assist people in making informed decisions if they seek information prior to joining Amway and a motivational group such as WWDB or BWW.

Do you truly believe in what you're doing?

Is There Amway Fruit On Your Tree?

I had a good chuckle recently when some Amway apologists spoke about looking at the "fruit on the tree". One commentator said his parents were broke and he looked to his diamond since the diamond apparently had fruit on the tree. I thought about this concept and I agree, that perhaps we should look at fruit on the tree. My former LOS, WWDB had diamonds get divorced, , had homes foreclosed, go bankrupt, and some even left WWDB for greener pastures. That's some heavy duty fruit for sure.

IBOs and Amway prospects, please ask your upline platinum or diamond to show you the fruit on their tree. Ask them to see their (business) financial statements. This is actually a common practice in real business. When a friend of mine sold his business a few years back, he made three year's worth of income tax returns to show prospective buyers. If your upline dodges the issue or tell you to mind your own business, red flags should pop up all over the place.

As far as I know, not one single bigger pin has ever shown their business financials. In fact, if it made certain bigger pins look good, why wouldn't they want to "show their fruit". They certainly don't mind showing off diamond rings, fancy clothes, sports cars and the like. What many IBOs don't understand is that fancy cars and other toys is no evidence of fruit on the tree. Diamonds might be in debt or may not even own some of the toys they show off.

It has been discussed that some diamonds may rent cars or fancy homes and try to imply that they own these items. Some diamonds, possibly many diamonds in the past have lied or embellished the truth about paying for everything in cash, including their homes and cars. They also at times, have given the audience the impression that these luxuries are all purchased with Amway income, and we know that many diamonds have probably had supplemental income from the systems, or other business ventures outside of Amway.

We also know that some diamonds are in debt, but simply try to portray an excessive lifestyle. (See Ruth Carter's Book: Amway Motivational Organizations, Behind the Smoke and Mirrors). Some diamonds may have a substantial income, but it doesn't mean they are financially free and able to live a jetset lifestyle that many portray. It is an illusion, possibly to be able to attract new prospects into the business.

So yes, let us actually see the fruit on the tree. Is there any fruit?

Build Your Amway Business And Retire?

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.

The Amway Plan?

I’m not sure whether this plan was carefully crafted out or whether it just evolved, but the way some uplines show the plan is cleverly designed to suck people into their systems. If you aren’t aware or careful, it’s easy to get caught up in the excitement of the presentation. The presentation is full of deception and I will try to point out these items in my analysis.

The speaker may talk about how he once thought he was “doing okay” in life. That he was making a living and able to meet his financial obligations. But he thought there might be more. One day he saw the plan and it changed his life. He did not realize he had gotten into a rut of going to work and going home every day and looking forward to his 2 weeks off each year. (This is relatable for many) That time and money are so important in life. Control of time and money is the key to success. Many people have lots of money but work all day and nite. Or people have time but are broke and can’t do much. The speaker might mention dreams or goals such as having an extra $500 a month or more. What would you do for an extra $500 a month. What about an extra $50,000 a year? Wouldn’t it be nice to have the wife stay home with the kids instead of leaving the family to go to work? Like the “Leave it to Beaver” days? (This gets the women excited)

The speaker will likely mention something about the economy and how prices always go up. The speaker may mention the 4 “I’s” that suck money out of your paycheck. The four I’s are Interest, Income Tax, Insurance and Inflation. The speaker may talk about how the government will take their cut and so on until you get your “net”. The speaker may mention how so many Americans are dead or broke by age 65, and that social security will collapse. (This instills fear in many people).

The speaker might also go on to mention how so many marriages are falling apart in the US because of financial stress. That couples work so hard that they have no family time and it hurts marriages. That people work so many hours these days that they are married to their desks. The “manager” of the office is the first one there and the last one to go home. That despite all of this work and effort, people are falling into debt. Credit cards maxed out, loans, trying to keep up with the Joneses. (Many people can relate to this)

But now, because he was looking for opportunity/open minded one day, he saw an opportunity. This opportunity changed his life and can do the same for you! The speaker now wakes up at the crack of noon. His wife stays home with him and the kids. They take nice vacations and they do what they want when they want. (Of course, who doesn’t? But is this true?) The opportunity takes advantage of the internet and allows you to leverage your time and money so that you can create a residual walk away income. (But nobody walks away do they?)

