Tuesday, August 20, 2013

What Amway Prospects Might Need To Know?

When I was an IBO, my upline used to advise us to recruit people who had a financial need or young people who were open minded as they may not have preconceived ideas about Amway. When I was recruited, I was not where I wanted to be financially as I was in my 20's when I first got recruited by my sponsor. I believe that this is still common practice today, to look for people who are in need and then offer Amway as a solution. Sadly, Amway and the tools systems will more likely become a problem than a solution for the vast majority who try.

In my opinion, this is why some people defend Amway so fiercely. They accept Amway as their solution for long term financial stability and to admit that they were in error is difficult as it would not only expose the error, but would leave the IBO as not having that "hope" of long term financial freedom. It's hard to admit you got fooled or scammed and some people will dig in and press on, hoping that success will eventually come. Hope is a powerful thing after all. However, for most, it is false hope that is pitched in recruitment meetings and functions.

Many prospects see big dreams when the diamonds parade on stage with designer suits and talk about waking up at noon and enjoying a lifestyle chock full of luxuries. It's almost like dreaming about hitting it big in Las Vegas or winning the lottery. I can't fault prospects for wanting some of these things. I know I certainly had some of these same dreams when I was an IBO. The problem is that Amway is highly unlikely to be the vehicle that delivers these dreams. For most, a second job along with saving and investing will bring more long term success. The problem is that people don't like to wait for the long term and Amway is presented as a short cut to success.

The sad reality is that some (maybe most) diamonds are simply putting on a show, like a illusionist or a magician. Diamonds may indeed earn a six figure income, but after taxes and other expenses such as medical insurance, a diamond is very likely to live a very middle class lifestyle. Now I'm fairly sure that a crown ambassador type may have a million dollar income, but these Amway crowns are very rare, and the ones who exist have been in the business for a long time. There is not much chance of any new IBO coming in and achieving that level. In fact as time rolls on, it seems that more diamonds drop out due to divorce, better MLM opportunities or simply quit. It is apparent that long term residual income is a myth. Why do crowns seemingly keep working if they could "walk away" and live a life of luxury with no worries?

Amway reports that the average IBO earns $202 a month. I believe that number is also questionable as "most" IBOs (as shown in 6-4-2) actually earn more like $9 or $10 a month. Is this what you are signing up for? Don't forget about the ongoing expenses for tools and functions which results in net losses for most who get involved.

Amway prospects can benefit by knowing this before signing up.

8 comments:

Anonymous said...

Last time i looked they were only about 15 usa amway people in the mlm 500 top earners list. Thats not many.not sure there are many amway millionaires.

Joecool said...

Amway recognizes a diamond forever. So someone could qualify diamond in 1980 and not qualify again but that person is still recognized as a diamond. However, Amway doesn't pay bonuses on unqualified diamonds.

Also, even if diamonds make a decent income, their lifestyle as shown in functions probably leaves them living month to month like struggling working stiffs.

Rbot said...

Hey Joecool,

Came here from Married to an Ambot.
the $"202" in revenue a month is VERY misleading. I saw how poorly it was displayed the first glance through. Unfortantly I did join Amway and got out in less than a month I figured out in less than 24 hours how much of a ripoff it was and started canceling everything that had to do with it except the site ( I actually save more money on my phone bill than it costs to keep the site, so it would be stupid for me to cancel it ). My fiancé and I joined mainly for pity points from a ;long lost' college buddy who hit me up.

Most of that 'revenue' is from SAVINGS that you get for buying your own product. IE: If a Xs energy drink is listed at 30 bucks and you pay 20, that is $10 of income you just made. Their logic is that if you don't buy from yourself you are losing money. Spending $20 on something you would not have bought earns you $10?

Joecool said...

One of the points made I saw as a prospect was that buying from Amway would save you 30%. Of course I never saw Amway prices until I was registered. Very few Amway products were even competitive. Most were highly overpriced. Their vitamins were ridiculous.

Then add in the tools and now you basically have a full blown scam.

Rbot said...

Exactly! That is how I figured it all out within the first 24 hours. I logged on to make my first purchase and what not and saw how much I had to spend to make FIFTY PV. When you first sign up you only have to make 50 pv your first month since you purchased the welcome kit.

We bought some stuff that we actually wanted but the rest was to just hit the mark.

Got a nice $54 check, 50 was a bonus and $4 was the commission for spending $200

Reb O.P. said...

My best friend and her fiance are convinced that they will be independently wealthy through Amway by the time they get married in early May 2014. Amway has brainwashed her fiance and he has manipulated her to a point where we barely talk. I've tried to send her to links and sites just like your blog (I'm am thankful that I found this site) but she argues that I don't understand and it's because these "dropouts" were not driven enough to achieve greatness.

I've pointed out to her that if she were to add up all the money they spend on meetings, conventions, and the junk they buy from Amway and compare that to how much money they have made, which would be the greater amount?

Is there any advice you have for me? How can I help her? She is throwing away our friendship and her life on a manipulative cult loving marriage.

Joecool said...

Reb,

Thanks for your comments. The answer is that you likely cannot do anything. Normally, a person will quit Amway when self actualization takes place. They need to realize they are scammed on their own. If you try to convince them that they are wrong, you will just be seen as "negative" or a "dream stealer". All you can do is to be supportive and hope they realize it on their own. You can occasionally ask if they are making a net profit after expenses but once they are convinced that Amway is their best hope for happiness and wealth, there really isn't much you can do. You might also suggest they read this blog or some others that are linked to this one. It might help but be prepared to let Amway run it's course in their lives.

Good luck to you.

Anonymous said...

To all amway prospects...Amway is a great business if you need therapy for your life, because your upline is going to help you mentally solve your life problems by giving you different perspectives to your situation b/c all life is.. are perspectives. They will help you resourcefully think through your problems. And it's only going to cost you minimum of $300 a month or $600/month for couples (the equivalent of 100-300pv). This is much cheaper than going to a real therapist. When your problems are solved and you have attained the resources you need to become an overcomer of sorts, then you might as well quit the business. Why?? because it will cost you more than you have to build the actual business if you really stink at sponsoring people. Yes, you can get better, but that's gonna take a whole lot of commitment and effort. There will be a lot of smoke and mirrors, people will seem to be making a lot of profit, but don't be fooled, it's all mostly a fluke, unless it's a "real" Diamond. I dare you to observe the people that are supposedly making the money. They basically make money 1-2 months out of the year, the rest of the time, they are losing Bigger than you think. How do I know this, because I was one of them! LOL! and not just one of them, but one of the better ones. Took me over 8 years to realize it. Came to a point where I just sat and observe the people in the business and to my realization everything started becoming clear. I would observe several super star IBOs for months, from pv to people they got started to people that disappear to how much they make to how much they invested. It's a repeating cycle of success and failure..more failure. I have nothing bad to say about the people in the business, they are great people. This is just one of the most difficult MLM business out there, if not "the" most difficult. You better be prepared to run like a horse to truly make it big in this. Too bad, most of the time they promoted like it's a side gig to make top dollar. But the people are great, they are the best at promoting and teaching and developing others. I know it's promoted that Amway is the most successful MLM, at $12 billion worldwide. But, let me tell you all this, $12 billion is for "Alticor" the parent company that holds Amway, Orlando Magic and various other business endeavors. They sure make the $12 billion sound like it's only Amway the MLM part of it. It was hard for me to move on without Amway b/c of all the relationships I've developed over the years, but it came down to, do I want to feed Amway or my family. So I moved on and my income has tripled since.