Tuesday, March 10, 2015

An Amway Business Or An Amway Joke?

I hear Amway supporters often mention that you will have a real business if you treat it like one. It is my observation that most IBOs do not treat their businesses like a real one. It is also my opinion that the Amway business itself is flawed and many IBOs, in their zeal to sponsor downline, do crazy things at times, such as tricking people into meetings. These past behaviors of IBOs have led to Amway having a bad reputation and causing people to be skeptical whenever they are asked about some online business, "ecommerce" or whatever buzz words IBOs are using these days.

Also, many IBOs do not bother to qualify their prospects. They will sponsor anyone who is breathing. It could be due to uplines making the business seem easy. For example, I have heard that going platinum is so easy that someone's dog can go platinum. Another mistake IBOs make is they do not look at the likelihood of an IBO succeeding. They will sponsor anyone, anywhere, anytime. Like real stores, opening a new one creates competition and I don't know of any IBOs who take this into consideration before recruiting a new prospect. While you can potentially profit by leverage from those you sponsor, they can also become your competition for potential customers and new recruits, especially if your new downline is a friend of yours who may have common friends and acquaintances.

New recruits are also encouraged to partake in the teaching system, regardless of their expectations and business goals. This participation in the system is what often leads to IBO financial failure. They spend more on tools than what they generate in income. This heavily contributes to the poor retention rate among IBOs. Even IBOs who can progress and make some money will be simply channeling their profits to upline by their tool consumption. It is my informed estimate that an IBO must reach 4000 PV or to the platinum level before they start to break even. And If I might add, probably less than one half of one percent of IBOs reach the platinum level so you are already facing overwhelming odds just to reach the break even point in Amway.

Here's the real test for an IBO. Walk into a bank. Speak to a loan officer and show the loan officer the 6-4-2 or 9-4-2 plan, whichever plan your group uses. And see if the loan officer will grant you a loan based on that plan. It is more likely that you be laughed out of the bank.

Do you have a real business or a joke? You decide.

17 comments:

Anonymous said...

I believe IBO became the new title after Amway began direct shipping as opposed to going to your upline direct to pick up all your "goodies". It's a joke. It just sounds fancy and these smug folks can run around saying the own a business. They don't own jack shit, and basically give up rights in the event they get involved in a shady LOS /LOA. It's as bad a sham as it ever has been.

Joecool said...

I'd like to know if anyone actually tried to get a business loan based on the Amway 6-4-2 plan? I'd pay to see someone try that.

Anonymous said...

That's funny as hell. I'd almost like to go to an Amway meeting undercover and politely ask: "I can't wait to get going, do you know where I can find a bank that will loan me the money to get started in this great business?"
All kidding aside, another difference between Amway and a real business is that a real business owner is proud and happy to tell you the name of his business while the Amway "business owner" is faced with the task of trying to sell you something so bad he can't even tell you the name of it or what it is.

Joecool said...

Because of Amway's reputation, IBOs need to use some tricks to get people to see the plan. It becomes humorous if you know what's going on as you witness Amway IBO's in action.

Anonymous said...

The only way to get a loan for this "scheme" would be to go in armed heavily and wearing clown masks. Once you revealed your need for the cash you wouldn't even get a complimentary lollipop.

Joecool said...

LOL, that's pretty humorous. You're right though, nobody would get a loan from a bank showing the 6-4-2 Amway plan, yet people are fooled all the time by this get rich fast fairy tale.

Anonymous said...

I just met a friend who seems pretty nice and genuine brought me into this Amway thing. He talked about what e commerce is, saying that the company saves advertisement cost while we earn money as we act as the middleman. Also, we can buy their products at stock prices (saving around 25%) claiming that the purpose behind this is to earn our loyalty. I was pretty skeptical, but I still paid 166 dollars and joined it, because he said it can be refunded if I don't want to stay in this business. He is helping me to set up my online store tmr. Also, I was invited to this meeting 2 days later to meet a really successful guy (forgot his name). Hopefully Amway has changed and won't be what your blog has mentioned. If they require me to invest more I would logically withdraw from this "business". I am not aiming to earn big money just treating it as a part time job while studying and giving it a shot. If worst comes to the worst I'm just losing 166 bucks.

Joecool said...

More than likely your friend will begin to invite you to functions and loan you cds. They may pass them onto you for free but if you start to show interest or if you sponsor someone, then you will be expected to be a "serious" business owner who bus his own cds and gives them away to prospects. If you quit, seek and refund and get your money back. I hope you will report back here later and let us know what happened.

