One of the things that attracts many IBOs to the Amway opportunity is the idea that they can work part time, 2-5 years and gain a "shortcut" to ongoing and voluminous wealth. Many of the prospects don't have the kind of income or resources that they would like, so the possibility of a shortcut to these trappings sounds like a good idea. They sign up and get started, and then the realities of the business sets in.
100 PV, is the defacto minimum quota for business building IBOs. It costs about $300 to purchase 100 PV worth of products. How many young and single people or couples for that matter, use and/or need $300 worth of household products each month? How many of these same people can actually afford to expend that much cash on household products? The pitch is to change where you shop but how many people were buying these kinds of good prior to Amway? My guess is none. I know I purchased many items, including vitamins, and I didn't need or use before Amway. But my desire to be teachable and to be an example to my downline kept me buying the goods, and trying to pawn off some stuff on friends and relatives to lessen my PV burden.
I also found that getting people to see the plan was no easy task. While my business was growing, it took more and more effort to recruit downline and I can see where many IBOs would reach the saturation point where there simply aren't anymore viable recruits and they might need to resort to cold contacting in order to generate potential prospects. This is probably why there are stories of IBOs stalking people in bookstores, malls and supermarkets. Even when people saw the plan, there wasn't a high percentage of new people signing up. It is why building and maintaining a business is a nearly impossible task, and it is why I believe there aren't people who retire, walk away from their Amway businesses and enjoy six figure residual incomes for life.
The more likely scenario is an IBO signing up, buy and using the products and tools and slowly but surely build up debt. There are countless stories of ex IBOs who got fired up, started building the business and fouond that in a relatively short period of time, found themselves in thousands or tens of thousands of dollars in debt. All the while upline was encouraging them to buy more tools and attend more function, even when they were not profitable. In my opinion, this is confirmation that uplines care more about their tools profits that they do about downline success. I sat in functions where upline would teach about reducing debt, but in the same breath, say it was okay to go deeper in debt if it was to purchase more tools. Self serving advice.
It is why I believe this opportunity, along with the tools system, will nearly guarantee IBO failure. It is sad, but it is also a reality.
Tuesday, June 30, 2015
Monday, June 29, 2015
Amway Helps Me Get Out Of Debt?
One of the things that many Amway uplines will talk about with their downline is debt. Many IBOs and prospects join Amway, hoping that Amway will help them eliminate debt, by providing some extra income. What many IBOs find out though, is that they end up more deeply in debt, not because of Amway necessarily, but often because of the pressure to purchase tools and function tickets and other Amway related business expenses. The really sad thing is that much of the additional debt that Amway IBOs end up incurring becomes profit for their upline, via tool purchases.
Eliminating debt on the surface, is a good thing. However, I believe that many uplines only want IBOs to eliminate debt so they can free up discretionary monies that can be channeled into tool purchases, which uplines profit from. So while the advice seems sound, it still ends up as a self serving piece of advice. If you are an IBO or a prospect, is your upline advising you to eliminate debt and then turning around and telling you to attend "all" functions? It doesn't make any sense at all to go into debt to build an Amway business that is supposed to be low cost and low risk. If you aren't selling enough products to pay for functions and other tools, then it's very likely that your business simply cannot afford to take on those expenses.
As a former WWDB IBO, I heard the mantra about getting rid of debt. It sounded good to me, but I was floored when the same upline told us it was okay to go deeper in hock if it was to further our business, or in other words, to buy more standing orders or to attend functions. I could not understand why it was okay to create more debt, but only if it was to "invest" in your business. If debt is bad, then functions and other tools should be cut as well, until the IBO can reasonably afford to participate in the system. Amway IBOs, in my opinion. should be using profits from the business in order to purchase tools. If there is no net profit, then that IBO needs to decide whether or not the tools are worthy of an investment. Even if an IBO has some profits, the IBOs should determine whether to bank the profit or to channel them towards tool purchases, especially if the tool purchase will turn a net profit into a net deficit.
Too many IBOs trust their upline and make initial and ongoing purchases of tools, and then continue to do so without seeing tangible results. I believe this is why IBOs are taught to trust and have faith. Or that success is right around the corner. It keeps an IBO going, even in the absence of results. Hopefully a post like this can bring awareness to IBOs and potential IBOs. Good luck to those who disregard this information.
Eliminating debt on the surface, is a good thing. However, I believe that many uplines only want IBOs to eliminate debt so they can free up discretionary monies that can be channeled into tool purchases, which uplines profit from. So while the advice seems sound, it still ends up as a self serving piece of advice. If you are an IBO or a prospect, is your upline advising you to eliminate debt and then turning around and telling you to attend "all" functions? It doesn't make any sense at all to go into debt to build an Amway business that is supposed to be low cost and low risk. If you aren't selling enough products to pay for functions and other tools, then it's very likely that your business simply cannot afford to take on those expenses.
As a former WWDB IBO, I heard the mantra about getting rid of debt. It sounded good to me, but I was floored when the same upline told us it was okay to go deeper in hock if it was to further our business, or in other words, to buy more standing orders or to attend functions. I could not understand why it was okay to create more debt, but only if it was to "invest" in your business. If debt is bad, then functions and other tools should be cut as well, until the IBO can reasonably afford to participate in the system. Amway IBOs, in my opinion. should be using profits from the business in order to purchase tools. If there is no net profit, then that IBO needs to decide whether or not the tools are worthy of an investment. Even if an IBO has some profits, the IBOs should determine whether to bank the profit or to channel them towards tool purchases, especially if the tool purchase will turn a net profit into a net deficit.
Too many IBOs trust their upline and make initial and ongoing purchases of tools, and then continue to do so without seeing tangible results. I believe this is why IBOs are taught to trust and have faith. Or that success is right around the corner. It keeps an IBO going, even in the absence of results. Hopefully a post like this can bring awareness to IBOs and potential IBOs. Good luck to those who disregard this information.
Friday, June 26, 2015
Amway IBOs Keep On Paying?
One thing that appears to be common amongst IBOs is how IBOs are in denial. They truly believe that their uplines are working in their best interest and that upline wants their success. I don't believe that to be true. If uplines were truly making a fortune from Amway, why would an downline IBO have to pay for practically every bit of help they get from upline leaders? Why aren't any functions pro bono? What difference would it make to someone making millions heaped upon millions? Would it hurt for a diamond making millions to run a free function or meeting for his downline, especially when that diamond is the biggest beneficiary of the meeting.
To show the plan, you would need to pay to attend an open meeting, and pay for your guests, even if they do not register as a result of the presentation. You pay for voicemail to communikate with your upline and downlines. You pay for standing orders and you may end up paying twice if you were in attendance at the function when the standing order was recorded. You pay for books and other materials as well.
What's more, many IBOs turn their heads when ugly facts rear their heads. For example, some IBOs deny that a prominent triple diamond was involved in bankruptcy proceedings. They continue to edify and pay for financial advice from someone who could not even manage his own finances. They believe that Amway saves marriages even when the leaders who speak this may be getting divorced. It's like upline simply revises history and downlines buy it without question. Many IBOs do not even see it as a problem that some upline boldy lied and said there were no profits from tools in the past. I find this odd because tool profits are still shrouded in secrecy and downline simply believe that they will eventually get a cut, even without a written compensation plan and agreement.
I believe too many IBOs are simply in denial. They give upline their trust and upline abuses it. IBOs are told they are successful for attending a function even when they might be losing money month after month. They may be told that the Amway business is not about money but about making friends. They may be told that they are nicer people because of their participation in Amway. What too many IBOs do not see is that they are in denial about their business. Most IBOs are losing money, a little at a time, perhaps $100 or $150 a month. For the hardcore, maybe more. But they are taught to ignore these simple facts and deny that there is a problem.
It is my hope that exposure of some of these tactics will be beneficial to information seekers and perhaps new IBOs who have not yet been fully indoctrinated. I encourage people to ask tough questions, demand answers and use due diligence when checking out this oppportunity. The fact is that very few people every make a profit and people should know this before getting involved. In the end, IBOs pay up and they keep on paying upline for their sage advice, even when their bank accounts keep getting lighter. Where will it end?
