Friday, February 27, 2015

Your Amway Friends?

You hang out with friends, generally people you like and have similar interests. You have good and bad times, but your true friends are there for you when you need them. You move residences, your friends are there to help you move. They may play a round of golf with you, or watch some sporting events, dinners, backyard barbeques, etc. These are folks you will likely end up retiring with and enjoying your golden years.

But suddenly, you get enticed to join Amway. You see the "chance" to get rich, with a shortcut (not get rich quick, but a "shortcut"). You sign up and your sponsor is your new "best" friend. Most of the people you enjoyed being with think Amway is a questionable venture to get involved in. Suddenly, because of what you have been told or taught, you view these same nice people as "broke" or "losers", simply because they do not share the same ambition of untold wealth working 12-15 hours a weeek. Suddenly, you friends become prospects, or people you want to sponsor so you start recruiting them. Some may join, but most won't. Suddenly you are immersed in recruitment meetings, functions, and avoiding "negative", which is people and events that do not support your Amway business.

Now you are missing birthday parties, barbeques, and other social events. Your social events are now recruitment meetings, seminars and Amway business related events. You are taught that these events can be put off and your gratification delayed. You can do whatever you want when you go diamond. (Even though there me be only one (1) diamond out of every ten or twenty thousand IBOs) Your dedication will pay off right? Sadly, for most people, even very dedicated people, all they will see is losses on their yearly tax returns, mainly due to the purchase of cds, books, voicemail and function tickets. But these are your "friends" right?

Here's my take on it. Try missing a few meetings or functions. Stop buying cds and see how many "friends" remain from the business. It is likely that your upline will claim that you walked away from the friendship by slowing down on the "system". If that happens, then you have conditional friends, or fairweather friends. They are your "friends" while you are pursuing the same cause. They are your friends when you are attending functions. Are they there for you in bad times?

A short while after I attended my last function (I was still an IBO, just not a business builder), my dad passed away. Not a single one of my IBO "friends" bothered to attend the memorial service. Not a single one of my IBO friends called or dropped by the home to pay their respects. All of my "real" friends, who saw through the AMO smoke and mirrors called to talk to me and/or attended the memorial service.

Are your IBO friends conditional friends? Mine were.

Wednesday, February 25, 2015

The Amway Motivational Scam?

Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, all show testimonials of sucessful people. Obviously they do not show you the vast majority of people who try their systems and fail. It is just like the Amway leaders who edify some downline who "drove the miles" or made sacrifices and achieved some level such as platinum. Sadly, for each minor success in Amway, there are probably hundreds or people who tried and failed, despite earnest efforts.

It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cashflow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do (although extremely rare), and those are shown as the possibilities. But if you watch infomercials, you will see in small print on the bottom of the screen, "unique experience", you results may vary. I believe that a similar message used to be at the end of Amway motivational recordings as well. A real business owner would want to know what is the likely result, not just the "best case scenario". Unlike some Amway leaders say, the facts do matter and should not be ignored.

These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, or to sell a lot of product. Many of these vital factors are beyond the direct control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail in Amway. I don't understand why apologist either deny or try to minimize this fact.

But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the vast majority of lower level IBOs. You can only have one platinum for approximately 100 downline IBOs. Unless IBOs are somehow moving large amounts of volume, you need more IBOs to reach these levels. A diamond is six of these groups, all of which are churning through prospects and IBOs each month. Replacing people who quit is a massive undertaking. The common 6-4-2 plan consists of 79 IBOs all moving enough volume to earn a bonus. That scenario is highly unlikely to downright impossible.

So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them. Kiyosaki and the diamonds likely earn most of their money selling tools and training and not by doing what they proclaim.

Tuesday, February 24, 2015

Amway IBO Expenses?

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of th system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for some uplines than the actual movement of Amway volume. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might run them more than $300. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more. Uplines will then justify the expense by saying the IBO is investing in his/her business.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to$500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stay? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

Monday, February 23, 2015

Can You "Choose" To Succeed In Amway?

