Many people see the Amway plan, and get unrealistic dreams of attaining incredible material wealth and retiring in a few years. I find it strange that nobody has been able to point out anyone who actually got in, worked a few years and then walked away from the business and is now enjoying buckets of cash rolling in while they spend their days on exotic beaches sipping mai tais. The more likely scenario will be debt, higher credit card bills, and boxes of unused cds and other various products.
So why would someone joining the business become annoying? It's because to the average person, it beomes clear that to achieve this, you need to find "six" people. Thus to find six people, you need to make contacts to show the plan. Cold contacts of people on the street would be unlikely, even for the boldest of people, so new IBOs start lookin at people they know. They start with people they are familiar with, or family and friends. They may also think their family and friends will want to get rich with them.
Sadly for most new and enthusiastic IBOs, they will find that they are shunned by family and friends. Over the years, IBOs have done too much damage to Amway's reputation and overcoming this challenge is too much for the rank and file IBOs. They will hear stories on failures and opinions that Amway is a pyramid and/or a scam. Of course, IBOs will have "canned" answers to respond to from their upline. One of the humorous ones is that Amway is praised by the BBB or the FTC and is the shining example of an MLM. To those familiar with this line of reasoning, it can become side splitting humorous.
At first, the family and friends may humor the new IBO, but relentless persistence can eventually turn ugly. This is where uplines will teach the new IBOs to avoid "negative" and to shun these family and friends. This is why some people charge the Amway leaders with being cult - like. It's at about this point where IBOs might realize that Amway products are costly and try to sell off some of them to reduce their own costs. Often times, sympathetic family and friends might make a token purchase to show support. but that can get old in a hurry also. Most IBOs will eventually quit and make amends with family and friends, but some lose friendships for good.
To information seekers and new IBOs, hopefully this message is food for thought......
Monday, June 30, 2014
Friday, June 27, 2014
Fulfilling Your Amway Dreams?
One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 30+% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What did some of these uplines do to deserve the lion's share of the bonus you worked to get? They got into Amway before you? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting.
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases. Upline will tell you that this is fair or a level playing field but think about it. Is it fair for someone to get a cut of your profits forever simply because they signed up ahead of you?
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances and/or how your business is progressing.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $150 to $250 a month on average. (The cost of these purchases may vary and these are very general estimates.) Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation?
Yours or your upline?
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases. Upline will tell you that this is fair or a level playing field but think about it. Is it fair for someone to get a cut of your profits forever simply because they signed up ahead of you?
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances and/or how your business is progressing.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $150 to $250 a month on average. (The cost of these purchases may vary and these are very general estimates.) Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation?
Yours or your upline?
Thursday, June 26, 2014
The Value Of Your Amway Business?
Many many people see the Amway plan, sign up in the hopes that Amway income will help them fulfill their dreams and that they will walk away from their jobs and collect lifelong residual income while walking the beaches of the world. Sadly, most IBOs will never even sponsor a single downline. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. Sopmeone mentioned on another forum that people who want to work 2-5 years and do nothing thereafter are probably lazy and therefore, are not capable of achieving in anything, much less in Amway.
But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth. I mean a diamond could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business? I mean do IBOs ever stop and think about this? It is an honest and serious question that should get some consideration.
I believe diamonds quit and resign because their business is worth very little or nothing. And most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your AMway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business?
So IBOs, I ask you. What is your business worth? You don't own your downline. They are independent owners like yourself. You should not have inventory, employees or some warehouse storage complex. Aside from the ability to add downline volume to your own, your Amway business likely has very little value in the real world. So IBOs and prospects, think about it for a minute. What is the value of your Amway business?
But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth. I mean a diamond could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business? I mean do IBOs ever stop and think about this? It is an honest and serious question that should get some consideration.
I believe diamonds quit and resign because their business is worth very little or nothing. And most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your AMway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business?