To show the plan, you would need to pay to attend an open meeting, and pay for your guests, even if they do not register as a result of the presentation. You pay for voicemail to communikate with your upline and downlines. You pay for standing orders and you may end up paying twice if you were in attendance at the function when the standing order was recorded. You pay for books and other materials as well.
What's more, many IBOs turn their heads when ugly facts rear their heads. For example, some IBOs deny that a prominent triple diamond was involved in bankruptcy proceedings. They continue to edify and pay for financial advice from someone who could not even manage his own finances. They believe that Amway saves marriages even when the leaders who speak this may be getting divorced. It's like upline simply revises history and downlines buy it without question. Many IBOs do not even see it as a problem that some upline boldy lied and said there were no profits from tools in the past. I find this odd because tool profits are still shrouded in secrecy and downline simply believe that they will eventually get a cut, even without a written compensation plan and agreement.
I believe too many IBOs are simply in denial. They give upline their trust and upline abuses it. IBOs are told they are successful for attending a function even when they might be losing money month after month. They may be told that the Amway business is not about money but about making friends. They may be told that they are nicer people because of their participation in Amway. What too many IBOs do not see is that they are in denial about their business. Most IBOs are losing money, a little at a time, perhaps $100 or $150 a month. For the hardcore, maybe more. But they are taught to ignore these simple facts and deny that there is a problem.
It is my hope that exposure of some of these tactics will be beneficial to information seekers and perhaps new IBOs who have not yet been fully indoctrinated. I encourage people to ask tough questions, demand answers and use due diligence when checking out this oppportunity. The fact is that very few people every make a profit and people should know this before getting involved. In the end, IBOs pay up and they keep on paying upline for their sage advice, even when their bank accounts keep getting lighter. Where will it end?
Thursday, June 25, 2015
Amway IBOs, The Real Losers?
One of the things I recall as an IBO was thinking how sorry I felt for people who were not IBOs because we were all going to be rich and everyone else was a loser. Our upline used to tell us that we were winners - and if you weren't a winner, then obviously, you are a loser. Many times, the term "broke" was attached to the term loser. That was my mindset back then, but having been out of the system more than ten years, I can look back and laugh, realizing that the losers were the ones buying stuff they don't need, stalking people at malls and bookstores, and wasting their time and money on tapes (cds), books and functions.
What goes unnoticed in many cases, is how much time and money really goes down the drain for IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the neverending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper. But after having been gone for a while, you get on with life and you get back into a normal pattern of life and social interactions with friends and family.
So after I did finally cut ties with the business and the people associated with it, I got back into a new routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions and I am scheduled to be retired at the age of 56 with a decent retirement income and will likely have my home paid off by then. So while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions.
So I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface.
What goes unnoticed in many cases, is how much time and money really goes down the drain for IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the neverending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper. But after having been gone for a while, you get on with life and you get back into a normal pattern of life and social interactions with friends and family.
So after I did finally cut ties with the business and the people associated with it, I got back into a new routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions and I am scheduled to be retired at the age of 56 with a decent retirement income and will likely have my home paid off by then. So while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions.
So I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface.
Tuesday, June 23, 2015
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. Sure, circumstance may break apart some friendships. or moves made out of necessity. But these folks will likely remain as your friends for a long time to come.
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, your 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. Sadly, many of these folks will be your friends and family.
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 your social 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. They are your friends when upline is making money off your tool purchases. 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.
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, your 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. Sadly, many of these folks will be your friends and family.
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 your social 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. They are your friends when upline is making money off your tool purchases. 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.
Monday, June 22, 2015
Amway IBO Personal Responsibility?
One of the disturbing things I have noticed about Amway IBOs and IBO leaders is how they wlll tell downline to trust them. To trust them as they have already blazed a trail. No need to re-invent the wheel. Just ride the coattails of your upline to success. The system is proven. Many IBOs take this to heart and put forth tremendous effort. Then when they fail, upline will shun them and tell them that the failure is their own. That they are personally responsible for failure. The sad thing is that many IBOs believe this and allow their upline a "pass" when it comes to responsibility.
Now I am not talking about IBOs who sign up and do nothing, or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I do not recall ever seeing an IBO do nothing and then complain that Amway was a scam or anything like that. What does concern me and should concern Amway prospects is that the IBOs are paying for the advice that doesn't work. A dedicated IBO who is on standing order, book of the month and attending functions are paying for these tools in order to be successful, or successful as their upline claims they will be.
What's interesting, however, is that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted, or in some cases, guaranteed. My former sponsor was still active, last I heard and has been in Amway for over 20 years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business. Factor in that time spent by husband and wife and these folks are breaking even or making a fraction of minumum wage. Is this the dream that will allow you to buy mansions with a cash payment?
What is also disturbing is how people will tout the system as responsible for any success, but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every success, there are hundreds if not thousands or tens of thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very very few in relation to the number who try. Going diamond is probably less common in the US than winning the lottery.
Succeed and the systems and upline take credit, but fail or quit and it is your own responsibility. Are these the kinds of leaders or mentors you want advice from? It's a matter of "heads I win and tails you lose" if you buy into this system.
Now I am not talking about IBOs who sign up and do nothing, or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I do not recall ever seeing an IBO do nothing and then complain that Amway was a scam or anything like that. What does concern me and should concern Amway prospects is that the IBOs are paying for the advice that doesn't work. A dedicated IBO who is on standing order, book of the month and attending functions are paying for these tools in order to be successful, or successful as their upline claims they will be.
What's interesting, however, is that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted, or in some cases, guaranteed. My former sponsor was still active, last I heard and has been in Amway for over 20 years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business. Factor in that time spent by husband and wife and these folks are breaking even or making a fraction of minumum wage. Is this the dream that will allow you to buy mansions with a cash payment?
What is also disturbing is how people will tout the system as responsible for any success, but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every success, there are hundreds if not thousands or tens of thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very very few in relation to the number who try. Going diamond is probably less common in the US than winning the lottery.
Succeed and the systems and upline take credit, but fail or quit and it is your own responsibility. Are these the kinds of leaders or mentors you want advice from? It's a matter of "heads I win and tails you lose" if you buy into this system.
Friday, June 19, 2015
The Amway Game?
One thing my sponsor often told the group was that many of us were "playing" Amway. What he meant was that many people can listen to a tape or CD every day, read a success book 15-30 minutes each day, attend all the functions, use and/or sell 100 PV or more each month, but never make progress in the business. Basically what he was saying was unless you are showing the plan and sponsoring downline, you are just playing Amway. And while I agree, I honestly believe that most IBOs simply "play" Amway.
They can do most of the CORE steps such as listening to standing orders or cds each day. They can read every day and attend all the functions. They can even use and (possibly) sell Amway products. But because of previous IBO behavior, many people cannot get anyone to see the plan, let alone sponsor others. Seems like everyone (at least in the US and Canada) knows of someone who was lied to, or tricked into attending an Amway meeting. This alone has given Amway a shady reputation and just the mention of the name Amway can send people running. I was tricked into a meeting once, and as an IBO, I saw people get up, cuss and leave the meeting because they were lied to or tricked into attending a meeting based on the curiosity approach.
I do not believe that IBOs in general are dishonest or deceitful. I believe that most of them are probably motivated, wanting more in life, and hard working. But they are taught to duplicate or copy their uplines. I believe it is some of the tenured leaders who teach bad business practices that are duplicated and spreads a bad reputation like an infectious disease. I believe that because of this, Amway's North American sales tanked and now they don't even report the North American sales seperately from Global sales.
When you stop and take a deep breath, you see the signs of weakness and the chinks in the armor of the once untouchable and "divine" diamonds. We see diamonds suing other diamonds and Amway. We see diamonds losing their homes to foreclosure (so much for paying cash). A triple diamond was in chapter 7 bankruptcy and hoards of diamonds leaving their LOS along with their "awesome" mentors and lifelong friends to form their own LOS. Why is this happening? I believe it is because of greed. Why else would you leave a "mentor" and "lifelong friend" to start your own LOS? It's all about the money.