Many IBOs seem to think that success in business or in other aspects of life is simply a choice. They mistakenly believe that you can actually choose to succeed or not. They apparently believe that persistence and choosing to win will eventually land them a premiere spot at diamond club. If that were truly the case, wouldn't we see hoards of new diamonds each and every year? Instead, we see one here and one there, and while there are a few new diamonds in the US every so often, we see others quitting, dropping out or leaving Amway for greener pastures. Make you wonder if the prize is worth pursuing in the first place.

But IBOs and information seekers should understand quite clearly. You cannot simply "choose" to win or succeed. In a football game, both sides can believe and choose to win, but still, only one can be the victor. In Amway, it is common for a platinum to have 100 to 200 downline. Thus to be a platinum, you need to be in the top one half of one percent of IBOs. To be a diamond, you will need to be in the top 600 to 1200 IBOs, not counting the masses of IBOs who register and do nothing or register and do a little and quit. Only one in about ten to twenty thousand will ever reach diamond in North America.

Sure, IBOs may cite some touching story like "Rudy". Basically a nobody who dreamed of playing for Notre Dame. He busted his butt and did whatever it took to make the team and the movie ends with him getting in a game, making a sack and being carried off the field by his teammates in a blaze of glory. A great and inspiring movie. But what you don't see is the possible tens of thousands of young men who had the same dream, may have worked every bit as hard but circumstances and situations prevented them from achieving the same limited success. Uplines want you to think these kinds of stories can happen to everyone, but the fact is that there is only a little room at the top. If stories like Rudy were common, then there would have been nothing special about it. An elite athlete like a Michael Jordan or a Tiger Woods only comes along once or twice in a lifetime. It is like achieving diamond. It happens but it is a rare occasion, especially in North America where Amway appears to be shrinking instead of growing.

In the Amway business, many prospects and IBOs are motivated and driven to succeed. Many of them are fine young men and women who want more in life. But the vast majority of those who try will not achieve their dreams via the Amway opportunity no matter how hard they work and no matter how badly they want it. The reason is because there are too many variables that are not in direct control of the IBO. The Amway reputation in North America is spotty at best so sponsoring downline is nearly impossible. And when you can sponsor, chances are your downline will do little or nothing. Many new IBOs will work hard, but quit because they are faced with the challenges I just mentioned. And even if you can overcome the overwhelming odds, you still need to keeping working hard constantly to maintain the business, all for an unstable average diamond income of $146,995, which doesn't consider taxes, medical insurance and other perks you may receive at a job. All told, I believe the diamond income is not all it's cracked up to be when you consider the charade you must play to display the diamond lifestyle. Do the math and you will be able to see for yourself.

In the end, it seems as though the prize isn't as great as it seems, and the trail to success is one that most cannot endure. And even if you achieve diamond, you can lose it quite easily as others have discovered. The bottom line is that you cannot simply choose to succeed in Amway or any other endeavor. Good luck if you decide to attempt it anyway.

Friday, February 20, 2015

Amway WWDB "Eagle" Parameters?

Eagle Parameters:
Signed Counsel Sheet to Upline Diamond
300 PV personal use/retail for couples, 200 PV personal use/retail for singles
6-5-3 (PB/SO/MF) - Explained below
6 legs at 100 PV or higher
5 legs on standing order
3 legs attending major functions


Being An Eagle Is Profitable? I think not!

I have listed the parameters for the eagle program above. I will provide an analysis and some comments about the WWDB Eagle program. In my opinion, the Eagle program is basically just a program where upline assures themselves of a certain amount of tools sales. The IBO with the eagle parameters is likely losing a ton of money.

First of all, an Eagle with minimum parameters/legs would be at about 1000 PV. That would equate to about $200 to $300 a month in PV bonus from Amway, with differences based on width, total number of legs moving volume, etc. For this example, I will asume the Eagle receives $300 in PV bonus.