Anonymous said...

Be careful. You will be surprised at just how "convincing" they can be. They make it sound so easy and foolproof. But Amway has well over a 99% failure rate. By their own (small print) literature! Does that sound "foolproof" to you? They will steer you by asking "yes-no" questions that lead you into seeing things from a different angle, i.e. one based more on dreams and pie-in-the-sky outlooks on the business, with the drawing of circles that they make sound so logical, but are not based in actual reality, and they talk about "investing" in your business, but in reality all that investing does is empty your wallet. Their "self-help" DVD's and books are merely brainwashing tools and the "store" you build up of their products will collect dust in your garage as they are very overpriced from what you can buy in real stores, regardless of their claims that their products are of high quality, highly concentrated, etc. Bullshit.

I tell you this as a warning as I have heard of people who KNEW the lies they were telling when they went into a meeting but actually found themselves starting to buy into it because they are so damn good at manipulation of words and ideas. You'll come out there thinking "yeah, he's right... up *is* down!" If they weren't master liars and bullshitters, they wouldn't have so many others caught in the scam losing their shirts.

Be careful. They are damn good at twisting minds. And once you are drawn in they increase the brainwashing techniques until you are trapped. It's a series of steps, the first not seeming too dangerous... "heck, what have I got to lose? It's only $166". That has been said by sooooo many people who later wondered how they hell they ended up hundreds, if not thousands, in debt.

Good luck.

Joecool said...

The diamonds and other Amway leaders get you to agree on small things until you begin to trust them. Then they add in the parts about never quitting, failure is your own fault, etc. Then they show you the best case scenarios and other Amway propaganda to seal the deal. If you're not careful, it's easy to get sucked into their scheme.

Anonymous said...

To the fellow who joined recently. Tread lightly and when you have time do some solid research. I recommend the free download of Merchants of Deception (MOD). This is an inside look at the price someone (and his family) paid going full bore in "the business". This blog, my interviews of IBOs current and past along with reading MOD led me to not join. I was very close to joining as a friend of mine is convinced I would be extremely successful at "this business". However after attending meetings with him, reading suggested books and listening to tapes and CD's my BS meter kept going off because they pushed LTD (a tool system) more so then traditional selling of product. Also I have noticed my friend alienating people with a passive aggressive attitude regarding even positive critical review of the opportunity. I wish you success at anything you do, just be careful as "this business" seems more like a significant life style "change" then a part time make a little money on the side opportunity. Best of luck to you.

Anonymous said...

Yea I confronted him today and said that I don't want to get involved anymore. However, he was so desperate and said he's now on his way to my school to meet me in person. Unavoidably, we had another talk.
These are the questions I asked:
I told him I am curious in how they make profit as I looked up their amyway site, their products are overpriced not to mention customers have to pay for shipping. So I suspect you can only earn money by recruiting more people to be your downlines so that they too as well buy the starting kit and hopefully their families buy the products as well. As the downlines keep growing they would have a decent amount of passive income. My impression was a restaurant that sells franchise but not the food. It is indeed legal but not ethical as it emphasize on getting more people involved rather than selling the actual products and downlines are going to be losing money. It functions just like a pyramid scheme but since there are products involved it makes it appear to be legal, on the grey area to be accurate.
His response was, that is not true. Amway’s products are cost effective. He pulled out a word file comparing the prices and volume of their products vs the main ones in the market right now. Explains how their products are in fact concentrated or have more volume which makes it better than the products out there.
For the quality, you will have a certain amount of time (I forgot 90 days?) to refund the products if you are not satisfied. Also, stating that you can return it even it is used including personal items such as shampoo, mouth wash, toothpaste. Etc.
For shipping cost, we work as a team, if we order as a group for more than $750 we are eligible for free shipping. Then you can control your price by offering customers discounts or markdowns. On the site an item is $100, stock price is $60 and I can sell it $80 to customers earning the $20. (In my mind, this is only going to work if it’s face to face not online shopping though)
We help each other out and make sure everyone in the group earns profit and succeed, because if I don’t succeed they won’t be able to earn anything as the upline. It is a win-win situation.
Also, apart from the Amway products, we are partnered with other big companies such as best buy, Disney and more. He did pull up a list of partners through my Amway IBO account. He told me you are able to earn commission through promoting these partnered products as well. They are cheaper than the retail price and you earn commission as well. I was like hmmm… seems possible MLM mixed with affiliate marketing.

