Thursday, October 24, 2013

What's Great About Amway?

Over the years I have been debating with Amway supporters, I cannot see what is so great about the Amway opportunity. Are some of these Amway defenders that stupid or dense that they truly believe that a business where one out of a few hundred people might make a profit and most of the remaining IBOs will lose money is a good opportunity? I'm not talking about people who sign up and "do nothing". Many IBOs sign up and put in a great deal of time, effort and money, only to find out that the system simply does not work (especially in the US) and they make a business decision to quit and/or to do something else.

Of course there are some people who make money in Amway. If nobody made money, then the opportunity would cease to exist. But it is basically exploitation of the downline that accounts for upline success. Amway's admission that sales to non IBOs are low, confirms this. Thus certain upline make their income from their downline's PV volume, and on tool purchases. I mean even a lottery has winners. Even ponzi schemes and other questionable opportunties have some winners. This is not to suggest that Amway in not legal. Amway is perfectly legal, but the way the opportunity is set up, those who profit, primarily do so at the expense of their trusted downline.

There are no groups that I know of where all the IBOs can win and earn a profit. I would guess that there might be a few rogue groups who only focus on retail sales, and while these groups can be profitable as a group, they are few and far between. This is because most IBOs fall under an LOS such as WWDB, BWW, LTD or N21, and these groups all seemingly focus on recruiting of new IBOs. Yes, they may sprinkle in some suggeestions about selling goods, but generally speaking, their "training" materials consist of motivation speeches, feel good stories (whether true or not), and the theme of never quitting while continuing to purchase more tools.

Some upline have the nerve to start teaching downline that their Amway business is not about making money, but to save your marriage, make you a nicer person, or some other diversion to make you forget that you are losing money month after month after month. Some groups even mix in religion and politics into their functions and meetings. As far as I can see, the typical business buildiing IBO signs up, gets some of the tools and attends a few functions, and finds that the products are hard to sell because they are not priced competetively with other retailers, and that a damaged reputation is nearly impossible to overcome. These IBOs realize they are not going anywhere, and they walk away, chalking up the losses as a life lesson. But apparently, many uplines who lied and deceived in the past are continuing to do so today, often just revising history for their benefit (i.e. lying about making any profit on tools).

Many IBOs, prospects, information seekers and critics read this blog. My question is very simple. What is so great about the Amway opportunity? For most, it is just a bad use of time and money. While some may exist, I don't know of a single person who "did the work once" and sat back collecting barrels of Amway money while sipping Mai Tais on the beaches of Jamaica. I see crown ambassadors working as hard today as they did many years ago. Diamonds losing homes to forclosures, a prominent diamond in bankruptcy proceedings, and a hoard of WWDB diamonds apparently selling off mansions that they allegedly paid for in cash. (It os quite possible that their lifestyles are simply not sustainable).

Where is the benefit in the business for the typical IBO? Just as there are some diamonds, there are lottery winners. Displaying a lottery winner doesn't make it prudent to spend your money on lottery tickets. Displaying a diamond's lifestyle doesn't make Amway a good opportunity. While Amway is a business and not a game of chance, the results of either, sadly are eerily similar - that is a few winners and millions of non winners.


Anonymous said...

I think there is nothing great about amway. Its an opportunity but very difficult, hard work and low rewards. Thats for those who have success and who are few in numbers. For the rest its a waste of time and money. To be successful you have to persuade people to hang in as long as possible and buy products so you make commissions. If you are happy doing that well thats fine. Most people cant so thats why they quit. Normally a business is defined as offering value to customers who are prepared to compensate you for the value you bring. In amway you request people to buy products and persuade others to do the same. This can work but there is no value. Hence it works while people feel free to spend some money while not getting value. The big pins are masters at getting big numbers to do so. Hence they make some money but as the post says they cant let up. They need new blood to make up those quitting. As a matter of interest charity organisations work like this too. They convince people to contribute to a cause without seeking a return. Thats fine. There is normally a good cause. Amway is what it is. Just be aware of that and then decide.

Joecool said...

Bingo! People will spend money for no value while they have dreams of residual income but stop buying once that dream goes away.

Anonymous said...

I feel I owe you an apology, Joecool. I had started the Amway business over a year ago and I was so enamored with the supposed great opportunity that I saw your blog and though you were just another tool bashing on the company. I realize now that I was the tool. :P. One day I decided to analyze economically what was going on and surely the doubts began. All this boasting of growth even during recessions got me thinking and then it finally made sense. Of course they continually grow, this company feeds off of the culture it has created. It's genius in a twisted way. Then they cover things up with charities and what not to set the right image. I read merchants of deception and made a list and compared it point by point with religion. I'm an atheist and what I discovered was not pleasing to say the least. The parallels between the two are rather frightening. Do not question upline, do not speak ill of the company, this is the right way and everything else is wrong. Diamonds are like demigods. My cousin is in this and so are my parents. Unfortunately I haven't been able to get through to them. They worry about the rest of the family and fear and blind hope is a dangerous combination. I don't know if you've heard of team global. They just recently branched off kind of like WWDB. I don't want to accuse the Diamonds of any foul play because I'm not big on conspiracy theories but I don't think these people are aware of the crap that is going on and how little economical sense it makes. It's amazing how easily you can manipulate people when you tease them with dreams and hope for a better future. I think it's been harder to come out as an atheist than a born again non IBO lol. Good grief. I still go from time to time with my parents to these meetings and events with them and now that I see things from the outside, it's rather sickening. Well, I think that's enough of my rant, but like I mentioned at the beginning, my sincerest apology and I hope more people like you are around to expose these MLM companies.

Joecool said...

Thanks for your comments. I hope the information you found here was helpful. When you are immersed in Amway, it's easy to see it the way the upline sees it but once the spell is snapped, you can see what a scam it can be.

Selaney said...

I just recently was approached by a coworker about this "great opportunity"and went to a seminar, it left a bad taste in my mouth. Everything Brad said was a contradiction and I wasn't buying it. I agreed to meet up with my coworker's mentor to get the details and was sent off with some materials to read and listen to. But now I'm faced with telling my coworker I'm not interested in this opportunity and I have this feeling they are going to brain washer her and accuse me of "trying to steal her dream".