Tuesday, February 11, 2014

Amway Failure By Design?

When I was being prospected into Amway, I saw the 6-4-2 plan. I am fairly certain that most groups still present the Amway opportunity using the 6-4-2, although I am aware that some groups use different variations of this. The plan sounds so simple. Just sponsor 6. The next layer does less than you and sponsors 4, and the next layer does even less and sponsors 2. First of all, most IBOs don't sponsor a single person to begin with. Many IBOs are unable to even show the plan to another person. So if you cannot achieve even the first step, how can you possibly make the plan come to fruition? The answer is you can't.

Only a fraction of 1% of IBOs ever reach platinum. Out of those who do reach the milestone, few are able to maintain the business and even fewer ever go on and achieve higher levels such as emerald or diamond. WIth the attrition rate so high, even recruiting new IBOs basically keeps you even. The effort required to maintain the business can become a full time job or more for some people. My former sponsor was out showing the plan for himself or for downline every night of the week, save for the functions and other meetings. Amway he said, needs to become your life if you want to succeed.

You have so many factors working against you that it takes an exceptional (and possibly lucky) individual to be able to overcome the challenges to reach a recognized pin level. The spotty name reputation of Amway, the higher (on average) prices of their products, the high attrition rate and the fact that any higher level requires a large downline. These factors make it nearly impossible for anyone to go diamond and reach what appears to be the pinnacle of Amway success. Sure, some IBOs may not have such lofty goals, but the "plan" is designed to achieve diamond. I have not ever seen or heard of a plan for an IBO to achieve 600 PV.

In many instances, whether it's a business, or a sports team, or some other activity, you will notice that the winners or the successes often have a great system. Many fast food businesses for example, have a processing system. A great football team might have a great offensive or defensive system. A large business may also have a proven system. This is where the problem lies in Amway. The system is ineffective. The system as shown to many prospects, needs many "lower level" IBOs working in order for someone to achieve the levels such as platinum.

As you cannot control the actions and beliefs of others, you cannot make people join your business. You cannot make them see the plan. Thus in the past, many IBOs resorted to deception and lies to get people in front of the plan. In college, I was invited to a "beer bust", only to walk into an Amway meeting. The person who invited me said we would do the beer bust after the meeting. Thus my first impression of Amway was a bad one. As one can reasonably conclude, Amway IBOs for the most part, end up failing. But they don;t fail for lack of effort. They fail by design. That's how the 6-4-2 plan is set up (or whatever version your group uses). It is in my opinion, failure by design.

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