Friday, February 14, 2014

Amway Works?

I often hear from pro Amway people that Amway works. Obviously with nearly 12 billion in sales, Amway works, but who does it work for? I am of the opinion that Amway works well for the owners and for some of the tenured diamonds. The owners have a great deal because they make the products and the sales people use and try to sell Amway products. The distributors take all the risk. The expense of advertising and marketing of the produts falls on the IBO's and Amway even has a minimum quota (100 PV) before you even get a commission. Thus it is not true that simply changing your shopping habits will earn you sme money, unless you spend abut $300 a month on household products.

For the Amway diamnds, Amway works because they earn bonuses on their dowline volume, and the downline are basically an exclusive customer base for their motivational tools and functions. My own experience and the numbers posted by Amway suggests that these functions and tools are highly ineffective. Approximately 1 in 200 IBO's reach the level of platinum and that's the level where IBO's allegedly begin to earn some net profits, although a sold out dedicated IBO could still lose money, depending on business expenses and consumption of tools. People may wonder how you can lose money as aplatinum, but frequent travel by air and functions.

It wouldn't be so bad if there weren't a 100 PV minimum. Say you bought a box of laundry detergent and nothing else, then you would get a small rebate instead of nothing. The other flaw in the Amway plan is that the IBO who sells the product often gets the smallest cut of the commission. Lets say an IBO did 100 PV. He earned a 3% bonus which is around $10. But his 100 PV generated nearly $100 in bonuses paid by Amway. The layers of upline get the rest of the bonsues while the one who "did the work" gets very little. And because the IBO incurs the expense of advertising and marketing the product, this is a pretty bad deal. The system only works if an IBO can sponsor enough people who will in turn absorb the small profits while you prosper, then the system will work for you. But will you be happy prospering at the expense of the people who trusted in you enough to sign up?

The Amway sstem really works for you if you can overcome and get a piece of the action in selling tools and functions. Wthout the supplemental income from tools and functions, I believe that most diamonds live very ordinary middle class lives and may even be drowning in debt if they try to flaunt the "diamond lifestyle" abd keep up with the Joneses.

Does Amway work? It depends on which side of the system you're on.

13 comments:

Anonymous said...

"But will you be happy prospering at the expense of the people who trusted in you enough to sign up?"

It's more about sharing information than convincing.
If you ethically just tell how it works and let them make the decision then what can be wrong with that?

If you lie just to make them sign up and pay, then it's wrong.
It's up to you how you deal with people.

Are you 100% sure it's absolutely impossible to make money with Amway doing it ethically?

Regards
Kris

Joecool said...

Have you ever been to an Amway function? Some of the ones I sat in, the diamonds taught people to quit their jobs to attend, or to skip paying their mortgage/rent to attend because it was "vital". Can you build Amway honestly? Possible but I doubt that it's all that common.

Anonymous said...

I've been to few meetings in London.
My diamonds are Paul and Hinako. Older couple.
It's hard to imagine how they could run the business unethically.
They do amway business for over 20 years. They don't sell any tools and don't suggest to compromise your current job.

I know there are lot of bad people there but my experience is rather positive so far.

Regards
Kris

Joecool said...

Are your diamonds currently qualified? A diamond business without tool income would likely be a modest middle class income after business expenses were deducted.

Anonymous said...

We meet in official amway centre in London and they've got diamond tittle on the meetings plan.
They have also just qualified for a cruise (diamonds and above).

I have no idea how much they make. They are very modest and I have never heard them talking about their own income. Just about trips sponsored by amway.

They are under Max Schwarz - crown ambassador.

Joecool said...

Amway US and Amway UK must operate differently.

Ambot Dick said...

They do. Didn't the UK govt come down on these scam artists? I think they told them to stop their kingpins from making all the bullshit claims and to stop robbing everyone with their crappy tools.
The US govt should get a clue.

Joecool said...

Yep, they lowered prices in the UK and restricted tools but somehow the US has turned a blind eye to Amway.

Anonymous said...

Amway's overall sales might be 12 Billion, but the increase is due to the new countries they expand to where people aren't aware of this scam. There is a reason why Amway doesn't publish North America sales alone.I'm sure that would suck!

Anonymous said...

Yep.it's all about your mentors. My platinum and diamond encourage you to keep your job until the business can replace your current pay check. They encourage students to finish school. Idk who your diamond was, but this business is legit. We partner with the NCAA&USA today. Come on now. That's legit

Anonymous said...

And Amway used to partner with Worldcom and Enron, a couple of scams. What's your point?

Faisal Rafiq said...

Thank you for sharing the above story (I would not even bother to say it an Article) based on assumptions and personal thoughts. I have an objection regarding bonuses distribution you portrayed, actually Amway calculates total group bonuses and first Pay off the downlines and what left over will pay to respective Uplines. Figures are totally based on Personal Performance and defined percentage of bonuses. I would suggest that first you must understand the whole process how It works. If you start your own business (any business) there should be some investment needed together with some fixed and variable cost e.g rents, bills, inventory etc. You also exposed to a risk as well If in case business never works you will incur some sunk cost. In Amway there is 0% risk to IBO's, you wonder why because Amway provided 90 Days Money back guarantee. If your customer return the products after even fully used Amway will not ask you even one question and will refund you. In other business you start the Net Profit Margin keep on varying due to costs sometimes 10%, 15% etc. But In Amway you will get straight away fixed Margins on Products provided no risks or costs associated. Yes it is true that Amway do not provide you an easy money promise, you have to work hard, nourish your personal development through BWW System and then definitely you will win.

Joecool said...

Amway's pay schedule is so complicated. that the average person cannot decipher it. And it doesn't matter. Most people never reach a point where they are earning these higher level bonuses anyway.