Sadly, while all of this goes on, most IBOs come and go, lose money and "play Amway" along the way. It truly saddens me that this has gone on for so long, and it looks like (in my opinion), that my former LOS, WWDB, seems to have been the worst of the bunch with no apparent improvement in the last 15 years or so.
You can "play Amway" hard, but you most likely won't make enough net profit to buy a value meal at McDonald's. Of course you are welcome to prove me wrong.
They can do most of the CORE steps such as listening to standing orders or cds each day. They can read every day and attend all the functions. They can even use and (possibly) sell Amway products. But because of previous IBO behavior, many people cannot get anyone to see the plan, let alone sponsor others. Seems like everyone (at least in the US and Canada) knows of someone who was lied to, or tricked into attending an Amway meeting. This alone has given Amway a shady reputation and just the mention of the name Amway can send people running. I was tricked into a meeting once, and as an IBO, I saw people get up, cuss and leave the meeting because they were lied to or tricked into attending a meeting based on the curiosity approach.
I do not believe that IBOs in general are dishonest or deceitful. I believe that most of them are probably motivated, wanting more in life, and hard working. But they are taught to duplicate or copy their uplines. I believe it is some of the tenured leaders who teach bad business practices that are duplicated and spreads a bad reputation like an infectious disease. I believe that because of this, Amway's North American sales tanked and now they don't even report the North American sales seperately from Global sales.
When you stop and take a deep breath, you see the signs of weakness and the chinks in the armor of the once untouchable and "divine" diamonds. We see diamonds suing other diamonds and Amway. We see diamonds losing their homes to foreclosure (so much for paying cash). A triple diamond was in chapter 7 bankruptcy and hoards of diamonds leaving their LOS along with their "awesome" mentors and lifelong friends to form their own LOS. Why is this happening? I believe it is because of greed. Why else would you leave a "mentor" and "lifelong friend" to start your own LOS? It's all about the money.
Sadly, while all of this goes on, most IBOs come and go, lose money and "play Amway" along the way. It truly saddens me that this has gone on for so long, and it looks like (in my opinion), that my former LOS, WWDB, seems to have been the worst of the bunch with no apparent improvement in the last 15 years or so.
You can "play Amway" hard, but you most likely won't make enough net profit to buy a value meal at McDonald's. Of course you are welcome to prove me wrong.
Thursday, June 18, 2015
Avoiding Negative Or Avoiding The Truth?
One of the silly things many IBOs are taught is to avoid anything negative, and that includes family and friends if necessary. I believe this is taught today by uplines and it was certainly a point of emphasis even in my days as an IBO. The upline diamond would say that the world of full of negatives and that we as people take in too much of these negatives. Therefore, the IBOs were told to avoid television, newspapers and other forms of communication with the outside world. The group was also told to avoid people who speak negatively about Amway. For this reason, many people have considered Amway groups such as WWDB or N21 as cultish or cult-like. (information deprevation or information control). The Amway IBOs worship the Diamond leaders, they do not question them and they are treated almost "God like".
I can agree that you surely don't want to only take in negatives as it can wear you down, but not seeing the news or reading about current events in the paper or watching the news on TV simply makes you apathetic and uninformed. For example, wouldn't you want and need to know if there was a storm heading your way? I live in Hawaii and we occasionally have hurricanes. Avoiding news could be very detrimental to your family and home. If you lived in the midwest of the US, wouldn't you want and need to know if a tornado was headed your way? Do you avoid the doctor because his assessment of your health might not be "positive"? For these reasons, I believe that many Amwayers walk around wearing a mask with a false smile, trying to overly positive.
Another important thing that many IBOs cannot distinguish is the difference between negative and the truth. If your wife asks you if her new dress makes her look fat, the truth might be that the new dress indeed makes her appear fat. That answer may be uncomfortable for you to deliver, but the truth is the truth. The truth at times can be positive or negative but it is still the truth.
Most IBOs earn less than $100 a month. That is the truth. Most IBOs lose money if they participate in functions and standing orders and such. That is the truth. Most IBOs will never even sponsor a downline. That is the truth. Most IBOs, filled with motivation and dreams, will never see those dreams fulfilled. That is the truth. Many upline diamonds, who advise IBOs to purchase tools and attend functions, and fill the IBO's heads full of dreams, make significant incomes from the sale of tools and functions. That is also the truth. In a 1 year timespan, approximately 50% of IBOs will quit. That is the truth. Many things about Amway, unfortunately, are true, even if it may seem negative.
Is it negative to tell the truth? Or can IBOs not handle the truth?
I can agree that you surely don't want to only take in negatives as it can wear you down, but not seeing the news or reading about current events in the paper or watching the news on TV simply makes you apathetic and uninformed. For example, wouldn't you want and need to know if there was a storm heading your way? I live in Hawaii and we occasionally have hurricanes. Avoiding news could be very detrimental to your family and home. If you lived in the midwest of the US, wouldn't you want and need to know if a tornado was headed your way? Do you avoid the doctor because his assessment of your health might not be "positive"? For these reasons, I believe that many Amwayers walk around wearing a mask with a false smile, trying to overly positive.
Another important thing that many IBOs cannot distinguish is the difference between negative and the truth. If your wife asks you if her new dress makes her look fat, the truth might be that the new dress indeed makes her appear fat. That answer may be uncomfortable for you to deliver, but the truth is the truth. The truth at times can be positive or negative but it is still the truth.
Most IBOs earn less than $100 a month. That is the truth. Most IBOs lose money if they participate in functions and standing orders and such. That is the truth. Most IBOs will never even sponsor a downline. That is the truth. Most IBOs, filled with motivation and dreams, will never see those dreams fulfilled. That is the truth. Many upline diamonds, who advise IBOs to purchase tools and attend functions, and fill the IBO's heads full of dreams, make significant incomes from the sale of tools and functions. That is also the truth. In a 1 year timespan, approximately 50% of IBOs will quit. That is the truth. Many things about Amway, unfortunately, are true, even if it may seem negative.
Is it negative to tell the truth? Or can IBOs not handle the truth?
Wednesday, June 17, 2015
Amway's Real Losers?
One of the things I recall as an IBO was thinking how sorry I felt for people who were not IBOs because we were all going to be rich and everyone else was a loser. Our upline used to tell us that we were winners - and if you weren't a winner, then obviously, you are a loser. Many times, the term "broke" was attached to the term loser. That was my mindset back then, but having been out of the system more than ten years, I can look back and laugh, realizing that the losers were the ones buying stuff they don't need, stalking people at malls and bookstores, and wasting their time and money on tapes (cds), books and functions.
What goes unnoticed in many cases, is how much time and money really goes down the drain for IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the neverending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper.
But after I did finally cut ties with the business and the people associated with it, I got back into a routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions and I am scheduled to be retired before the age of 60 with a decent retirement income and will likely have my home paid off by then. So while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions.
So I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface.
What goes unnoticed in many cases, is how much time and money really goes down the drain for IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the neverending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper.
But after I did finally cut ties with the business and the people associated with it, I got back into a routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions and I am scheduled to be retired before the age of 60 with a decent retirement income and will likely have my home paid off by then. So while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions.
So I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface.
Monday, June 15, 2015
Does Amway Cause Debt?
Getting out of debt sounds like good advice. On the surface it is because people should not be racking up consumer debt or committing large sums of their income for cars they cannot afford. But what does it mean for an IBO? I know my former upline taught our group to get out of debt. However, I believe my former uplines had self serving intentions when they taught this. Let me translate what I believe they meant:
"You should not have any debt because it would affect your ability to buy more PV and tools. If you have debt, it affects my cashflow"
Ironically, for many, maybe most IBOs, although taught to get "get out of debt", the bottom line result is more debt. There is more debt because the cost of products and tools begin to mount. How many families actually spend $300 a month (approximate cost of 100 PV) on household products? And then to add onto that expense, IBOs who are trying to be "successful" need tools which cost anywhere from $150 a month up to more than $500 a month depending on whether the IBO is married, single and the level of commitment. Thus IBOs are now spending at least several hundreds of dollars that they never spent before.