So IBOs, I ask you. What is your business worth? You don't own your downline. They are independent owners like yourself. You should not have inventory, employees or some warehouse storage complex. Aside from the ability to add downline volume to your own, your Amway business likely has very little value in the real world. So IBOs and prospects, think about it for a minute. What is the value of your Amway business?
Tuesday, June 24, 2014
Chasing Dreams And Losing Your Shirt In Amway?
One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 32% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting.
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline?
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline?
Monday, June 23, 2014
Your Bottom Line?
In my point of view. one of the most critical mistakes that many IBOs make is to ignore the bottom line when analyzing their Amway businesses. (Many IBOs don't even analyze their businesses) Most business building IBOs, sadly, are taught by their uplines to ignore losses, or to view losses as investments into their businesses, or that money is really not important. Some upline may teach that the business is more about making friends or being a nicer person. All of these things may be nice side benefits of reading personal development books, etc., but when running a business, the only goal should be to turn a profit.
For many IBOs, their businesses consist of listening to standing orders, attending functions and meetings, but not focused on selling products and earning a net profit. And for most IBOs, nobody can blame them as upline may give them bad advice and because the Amway business is person to person selling, it is so inefficient that many groups end up teaching IBOs to simply buy their own volume and get others to join the business. For groups who operate primarily in this manner, you are probably running an illegal business because new and existing IBOs can profit only by continuing to add more downline IBOs in the hope that they too, will buy their own volume and sponsor others.
When you look carefully at the business plan, whether it is 6-4-2, 9-4-2 or some other variation, the majority of these business building IBOs will have low volume and likely to earn only about $10 a month. But to earn that $10 a month, you are likely to have to spend $300 on products, and if you are on standing order, voicemail and functions, then you likely spend anywhere from $150 to $250 monthly to participate in the teaching system. Thus these IBO's bottom line is a net loss! It is only when you are able to sponsor many downline that your losses will get smaller and you will only profit when you have a sizable downline. That means your bottom line is a loss. And while Amway defender will argue that Walmart doesn't even give you $10 a month, you can certainly get more products from Walmart for $300 than you can get from Amway for the same price. Walmart will match any advertised price on a product that they and a competitor may carry. Also, Walmart's advertising reaching millions of people, which is much more effective than person to person. While Amway runs some ads now days, they do not directly drive customers to IBOs. The vast majority of IBO business is still to themselves and their downline, and not to non IBO customers.
I challenge IBOs to look objectively at their bottom lines. It is likely a new loss. If it is, ask your upline how long this is expected to last. Set hard goals and if you are doing what is advised by upline and results to not improve, you may have to ask yourself what willl change to make your business profitable. Basically, if you aren't adding active downlines and customers regularly, you aren't gooing anywhere and are likely to be running your business at a loss month after month after month. It won't take long before you realize that you have lost thousands if not tens of thousands of dollars.
As a former IBO with a 4000 PV business with eagle parameters, I was not making a net profit. I saw my bottom line and although doing and achieving what my upline advised, there was no money. I decided the effort, time and money invested wasn't worth it. Plus my upline started to interfere in my personal life. I saw my bottom line and wasn't satisfied, and I left Amway. I later discovered the lies my upline had fed me to keep me in the business and to keep me buying tools. It is why I started blogging. For now, my bottom line is to get the truth out about the tools scam run by upline. That is Joecool's bottom line.
For many IBOs, their businesses consist of listening to standing orders, attending functions and meetings, but not focused on selling products and earning a net profit. And for most IBOs, nobody can blame them as upline may give them bad advice and because the Amway business is person to person selling, it is so inefficient that many groups end up teaching IBOs to simply buy their own volume and get others to join the business. For groups who operate primarily in this manner, you are probably running an illegal business because new and existing IBOs can profit only by continuing to add more downline IBOs in the hope that they too, will buy their own volume and sponsor others.
