Friday, September 27, 2013

Amway And Retirement?

One of the things that many IBOs mistakenly believe is that they will build their Amway business and then they will have the ability to "walk away" from the business while the income continues to flow in. I believe if there was such an incredible benefit such as lifelong residual income that could be achieved from Amway, I'm fairly certain that Amway would advertise this as a benefit of being an IBO. But Amway does not. It is very likely that your LOS such as WWDB or one of the others will promote this benefit while telling you that your bext chance to achieve it is by subscribing to their "system".

One thing that goes unnnoticed all too often is that there seems to be nobody who is actually retired and living off the efforts of having built a big Amway business once upon a time. Seems that even the crown ambassadors still have busy lifestyles running from function to function and participating in other business related activities. While many of these leaders may claim they love their downlines or some other bunk, it is my belief that these leaders keep working their Amway businesses for one reason only. That is they need to keep working in order to keep the income flowing in.

The diamond lifestyle that is often portrayed may seem like a great goal or dream to achieve, but the fact of the matter is that a "diamond lifestyle" cannot be sustained on diamond income. The average diamond, according to Amway, earns about $150,000 a year. While that may seem like a great amount of income, it's not nearly enough to sustain the kind of lifestyle portrayed by diamonds. Even if that income is supplemented by income from the sale of tools, you can't fly your family around the country first class to do all kinds of functions and still end up with much leftover to own fancy homes and cars.

If I deposited $1000 in the bank and never touch the money, the bank would pay me a certain amount of interest each year, guaranteed. That is residual income. In Amway, you can basically earn income in two ways. You can sell products for a profit, but there are problems with this. First off, Amway products in general are more expensive than local retailers. It is why you hear so many justifications about quality and concentration, because you are hard pressed to argue cost. Secondly, you are severely restricted from advertising, thus selling can be difficult. The other way to generate more income is to build a downline in hopes that the downline will help you to leverage your volume. But then your downline will have the same problem that you had in moving products. That being said, even if you achieve some level such as emerald or diamond, your business will immediately begin to fall apart once you stop working because attrition will take its toll. It is why there are hoards of "former" platinums. If platinums are not sustainable, then neither is any other level.

There are many many instances of diamonds quitting, resigning, or falling out of qualification. People come and go in this business every day. Do you really think you can bank on retirement and residual income under these circumstances? If you believe that, I have some swamp land in Florida to sell you.

8 comments:

Amway IBO said...

Actually Diamonds make around $600,000 average a year and they don't have to go to the functions they are asked to go and do it with the belief that they are saving lives. You should do your research and explain the real truth to your false information.

Joecool said...

That would be founder's diamonds which are the exception and not the rule.

How is a diamond saving a life by ripping off people who attend functions?

Anonymous said...

Diamonds savings lives? What a bunch of bullshit.

Anonymous said...

I am not sure i agree with you. The 600 k would probably bE founder diamond and gross income. When business costs taxes etc are deducted its much less. A nice income but not millionaire. There are no diamonds on the mlm top earners list. I would also say these guys are working w days a week and will do so all their lives. No retirement, no freedom. And anyway most of them fall back to zero I have nothing against these guys deciding they want to nice income but need to work all their lives to get it. Many professions do so. Fair play to diamonds, its such a grind to get to that level and even more difficult to stay there. Finally i think these guys come to confernces because they have to keep the troops motivated and beause there are decent fees to be got from it. I dont believe any of the big pins have any consideration for anyone except their own greed.

Anonymous said...

If Amway is such a scheme why would they be partnered up with stores like Disney, best buy and most recently Apple. Im sure their legal departments were doing their share of research before putting there name by the company. Oh im sorry unless they forgot to consult you first since you seem to know so much. Its obvious you've had a bad experience. The bitterness shows. Ive on the other hand have had another. Amway is like the NFL. It has many teams. They all play the same game, but not all of them have the same game plan, leaders, and team mates. Too lump all of Amway into one category is just ignorance.

Joecool said...

Amway was also partners with Enron and Worldcom.

Anonymous said...

Im not sure if they were but ur point is??,,,,.Amway's been around since 1959, Its worth 11.3 billion. Its no surprise companies want to partner up.

Joecool said...

Amwya does their research and partner with Disney. Their legal departments did their research. How much research did they do before partnering with scams like Enron and Worldcom?