This is approximately the point in the presentation where they mention “Amway” At this point, the speaker will defend Amway, stating that if you can make money, does it matter.? If you can save money, does it matter? The speaker may go into the product line and mention partner stores and will likely show a 6-4-2 plan or a variation of it. In every case, they will show a best case scenario, not what is likely. Many prospects will leave thinking “all I need is six”. They don’t understand how unlikely it is to sponsor six platinums and there is no mention of the retention rates, the income most IBOs can expect, and firm questions will be deflected to the prospect’s inviter. The speaker may also discourage you from speaking to friends and family as they may have a bad experience but the diamond is successful and knows more about Amway than your family and friends.

Joe’s commentary: So the speaker becomes very relatable from the start. His situation in life will be like many in the audience. He will talk about doing okay,. But wanting more or looking for more. He talks about debts and many in the audience will also relate. They get people to think about dream cars or vacations. He talks about walk away income, but doesn’t mention that very very few ever make significant money and apparently, not many actually walk away either. They say you will make money and save money by doing the business. It’s hard to argue against that,.except most people will not make money or save money. In fact most people, if they participate fully or partially in the training system, they will lose money. For the dedicated IBOs, many of them LOSE LOTS OF MONEY. The plan is crafted out to sound sensible and relatable, but many IBOs will give it a try and shortly after, will realize that the system doesn’t work, that the reputation of Amway IBOs is soiled and sponsoring people or even getting people to see the plan is a barrier that most people simply cannot overcome. At least if you know what’s going on, you may be able to avoid the trap.

The Unseen Amway?

I was in discussion on another forum and a comment was made about Amway being an iceberg, because you see the shiny clean ice on the top but you do not see the majority of the iceberg. Or in other words, the diamonds show you the fancy suits, jewelry, cars, mansions, jets and what you don't see is the financial carnage that takes place in their downlines at times. My former upline would tell audiences that they could skip meals to buy more standing orders because you might hear the one thing that could make your business explode.

Sure, on standing orders, you won't hear too much of the unethical and "wrong" teaching, because some of this is monitored by Amway, but it's the night owls and smaller group meetings where the real teaching is disseminated. This is where you are told to practically sell your soul to achieve in Amway. This is where the teaching comes in where you should be purchasing excessive amounts of tools in order to succeed. This is where you are told to never miss a function unless it's for your own funeral. A newbie or casual observer won't see these things but if you ever commit to becoming a business builder, this is likely to become your world.

You don't see the backstage at functions and meetings. Former rubies and platinums have made commentary about the diamonds literall laughing about how gullible the downline are. You don't see the where the cash collected at the meetings and functions go. There had been some past comments about literally, suitcases of cash leaving the premises. If your upline has a mansion and a fleet of nice cars, it's likely that your tools money played a significant part in your diamond obtaining it.

It's a simple conclusion. The tools have a higher markup than Amway products and have fewer beneficiaries to split up the bonus. A $7.00 Amway product might cost $3.00 or so to make and the rest will be bonus money split up by the layers of IBOs. Whereas a $7.00 cd might take 50 cents to produce and only platinums and higher receive any compensation from this srouce of income. But rank and file IBOs rarely ever see a true and transparent picture of this business. It is shrouded in secrecy, just like the underside of an iceberg. I challenge IBOs to be real businessmen and women and ask upline the tough questions about where the money is made. Do not accpet rhetoric and anecdotal stories. In real business, schedule C business tax returns are the normal way for verification of business income. If you are going to "invest" your hard earned money into the system to the benfit of upline, you should demand this information.

Would any of you purchase a conventional business from someone without proof that it is profitable? Why would an Amway business be any different?

What Is Amway Success?

Success is subjective. Someone making ten dollars might be considered successful, for others, nothing less than a barrel of cash will suffice. One other important point is that there are undoubtably some very successful people in Amway. I am sure that some Amway diamonds are quite well off and enjoy some of the finer things in life. But the reality is that these successes are very very rare and many of these success apparently are not sustainable as many people are led to believe.