When you look carefully at the business plan, whether it is 6-4-2, 9-4-2 or some other variation, the majority of these business building IBOs will have low volume and likely to earn only about $10 a month. But to earn that $10 a month, you are likely to have to spend $300 on products, and if you are on standing order, voicemail and functions, then you likely spend anywhere from $150 to $250 monthly to participate in the teaching system. Thus these IBO's bottom line is a net loss! It is only when you are able to sponsor many downline that your losses will get smaller and you will only profit when you have a sizable downline. That means your bottom line is a loss. And while Amway defender will argue that Walmart doesn't even give you $10 a month, you can certainly get more products from Walmart for $300 than you can get from Amway for the same price. Walmart will match any advertised price on a product that they and a competitor may carry. Also, Walmart's advertising reaching millions of people, which is much more effective than person to person. While Amway runs some ads now days, they do not directly drive customers to IBOs. The vast majority of IBO business is still to themselves and their downline, and not to non IBO customers.
I challenge IBOs to look objectively at their bottom lines. It is likely a new loss. If it is, ask your upline how long this is expected to last. Set hard goals and if you are doing what is advised by upline and results to not improve, you may have to ask yourself what willl change to make your business profitable. Basically, if you aren't adding active downlines and customers regularly, you aren't gooing anywhere and are likely to be running your business at a loss month after month after month. It won't take long before you realize that you have lost thousands if not tens of thousands of dollars.
As a former IBO with a 4000 PV business with eagle parameters, I was not making a net profit. I saw my bottom line and although doing and achieving what my upline advised, there was no money. I decided the effort, time and money invested wasn't worth it. Plus my upline started to interfere in my personal life. I saw my bottom line and wasn't satisfied, and I left Amway. I later discovered the lies my upline had fed me to keep me in the business and to keep me buying tools. It is why I started blogging. For now, my bottom line is to get the truth out about the tools scam run by upline. That is Joecool's bottom line.
Friday, June 20, 2014
Amway IBO's Are Business Minded?
One of the things IBOs "think" they posssess, but in reality they are far from it, is "Business Mentality". It is not necessarily the fault of the IBOs. Many are sponsored into Amway by trusted friends and lacking business experience, they will "submit" to upline as they are advised and will try to learn about the Amway business. The problem is that many upline leaders teach self serving business practices such as hard core dedication to their tools system, from which they often handsomely profit. Let's examine some of the questionable practices.
"Buy from yourself". If you have a business owner mentality, you only buy from yourself if it's beneficial to your business. Many IBOs talk about ridiculous things like a McDonald's owner would never eat at Burger King. That's bull crap. Just because I own a McDonald's doesn't mean I am eating Big Macs the rest of my life. You cannot spend yourself to prosperity. If I sold pens for $1.00 and my cost was .50, and my competitor had a special on the same pens at 3 for $1.00, I'm buying them from my competition. Also, buying from yourself makes you a customer, not a business owner.
"Ignore facts if you have a dream". This is probably the biggest heap of bull crap taught by some upline. I have seen this spouted in particular by IBOs downline from WWDB and BWW leaders. A business owner studies the facts, not ignores them. Any REAL business owner wants to know how much he is bringing in and how much is going out. That's how you detect the heartbeat of your business. A site visitor named Gina on this site, recently posted a profit/loss statement from her real business. Naturally, IBOs were at a loss to discuss it because it was foreign material to them.
"Submit to upline" Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or whatever? A real business owner would think independently and make business decisions based on facts and numbers, not on the advice of someone upline who hasn't taken the time to assess each IBO on a personal level to be able to give advice on an IBO's "Indepdendent Business", or worse, advice on their personal lives".
"Dedication to the system". Silly advice as well. What dedication does the system have for an IBO? If an IBO succeeds (which is very rare), the system takes credit, but for the more than 99% of people who never make a significant income, it is their own fault if they don't make it. Amway apologists will defend this by saying that many may not have signed up wanting a significant income. While that may be partially true, tell me where people show "plans" designed for the guy who wants an extra $100 a month? The plans shown are always (AFAIK) to go platinum or diamond.