200 PV for singles, 300 PV for couples. That’s $600 to $900 in personal use and retail sales. While IBOs may attempt to sell products, we know that many IBOs sell little or nothing. Even if an IBO manages to sell 50 PV to customers, that IBO would still be spending $450 to $750 a month on personal use, and perhaps earning $100 a month for selling 50 PV.

6 legs at 100 PV or higher. That is approximately $1800 a month in personal consumption and retail for these downlines. Assuming they each qualify at 3%, they would get about $10 in PV bonus each month. The $10 does not factor in business expenses.

5 legs on standing order. Depending on whether an IBO is on the premier club, their cost might be about $60 to $75 a month (or more) for standing order, and may vary if extra cds are purchased.

3 legs attending major functions. Major functions generally cost about $125 per person, per event. And the expenses does not include transportation which may include round trip airfare during peak travel months, rental cars, hotels, etc etc.


Let’s look at a single IBO with eagle parameters. And I will use “best case” scenario. Income might be $400 with the 1000 PV bonus plus the retail profit for selling 50 PV. $400 sounds like a nice tidy sum, especially for a single person. But looking deeper, we see that this person also had to consume $450 worth of goods for him or herself ($450 = approximate cost of 150 PV). Yes, he or she received products, but seriously, how many single people actually spend $450 a month on laundry soap, shampoo and other consumables when simply “changing your shopping habits?

Additionally, an “Eagle” would have to be a leader. More than likely, simply buying standing order is not sufficient. A leader should be consuming more cds as you cannot listen to the same cd every day. Factor in the books, monthly open meetings, average out the cost of major functions, gas money, and other business expenses. I would say it is safe to say that an “Eagle” would easily spend $300 a month (or more) on tools and other business related expenses (Tools = Books, cds, standing order, meetings, functions, voicemail workshops). If this Eagle has to fly to major functions, then that cost may be significantly higher on average.

So let’s summarize. In a “best case” scenario, an Eagle IBO would spend about $750 a month on products and tools. I understand that products are not a business expense, but if a single person is expected to consume/sell twice as much PV, I would say half of that expense is a business expense as it would be unlikely that a single person would ever use 150 or 200 PV worth of goods in a month. So lets use that case and say that an Eagle has $475 in expenses per month ($175 for PV and $300 for tools). The Eagle receives $400 a month in bonuses and retail income (best case scenario) with the IBO selling 50 PV worth of goods (which is not common).

In a best case scenario, an Eagle loses money! And what’s more, all of his or her downline, if they are also using tools, will also lose money! The only ones profiting from the Eagle program is Amway in the form of product sales, and the upline in the form of PV bonuses and the profit from the sale of tools!

Do you still want to be an Eagle?

Tuesday, February 17, 2015

Amway Tools Don't Work?

One of the things my upline always pushed on us was the tools system. While the tools are said to be optional, they are not promoted that way. They were promoted as vital, necessary, almost as if you were insane to try and build an Amway business without tools. Basically the tools were a defacto requirement. My upline always claimed that nobody ever "made it" without tools. Some Amway defenders like IBOFightback insist that the tools work, and that IBOs who were on the system proved it with higher levels of success and product volume. But the tools work for maybe a fraction of 1% of IBOs who try them.

IBOs participating in the system (voicemail, book of the month, standing orders, functions, etc) do more PV. I believe this is true, but it is true, only because once the upline can convince you to participate in the system, then that same IBO is also convinced that they should or must do 100 PV as part of the deal. People who aren't convinced that the system is vital, subsequently do not purchase or sell as much PV because they have not been convinced that moving PV will make them successful.

Critics and Amway supporters have debated this issue for years, but clearly, the evidence supports my position. Why? Because if there was a true demand for Amway products because of their quality and/or value, then there wouldn't be such a steep drop off in movement of volume when an IBO becomes a former IBO. Many, probably most former IBOs never buy a single Amway product once they leave the business. If the products had true quality and value as Amway supporters claim, why don't people continue to purchase 100 PV per month when they quit? Because they never wanted or needed all of that product in the first place?