Most IBOs, especially new IBOs, generally earn less than $50 a month. In fact, $50 a month income in this business would make you quite exceptional. Most IBOs earn less than $20 a month. With that kind of income and with the expenses I listed above (tools = voicemail, books, standing orders, and functions), nearly all "serious" IBOs operate in the red and never turn a profit. The only way an IBO can turn a profit is to sell Amway products like crazy (which I have never witnessed) or to sponsor enough downline to absorb the losses for them. The only true success stories are the ones who sell the tools.
The reason why I believe that my former uplines (who are still in WWDB and apparently teach the same things now as they did back when I was an IBO) are teaching self serving advice because although they said to "get out of debt", they made an exception to this and said it was perfectly okay to go in debt to attend functions or to buy more standing orders. IBOs were also told to do "whatever it takes" to get to the next function or to buy more tools. It is why I witnessed some crosslines go bankrupt, more than one couple lost their homes following upline advice. And these couples were told they shouldn't worry because they can pay cash for their homes when they go diamond. Another apparent lie told by WWDB leaders, especially those who had their own homes foreclosed.
Let's be perfectly real here. If you join Amway and participate in the system consisting of voicemail, books, standing orders and functions, you are far more likely to get into debt or increase your debt rather than making money and getting out of debt. The math bears it out if you are willing to look at it objectively.
"You should not have any debt because it would affect your ability to buy more PV and tools. If you have debt, it affects my cashflow"
Ironically, for many, maybe most IBOs, although taught to get "get out of debt", the bottom line result is more debt. There is more debt because the cost of products and tools begin to mount. How many families actually spend $300 a month (approximate cost of 100 PV) on household products? And then to add onto that expense, IBOs who are trying to be "successful" need tools which cost anywhere from $150 a month up to more than $500 a month depending on whether the IBO is married, single and the level of commitment. Thus IBOs are now spending at least several hundreds of dollars that they never spent before.
Most IBOs, especially new IBOs, generally earn less than $50 a month. In fact, $50 a month income in this business would make you quite exceptional. Most IBOs earn less than $20 a month. With that kind of income and with the expenses I listed above (tools = voicemail, books, standing orders, and functions), nearly all "serious" IBOs operate in the red and never turn a profit. The only way an IBO can turn a profit is to sell Amway products like crazy (which I have never witnessed) or to sponsor enough downline to absorb the losses for them. The only true success stories are the ones who sell the tools.
The reason why I believe that my former uplines (who are still in WWDB and apparently teach the same things now as they did back when I was an IBO) are teaching self serving advice because although they said to "get out of debt", they made an exception to this and said it was perfectly okay to go in debt to attend functions or to buy more standing orders. IBOs were also told to do "whatever it takes" to get to the next function or to buy more tools. It is why I witnessed some crosslines go bankrupt, more than one couple lost their homes following upline advice. And these couples were told they shouldn't worry because they can pay cash for their homes when they go diamond. Another apparent lie told by WWDB leaders, especially those who had their own homes foreclosed.
Let's be perfectly real here. If you join Amway and participate in the system consisting of voicemail, books, standing orders and functions, you are far more likely to get into debt or increase your debt rather than making money and getting out of debt. The math bears it out if you are willing to look at it objectively.
Friday, June 12, 2015
Fighting For Your Amway Dreams?
One of the things that many IBOs are badly misguided on is the concept of having dreams and fighting for those dreams. A dream is basically a long term goal. For example, someone might dream about playing in the National Football League. To accomplish that dream, one might play high school and/or college level football. For most, the dream will end. No matter how much someone wants to play in the NFL, only so many people are proficient enough to be able to make the team. Even fewer are elite players that become stars. So while you might fight for your dreams, there is also an alternate reality. It doesn't necessarily mean that you are a failure. There are other dreams that you can focus on that are more directly in your control.
In the Amway business, via the "systems" such as WWDB or Network 21, the leaders will often sell hopes and dreams to the downline. That the downline can be retired at the age of 29, walking the beaches of the world while the income just rolls in forever and ever. These kinds of "dreams" would be basically the same as hoping to win the powerball lottery. You may have seen a few who did it but the chance of you duplicating it is very unlikely. Slim to none is your chance in reality. Millions of people have come and gone through the Amway business and it seems as if the same old diamonds are there. We don't even know if they are currently qualified because Amway doesn't release that information. In Amway, once a diamond, always a diamond. Thus if a guy qualified at diamond for 6 months in 1985, that person still wears the diamond pin even if he's not qualified and no longer receives diamond bonuses. That person however, might still be making a nice living off tool income.
Another thing some uplines will often do is tell anecdotal stories about crabs keeping each other in a bucket when one tries to escape, or about monkeys preventing each other from grabbing bananas at the top of the pole. While the stories may be interesting and even true, it doesn't necessarily apply to the Amway business. While it is true that an IBO may have friends and family who are skeptical about Amway, it is with good reason. Many people have gone through the Amway business with no success. Many people have lost money doing everything they were advised to do by upline. There is a track record of financial disasters associated with Amway and the attached "systems". It's not like there's a long list of people who have walked away from Amway with the cash rolling in and not a care in the world. Ever wonder why none of the crown ambassadors have exercised the option to "walk away"?
I think people should have dreams. I think people should pursue their dreams. I also think people need to know that certain dreams can come true. There also needs to be a degree of reality in their dreams. There will always be some inspirational person such as a "Rudy" who overcame great odds to accomplish a dream, but the untold reality is that there were probably many many young men who dreamed of playing for Notre Dame that year. Likely, no one else accomplished the unlikely dream like a Rudy. What I am saying is that earning a nice income and having the option of early retirement can be accomplished but it takes hard work and you aren't going to do it in 2-5 years and then walking away financially free. You might be choosing to use Amway to accomplish your financial dreams and that is your right. But the reality is that very few people have made all their financial dreams come true due to the Amway opportunity, as compared to the tens of millions who have tried.
Keep fighting for your dreams, but keep in mind that you might need a plan B and a dose of reality.
In the Amway business, via the "systems" such as WWDB or Network 21, the leaders will often sell hopes and dreams to the downline. That the downline can be retired at the age of 29, walking the beaches of the world while the income just rolls in forever and ever. These kinds of "dreams" would be basically the same as hoping to win the powerball lottery. You may have seen a few who did it but the chance of you duplicating it is very unlikely. Slim to none is your chance in reality. Millions of people have come and gone through the Amway business and it seems as if the same old diamonds are there. We don't even know if they are currently qualified because Amway doesn't release that information. In Amway, once a diamond, always a diamond. Thus if a guy qualified at diamond for 6 months in 1985, that person still wears the diamond pin even if he's not qualified and no longer receives diamond bonuses. That person however, might still be making a nice living off tool income.
Another thing some uplines will often do is tell anecdotal stories about crabs keeping each other in a bucket when one tries to escape, or about monkeys preventing each other from grabbing bananas at the top of the pole. While the stories may be interesting and even true, it doesn't necessarily apply to the Amway business. While it is true that an IBO may have friends and family who are skeptical about Amway, it is with good reason. Many people have gone through the Amway business with no success. Many people have lost money doing everything they were advised to do by upline. There is a track record of financial disasters associated with Amway and the attached "systems". It's not like there's a long list of people who have walked away from Amway with the cash rolling in and not a care in the world. Ever wonder why none of the crown ambassadors have exercised the option to "walk away"?
I think people should have dreams. I think people should pursue their dreams. I also think people need to know that certain dreams can come true. There also needs to be a degree of reality in their dreams. There will always be some inspirational person such as a "Rudy" who overcame great odds to accomplish a dream, but the untold reality is that there were probably many many young men who dreamed of playing for Notre Dame that year. Likely, no one else accomplished the unlikely dream like a Rudy. What I am saying is that earning a nice income and having the option of early retirement can be accomplished but it takes hard work and you aren't going to do it in 2-5 years and then walking away financially free. You might be choosing to use Amway to accomplish your financial dreams and that is your right. But the reality is that very few people have made all their financial dreams come true due to the Amway opportunity, as compared to the tens of millions who have tried.
