Tuesday, August 18, 2015

The System Is "Proven"?

Many uplines and IBOs will talk about their system. More often than not, the various systems such as WWDB or Network 21 will tout themselves as the best, fastest growing, proven, and most profitable. I know that was promoted when I was an IBO and I believe it is still promoted this way. There are many comments on the internet from IBOs and recently former IBOs that indicate that this is true. But let's take a look at these claims.

How does one determine the best? You really can't. The best is an opinion unless there are established criteria on what constitutes the best. Of course, every upline will think their group is the best, but what can factually be derived from that claim? If you are an IBO or prospect of Amway, try asking that question. Based on what do you make the claim of being the "best" group or system?

Fastest growing can be proven or disproved. But for the most part, we know that Amway isn't growing by leaps and bounds in North America. During the Quixtar tenure, it appeared that Amway sales in NA either stagnated or even shrank. Amway supporters cite overall Amway sales going up, but it's reasonable to conclude that the increase in sales is primarily in foreign countries. For some odd reason, Amway no longer reports North American sales, but simply lumps everyhing into a global sales figure.

As for any system to be making claims of proven, all these systems have basically done is proven that they are dismal failures. Based on Amway's own figures, we can deduce that less than half of one percent of IBOs ever reach the platinum level. The platinum level is approximately where you might see a small profit if that platinum is CORE. There is some documentation indicating that platinums might lose money at that level. While the study is dated, the expenses associated with being a platinum have gone up significantly since that study (Wisconsin Attorney General) so it can be very possible that platinums continue to see a net loss these days. It's also very visible that there are fewer diamonds in north America today than a dozen years ago. Diamonds have quit and some were terminated. It appears that most new diamonds come from foreign countries where Amway has not ye suffered reputation issues.

Makng claims of fastest growing is also one that can be proven. However, try asking your sponsor or upline for evidence of this claim. Also, is the growth occuring in your area? Are you from the US or Canada? Citing growth in Korea for example, is unlikely to mean anything for the vast majority of IBOs. And even if there is some growth, how does that translate as leverage or an advantage for you? Aks these questions and see what answer you receive, if any.

The system is proven for sure. But it's proven to be a failure. The numbers supplied by Amway clearly back up this claim.

10 comments:

Anonymous said...

I don't know anybody who uses Amway product. I mean, who in their right mind would want to buy anything that you have to place an order and wait for, and then pay a 33 percent markup fee on on top of the distributor's markup? A good business opportunity would be storage lockers for all the boxes of unsellable Amway crap that are clogging up garages and basements of Ambot abodes. I know a few people who tried to do Amway but none that want to talk about it.

Joecool said...

Absolutely and Amway would be smart to buy some facilities and give PV/BV to IBOs who rent space. LOL

Qiunan Tang said...

When I sell Amway product , I delivery it in person free of charge, if not on the spot (a lot of time it is) then it usually done in 1-2 days. No charge for shipping. That's how it should be like.

Joecool said...

Don't your customers just order online and have it delivered to their homes?

Qiunan Tang said...

Only if they want to pay the shipping or don't care about it. Most of time we delivery by person so we keep contact with customer and provide services.

Joecool said...

So you pay the shipping for your customers?

Qiunan Tang said...

No, I will delivery or use our system to delivery the product to customer free of charge most of the time. And I don't pay the shipping as we order more than $750 per order (and we split the order among our system, it is very common and encouraged) so it is shipping free.

Also, start from this year, IBO can offer, at their own decision, free shipping to customer order $90 or more (but the shipping cost come out from IBO's profit).

I guess it cost a little to delivery the item to customer (like I might have to drive a little or ask someone do so), but with a large enough system, it won't be a large problem. After all, IBOs usually have more or less personal contact with customer so it usually done very easy.

Joecool said...

If you give your customers free shipping, you'll take a loss. Amway products are the most expensive when you don't factor in shipping. The shipping costs just make it worse.

Qiunan Tang said...

It is not a loss but a way to get business. Amway price are reasonable at all mean since the sales proved it. It even sells well and with good reviews on Amazon .

Joecool said...

If you sell it for less than your cost, then you take a loss. It's against Amway rules to sell products on Amazon.