If someone is convinced that Amway will be their financial savior and that by using tools and moving 100 PV will result in long term financial security and residual income as claimed by upline, then that is what they will do in hopes of achieving the end goal. When that goal or dream doesn't materialize, the former IBOs realize that the tools and products no longer have the value they once thought they had. How many former IBOs will buy standing order or attend functions? If these materials really made you nicer, or saved marriages, why don't any former IBOs keep buying them? Why do they resort to selling them for pennies on the dollar on Ebay or Craigslist?

Bottom line is that the tools don't work. They only work for the uplines who directly profit from the sale of tools, plus the artificial demand in product sales created by those IBOs who are convinced that Amway wil make them rich. Once the reality sets in that Amway will not make them rich, and that the tools are simply draining their resources, then the demand or tools and Amway products disappears almost instantly. There is no unbiased evidence that I know of to suggest that these tools work, and basically, the miserable amount of new diamonds emerging in the US seems to confirm this fact.

I urge IBOs and information seekers to take this message to heart.

Friday, February 13, 2015

Are Amway IBOs Just Customers Of Amway And The Systems?

One of the silly things IBOs say is how they need to be their own best customer. That a McDonald's owner would never eat at Burger King, etc. That is complete hogwash. While there is nothing wrong with supporting your own business, IBOs are blinded by the fact that their business produces nothing. They are simply middlemen distributors. Do you really think someone like Ron Puryear consumes thousands of dollars of standing orders because he (partly) owns WWDB, a for profit company that produces training materials? Of course not. When you purchase something from your Amway business, you make no real profit. Any "false" profit you see is simply money out of your own pocket moving to the other pocket. Yes, you may receive a volume bonus, but that is still just a lot of your own money being given back to you. Spend $300 and get back $10. If you can get enough people to follow you and move volume, your bonus will increase, but the increase then comes out of your follower's pockets instead of your own. That's why many consider Amway to be a scheme of sorts.

I know some business owners and they are never the best or sole customer of their own stores. Many Amway business owners are their only customers or their best customer. That simply is not how a business is run. Any REAL business cannot support itself by having the owners and perhaps the owner's employees as the primary customer base. For any business to thrive, you need customers and a demand for products. Without customers and a demand for products, you have no business. But some upline leaders still teach "buy from yourself" as the primary means of doing business. Other leaders may ask you to sell, but to focus on sponsoring others because they are hopeful that this will result in increased volume. Sadly, most IBOs will never sponsor a downline and many will never acquire a customer other than themselves.

It seems as though many IBOs think they are business owners but the reality is that they are simply glorified customers of their own business and of the system or tools business. Their only hope of making a profit is to sponsor others. In my opinion, this method of doing business is a pyramid because the only way to eventually make a profit is to sponsor enough downline until you can leverage enough volume to fimally break even or profit. An IBO with a real customer (and not buying tools) can make a profit by selling a single product. But many IBOs are not taught this because their upline makes a much bigger profit by selling their downline IBOs standing orders, voicemail, books and seminar tickets. Many IBOs do not realize that they are simply customers of Amway and of the upline tools system owners.

For people already involved or considering involvement in the Amway opportunity, you are highly encouraged to seek more information and to fully understand how a profit is made in this business. Simply seeing circles drawn oversimplifies the process as most IBOs never get close to finding six (6) like minded people. Even those who find six are unlikely to be able to retain them. Over time, the cost of the products and the cost of the training will start to add up and the losses will escalate. For real business owners, an assessment of profit/loss and return on investment should be done and if the return is not good, a real business owner would consider other options.

So are you a business owner or a glorified customer?

Thursday, February 12, 2015

Who Gets "Rich" In Amway?

One thing many IBOs will talk about is how they were told that they would have to work hard and that they would not get rich quick in the Amway business. That Amway was not a get rich quick scheme. I do believe this, but what many Amway IBOs and Amway enthusiasts will not mention is that somewhere in the plan or when they were recruited, they were either directly told or implied that they would eventually "get rich" by joining Amway, whether it was "quick" or not.