Keep fighting for your dreams, but keep in mind that you might need a plan B and a dose of reality.
Wednesday, June 10, 2015
Amway Is Not Get Rich Quick?
One of the things upline used to say was that Amway is not "get rich quick". I suppose they say this because most people would more likely think "scam" if they promoted it that way. But when you stop and think about it, 2-5 years, build it right and you have willable, residual income for life while walking the beaches of the world? That's not get rich quick? Or is it more of a disclaimer so that the opportunity doesn't sound "too good to be true"? One thing is for sure, even if uplines tell you that it's not get rich quick, it's obvious that IBOs think they will eventually get rich, even if it's not quick.
What most IBOs don't figure out quickly enough, is that they are unlikely to even make a net profit, let alone getting rich in Amway. How many of these people exist? Where are all of these retired Amway IBOs who built a business in 2-5 years and then walked away from their business and will be collecting a significant residual income for many years to come afterwards? I don't know of a single person who has done this and none of the Amway defenders and zealots I have encountered over the years has been able to supply this information either. When you consider the attrition in Amway (50+% quit each year), it's easy to see why residual income would be extremely difficult to achieve. While some people may have collected residuals for a while, it's pretty clear that attrition would eventually take it's toll on any Amway business sooner or later.
I can acknowledge that Amway is a business opportunity and will definitely take some work to be able to achieve something. But thinking realistically, what business could you actually be able to walk away in 5 years and not work again? More than likely that business doesn't exist, whether it's Amway or not. Say you opened a conventional business. There wouldn't be many scenarios where you could walk away after a number of years. The business would still require work and maintenance. But for some reason, people are mislead to believe that you can do this in Amway where there is a high attrition rate and where your business can only expand by person to person.
Sadly, many of the people who are attracted to the Amway opportunity are often young people looking to get more out of life. They are often ambitious but may lack a means to gain wealth, thus the appeal of the opportunity is there. Unfortunately, these nice young people are more likely to end up channeling their hard earned dollars into standing orders and functions which will almost guarantee that they end up with a net loss. The bottom line is that not only is Amway not get rich quick. The more likely scenario is that your involvement with Amway will very likely be not getting rich at all. A net loss is the most likely result. I challenge anyone to try and prove me wrong on this point.
What most IBOs don't figure out quickly enough, is that they are unlikely to even make a net profit, let alone getting rich in Amway. How many of these people exist? Where are all of these retired Amway IBOs who built a business in 2-5 years and then walked away from their business and will be collecting a significant residual income for many years to come afterwards? I don't know of a single person who has done this and none of the Amway defenders and zealots I have encountered over the years has been able to supply this information either. When you consider the attrition in Amway (50+% quit each year), it's easy to see why residual income would be extremely difficult to achieve. While some people may have collected residuals for a while, it's pretty clear that attrition would eventually take it's toll on any Amway business sooner or later.
I can acknowledge that Amway is a business opportunity and will definitely take some work to be able to achieve something. But thinking realistically, what business could you actually be able to walk away in 5 years and not work again? More than likely that business doesn't exist, whether it's Amway or not. Say you opened a conventional business. There wouldn't be many scenarios where you could walk away after a number of years. The business would still require work and maintenance. But for some reason, people are mislead to believe that you can do this in Amway where there is a high attrition rate and where your business can only expand by person to person.
Sadly, many of the people who are attracted to the Amway opportunity are often young people looking to get more out of life. They are often ambitious but may lack a means to gain wealth, thus the appeal of the opportunity is there. Unfortunately, these nice young people are more likely to end up channeling their hard earned dollars into standing orders and functions which will almost guarantee that they end up with a net loss. The bottom line is that not only is Amway not get rich quick. The more likely scenario is that your involvement with Amway will very likely be not getting rich at all. A net loss is the most likely result. I challenge anyone to try and prove me wrong on this point.
Tuesday, June 9, 2015
Trading Time For Money?
One of the ways that upline diamonds would put down jobs was to toss in the phrase that a job was simply trading hours for dollars. As if it were demeaning to have a job where you got paid for your time. I believe it's all relative. Being that many IBos are young and maybe working in more entry level types of jobs, then yeah, your hours wage might not be that great. If you earn say $10 an hour, then you might be struggling financially and it may take time before your skills and knowledge increase to a point where your experience is worth more money. What if you had a job paying $1000 an hour and earned $160,000 a month? Is that a lousy deal trading hours for dollars? I think not!
Conversely, having a business can be good or bad also. If you have an Amway business earnning less than $100 a month and you spend $200 on functions, standing orders and other training and motivational materials, then you are losing money. You would be better off working for free. That is still a better alternative than working a business where you are losing money. I think most people agree that a platinum group typically has a 100 or more IBOs. Thus a platinum is in the top 1% of all IBOs. I have heard that the platinum level is where you start to break even or make a little profit, depending on your level of tool consumption. If platinums are barely making a profit, then the other 99+% of IBOs are likely losing money. How much is that worth per hour?
I think uplines cleverly trick IBOs into thinking that a job is bad. Trading hours for dollars, afterall, sounds like some kind of indentured servant of sorts. But in the ned, what matters is your bottom line. If you are an IBO with little or no downline, and/or not much in terms of sales to non IBOs/customers, then you are losing money each and every month if you are attending functions and buying standing orders. Your 10-12 hours a week of Amway work is costing you money! But if you spend 10-12 hours a week, even at minimum wage, then you might be making about 300 to 350 a month groww income. After taxes, you make about 250 to 300. At least trading hours for dollars gets you a guaranteed net gain at the end of the month.
Uplines trick you into a "business mentality" where you think that working for a net loss is just a part of business. IBOs should realize that a business promoted as low risk and no overhead should be one where you can profir right away. Instead, IBos are taught to delay gratification, or to reinvest any profit back into their business in the form of tools and functions, which results in a net loss. If that's the case I would choose trading hours for dollars.
Remember, trading hours for dollars is not a bad deal if you are making enough dollars per hour. And even those who make less, are better off that those who "run a business" but end up with a net loss. It's all relative and hopefully, this message will help new or prospective IBOs who are being enticed to join the Amway business opportunity. Good luck to those with jobs and those with businesses. You can be successful either way.
Conversely, having a business can be good or bad also. If you have an Amway business earnning less than $100 a month and you spend $200 on functions, standing orders and other training and motivational materials, then you are losing money. You would be better off working for free. That is still a better alternative than working a business where you are losing money. I think most people agree that a platinum group typically has a 100 or more IBOs. Thus a platinum is in the top 1% of all IBOs. I have heard that the platinum level is where you start to break even or make a little profit, depending on your level of tool consumption. If platinums are barely making a profit, then the other 99+% of IBOs are likely losing money. How much is that worth per hour?
I think uplines cleverly trick IBOs into thinking that a job is bad. Trading hours for dollars, afterall, sounds like some kind of indentured servant of sorts. But in the ned, what matters is your bottom line. If you are an IBO with little or no downline, and/or not much in terms of sales to non IBOs/customers, then you are losing money each and every month if you are attending functions and buying standing orders. Your 10-12 hours a week of Amway work is costing you money! But if you spend 10-12 hours a week, even at minimum wage, then you might be making about 300 to 350 a month groww income. After taxes, you make about 250 to 300. At least trading hours for dollars gets you a guaranteed net gain at the end of the month.
Uplines trick you into a "business mentality" where you think that working for a net loss is just a part of business. IBOs should realize that a business promoted as low risk and no overhead should be one where you can profir right away. Instead, IBos are taught to delay gratification, or to reinvest any profit back into their business in the form of tools and functions, which results in a net loss. If that's the case I would choose trading hours for dollars.
Remember, trading hours for dollars is not a bad deal if you are making enough dollars per hour. And even those who make less, are better off that those who "run a business" but end up with a net loss. It's all relative and hopefully, this message will help new or prospective IBOs who are being enticed to join the Amway business opportunity. Good luck to those with jobs and those with businesses. You can be successful either way.