IBOs and information seekers, does any of this sound familiar? Is this a part of your experience? If so, I encourage you to ask questions here and get more information before proceeding with any more "business" activity.
"Buy from yourself". If you have a business owner mentality, you only buy from yourself if it's beneficial to your business. Many IBOs talk about ridiculous things like a McDonald's owner would never eat at Burger King. That's bull crap. Just because I own a McDonald's doesn't mean I am eating Big Macs the rest of my life. You cannot spend yourself to prosperity. If I sold pens for $1.00 and my cost was .50, and my competitor had a special on the same pens at 3 for $1.00, I'm buying them from my competition. Also, buying from yourself makes you a customer, not a business owner.
"Ignore facts if you have a dream". This is probably the biggest heap of bull crap taught by some upline. I have seen this spouted in particular by IBOs downline from WWDB and BWW leaders. A business owner studies the facts, not ignores them. Any REAL business owner wants to know how much he is bringing in and how much is going out. That's how you detect the heartbeat of your business. A site visitor named Gina on this site, recently posted a profit/loss statement from her real business. Naturally, IBOs were at a loss to discuss it because it was foreign material to them.
"Submit to upline" Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or whatever? A real business owner would think independently and make business decisions based on facts and numbers, not on the advice of someone upline who hasn't taken the time to assess each IBO on a personal level to be able to give advice on an IBO's "Indepdendent Business", or worse, advice on their personal lives".
"Dedication to the system". Silly advice as well. What dedication does the system have for an IBO? If an IBO succeeds (which is very rare), the system takes credit, but for the more than 99% of people who never make a significant income, it is their own fault if they don't make it. Amway apologists will defend this by saying that many may not have signed up wanting a significant income. While that may be partially true, tell me where people show "plans" designed for the guy who wants an extra $100 a month? The plans shown are always (AFAIK) to go platinum or diamond.
IBOs and information seekers, does any of this sound familiar? Is this a part of your experience? If so, I encourage you to ask questions here and get more information before proceeding with any more "business" activity.
Wednesday, June 18, 2014
Never Quit!
"Never Quit" was one of the things I often heard when I was an IBO. To quit seemed like the kiss of death as an IBO. I believe that the never quit mantra can be useful if the saying was meant to read as never quit trying, or never quit trying to better yourself. But in the Amway business, when uplines talk about never quit, what they mean is never quit doing 100 PV and never quit buying tools. Sometimes a wide business decision is to quit and do something else.
I find it ironic that so many IBOs think of the diamonds on stage as being mentors to them. In fact, these diamonds don't know most of their faithful downline IBOs. They don't know their personal circumstances or whether they are progressing in building their business, thus a blanket "never quit" statement is insincere at best. It seems that the never quit saying is a self serving thought, especially since the upline diamond benefits financially by an IBO staying on board with the Amway and the tools program.
When you stop and think for a moment, your upline benefits financially from almost every aspect of the business. You move 100 PV and you get 3% while somewhere upline, about 28 - 30% bonus gets shared by your sponsor and further uplines. Your voicemail account is profit for upline. Your website profits upline, standing order, book of the month and functions all pour money into your upline's pockets. In fact, it seems that IBOs pay through their teeth for almost every bit of information they receive, regardless of any success in Amway.
If your upline truly had vital information that would make your business grow, why would they want to withhold that information from downline? Maybe your uplines don't truly want your success? Maybe they only want your money? Is that why the "never quit" battle cry is made? Does your upline diamond take the time to get to know as many IBOs as possible on a personal level? Do they know your individual circumstances? Do they truly care about your success? If they did care, how could they stand on a stage and shout "never quit"?
Ironically, many - a - diamond did not take their own advice. Many a diamond has quit in recent years. Makes you wonder why someone would quit after achieving diamond? Makes you wonder why someone would quit when you can "walk the beaches" and continue to collect an income. Maybe this opportunity is not all that you have been led to believe?