If people were told that they would not get rich/wealthy and that they would have to work hard and that they would have to overcome the name reputation, how many people would join? As evidence to prove my point, many IBOs and former IBOs know about a major function occuring around this time of the year called "Winter Conference" or "Dream Night". A handful of diamonds would host a dinner and they would show slideshows of extravagant wealth. Since in my days, IBOs were told there was NO PROFIT IN TOOLS, it was implied that all the luxurious trappings were a result of Amway income.

The slide show was shown while the song "I wanna be rich" was playing in the background. There were pictures of jet skis, yachts, boats, jets, fancy cars, golf courses and designer suits and mansions. The audience was told that diamonds paid for everything in cash. The diamonds would stand on stage and tell the audience that they will work 24/7 but it was so worth it to go diamond. That you could catch up on sleep when you are a diamond. That the IBOs in the audience needed to hurry up and join them so they would have more playmates.

Looking back, it was a nice function. It got people to dream of having all of this material wealth. Sadly, I don't think a single one of the audience I was in ever got close to achieving that kind of success. In fact, the LOS I was in, WWDB, didn't have many new diamonds since I left Amway and in fact I think some diamonds have disappeared! Maybe they became negative losers?

Yes, when you are prospected in Amway, the speaker may tell you that Amway is not
get rich quick.

What they don't tell you is that you probably won't become rich at all.

Tuesday, February 10, 2015

Amway's Business Mentality?

One of the things Amway IBOs "think" they possess, 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 or family 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. They may also downplay the vital importance of actually selling products to actual customers. 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 totally false. 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. Many new IBOs and prospects fail to see the flaws in this kind of teaching.

"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, 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. If you are spending more on tools, functions and training than you are taking in, you are operating at a net loss and unless your sales goes up, you will continue to bleed money until you lower your expenditures. The purpose of the training is supposed to help you generate more sales volume. If that isn't happening, how much more training do you really need?

"Submit to upline". Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or whatever? Why should someone have authority over you and your business simply because they signed up before you? 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 "Independent 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. There is no unbiased evidence that the systems help anyone succeed in Amway.

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 and get more information before proceeding with any more "business" activity.

Monday, February 9, 2015

Why Amway Doesn't Work?

1. The Amway products are too expensive to compete with other brands. While IBO's claim high quality, that is subjective and for most consumers, Amway products are not well known and seen as generic in nature with a premium price. Many people consider Amway products "satisfactory" or "average". Some people do enjoy Amway products, but overall in the US market, it clearly indicates that price is a factor and people apparently choose Costco or WalMart. Also, person to person advertising is not as effective as national advertising such as Proctor and Gamble. While Amway did some advertising recently, they are too far behind in the game and their spotty reputation precedes them.

2. The compensation plan is very unfair to new IBO's. The new guy does the work but gets only a tiny fraction of the generous bonus Amway pays out. A new IBO who moves 100 PV would get back $10 or so while layers of uplines split up the remaining $90 or so on bonuses generated by the 100 PV. The only way an IBO can increase volume is to sponsor downline and hope that they will also buy into the system and dedicate themselves to moving volume consistently. But this will also fail due to reasons #3 and #4.

3. Amway's reputation is so bad that sponsoring downlline to build a group is nearly impossible. Even getting people to see the plan is a tough sell. It is why building a business without some deception is nearly impossible. It is why many uplines begin to teach that Amway saves marriages, or that you become nicer by building an Amway business, or that the Amway business is about friends and not money. That is a bunch of BS, business is about making money. If not you have joined a social club.

4. The uplines push the tools scam on their downline while they make handsome profits from these books, voicemails, standing orders and functions. What's more, these tools do not help an IBO build a business because of the reaons listed above. In fact, I believe that any IBO who actually succeed, does so in spite of the system and not because of the system. There is zero unbiased evidence to indicate that the system tools have any relationship to IBO success. And most systems are more alike than not, despite what they may claim.