Monday, June 8, 2015
Are You A Real Business Owner?
Many folks involved with Amway call themselves "Independent Business Owners", or IBOs for short. The idea of "owning a business" sounds pretty cool, and is a selling point in recruiting new people. But in a business that touts itself and being so simply, why don't more people actually make a profit? Even some avid Amway supporters understand that most dedicated IBOs suffer a loss, primarily due to system expenses, but they dismiss the failure by saying these IBOs did not work hard enough, quit too soon, or did not take their business seriously enough.
A business exists to make a profit. Sadly, many uplines do not teach IBOs to be profitable. Instead, these uplines teach dedication to the business and to the teaching system rather than teaching IBOs to be profitable business owners. Ironically, the teaching system is disguised as a success system that is practically guaranteed to lead you to wealth. Ironically, the system in it's simplest form, simply transfers money from downline to upline. The uplines profit from the system, thus the uplines can make a nice profit whether anyone downline succeeds or not. Although uplines will say they want you to succeed, I don't think they give a rat's ass about downline success. It's more profitable for certain upline if people keep joining and quitting, as long as the standing orders get sold and there are butts in the seats at functions. If you stop and think about this for a moment, you can see that it makes perfect sense from a business standpoint.
So as a business owners, are you making business decisions with regards to expenditures? And are you assessing the worth of these expenditures? For example, if your monthly income from Amway is $25, is there enough value in attending a major function which might cost several hundreds of dollars (if out of town)? Say a major function costs $500 with airfare and hotel included. Is it worth 20 months worth of your business income to attend? If you say the function is worth the expense, then you should ask yourself what direct benefit your business received by your attendance. If your voicemail expenses exceed your monthly Amway income, how long do you stay committed to such an expenditure? Does your standing order expenses exceed your monthly Amway income? Are your expenses exceeding your income month after month? If so, as a business owner, you need to assess these expense and perhaps cut or reduce these expenses.
Are you consistenly driving more traffic to your website to generate sales? If you are not gaining more customers month after month, how do you expect to generate income? Do your uplines teach you how to drive traffic to your websites? These questions and examples are only meant to be though provoking for new and established IBOs. I have seen too many IBOs rack up tremendous debt by following the system without looking at their expenses with a critical eye.
Are you a business owner?
A business exists to make a profit. Sadly, many uplines do not teach IBOs to be profitable. Instead, these uplines teach dedication to the business and to the teaching system rather than teaching IBOs to be profitable business owners. Ironically, the teaching system is disguised as a success system that is practically guaranteed to lead you to wealth. Ironically, the system in it's simplest form, simply transfers money from downline to upline. The uplines profit from the system, thus the uplines can make a nice profit whether anyone downline succeeds or not. Although uplines will say they want you to succeed, I don't think they give a rat's ass about downline success. It's more profitable for certain upline if people keep joining and quitting, as long as the standing orders get sold and there are butts in the seats at functions. If you stop and think about this for a moment, you can see that it makes perfect sense from a business standpoint.
So as a business owners, are you making business decisions with regards to expenditures? And are you assessing the worth of these expenditures? For example, if your monthly income from Amway is $25, is there enough value in attending a major function which might cost several hundreds of dollars (if out of town)? Say a major function costs $500 with airfare and hotel included. Is it worth 20 months worth of your business income to attend? If you say the function is worth the expense, then you should ask yourself what direct benefit your business received by your attendance. If your voicemail expenses exceed your monthly Amway income, how long do you stay committed to such an expenditure? Does your standing order expenses exceed your monthly Amway income? Are your expenses exceeding your income month after month? If so, as a business owner, you need to assess these expense and perhaps cut or reduce these expenses.
Are you consistenly driving more traffic to your website to generate sales? If you are not gaining more customers month after month, how do you expect to generate income? Do your uplines teach you how to drive traffic to your websites? These questions and examples are only meant to be though provoking for new and established IBOs. I have seen too many IBOs rack up tremendous debt by following the system without looking at their expenses with a critical eye.
Are you a business owner?
Friday, June 5, 2015
The Amway Psychology?
The Psychology Behind The Presentation
I’m not sure whether this plan was carefully crafted out or whether it just evolved, but the way some uplines show the plan is cleverly designed to suck people into their systems. If you aren’t aware or careful, it’s easy to get caught up in the excitement of the presentation. The presentation is full of deception and I will try to point out these items in my analysis.
The speaker may talk about how he once thought he was “doing okay” in life. That he was making a living and able to meet his financial obligations. But he thought there might be more. One day he saw the plan and it changed his life. He did not realize he had gotten into a rut of going to work and going home every day and looking forward to his 2 weeks off each year. (This is relatable for many) That time and money are so important in life. Control of time and money is the key to success. Many people have lots of money but work all day and nite. Or people have time but are broke and can’t do much. The speaker might mention dreams or goals such as having an extra $500 a month or more. What would you do for an extra $500 a month. What about an extra $50,000 a year? Wouldn’t it be nice to have the wife stay home with the kids instead of leaving the family to go to work? Like the “Leave it to Beaver” days? (This gets the women excited)
The speaker will likely mention something about the economy and how prices always go up. The speaker may mention the 4 “I’s” that suck money out of your paycheck. The four I’s are Interest, Income Tax, Insurance and Inflation. The speaker may talk about how the government will take their cut and so on until you get your “net”. The speaker may mention how so many Americans are dead or broke by age 65, and that social security will collapse. (This instills fear in many people).
The speaker might also go on to mention how so many marriages are falling apart in the US because of financial stress. That couples work so hard that they have no family time and it hurts marriages. That people work so many hours these days that they are married to their desks. The “manager” of the office is the first one there and the last one to go home. That despite all of this work and effort, people are falling into debt. Credit cards maxed out, loans, trying to keep up with the Joneses. (Many people can relate to this)
But now, because he was looking for opportunity/open minded one day, he saw an opportunity. This opportunity changed his life and can do the same for you! The speaker now wakes up at the crack of noon. His wife stays home with him and the kids. They take nice vacations and they do what they want when they want. (Of course, who doesn’t? But is this true?) The opportunity takes advantage of the internet and allows you to leverage your time and money so that you can create a residual walk away income. (But nobody walks away do they?)
This is approximately the point in the presentation where they mention “Amway” At this point, the speaker will defend Amway, stating that if you can make money, does it matter.? If you can save money, does it matter? The speaker may go into the product line and mention partner stores and will likely show a 6-4-2 plan or a variation of it. In every case, they will show a best case scenario, not what is likely. Many prospects will leave thinking “all I need is six”. They don’t understand how unlikely it is to sponsor six platinums and there is no mention of the retention rates, the income most IBOs can expect, and firm questions will be deflected to the prospect’s inviter. The speaker may also discourage you from speaking to friends and family as they may have a bad experience but the diamond is successful and knows more about Amway than your family and friends.
Joe’s commentary: So the speaker becomes very relatable from the start. His situation in life will be like many in the audience. He will talk about doing okay,. But wanting more or looking for more. He talks about debts and many in the audience will also relate. They get people to think about dream cars or vacations. He talks about walk away income, but doesn’t mention that very very few ever make significant money and apparently, not many actually walk away either. They say you will make money and save money by doing the business. It’s hard to argue against that,.except most people will not make money or save money. In fact most people, if they participate fully or partially in the training system, they will lose money. For the dedicated IBOs, many of them LOSE LOTS OF MONEY. The plan is crafted out to sound sensible and relatable, but many IBOs will give it a try and shortly after, will realize that the system doesn’t work, that the reputation of Amway IBOs is soiled and sponsoring people or even getting people to see the plan is a barrier that most people simply cannot overcome. At least if you know what’s going on, you may be able to avoid the trap.
I’m not sure whether this plan was carefully crafted out or whether it just evolved, but the way some uplines show the plan is cleverly designed to suck people into their systems. If you aren’t aware or careful, it’s easy to get caught up in the excitement of the presentation. The presentation is full of deception and I will try to point out these items in my analysis.