I find it ironic that so many IBOs think of the diamonds on stage as being mentors to them. In fact, these diamonds don't know most of their faithful downline IBOs. They don't know their personal circumstances or whether they are progressing in building their business, thus a blanket "never quit" statement is insincere at best. It seems that the never quit saying is a self serving thought, especially since the upline diamond benefits financially by an IBO staying on board with the Amway and the tools program.
When you stop and think for a moment, your upline benefits financially from almost every aspect of the business. You move 100 PV and you get 3% while somewhere upline, about 28 - 30% bonus gets shared by your sponsor and further uplines. Your voicemail account is profit for upline. Your website profits upline, standing order, book of the month and functions all pour money into your upline's pockets. In fact, it seems that IBOs pay through their teeth for almost every bit of information they receive, regardless of any success in Amway.
If your upline truly had vital information that would make your business grow, why would they want to withhold that information from downline? Maybe your uplines don't truly want your success? Maybe they only want your money? Is that why the "never quit" battle cry is made? Does your upline diamond take the time to get to know as many IBOs as possible on a personal level? Do they know your individual circumstances? Do they truly care about your success? If they did care, how could they stand on a stage and shout "never quit"?
Ironically, many - a - diamond did not take their own advice. Many a diamond has quit in recent years. Makes you wonder why someone would quit after achieving diamond? Makes you wonder why someone would quit when you can "walk the beaches" and continue to collect an income. Maybe this opportunity is not all that you have been led to believe?
Sunday, June 15, 2014
Whar If I Join Amway?
There's a ton of information about Amway pro and con on the internet. In case you might be wondering why there is so much negative about Amway on the internet, it's because IBO's past and present do strange things and cause negative experiences for people far and wide. I find it humorous that Amway supporters will say "that doesn't happen anymore" or that Amway "fixed that". Makes me wonder what was wrong in the first place and whether the FTC had their ruling wrong when they cleared Amway back in 1979 of being an illegal pyramid. That ruling paved the way for a hoard of other MLM's to copycat Amway's comp plan and operationss. Herbalife is currently under investigation by the FTC and other agencies but while they followed the "Amway rules", slight variations may not render them "legal" by the FTC. We shall see.
In the meantime, what happens if I join Amway? Are you prepared tp buy/sell/self conume your 100 pv? Did your upline inform you that it will cost around $300 a month and that this expense will likely last for your entire IBO career? If you cannot sell any products, the burden of moving that 100 pv will end up costing you $300 a month. Hey, you can't be unteachable and not move 100 pv right?
In addition, your sponsor or upline may give you some tapes/cds and allow you to attend meetings for free but if you become "serious" about being a business builder, you will beccome the upline/sponsor who buys those tools and tickets for people that you prospect.
Amway has a "money back guarantee" for some products and services, but what happens if you stay on as an IBO for a year or so? No money back!!!!!!! Same for for the products. Some people may stay in for a whille so they do not qualify for refunds. Also, try actually getting a refund for your tools/seminars. The tool companies have do not have any written guarentee for refunds so you can get stuck with stuff you don't want. Try asking you "awesome mentors" about these refunds. See what they say. You might hear something like "noone has ever asked for a refund".
So what if you join Amway? Can you really sell stuff? If you are a prospect, ask for a catalog and see the merchandise and prices. See if you would be willing to buy anything. See if you would e able tp sell anything. Can you prospect and sponsor anyone? If your answers are "no" to these concerns, think twice about it.
Do your due diligence and see if you can actually accomplish what your sponsor is advertising and make your decisions on facts and not hype. Good luck!
In the meantime, what happens if I join Amway? Are you prepared tp buy/sell/self conume your 100 pv? Did your upline inform you that it will cost around $300 a month and that this expense will likely last for your entire IBO career? If you cannot sell any products, the burden of moving that 100 pv will end up costing you $300 a month. Hey, you can't be unteachable and not move 100 pv right?
In addition, your sponsor or upline may give you some tapes/cds and allow you to attend meetings for free but if you become "serious" about being a business builder, you will beccome the upline/sponsor who buys those tools and tickets for people that you prospect.