It is for these reasons that I believe Amway is not a good business opportunity for the vast majority of people. When you factor in the system expenses, you almost assure yourself of a losing proposition. Do the math and do the research. Your conclusion should be clear.

Friday, February 6, 2015

Amway Instead Of A J-O-B?

One of the things upline leaders apparently do is to disparage people with jobs. Oh, they would say we needed people to wait on our tables and clean our toilets, but in general, jobs were put down and basically the group was told that Amway is their best chance at achieving financial freedom, giving them the ability to flush their jobs. Ironically, IBO's jobs are what funds their Amway businesses. Most IBOs would be out of business within weeks if not for their job income funding their Amway businesses.

The key selling point appears to be the 2-5 years of part time work rather than working a job for 30 - 40 years and then retiring on social security which may or may not be there when you retire. This plants a fear in people about the future and then the Amway opportunity is presented in a positive light because the Amway opportunity comes with a low start up cost. What uplines do not mention is how the opportunity can become a money pit as the monthly defacto 100 PV quota starts to add up. It is my guess that if people only bought items they truly needed, these IBOs would likely move 100 PV every three months, unless they are actively selling goods to non IBO customers.

When an IBO finally agrees to register, it is then that the hidden costs are revealed. Many uplines will introduce standing orders and functions and present these tools as vital to IBO success. Most new IBOs don't know better and feel subtle pressure to conform and give it a try. Some upline may loan some tools to downline in the beginning but evemtually, the IBO will be encouraged to be a "serious" business owner who should be purchasing their own tools to loan to their downline and the cycle goes on.

If you examine some version of the Amway recruitment plan, you will see that most IBOs are at the 100 PV level, which will reward you with a monthly bonus of about $10or so. If that same IBO subscribes to the tools system, than IBO will likely be losing over $100 a month not including the product purchases. And because many IBOs have been convinced that working a job is so horrible, that they can be convinced that this condition of losing money is temporary and that untold wealth is right around the corner. Sadly, for most, this condition is the norm and even the sponsorship of a few downline, the losses continue to mount. Yet many are convinced that this is better than a job.

Ironically, a job allows people to pay their monthly bills, feed their families and many people enjoy their work and co workers. While upline leaders may convince you otherwise, it is this very same excuse upline leaders use when asked why they are still working instead of walking the beaches of the world collecting massive amounts of residual income. I would encourage IBOs to truly analyze their efforts in Amway and determine if it is beneficial to your finances. In most cases, your Amway efforts ONLY benefits your upline's finances. For most who get involved, the Amway opportunity is not better than a job. Be careful!

Thursday, February 5, 2015

Amway IBOs Helping People?

One of the biggest loads of guano my upline used to feed us was that our business was about helping people. That the great thing about the business was the number of people we are helping. I used to wonder how we helped people because anyone who wasn't interested in the business was labeled as negative and were to be avoided. These negative people included many family and friends. Thus we only "helped" people who were in Amway. But is signing them up for Amway really helping them?

I also wondered whether we could honestly say we were even helping people in the Amway business as many of my crossline had been involved before I was and and they had no downline. They faithfully attended all the meetings and functions and did their defacto PV quota each month. I figured they had to be losing money because I wasn't making anything even at higher pin levels than my crossline. I guess even being a dedicated IBO for more than half a year, I maintained some sense of compassion and common sense about things. (I also thought many meetings were a waste of time, money and effort). But I suppressed my common sense because my group was growing and I was being edified as a mover and shaker. It's hard to describe but it's hard not to be excited when your group is growing and being edified.

Having walked away from the business, I can honestly say now that the IBOs and upline leaders aren't about helping people. They only want to show interest in you if it will somehow benefit their Amway business. While people spend time helping their communities or churches, or feeding homeless people for that matter, IBOs are busy attending meetings and functions, and finding prospects to brng to the next open meeting or funtion. While people give their time and money to help others, many IBOs are in financial bondage because their involvement with Amway and the systems such as N21, WWDB, LTD or BWW eats up an IBO's time and income, rendering them financially and schedule wise, unable to help some of these kinds of causes. Amway and the systems becomes your life and ministry.

