Monday, October 13, 2014

Amway Systems?

Many uplines and IBOs will talk about their system. More often than not, the various systems such as WWDB or Network 21 will tout themselves as the best, fastest growing, proven, and most profitable. I know that was promoted when I was an IBO and I believe it is still promoted this way. There are many comments on the internet from IBOs and recently former IBOs that indicate that this is true. But let's take a look at these claims.

How does one determine the best? You really can't. The best is an opinion unless there are established criteria on what constitutes the best. Of course, every upline will think their group is the best, but what can factually be derived from that claim? If you are an IBO or prospect of Amway, try asking that question. Based on what do you make the claim of being the "best" group or system?

Fastest growing can be proven or disproved. But for the most part, we know that Amway isn't growing by leaps and bounds in North America. During the Quixtar tenure, it appeared that Amway sales in NA either stagnated or even shrank. Amway supporters cite overall Amway sales going up, but it's reasonable to conclude that the increase in sales is primarily in foreign countries. For some odd reason, Amway no longer reports North American sales, but simply lumps everyhing into a global sales figure.

As for any system to be making claims of proven, all these systems have basically done is proven that they are dismal failures. Based on Amway's own figures, we can deduce that less than half of one percent of IBOs ever reach the platinum level. The platinum level is approximately where you might see a small profit if that platinum is CORE. There is some documentation indicating that platinums might lose money at that level. While the study is dated, the expenses associated with being a platinum have gone up significantly since that study (Wisconsin Attorney General) so it can be very possible that platinums continue to see a net loss these days. It's also very visible that there are fewer diamonds in north America today than a dozen years ago. Diamonds have quit and some were terminated. It appears that most new diamonds come from foreign countries where Amway has not yet suffered reputation issues.

Makng claims of fastest growing is also one that can be proven. However, try asking your sponsor or upline for evidence of this claim. Also, is the growth occuring in your area? Are you from the US or Canada? Citing growth in Korea for example, is unlikely to mean anything for the vast majority of IBOs. And even if there is some growth, how does that translate as leverage or an advantage for you? Ask these questions and see what answer you receive, if any.

The system is proven for sure. But it's proven to be a failure. The numbers supplied by Amway clearly back up this claim.

8 comments:

Anonymous said...

I think the systems drag down the Ibo's. I was in a very short time. Borrowed many tools and found none of it concentrated on recruiting. In fact the systems like bww,wwdb,yager group,n21 wasted most of the Ibo's time. The only thing tools and functions did was brainwash and keep the Ibo's from quitting. But with the internet and negative info. People are quitting anyways. I remember buying sales books on amazon which was more effective than the crap taught by the systems. Even books by other Mlm programs leaders who built sizable incomes to be very good.

Joecool said...

In Amway, the real business is the system. That's where the diamonds make the real money. It makes perfect sense since the profit margin is higher on tools.

Anonymous said...

I've seen other Mlm programs where they have DVDs(at cost)conference calls,and other promotional aids where its non profit. So to me the best systems are the ones where you lose the least. Since most people never make a dime in this industry. Saying there's growth means next to nothing. Some new Mlm plans even allow spillover like binary marketing plans. So you can have half your downline built for you. Now having half your network built for you is better than most claims.

Joecool said...

Thanks for your comment. You're right. Growth in MLM is good for MLM companies but not for the distributors as most make little or nothing and then when you factor in the training costs, nearly all of the distributors lose money.

Anonymous said...

Joe, read on your bww blogs. Some systems have 300.00 kits. These systems don't even have to work. Just push for one sale on sales kits and their laughing. They'll make the ibo jump through hoops with BBB and Amway to get refunds. Which most people won't do.

Joecool said...

I agree. Most people don't bother to seek refunds as they just chalk it up as a lesson learned. They often do not file complaints either. I believe the churn of new people coming and going accounts for much of Amway's sales in the US.

Anonymous said...

I don't know enough of n21 to know how they are doing. But wwdb recently had a 4500 at the recent Alberta fed. I'm from Canada and was involved when there where 16000 in early to mid 90s for wwdb. Bww seems to be doing okay with near 20,000. This was reported on Instagram by Ibo's. Probably what saved bww is the support of the east Indian Ibo's in north america for the attendance.

Joecool said...

Seems that Amway doesn't have a stigma amongst foreigners just yet. In the US, I don't believe Amway is growing leaps and bounds, Too many people know the scam in the US.