Amway has a "money back guarantee" for some products and services, but what happens if you stay on as an IBO for a year or so? No money back!!!!!!! Same for for the products. Some people may stay in for a whille so they do not qualify for refunds. Also, try actually getting a refund for your tools/seminars. The tool companies have do not have any written guarentee for refunds so you can get stuck with stuff you don't want. Try asking you "awesome mentors" about these refunds. See what they say. You might hear something like "noone has ever asked for a refund".
So what if you join Amway? Can you really sell stuff? If you are a prospect, ask for a catalog and see the merchandise and prices. See if you would be willing to buy anything. See if you would e able tp sell anything. Can you prospect and sponsor anyone? If your answers are "no" to these concerns, think twice about it.
Do your due diligence and see if you can actually accomplish what your sponsor is advertising and make your decisions on facts and not hype. Good luck!
Monday, June 9, 2014
The Amway Facade
When I was an Amway recruit, I saw the presentation at a nice hotel. The person who invited me told me to be sure I arrived on time because this was business and that time was money. Ironically, the speaker arrived late and I didn't understand the standing ovation that he received. I recall how the speaker was touted as having accomplished something of greatness, as if the speaker was special. Looking back now, I can see that the diamond was just up on a pedestal because it was needed in order to create the Amway facade, or the illusion of something special.
The speaker arrived in a Mercedes and other IBO's ushered him to the stage. He got up and seemed relatable to the masses in the audience. He spoke about how he thought he was "doing okay" financially but eventually realized he was in a rut and running in the rate race. Then one du out of the blue, someone called him and invited him to a financial presentation. Just so happened that he had nothing going on at the time so he attended. He eventually got interested and joined and now he's a diamond.
He spoke about how he wakes up at noon and goes where he wants because of Amway. He spoke about the Petere Island trip that Amway sponsored him on when he qualified and he spoke about golfing and being financially free. Many people in the audience were envious and were nodding in agreement that this was what they wanted. He then proceeded to say that everyone should be open minded that that it should not matter it it was "Amway" that delivered this lifestyle. This was back in around 1997 when Amway was growing in Hawaii.
What nobody realized was that being a diamond isn't all that. I later found out that our diamond was constantly out working the business (probably because he had to) and when I asked about this, my sponsor said he did it for love. I now know this is BS and that he could not "walk away" from the business and live in luxury and residual income. What I found is that many diamonds don't earn that much, and may not even be qualified as diamonds anymore. They keep working because they need to in order to receive tool money (from cds and functions) and likely struggle financially because they put up the "facade" of success. They likely live very middle class lifestyles but need to portray the diamond lifestyle to recruit new prospects.
Take a closer look if you can, and you are likely to see what I saw.
The speaker arrived in a Mercedes and other IBO's ushered him to the stage. He got up and seemed relatable to the masses in the audience. He spoke about how he thought he was "doing okay" financially but eventually realized he was in a rut and running in the rate race. Then one du out of the blue, someone called him and invited him to a financial presentation. Just so happened that he had nothing going on at the time so he attended. He eventually got interested and joined and now he's a diamond.
He spoke about how he wakes up at noon and goes where he wants because of Amway. He spoke about the Petere Island trip that Amway sponsored him on when he qualified and he spoke about golfing and being financially free. Many people in the audience were envious and were nodding in agreement that this was what they wanted. He then proceeded to say that everyone should be open minded that that it should not matter it it was "Amway" that delivered this lifestyle. This was back in around 1997 when Amway was growing in Hawaii.
What nobody realized was that being a diamond isn't all that. I later found out that our diamond was constantly out working the business (probably because he had to) and when I asked about this, my sponsor said he did it for love. I now know this is BS and that he could not "walk away" from the business and live in luxury and residual income. What I found is that many diamonds don't earn that much, and may not even be qualified as diamonds anymore. They keep working because they need to in order to receive tool money (from cds and functions) and likely struggle financially because they put up the "facade" of success. They likely live very middle class lifestyles but need to portray the diamond lifestyle to recruit new prospects.