Anonymous said...

I also mentioned I looked Amway up online and found that Amway has a bad reputation and several lawsuits were filed against Amway using the Pyramid Scheme. His response was this is not a pyramid scheme, you can go above your upline. People always have positive and negative comments on stuff. Years has passed and the company has evolved by using and adapt different marketing strategies. He told me IBM didn’t first start as selling software and computers, same as Amway. I’m currently studying accounting, he said he can find so many bad reasons not to get into accounting and how negative that field is. It all depends how you think. Do not let other’s distract you, try it yourself. You cannot learn how to swim if you never been into the water.
I asked him what about the seminars and the tools the speakers make you to buy. He told me treat it as learning material, in order to succeed you have to learn and do it the right way. Similar to why you are attending this postsecondary education. You are not 100% sure you will get a job after you graduate. Also, he advised me to come to the seminars, however I am not required to it is your choice.
After that he gave me 2 booklets, one of them tells me how each level operates differently (plat, diamond). Second one was showing all these successful people in Amway, telling this was an IT guy earning 6 figures, that person is a millionaire at a young age. Then promised me I will get my investment back in 3 months. If you really do not think this business suits you, you can always refund 100% of your money in 90 days. So why not give it try.
And……….tmr I am going to seminar just to test the rumors, as I already paid for the starting kit. However, I am not going to spend any more than that. Pray for me brothers and sisters wished that I have a strong heart!!!!!

Anonymous said...

He was calm and seemed to be on my side, saying that school comes first, don't let it distract you. You do this as a side job like me. I am not sure if he is really being honest or just luring me into a bigger trap

Joecool said...

You can play it by ear if you want. Even if you don't buy the tools, you mau find it difficult to sell products. Try doing an honest and neutral price comparison. You'll find that Amway will cost you more. The tools is what will make you lose money though.

Joecool said...

Another challange for Amway folks. Amway has a bad reputation and finding people to buy stuff or to sponsor is very difficult. Most people never sponsor anyone ad even if you do, chance are they won't do much and end up quitting anyway. If you have business skills, you can likely find many easier ways to make money instead of Amway.

Anonymous said...

This was not the first part and probably didn't register
Yea I confronted him today and said that I don't want to get involved anymore. However, he was so desperate and said he's now on his way to my school to meet me in person. Unavoidably, we had another talk.
These are the questions I asked:
I told him I am curious in how they make profit as I looked up their amyway site, their products are overpriced not to mention customers have to pay for shipping. So I suspect you can only earn money by recruiting more people to be your downlines so that they too as well buy the starting kit and hopefully their families buy the products as well. As the downlines keep growing they would have a decent amount of passive income. My impression was a restaurant that sells franchise but not the food. It is indeed legal but not ethical as it emphasize on getting more people involved rather than selling the actual products and downlines are going to be losing money. It functions just like a pyramid scheme but since there are products involved it makes it appear to be legal, on the grey area to be accurate.
His response was, that is not true. Amway’s products are cost effective. He pulled out a word file comparing the prices and volume of their products vs the main ones in the market right now. Explains how their products are in fact concentrated or have more volume which makes it better than the products out there.
For the quality, you will have a certain amount of time (I forgot 90 days?) to refund the products if you are not satisfied. Also, stating that you can return it even it is used including personal items such as shampoo, mouth wash, toothpaste. Etc.
For shipping cost, we work as a team, if we order as a group for more than $750 we are eligible for free shipping. Then you can control your price by offering customers discounts or markdowns. On the site an item is $100, stock price is $60 and I can sell it $80 to customers earning the $20. (In my mind, this is only going to work if it’s face to face not online shopping though)
We help each other out and make sure everyone in the group earns profit and succeed, because if I don’t succeed they won’t be able to earn anything as the upline. It is a win-win situation.
Also, apart from the Amway products, we are partnered with other big companies such as best buy, Disney and more. He did pull up a list of partners through my Amway IBO account. He told me you are able to earn commission through promoting these partnered products as well. They are cheaper than the retail price and you earn commission as well. I was like hmmm… seems possible MLM mixed with affiliate marketing.
This actually explains their affiliate marking http://amwayglobalcultintervention.blogspot.ca/2008/09/amway-partner-stores-revealed-more_23.html