But the bigger issue in the Amway opportunity is where the success comes from. Sure, many people want to "go diamond" and live in luxury while barrels of cash roll in. But what is unknown to many, is that the few who enjoy the lifestyle and trappings do so at the expense of their downline. The downline move the volume and the downline purchases the system materials, both of which is profitable for the upline. Because Amway products, admittedly are not commonly sold to people who are not IBOs, then anyone can conclude that upline success comes from the pockets of the downline. Most downline would be better off writing a check for $100 each month to their upline and not participating in the business or buying products at all.

This in itself would not be such an issue if the system actually churned out new successes frequently AND if the downline were not led to believe that the system is the key to their success. But less than one half of one percent of IBOs ever reach platinum and out of those who do, only a tiny fraction of one percent ever attain the diamond level. But the business has tens of millions of people who tried and could never achieve what was promoted. Lack of effort may be a factor, but when that many people try and fail, it's evident that the system is flawed as well.

To summarize, it is possible for someone to achieve a level of success in Amway, but it is so difficult and so rare that IBOs probably have a better chance of winning the lottery or being struck by lightning than they do of achieving a significant level in the Amway business. Some people are successful, but it is usually at the expense of their downline. The catch is that uplines will teach their faithful downline IBOs that attending a function or buying a standing order is success, regardless of whether an IBO is earning a profit. So many IBOs think they're successful but they are simply fooling themselves with the help of their upline.

Success is undeniable, but sadly for the vast majority of IBOs, it is also unattainable, at least in the Amway opportunity.

Do You "Believe" In Amway?

I often hear stories and testimonies about how some people (usually newbies) have this incredible belief in Amway, their sponsors and their LOS, such as WWDB or Network 21. Being that many, possibly most IBOs are sponsored by a friend or family member, means that there is an inherent trust in the sponsor or upline. If that were not true, then we would likely see many more complaints about Amway and/or the uplines and lines of sponsorship.

But an important facet of being an IBO is to have a dream. Don't let "naysayers" steal your dream, is what many IBOs are told. But what is that dream? Is is a dream (a long term attainable goal) or a wish such as winning the powerball lottery? Many prospects and IBOs want to succeed. They are willing to work hard, and are very dedicated, I would say that these folks usually will end up failing, not for lack of effort, but for a flawed MLM/Amway system that cannot possibly reward more than a few. The famed 6-4-2, 6-4-3 or some other variation of the plan will illustrate that only 1 in 100 or so can be "platinum". And that's with nobody quitting. Factor in attrition and "do nothings" and it might be 1 in 200 who can reach platinum. Even if the whole world signed up for Amway, that fact doesn't change.

Do you really believe in Amway and your line of sponsorship such as WWDB or Network 21? If you truly believe in Amway and your metors, I challenge you to do one of these things. If you can't or won't, then I question your level of commitment. I question your belief. I'm not here to steal your dream. I am just challenging you.

Take your 6-4-2 or 9-4-2 or 6-4-3 plan to a loan officer at a bank and show them the plan. (Hey, it will help you be CORE) Ask the loan officer for their opinion of the plan and see if you can get a business loan based on the Amway plan. If not that, try seeking the advice of a real millionaire (Someone who has a net worth of a million bucks) and see if they think the 6-4-2 or other Amway (version) plans can work and whether they think Amway is a good idea. Heck, try asking your church Pastor. My church Pastor said Amway had too many false hopes and promises to be considered a viable business option.

How strong is your belief in Amway? Strong enough to take my challenge? Or will you ignore this and go on fooling yourself?

The CORE Steps Of Amway?

Here is a breakdodown 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. CORE is allegedly the proven system of success. Apologists claim that people who are CORE for at least six months straight will succeed. I doubt it. There are many examples, including my former sponsor who can suggest it doesn't work. You can also note that nearly all of these steps do not produce any income for an Amway business and in fact, costs the IBO money.

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.

A Better Life After Amway?

I am a former Amway distributor, or IBO. While I was active, my life was consumed by Amway and Amway related activities. If I wasn't at a meeting or showing the plan, I was at coffee shops or at other public places looking to meet potential recruits to add to my group. I was in Worldwide Group at the time and I was always taught that we were "helping people". I dedicated my life to the "cause".

Looking back, we didn't help anyone who didn't join the business. Even those who joined didn't actually receive "help". The help that my upline refered to was simply someone upline showing the plan and helping active IBOs to recruit others. Sometimes this was done for free and sometimes you paid (for open meetings). Every opportunity was used to look for recruits, even weddings and other social events. We never provided anything unless prospects were interested in Amway. If they were not interested, that was end of any help they received. My sponsor would say "They're not bad people, but they just don't get it", meaning they don't see Amway as their financial savior.