Take a closer look if you can, and you are likely to see what I saw.
Saturday, June 7, 2014
Amway Results Speak Loud And Clear
When I was an Amway prospect, I was told about early retirement, dreams, fancy living and other lifestyles beyond my imagination. Sure, nothing wrong with having dreams and goals to work towards. Everyone needs nope and it keeps you motivated and moving forward even when things get tough. People need hope and people need to be motivated. What is sad is that many Amway AMO leaders are selling false hope and dreams. You are chasing the end of the rainbow. no matter how hard you run, you are not going to find the end of that rainbow. While in in 1o or 20 people might reach diamond, can you really bank on those kinds of chances with your future?
I think it's somewhat cruel for uplines to be selling hopes and dreams and then turning around and selling useless tools to the hopefuls. The tools do not work and only lines the pockets of those selling the tools. It's basically a bait and switch scam. Sell hopes and dreams, and then say that your tools are the only way to accomplish those dreams. New prospects and IBOs don't know better so they often trust upline to guide them. Meantime, upline has their hands in their pockets taking their money. It's a pretty insidious game. What sad is that despite all the information around, people are still falling for it. A niece of mine recently got invited to an Amway meetings and happened to ask me what I thought. I told her the decision is ultimately hers, but I allowed her to read my blog. She decided not to join.
What many prospects ignore or miss is Amway's published stats. Less than on in 200 reaches platinum, or a small fraction of 1% reach diamond. The average income is only $202 a month after disregarding the inactive IBOs. The likely results for most is to lose money if they are on the system. If you do nothing, you will not may money but your only loss would be the expense of the sign up fee and/or starter kit. Those who do nothing ironically end up the best off in the long run. Those who dedicate to the tools system ususally get soaked if they stay in long enough. People who stay for a few years may suffer losses exceeding 10K or more. If you search amway and taxes you'll probably find some interesting stories.
Bottom line, look at the bottom line and see what you are likely to achieve. Amwayers like to show only the pie in the sky best case scenario. A real business owner would want to know all the details including what is likely and what is typical. Afterall, what would make you different than any other businsess owners? Food for thought.
I think it's somewhat cruel for uplines to be selling hopes and dreams and then turning around and selling useless tools to the hopefuls. The tools do not work and only lines the pockets of those selling the tools. It's basically a bait and switch scam. Sell hopes and dreams, and then say that your tools are the only way to accomplish those dreams. New prospects and IBOs don't know better so they often trust upline to guide them. Meantime, upline has their hands in their pockets taking their money. It's a pretty insidious game. What sad is that despite all the information around, people are still falling for it. A niece of mine recently got invited to an Amway meetings and happened to ask me what I thought. I told her the decision is ultimately hers, but I allowed her to read my blog. She decided not to join.
What many prospects ignore or miss is Amway's published stats. Less than on in 200 reaches platinum, or a small fraction of 1% reach diamond. The average income is only $202 a month after disregarding the inactive IBOs. The likely results for most is to lose money if they are on the system. If you do nothing, you will not may money but your only loss would be the expense of the sign up fee and/or starter kit. Those who do nothing ironically end up the best off in the long run. Those who dedicate to the tools system ususally get soaked if they stay in long enough. People who stay for a few years may suffer losses exceeding 10K or more. If you search amway and taxes you'll probably find some interesting stories.
Bottom line, look at the bottom line and see what you are likely to achieve. Amwayers like to show only the pie in the sky best case scenario. A real business owner would want to know all the details including what is likely and what is typical. Afterall, what would make you different than any other businsess owners? Food for thought.
Thursday, June 5, 2014
Amway And Motivation?
I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.
Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?
Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.
All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank
Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?
Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.
All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank
Tuesday, June 3, 2014
Amway's Critics?
