Wednesday, July 24, 2013

Why Amway IBOs Fail?

So many IBOs quit and fail, I think the Amway corporation might need a calculator to keep track. And of the IBOs who work and try hard, most of those IBOs also end up in failure and losing money. After years of blogging about Amway, I believe it is because the uplines and the tools they sell to help IBOs are ineffective. When I was an IBO, I don't recall many tools that contained information teaching me how to run a business or how to run an Amway business. There was no talk about tracking income and expenses. In fact, our group was advised to ignore the facts. The scary thing about this is that it is evident that some groups are still teaching this.

Many IBOs and prospects are lured into the business by displays of wealth and not because of bonafide and verified business credentials. A friend of mine sold his franchise business a few years ago and part of what he provided to the prospective buyer was the last three years of his tax returns, personal and business returns. But try asking an upline to even see a business profit loss statement or a schedule C business tax return and you are likely to be told it is none of your business. Instead, upline may show off a photocopy of a bonus check which may be an annual or a once in a lifetime bonus. Or upline may show off a sports car as evidence that they are successful. Sadly, some of these uplines might be broke, they may owe back taxes to the IRS and/or they may even be in debt but simply showing off wealth.

Some uplines have the nerve to discourage young people from furthering their education because they would rather they channel their money into Amway and tools. Some people are told to make family sacrifices to attend more functions or to buy more standing orders. I will grant that not all uplines do this but based on my experience, I would say more uplines do this than not. They will apply subtle pressure on new IBOs and the newbies probably don't know much about Amway or business so they basically have to choice but to trust a diamond who has allegedly achieved the pinnavle of success in Amway. Then uplines will often betray their disciples by saying that failure is the personal responsibility of teh IBO. That advice needs to be discerned by the new IBO and bad advice should be discarded, as if a new IBO would know what is good or bad advice.

I aso see experienced IBOs who don't seem to know how taxes work. I see IBOs who were given the impression that Amway is easy and that they will work once and enjoy the fruits of their labor forever. Oddly, I don't know of a single IBO who did the work once and sat back collecting residual income forever. I find it odd that even tenured crown ambassadors continue to keep busy work schedules. I suppose they could just enjoy this lifestyle but still I find it odd that nobody I know of could specifically name an IBO who achieved diamond and higher and sat back collecting income while enjoying the beaches of the world.

Seems that IBO turnover and failure is more common than not in the AMO world. It also appears that incoming IBOs are like fuel to a fire. Without continuous recruitment and replacement of IBOs who quit, the organization would eventually fall apart along with the bonuses that the higher ups enjoy. It is my informed opinion that many IBOs fail because they aren't taught sound business principles. Despite the constant flow of cds, voice messages and functions and meetings, it doesn't seem as if any practical information is passed from upline to downline. Only messages of never quitting and continuing to dedicate themselves to the system. The result is inevitable and the expected result is failure.


Anonymous said...

I think you are right. There is no business teaching. This is because its not a business. A business is about customers and products that bring value. There are no customers. This is about persuading naive people to sign up hoping they will make it. While they figure out it doesnt work, they buy products they dont want. Then they quit. In the meantine others have been recruited to replace them. And so it goes on.

Anonymous said...

I was also in Amway and I did suceed. However, after being injured in an accident I was unable to continue to lead my group and eventually the profits were gone. Like any business you have to work it to make it sucessful. Warren Buffet still works and he is filthy rich. Many people who work do so to help others and stay productive and yet they don't need the income. My Amway business netted me about $6,000.00 amonth after the first year. I did not recieve profits off the tools and books. But I also worked very hard 20 plus hours per week. I was a direct distributor with a large side retail business. After my accident I could no get around to manage my business and teach (show) other what I did and how they could do it. had I not been injured I am sure I would have continued with my pattern of success. The main reason many don't succeed in amway is because they are looking for a lot of money with little effort and when they hear it's possible with Amway they buy into that. I agree that it is not right to prey on the weak minded but how many of those people were succeeding before or after joining Amway. I learned many lessons from my upline who I am still in contact with today. I started another business which I was able to work with my physical limitations and I still get business advice fom my Amway upline even though I am not in the business. He has taught me sound business advice that has allowed me to make over $160,000.00/yr from a wheelchair. I work hard and it pays off. Lazy people will never be successful simply because of their sense of entitlement and lack of work ethic. It's not Amway, it's lazy people listening to liars, who want get something for nothing. I love the Amway business, but not all of the "leaders" who are in it.

Anonymous said...

Better check your facts! For Amway to be a legal multi-level marketing company IBOs are required to maintain at least 10 retail customers. Many IBOs don't do this because they don't want to sell. I peronally had over 75 customers to comply with the laws established for IBOs. (See "Anonymous" below for my story. I'm the one with the accident) BTW: Amway product, cosmetics, cleaning, vitamins, are some of the best products on the market. That is not in dispute.

Anonymous said...

The simple fact is that Amway business model (or most MLMs) REQUIRES many people to fail for a few to succeed.

Anonymous said...

This is anon 1.07 again. A few comments if i may. Agree products are on par with market. But very expensive. You may have built as you describe. My distributor did like that. Has About 400 customers. So a few can do it. Like a few can go crown. But thats it. Only a few. While millions get nowhere. Its just not worth the effort.

Anonymous said...

the products are also overpriced. :) sorry but i don't believe a word of this.