Thursday, October 30, 2014

What Is The Likelihood Of Amway Success?

Many people consider the platinum level in Amway as a significant achievement in Amway. While it may be nice to achieve that level and gain recognition from the Amway corporation, I will point out that there was a study done in Wisconsin where the attorney general analyzed and found that the top 1% (platinums) of IBOs on average, lost money. The study is somewhat dated, but I will also point out that today, there are MORE expenses associated with running an Amway business than before. (Voicemail, books, functions, standing orders, shipping). I would guess that it's very possible that platinums lose more today than when the Wisconsin study was done. Why would it be different when there are more expenses today than when the Wisconsin study was done.

A typical platinum group often has 100 or more downline IBOs. Not all 100 are active. Some do little, some are highly dedicated and some may be off and on, depending on whether they feel inspired at the moment. I should also mention that people routinely quit and drop out and therefore, new recruits must be brought in all the time. Thus a logical conclusion is that less than 1% of IBOs can reach that level. It is also, apparently rare to maintain that level. Factoring in people who quit, one can conclude that only a fraction of 1% ever reach platinum. My former upline diamond had 7 frontline platinums in his heyday. Actually, 6 of them were ruby level. None of them hold the platinum level today. So you have a less than 1% chance of reaching platinum and then you are unlikely to be able to maintain that level even if you manage to reach it.

What serious prospective business owner would even consider opening a business where you have such a small likelihood of success? Even those who achieve platinum are likely to lose that level. If platinums cannot maintain their level, then it's easy to see why there are former diamonds as well. It seems that people are willing to take a chance on an Amway business because the start up cost is low. But what is the point of doing all of that when the chance of making money is negligible? I know the Amway supporters like to show what is possible, which is fine, but a real business owner will also want to know what is likely and what they can expect given certain levels of effort.

To compound the problem, many IBOs spend a lot of time and money building an Amway business that is unlikely to give them any return on their investment. I'd guess that the average serious IBO would spend $250 a month or more on tools. That money invested over a number of years in mutual funds would give you a much better chance of achieving some dreams. Even putting the money in the bank would make you better off than the vast majority of IBOs. A serious business owner would want to know their realistic chance of making money. For some strange reason, prospects and IBOs seem to ignore this reality. They dream of only the best case scenario or what is possible. They seem to ignore what is likely. They are sold on hopes and dreams. Hopes and dreams are nice but people also need to know what the reality is.

The reason why so any people fail is because uplines are in the business of selling tools and distributorships. They are not truly interested in your long term sustainable success. If you don't believe me, try to stop purchasing standing orders and function tickets and see how much longer you are edified and given help from upline. Seriously, would a real business owner be interested in a less than 1% chance of success? While you seem interested in attending functions and buying tools, you'll be patted on the back and encouraged but the moment you stop, you'll become a quitter or broke loser.

try it and see for yourself.

1 comment:

Anonymous said...

Your diamond with 6 Ruby's is similar to my edc of the 90s. Except my upline edc of the 90s rebuilt and found replacement for the non qualifying platinums. I don't think he rebuilt and stayed based on financial reasons. Like your ex platinum he was addicted to the speaking and brainwashed to never leave. Other people with similar leadership sales abilities jump ship to other companies. The Amway name makes building even harder than