The speaker may talk about how he once thought he was “doing okay” in life. That he was making a living and able to meet his financial obligations. But he thought there might be more. One day he saw the plan and it changed his life. He did not realize he had gotten into a rut of going to work and going home every day and looking forward to his 2 weeks off each year. (This is relatable for many) That time and money are so important in life. Control of time and money is the key to success. Many people have lots of money but work all day and nite. Or people have time but are broke and can’t do much. The speaker might mention dreams or goals such as having an extra $500 a month or more. What would you do for an extra $500 a month. What about an extra $50,000 a year? Wouldn’t it be nice to have the wife stay home with the kids instead of leaving the family to go to work? Like the “Leave it to Beaver” days? (This gets the women excited)
The speaker will likely mention something about the economy and how prices always go up. The speaker may mention the 4 “I’s” that suck money out of your paycheck. The four I’s are Interest, Income Tax, Insurance and Inflation. The speaker may talk about how the government will take their cut and so on until you get your “net”. The speaker may mention how so many Americans are dead or broke by age 65, and that social security will collapse. (This instills fear in many people).
The speaker might also go on to mention how so many marriages are falling apart in the US because of financial stress. That couples work so hard that they have no family time and it hurts marriages. That people work so many hours these days that they are married to their desks. The “manager” of the office is the first one there and the last one to go home. That despite all of this work and effort, people are falling into debt. Credit cards maxed out, loans, trying to keep up with the Joneses. (Many people can relate to this)
But now, because he was looking for opportunity/open minded one day, he saw an opportunity. This opportunity changed his life and can do the same for you! The speaker now wakes up at the crack of noon. His wife stays home with him and the kids. They take nice vacations and they do what they want when they want. (Of course, who doesn’t? But is this true?) The opportunity takes advantage of the internet and allows you to leverage your time and money so that you can create a residual walk away income. (But nobody walks away do they?)
This is approximately the point in the presentation where they mention “Amway” At this point, the speaker will defend Amway, stating that if you can make money, does it matter.? If you can save money, does it matter? The speaker may go into the product line and mention partner stores and will likely show a 6-4-2 plan or a variation of it. In every case, they will show a best case scenario, not what is likely. Many prospects will leave thinking “all I need is six”. They don’t understand how unlikely it is to sponsor six platinums and there is no mention of the retention rates, the income most IBOs can expect, and firm questions will be deflected to the prospect’s inviter. The speaker may also discourage you from speaking to friends and family as they may have a bad experience but the diamond is successful and knows more about Amway than your family and friends.
Joe’s commentary: So the speaker becomes very relatable from the start. His situation in life will be like many in the audience. He will talk about doing okay,. But wanting more or looking for more. He talks about debts and many in the audience will also relate. They get people to think about dream cars or vacations. He talks about walk away income, but doesn’t mention that very very few ever make significant money and apparently, not many actually walk away either. They say you will make money and save money by doing the business. It’s hard to argue against that,.except most people will not make money or save money. In fact most people, if they participate fully or partially in the training system, they will lose money. For the dedicated IBOs, many of them LOSE LOTS OF MONEY. The plan is crafted out to sound sensible and relatable, but many IBOs will give it a try and shortly after, will realize that the system doesn’t work, that the reputation of Amway IBOs is soiled and sponsoring people or even getting people to see the plan is a barrier that most people simply cannot overcome. At least if you know what’s going on, you may be able to avoid the trap.
Thursday, June 4, 2015
Amway's Compensation Plan?
One of the major reasons why I think Amway is not such a good business opportunity is because of the unfair multi tiered compensation plan. I have heard that Amway pays out about 32-33% to their IBOs, but I find it unfair in that you get rewarded for sponsoring people who move volume more than you do for actually selling products. I believe this is why so many IBOs are desperately trying to sponsor people and in some cases, deception and trickery is used in recruiting, which contributes to Amway's bad reputation. They are desperate to sponsor so IBOs pull out all tricks to get someone to see the plan.
This multi tiered compensation plan also rewards a few people at the expense of the masses. If an IBO works really hard and sold 100 PV worth of goods, that IBO would get $9 or $10 in a bonus from Amway (and possibly some retail profit) and layers of upline would split up about $90 in bonus from Amway. I fail to see how that is fair, especially when IBOs seemingly say "do the work and get paid". In this case, you do the work and your uplines get paid more than you for your efforts.
I think Amway would be more efficient by giving all IBO's 20-25% back as a bonus, with the remaining 8-13% in bonus (33 - 20 or 25) going to certain levels of achievers. I believe that this would truly allow someone to change their buying habits and gain some value. It would also be good for retention of IBOs because a 100 PV would get you a monthly bonus of about $60. If you sold 100 PV to customers, you would get the retail profit plus the bonus. I believe there would be less of an emphasis on sponsoring and more of an emphasis on selling. It would put less pressure on IBO's to recruit and sponsor, and I believe that Amway's reputation could be repaired in this manner. While you would have less emphasis on "going diamond", those who did achieve it could still get handsome bonuses. IBOs would be able to actually make some nice side money by a combination of selling and consuming, and sponsoring a couple of others. Making an extra $150 or more per month would be achievable. Under the current setup, you would need to do a lot more to make that kind of money.
I believe implementation of this type of compensation would also eliminate the endless need for cds and seminars. Sure, product expos and some teaching on salesmanship might help, but I believe that compensating the "majority" of IBOs would keep them interested in continuing in the business and would lessen the need for tools. I believe this is a win-win for the majority of those in the business. Retention would be better and products would more of a focus instead of recruiting. But things won't change because Amway and the big diamonds are content to replace the quitters with new prospects and they money keeps flowing for them.
I'm sure some Amway apologists will find fault in my line of reasoning, but I believe this is a long term sustainable solution for Amway. Comments are welcome.
This multi tiered compensation plan also rewards a few people at the expense of the masses. If an IBO works really hard and sold 100 PV worth of goods, that IBO would get $9 or $10 in a bonus from Amway (and possibly some retail profit) and layers of upline would split up about $90 in bonus from Amway. I fail to see how that is fair, especially when IBOs seemingly say "do the work and get paid". In this case, you do the work and your uplines get paid more than you for your efforts.
I think Amway would be more efficient by giving all IBO's 20-25% back as a bonus, with the remaining 8-13% in bonus (33 - 20 or 25) going to certain levels of achievers. I believe that this would truly allow someone to change their buying habits and gain some value. It would also be good for retention of IBOs because a 100 PV would get you a monthly bonus of about $60. If you sold 100 PV to customers, you would get the retail profit plus the bonus. I believe there would be less of an emphasis on sponsoring and more of an emphasis on selling. It would put less pressure on IBO's to recruit and sponsor, and I believe that Amway's reputation could be repaired in this manner. While you would have less emphasis on "going diamond", those who did achieve it could still get handsome bonuses. IBOs would be able to actually make some nice side money by a combination of selling and consuming, and sponsoring a couple of others. Making an extra $150 or more per month would be achievable. Under the current setup, you would need to do a lot more to make that kind of money.
I believe implementation of this type of compensation would also eliminate the endless need for cds and seminars. Sure, product expos and some teaching on salesmanship might help, but I believe that compensating the "majority" of IBOs would keep them interested in continuing in the business and would lessen the need for tools. I believe this is a win-win for the majority of those in the business. Retention would be better and products would more of a focus instead of recruiting. But things won't change because Amway and the big diamonds are content to replace the quitters with new prospects and they money keeps flowing for them.
I'm sure some Amway apologists will find fault in my line of reasoning, but I believe this is a long term sustainable solution for Amway. Comments are welcome.
Wednesday, June 3, 2015
The Amway Reality?
