Friday, March 6, 2015

Amway IBOs - Don't Quit Your Jobs!

So many IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.

I also see and hear many IBOs popping off about how someone in their upline is earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.

Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream nite" where they show off lavish displays of wealth. Well, it is my informed guess that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.

While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.


Anonymous said...

Amway is actually a fantasy about "virtual wealth". They make you think about being wealthy and excite you with those thoughts. You do get a real buzz at those meetings with all the props, collective crowd enthusiasm etc. But it's an expensive buzz and the irony is, the harder you "work" at Amway the more expensive it usually becomes.
Another sad irony is that involvement in the Amway fraud is much more likely to stop you from doing the things you need to do to make yourself financially successful. Things like improving on your work skills at your present job/trade or starting up a real viable honest business with a real business plan based on reality instead of theoretical fantasy. In other words, put down the Amway pipe and get to work.

Joecool said...

Great comments! What's so true is that when you work harder at Amway, it becomes more and more expensive because it normally involves buying more tools and attending functions, regardless of your results and regardless of whether it makes any difference in your business.

Anonymous said...

If the IBO were to quit his job he would have to steal to support his Amway habit.

Anonymous said...

I have a potential business partner that look that is willing to help me with many areas of my business (real business - not an IBO). He invited me to a weekend for a conference, and because of I wanted to create a relationship I agreed.

When I arrived and saw the first 5 minutes, I did realise of two things:
1) No way I am joining in
2) This a very well though marketing stuff and mind is weak. Do not make any decision or spend any money in that stuff.
3) When you are "out" of that environment you are able to think clearly again

Tonight I am meeting those people as they want to show me something called "The Plan" (or something like that). I am really looking forward it, they say that I can make 100k / year within 2 years "very easy".

Just three observations:
1) Promises don't pay expenses
2) If you promise me long revenues at long term, there you be some proportional profit at shot term and medium term.
3) If it really makes money, you should not need to pay a monthly fee as it any expense should be covered with commissions.

Thanks very much for the blog. Keep updating it, as updated information is very important.

I intend to gather as much information as possible tonight. Maybe you could use this information to publish it in the blog. Please let me know how to contact you.

nonscgety nondeu said...

Amway was once sued for operating an "illegal pyramid scheme"; the company settled; so why would someone settle if the operation is genuine?

Joecool said...

Great comments! Thank you!

Joecool said...

Well, in my opinion, Amway settled because they were probably wrong and by settling,, they could keep the details of the settlement a secret from the public.