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?


Anonymous said...

Have you considered the "reverse plan?"

Every IBO is shown the compensation plan. When a low level IBO purchases a product, they recieve the product (expensive but I digress), and the appropriate bonus for their level. The IBO at 100 PV receives 3% back on their BV. The upline sponsor receives their differential based on their own product sales volume and the Emeralds and Diamonds receive a small fraction of the sales - not including EOY bonuses, etc.

However, there is another plan that operates completely different than the aforementioned. When an IBO purchases a CD, MP3, or Event ticket, they recieve the product. They do not begin to see bonuses on those products until they reach the Platinum level. Platinums recieve the smallest relative bonus (relative as a % of sales compared to Emerald and Diamonds. Opposite of the PV plan where the purchasing IBO receives the largest return as a % in MOST cases). The Emeralds receive more and the Diamonds receive the most. In other words, when an IBO purchases an major conference ticket, they may as well be handing their upline Platinum $10, their Emerald $25, and their Diamond $75-100. It's the "reverse plan" which siphoned money directly from the new IBO to the upline Diamonds and it's the reason why you're upline doesn't necessarily care about your groups Amway product sales as long as you're downline are "plugged into the system" and buying tickets.

You're upline would NEVER tell you anything to hurt your business right? That's what we were taught. Exceptttttt make events more important than amway product sales so they can line their own pockets.

Joecool said...

Spot on! When I was an IBO, the tool and function flow was the vital sign of your business (as upline said) for the exact reasons you have outlined. They make much more profit from the tools which is why I am fairly sure many diamonds make more from tools than from Amway.