When I finally realized that the Amway opportunity was not going to deliver lifelong residual income for me, and due to some conflict with my sponsor, I decided to leave the business. Well, all my lifelong Amway friends never spoke to me again. Most of my group quit except a few of them. Allegedly, one of them continued on in the business and allegedly reached the platinum level. All that means to me is this person continued to be brainwashed and spent tens of thousands of dollars on tools.

The really strange thing for me was after I left the Amway opportunity and Worldwide group, I suddenly realized how much extra time I had on my hands. I also realized that I had extra cash to save as my income wasn't being consumed by PV and support materials. I was able to save and invest some of that surplus and I am glad that I did today. At of this writing, I am living very comfortably because of my J-O-B.

As time passed, I also read and heard about some of my crossline friends losing their homes and/or going bankrupt. I am fairly certain that their consumption of standing orders and function attendance was a major factor in their lives. I also discovered through various media that our WWDB leaders had lied to the downline about tool profits. They had said nobody made a profit from tools. I later found that some of them made most of their income from tools. These leaders have never been held accountable for their lies.

I also discovered later that some uplines lied about paying for their homes in cash, and who knows what they may be lying about today. I believe upline greed has led to many of the problems the business opportunity faces today. I started to learn about some of this back in 2003 - 2004 and I eventually registered as a member on Quixtar blog. I have been debating Amway since then.

The best discovery I have made was that life goes on quite nicely after Amway!

Amway IBOs - The Free Advertising?

This makes perfect sense from an manufacturers point. You dont pay Advertising.

In a way, Amway IBOs donate/dedicate much or most of their free time to doing advertising for Amway's products and services. They give absolutely free advertising to Amway at work, at school, in the office, at their church, at family barbeques, by trying to start a (fake) friendly conversation with a stranger at the local Barnes and Noble, or at local eateries, or the local supermarket. Some have coined the term "stalking" when refering to IBOs on the prowl for new prospects.

The first is, well yes, that's wonderful for Amway. But where in the world did you get the idea it was good for you? If Walmart or Costco could sell you products for a marked-up cost, and ALSO get you to do all their advertising for them, for free then why wouldn't they?

Most customers/consumers would notice that their time has value, and remember to tack it onto the cost of the products they're paying. Eventually, they would say: "Oh wait! I'm paying more for the product and donating free advertising to the company! In addition to free advertising, it is also the IBOs who recruit other salespeople to join the business and to advertise and push products for Amway.

In Amway's case, most people won't notice this because they have dollar-signs in their eyes. They have "dreams" of walking the beaches while cash rolls in forever. Amway and AMOs such as WWDB or Network 21 convinces people that they're actually making themselves rich by this behavior, not going into debt. They apparently convince people to ignore obvious facts such as your business taking a loss due to standing orders and functions. It will be cleverly diguised as investing in your business, or that you are becoming a better person, or that true success is right around the corner.

Amway now pays for advertising, but I believe it is mainly to give their IBOs some credibility. They can say "see, Amway advertises on national TV. how can they be a scam"? In reality, I don't believe that Amway advertising dollars have made a significant difference in most IBO's bottom lines.

Recently, Amway and some of their supporters reported that IBO retention is up in North America. But their report doesn't provide any evidence or even imply that IBOs are profitable.

Amway "Mentors" Or Crooks?

The really insidious part about some of the LOS leaders, such as the ones I had in WWDB, is that they apparently are cutthroat ruthless businessmen with nice suits, and disguised as your mentors and friends. They get you to trust them, and they will tell you that they have your best interest at heart, or that they would never purposely lead you astray. On the surface, you may think this is true, but look at their actions and you can easily discern that some of these uplines are absolutely ruthless businessmen who would take every cent from you if they could. I was in WWDB and I have good reasons to believe that they are still doing this, based on a WWDB IBO blog. On this blog, I see all the same teachings today, that I heard as an IBO and some of the same claims such as buying homes in cash. It's scary.