To this day, Amway has many critics and supporters. Some Amway supporters become critics if they leave the Amway business. Some Amway apologists are claiming victory as they say there are fewer new internet critics. But funny enough, there aren't any apparently new Amway supporters on the net either. But still, it doesn't appear that Amway is suddenly new and improved. The name Amway doesn't bring visions of sugarplums in most people's heads. In fact when you google Amway, you'll see many critical sites and the words scam or pyramid often associated with the name "Amway". You'll find horror stories and stories of people tricked into meeting. Recently, I've fond stories of IBO's getting hosed by the IRS.
What does the Amway name bring? People often think of "pyramid" or "scam". Some people are negative about the Amway opportunity and they don't even know why. Many people however, were involved in Amway at one time, or knows someone who had a bad experience. While many people's experience may have little to do with the Amway corporation, surely the motivational groups such as N21, BWW, or WWDB has had an impact on people's experience with Amway. Getting tricked into attending meetings or being lied to will lead to a bad experience. So will ridiculous snake oil campaigns like perfect water or claims about vitamin supplements. Most people are recruited by family or friends, thus these victims are often reluctant to file complaints against their family and friends to authorities.
But has Amway done anything significant about IBO abuses? Surely they must know something about this. Someone from Amway occasionally visits my blog to see what I am writing. But as far as I know, even the most abusive uplines have gone unpunished. Amway implemented an accreditation program, but I have yet to see ay significant changes as a result of accreditation and accreditation plus.
Amway criticism can be curbed quite easily. More transparency. Why not inform prospects of how many diamonds are currently qualified? Why not say how many IBOs are active or registered? Why not report North American sales? Why not say what the typical IBO earns? It would prevent critics and supporters from extrapolating information and making their own possibly inaccurate conclusions. Of course Amway is a private company and therefore will probably release only information that is required by law. And that is their right. But if that is the case, then IBO's will continue to make things up and the criticism will continue.
Like the AMO saying goes, insanity is doing the same thing over and over and expecting different results. With no apparent significant changes forthcoming from Amway, the valid criticism continues.
What does the Amway name bring? People often think of "pyramid" or "scam". Some people are negative about the Amway opportunity and they don't even know why. Many people however, were involved in Amway at one time, or knows someone who had a bad experience. While many people's experience may have little to do with the Amway corporation, surely the motivational groups such as N21, BWW, or WWDB has had an impact on people's experience with Amway. Getting tricked into attending meetings or being lied to will lead to a bad experience. So will ridiculous snake oil campaigns like perfect water or claims about vitamin supplements. Most people are recruited by family or friends, thus these victims are often reluctant to file complaints against their family and friends to authorities.
But has Amway done anything significant about IBO abuses? Surely they must know something about this. Someone from Amway occasionally visits my blog to see what I am writing. But as far as I know, even the most abusive uplines have gone unpunished. Amway implemented an accreditation program, but I have yet to see ay significant changes as a result of accreditation and accreditation plus.
Amway criticism can be curbed quite easily. More transparency. Why not inform prospects of how many diamonds are currently qualified? Why not say how many IBOs are active or registered? Why not report North American sales? Why not say what the typical IBO earns? It would prevent critics and supporters from extrapolating information and making their own possibly inaccurate conclusions. Of course Amway is a private company and therefore will probably release only information that is required by law. And that is their right. But if that is the case, then IBO's will continue to make things up and the criticism will continue.
Like the AMO saying goes, insanity is doing the same thing over and over and expecting different results. With no apparent significant changes forthcoming from Amway, the valid criticism continues.
Monday, June 2, 2014
Building Your Amway Upline's Dreams?
One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 32% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting. You also put in the effort to move that volume. And your upline will always get a portion of you bonus, simply because they signed up before you.
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases. You can eventually cash in too, if you can get enough downline to move volume and absorb the losses that you currently experience.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are constantly adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 to $300 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline?
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases. You can eventually cash in too, if you can get enough downline to move volume and absorb the losses that you currently experience.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are constantly adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 to $300 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline?
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