So I challenge information seekers and IBOs to think about this. When your upline leaders or sponsor talks about helping people and helping a cause, what exactly are they speaking of? When you're at a function and your church or neighbors are cleaning up the roadside or painting a school, how are you helping? Some uplines will even tell their IBOs not to tithe to their churches. That they can donate $10,000 checks later. Well, that later rarely ever comes and the money that the churches and charities take in help others immediately, not when someone goes diamond.

So....... Do IBOs really help people?

Tuesday, February 3, 2015

What's Better Than Amway?

One of the humorous things that IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will offer some. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your due diligence or your own soul searching, here are my opinions on what may be better than Amway:

1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of starbucks coffee for example. Disciplined saving and investing. Cut back on unnecessary expenses. Maybe eat out less. The savings may not seem apparent right away but will add up after time passes.

2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside some extra reserves for your golden years. It may not seem like a good option but if you can find something that's somewhat enjoyable, it's not so bad. For example, working part time as a sporting good store.

3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative. The extra money can help your budget and allow you to save for your future.

4. Do nothing. Since most business building IBOs lose time and money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. Even watching TV is better than suffering losses.

5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.

There you have it folks. There are some ideaas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.

Monday, February 2, 2015

You Amway Upline Is Just A Salesman?

When I saw the Amway plan, it made perfect sense at the time, because the diamond who made the presentation made everything seem sensible. Make money and/or save money. On the surface, you would have to be nuts to not want to make or save some money. But it is the reality that is the problem. The reality is for business building IBOs is financial damage or financial disaster from the ongoing costs of the system expenses. I saw crosslines go bankrupt and more than one couple lost their homes to foreclosure by "doing whatever it takes" to get to the next function.

Our group (WWDB) edified people who bought extraordinary amounts of extra tapes/cds, extra function tickets and made superhuman efforts to get to functions. Looking back, I remember an IBO who was edified for coming all the way to a family reunion function in Portland Oregon when he was diagnosed with terminal cancer. The speaker said he could have been miserable spending time at home but here he was making a difference in people's lives. WTF? I wrote a post earlier this month about how IBOs think they are saving the world and helping people when in reality, the masses of IBOs are only "helping" their diamonds to attain material wealth by purchasing function tickets, voicemail, standing orders and other materials.

I would agree that some training and information can be helpful for new IBOs but I do not see any value in a neverending supply of cds and and endless number of meetings and functions. The very thing (support materials) that uplines claim is your key to success is the very thing that nearly guarantees business building IBOs to financial struggles. Our upline wanted IBOs to be out of debt, which is good, but they would also say in the same breath that it was okay to go into hock if it was to attend functions or to purchase additional support materials. WTH? Sadly, many IBOs do not see through this self serving advice.

Most people, including myself are very wary when we deal with car salesmen. We are wary because we know that the salesman is out to make money off of us and will try to sell us every option in the book. Thus we negotiate and reject the car options that we don't really need to or. Guess what? Your uplines are like car salesmen except that they sell you different options such as premier club, standing order, book of the month, function tickets, voicemail, open meeting tickets. Just like a car buying customer, taking all the options maximizes the car salesman's commission and the car dealer's profit. Buying all the support materials increases your upline's profits. Imagine the car saleman telling you that the extended warranty was vital to owning the car. You'd think twice about it, yet uplines will tell you that functions are vital to your Amway business and many IBOs buy it hook line and sinker. I hope this analogy will encourage IBOs to think of support materials as options on the car. You don't need any options to make the car work. Just as you don't really need support materials to buy and sell Amway products, and to get some downline to do the same.

We are wary of car salesmen. In my opinion, downline and prospects should be just as wary of uplines who promote tools as "vital" to your success in Amway. Keep in mind that a sponsor is obligated to help train any downline, regardless of whether they are on the system or not.