One of the things that keeps some IBOs going is the "harsh reality". What I mean by that is for some IBOs, once you have been in Amway for a while, it can be hard to quit. You were possibly recruited with dreams of lifelong residual income and walking on all of the exotic beaches of the world. Retiring young and spending that time with your wife and family. To quit means an IBO would have to face the reallity that these dreams will not come true, at least not with the Amway busines. The fact is that the Amway opportunity probably would not have delivered those dreams anyway. Even a diamond more than likely cannot afford those dreams. In fact I would estimate that most diamonds, if they flaunt some excessive lifestyle, are near broke or in heavy debt as a diamond income cannot sustain a jetset lifestyle, save for a founders crown ambassador or something similar. I believe the prominent WWDB triple diamond bankruptcy shed a lot of light into the finances of an upper level pin and it wasn't as impressive as I would have thought.
But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or nite owls when you need a good nite's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.
As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.
For active IBOs or prospects, these are the harsh realities that may be attached with the Amway oppportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are moe efficent ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.
But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or nite owls when you need a good nite's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.
As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.
For active IBOs or prospects, these are the harsh realities that may be attached with the Amway oppportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are moe efficent ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.
Tuesday, June 2, 2015
Since I Left Amway..........
When I was a young IBO, I saw the plan and thought it was realistic to go direct and to find six (6) downlines who could do the same thing. I didn't know the realistic chances of doing this, but the presentation made sense so I went with it. I basically built my group on excitement and it seemed like the system could work. Sadly, as I climbed the ranks, my bottom line did not change. I did not "net" $200 at the 1000 PV level, and I did not "net" $1000 a month at 4000 PV as my upline taught. I had the parameters they taught, but the reality was my leaders taught everyone to pump what little profits we earned into buying more tools.
My leaders also taught people to get out of debt, which was good advice on the surface, but at the same time, any disposable income left over was to be channeled into tools, and for those who did not escape debt, they were told it was okay to go deeper in debt, but only if it was to "invest" in their businesses by purchasing more tools. Thus it certainly appears that upline's advice was purely self serving and had nothing to do with an IBO's individual success. Channel your money into tools (your upline's profits) and never mind your own business.
I was in WWDB and they (upline) said that WWDB was breaking the most new diamonds and that WWDB diamonds were the most profitable. So here it is many many years later, where are all these new diamonds? Aside from from foreign diamonds, there are (I believe) less than 4 new diamonds from WWDB in the US from the time I left the business. I might add that some diamonds have left the business. Now I may be wrong, but even it was a few more than 4 new diamonds, that is a miserable success rate given the amount of cash spent by downline on tools and the claims made my upline about the tools.
We have also seen some WWDB diamonds end up in home foreclosures. Where is the integrity and financial acumen these leaders boasted about? Where is the success and long term financial security available to everyone that was touted? I believe more diamonds and emeralds fell out of qualification than new pins emerged. The business was promoted as one that would stand the test of time. Sadly, I believe WWDB and the Amway opportunity as promoted by WWDB has been a miserable failure.
There is little success to speak of, just he same old tired diamonds showing off a lifestyle that some of them apparently can no longer afford. Where is the success?
It is years later and we are still waiting.......
My leaders also taught people to get out of debt, which was good advice on the surface, but at the same time, any disposable income left over was to be channeled into tools, and for those who did not escape debt, they were told it was okay to go deeper in debt, but only if it was to "invest" in their businesses by purchasing more tools. Thus it certainly appears that upline's advice was purely self serving and had nothing to do with an IBO's individual success. Channel your money into tools (your upline's profits) and never mind your own business.
I was in WWDB and they (upline) said that WWDB was breaking the most new diamonds and that WWDB diamonds were the most profitable. So here it is many many years later, where are all these new diamonds? Aside from from foreign diamonds, there are (I believe) less than 4 new diamonds from WWDB in the US from the time I left the business. I might add that some diamonds have left the business. Now I may be wrong, but even it was a few more than 4 new diamonds, that is a miserable success rate given the amount of cash spent by downline on tools and the claims made my upline about the tools.
We have also seen some WWDB diamonds end up in home foreclosures. Where is the integrity and financial acumen these leaders boasted about? Where is the success and long term financial security available to everyone that was touted? I believe more diamonds and emeralds fell out of qualification than new pins emerged. The business was promoted as one that would stand the test of time. Sadly, I believe WWDB and the Amway opportunity as promoted by WWDB has been a miserable failure.
There is little success to speak of, just he same old tired diamonds showing off a lifestyle that some of them apparently can no longer afford. Where is the success?
It is years later and we are still waiting.......
Monday, June 1, 2015
No Crosssline In Amway?
No crosslining was something that I was taught as a WWDB IBO and apparently, it is still being taught as a general practice in most, if not all LOSs. But this concept of not crosslining is just a mind control technique used by upline to control information. Uplines don't want their downline to talk to each other and have them accidently realize that they are losing money, primarily because of tool expenditues. Or they don't want them to give each other revelations about how certain practices are bad ideas. For this very reason, IBOs should be able to speak to other "Independent Business Owners". If one truly owns their own business, then it is of no business to the upline who an independent business owner speaks to.
To back up my claim, why would any IBO attend a function, open meeting, or listen to a standing order that was not in their immediate upline or further upline? If that concept is a bad idea, why is it okay for IBOs to attend these meetings, especially when there is usually a cost associated? Why in the past, was it okay for me as an IBO to attend a function with Bill Britt speaking when I was in WWDB? What good would it do listen to a standing order of Paul Miller or some other high level IBO when they are crossline?
Then your upline gives you the line that you can listen but just take what you need from it and dump the rest. Couldn't you make the same argument for speaking to crossline IBOs at a function? Afterall, who would be better to relate to a new IBO than another fairly new IBO. Does Bill Britt even know how to use a computer? But here he will give speeches on how to run a web based business, but fellow IBOs are not supposed to speak to other crossline IBOs because they may or may not be affecetd by what is said. I believe it is for this very reason that many IBOs are discouraged from reading the newspaper and/or from watching the news on television. It would appear that uplines want their groups to become apathetic and only intake positive Amway information. It is for these very reasons that some groups receive the tag of "cult" I would be wary if my church pastor told me I could not visit and listen to another pastor.
It would be odd if I owned a business, attended a business owner convention but was told not to talk business with other business owners. But that is exactly what IBOs are being told when an upline tells them not to crossline with other IBOs. It would appear that upline has something to hide or doesn't want downline to discover any information about the truth of what's going on.
If your group discourages crosslining, you should ask why the rule is in place. As an INDEPENDENT business owner, you have the right to speak to anyone you want to at an Amway convention. Amway has no rules against this. It is the groups such as WWDB or Network 21 that make up these kinds of rules, probably because they are seeking to control your intake of information. The question to upline should be "why".
To back up my claim, why would any IBO attend a function, open meeting, or listen to a standing order that was not in their immediate upline or further upline? If that concept is a bad idea, why is it okay for IBOs to attend these meetings, especially when there is usually a cost associated? Why in the past, was it okay for me as an IBO to attend a function with Bill Britt speaking when I was in WWDB? What good would it do listen to a standing order of Paul Miller or some other high level IBO when they are crossline?
Then your upline gives you the line that you can listen but just take what you need from it and dump the rest. Couldn't you make the same argument for speaking to crossline IBOs at a function? Afterall, who would be better to relate to a new IBO than another fairly new IBO. Does Bill Britt even know how to use a computer? But here he will give speeches on how to run a web based business, but fellow IBOs are not supposed to speak to other crossline IBOs because they may or may not be affecetd by what is said. I believe it is for this very reason that many IBOs are discouraged from reading the newspaper and/or from watching the news on television. It would appear that uplines want their groups to become apathetic and only intake positive Amway information. It is for these very reasons that some groups receive the tag of "cult" I would be wary if my church pastor told me I could not visit and listen to another pastor.
It would be odd if I owned a business, attended a business owner convention but was told not to talk business with other business owners. But that is exactly what IBOs are being told when an upline tells them not to crossline with other IBOs. It would appear that upline has something to hide or doesn't want downline to discover any information about the truth of what's going on.
If your group discourages crosslining, you should ask why the rule is in place. As an INDEPENDENT business owner, you have the right to speak to anyone you want to at an Amway convention. Amway has no rules against this. It is the groups such as WWDB or Network 21 that make up these kinds of rules, probably because they are seeking to control your intake of information. The question to upline should be "why".
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