As an IBO, the diamonds would tell you to never miss a function, ever. The only good reason for missing a function was for your own funeral. I recall some crossline IBOs rearranging pre-planned anniverssary parties, weddings, and other special family events in the name of being core and attending all functions. Some IBOs actually did quit their jobs to attend functions and they very well may have done so because some uplines taught this. IBOs were also encouraged and told to go into debt to attend a function. This was okay because it was an investment into your business.

Our group was also strongly encouraged to buy extra cds every week. To be core, you needed to listen to a cd each day and you cannot listen to the same one each day right? Couples were told to buy their own seperate standing orders. Brad Duncen even had a true north tape (cd) that said sponsors were to eat the standing orders for downlines who quit because it was too much trouble to call upline who calls upline who calls upline to cancel a standing order. Oddly enough, they didn't mind upline calling upline calling upline to add a standing order.

In the end, I was lucky enough to have been progressing up the pin ranks so my losses were not that devastating. I ended up losing in my early months of the business but mostly broke even when I was at 4000 PV. Sadly though, my crossline did not fare so well. I know of one couple who declared bankruptcy. I don't know how much their WWDB involvement contributed to bankruptcy, but I am certain it was a major factor and I know of two couples who had homes foreclosed, and I believe that their allegiance to WWDB was a factor in those foreclosures. But I guess hey, two WWDB diamonds had homes foreclosed so maybe they were duplicating?

Do not be fooled. The diamonds may have a nice smile and a nice suit, but they are ruthless businessmen who will take your last dime if you allow them to.

What Are Your Amway IBO Expenses?

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of th system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for some uplines than the actual movement of Amway volume. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might run them more than $300. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more. Uplines will then justify the expense by saying the IBO is investing in his/her business.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to$500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stay? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

Chasing Amway Dreams?

I was working in my yard recently and I was conversing with my neighbor. She told me that she just returned from a trip to Las Vegas, but alas, her dreams didn't come true. I guess she had hoped to hit the "megabucks" jackpot, which is a slot machine linked to various casinos and has a minimum payout of ten million dollars. It got me thinking about how the Amway business is sold by the AMOs and it has a similar concept.

While Amway apologists will jump on the part where the Amway business is not a game of chance like a slot machine, and I agree. Amway is a business and not a game of chance. But what is eerily similar is the dismal rate of success that most Amwayers achieve. It would appear based on Amway numbers that maybe 1 in 20,000 or so reach diamond (similar to lottery winners) and even those who reach diamond often cannot hold onto it. Many people will agree that a platinum-ship business will often have about 100 to 150 downline IBOs. And many people also agree that a platinum business, if fully dedicated to tools, will break even or make a small profit, and possibly a small loss, depending on the dedication to tools and functions.

Many prospects and IBOs are tempted to join and stay in Amway by talks of dreams. For many people, the thought of working another 20 - 30 years sounds mundane so the idea that you can work hard for 2-5 years and then retire while enjoying untold luxuries will sound great to many people, especially those who haven't yet achieved any financial security in life. I was once there and I speak from experience. To entice prospects and IBOs to bite into the dream achievement mode, they show pictures of nice cars, mansions, yachts, jets, golfing in exclusive clubs, etc. the diamonds may even make claims such as paying for all these goodies in cash or imply that barrels of cash rolls in once you go diamond. But what we now know is that many diamonds do what they teach - fake it.

I have seen stories of diamonds renting these items to appear wealthier than they are. We also know that many diamonds had/have mortgages and some have financial problems. Sure, diamonds are just people, but they earn a portion of their living because they are suppposedly successful and IBOs want to learn from them and their experiences. How dedicated to the system would you be if you knew your diamond was bankrupt or lied about buying a home in cash? How dedicated would you be if your diamond had lied to you or others in the past about their success? How loyal would you be to a diamond who says Amway saves marriages, and then gets divorced? Sure, diamonds are people, but they have put themselves into positions where more is expected and required of them. They are leaders and should be held to a higher standard.

Joecool says follow your dreams. But most importantly, remember that you don't need the Amway opportunity, and you don't need Amway tools and functions to achieve those dreams.

Retired Amway Diamonds And Other Myths?

I was watching a show on Discovery channel the other night about Sasquatch. It was followed by a show about evidence of UFOs. It made me start to think about these phenomena. It seems like everyone has heard about or knows something about Sasquatch (Big foot) and/or UFOs. There are many documentaries showing pictures and evidence of both, but to date, there is no bonafide evidence that these things exist. You'd think that a body or bones of a Sasquatch would turn up somewhere, sooner or later, or we would find compelling evidence of a spaceship from another galaxy.

It sounds just like stories of people who built a diamondship, then "walked away" from their businesses, retired in the lap of luxury and did nothing while the money kept rolling in. I heard numerous scenarios about this happening, but looking back, all the diamonds kept working and since Joecool left the business, the diamond either kept working, or quit or got terminated. But I never heard anyone name some higher up Amway pin who built a business, and then walked away from it to travel the beaches of the world while hundreds of thousands of dollars kept rolling in. Many have heard about it but nobody seems to be able to name any of these folks. I mean after over 50 years in existence, you'd think some of these folks would exist, especially when it seems to be a selling point of the business for many AMOs.

It is my opinion that Sasquatch, UFOs and retired Amways diamonds (with significant Amway income) are non existent. If these folks existed, there should be at least some shred of evidence of it. The lack of evidence indicates to me that it is either non existent or so rare that nobody can display bonafide proof. I mean there aren't any T-Rexs roaming the earth anymore but fossil evidence proves that they existed at one time.

Keeping in mind that the Amway business has a high attrition rate, coupled with low sales to non IBOs and you can easily conclude that residual and significant income is nearly impossible. An Amway business that is left alone will deteriorate like a sandcastle does as the waves wash it away. You (in theory) could possible walk away from an Amway business for a while and collect some income, but you won't be collecting enough income to live the "diamond lifestyle" as portrayed by diamonds in their functions and open meetings. I'm not even sure that active diamonds can comfortably afford that lifestyle even when building their businesses. There is ample evidence to support my claim. Diamonds losing homes to foreclosure, former diamonds revealing secrets about their income. If you really believe you can walk away from your Amway business and collect untold wealth, I have a bridge in Brooklyn to sell you. :-)

A Job Or Amway?

One of the ways that upline diamonds would put down jobs was to toss in the phrase that a job was simply trading hours for dollars. As if it were demeaning to have a job where you got paid for your time. I believe it's all relative. Being that many IBos are young and maybe working in more entry level types of jobs, then yeah, your hours wage might not be that great. If you earn say $10 an hour, then you might be struggling financially and it may take time before your skills and knowledge increase to a point where your experience is worth more money. What if you had a job paying $1000 an hour and earned $160,000 a month? Is that a lousy deal trading hours for dollars? I think not!

Conversely, having a business can be good or bad also. If you have an Amway business earnning less than $100 a month and you spend $200 on functions, standing orders and other training and motivational materials, then you are losing money. You would be better off working for free. That is still a better alternative than working a business where you are losing money. I think most people agree that a platinum group typically has a 100 or more IBOs. Thus a platinum is in the top 1% of all IBOs. I have heard that the platinum level is where you start to break even or make a little profit, depending on your level of tool consumption. If platinums are barely making a profit, then the other 99+% of IBOs are likely losing money. How much is that worth per hour?

I think uplines cleverly trick IBOs into thinking that a job is bad. Trading hours for dollars, afterall, sounds like some kind of indentured servant of sorts. But in the ned, what matters is your bottom line. If you are an IBO with little or no downline, and/or not much in terms of sales to non IBOs/customers, then you are losing money each and every month if you are attending functions and buying standing orders. Your 10-12 hours a week of Amway work is costing you money! But if you spend 10-12 hours a week, even at minimum wage, then you might be making about 300 to 350 a month groww income. After taxes, you make about 250 to 300. At least trading hours for dollars gets you a guaranteed net gain at the end of the month.

Uplines trick you into a "business mentality" where you think that working for a net loss is just a part of business. IBOs should realize that a business promoted as low risk and no overhead should be one where you can profir right away. Instead, IBos are taught to delay gratification, or to reinvest any profit back into their business in the form of tools and functions, which results in a net loss. If that's the case I would choose trading hours for dollars.

Remember, trading hours for dollars is not a bad deal if you are making enough dollars per hour. And even those who make less, are better off that those who "run a business" but end up with a net loss. It's all relative and hopefully, this message will help new or prospective IBOs who are being enticed to join the Amway business opportunity. Good luck to those with jobs and those with businesses. You can be successful either way. Remember that!