The point of this blog post is to illustrate that the Amway opportunity is simply not sustainable and that the market is basically saturated in North America. I know Amway recently released some propaganda on the average IBO income being up, but once again, a clear explanation of how they derived the numbers was not given. For all we know, they have hve simply excluded more IBOs by declaring them as "inactive". Anytime I heard the word Amway, it frequently draws funny looks from people. I know that Amway proponents will claim that Amway is not saturated, but in real life, you aren't going to have people lining up to join. It is why there are countless stories of people being lied to or tricked into attending recruitment meetings.
So in reviewing the common 6-4-2 plan, there are 79 IBOs and one becomes a platinum. And that is with the generous assumption that all of these IBOs are moving 100 PV consistently each month. Factor in some folks who do little or nothing and some who order infrequently and anyone can reasonably conclude that a platinum business will commonly have well over 100 downline IBOs. Now with that being said, what if everyone in the entire world suddenly had an epiphany and decided to join Amway?
Well, the structure of most platinum businesses won't change. You will still likely have more than 100 downline in each platinum group. The platinum will make some money and most downline, especially those on the system of cds and functions will lose money. Thus less than 1% of the IBO population can realistically be a platinum at any given time. Whether is now or whether the entire planet signs up for Amway, it will always be less than 1% of the IBO population at the platinum level. That is how the system is set up. The only exceptions to this rule would be for IBOs to sell enough PV to make up for a lack of downline. But there is ample testimony and evidence to indicate that many IBOs simply self consume their PV because they cannot or do not like selling. Some AMo groups teach IBOs to almost exclusively consume their own volume. My former LOS, WWDB did not emphasize selling, but focused on recruiting. And why not? The reality is you cannot go emerald or diamond without many downlines.
So even if every person on earth joined Amway, there would still be less than 1% of IBOs at the platinum level and very likely that less than 1% of IBOs would be at a net profit. Some proponents argue that many IBOs sign up and do nothing or sign up and don't order products. So what? They are still IBOs and even if you didn't count them in averages, what I have posted above explains why the success rate (platinum) still cannot amount to much more than 1% even at the best case scenario.
Still thinking about registering for Amway? Do your research and you may want to think about this article.
12 comments:
Because Amway's main concern has inexorably shifted away from product sales and toward the recruitment of new IBOs, the books, tapes, CDs, and absurd rallies are now indispensable.
It's not just that up-line grows rich selling these tools and events to down-line. If that were the only thing going on, many more IBOs would have seen through the racket years ago and gotten out. But the frightening fact is that there actually is a kind of demand for these motivational products from a certain sort of Ambot.
Amway attracts a definite type of person: white, small-town dweller, youngish, lower middle to middle class, of moderate education, and deeply naive and trusting. This prospect is also vaguely dissatisfied and perhaps a bit lonely. He's also "ready to believe," as missionaries say about those whom they try to convert. Amway fills a need in this person's life. It gives him a status and self-respect that he craves. It promises him wealth, of course, but deep down that isn't the real reason he's stays in the Business. He wants something to cling to, like a drowning man wants a lifesaver.
To someone like this, a dopey CD with some braggart diamond orating about "the future" and "potential" and "fulfilling your dream" is soothing and reassuring. He listens to it just like a lovesick teenage girl listens to her favorite torch song. Sure, up-line now compels down-line to purchase all these tools regularly, and this causes resentment and friction. But let's face the fact that many IBOs are now psychologically addicted to these silly tools. They actually enjoy going to those half-assed rallies that Dexter Yager runs.
The facts no longer matter. He is now part of the Amway family, or the WWDB family, or whatever other organized con-game there might be. His pleasurable connection and commitment to this new family makes the IBO impervious to facts, no matter how solid, how well presented, or how irrefutable.
The model is you build a group of a hundred., a thousand or more people who auto consume and they themselves recruit also. The aim is your group members recruit faster than others quit. So you have people coming in all the time and hence the consumption continues. These people will never make money but that is irrelevant as their role is only short lived. Now it takes exceptional motivational skills to keep this going. Few have this. Thats why there are only a handful of big pins. These guys probably contacted and showed the plan to several thousand people and found 3 or 4 strong motivators like themselves who went out and did the sale thing. The ordinary guy just cant do that. Jim Dornan one said he had 30 000 people joining his group monthly. Probably 25000 leaving monthly also. The ordinary guy has no chance. To make any serious money you need several thousand in your group. You need to be able to get in front of them regularly and speak for an hour as well as a host of other activities. The ordinary guy is incapable of speaking in front of 3 people let alone 3000. So the failure rate has to be high.
Thank you. I believe there is a lot of truth to what you posted. I can see how someone can join and have Amway/WWDB fill a void in their lives, especially with the love bombing and stuff. So despite the financial losses, the IBO remains in the business because they are getting something out of the social aspect.
I also agree with this assessment of how the business works. That's why it's a lie that "anyone" can succeed in this business.
I would also add to my above comments that the discussion on product prices is irrelevant. The prices render the products not saleable. 5% of sales to non ibo confirms this. But of no relevance. The products are only a justification for downlines to pass money to uplines. Legally when money passes there must be a corresponding consideration. It can be anything. In this model its a high proces product. In this day and age it could even be a sms eg a message saying ´ you should show the plan' and for that a 100 $ has to be paid upline. In fact thats what the wwdb and others do in a djfferent way. The give a useless cd to downlines and the downlines pays whatever they pay for this. Money passing upline for no value in return. Same as for the products. I would like to know what % of products are actually used. Im sure there are billions of products never used.
True, the lies are hard to take, but I believe that the brainwashed IBO isn't lying but promoting what they believe is the truth, which is a lie from their uplines. They spread the iies and newly hyped up IBOs don't know any better. If the new IBO doesn't "snap out of it" soon, the they will likely abuse relationships with friends and family.
Right, many of Amway products are priced ridiculously. For example, Amway's flagship vitamins cost about $80 a month (double x) but you can get something similar for a fraction of that cost. IBOs like to mention they have a cheaper multi vitamin for sale but they shut up when you ask which one their upline promotes.
About the sale of Amway garbage to non-IBOs, here's something to ponder. Have you ever seen an empty Amway container, of whatever product, in someone's trash or recycling can? Have you ever seen one in the street, or in an empty lot?
You've never seen one because nobody buys this useless shit. The stuff just sits in an IBO's garage or basement. The best description of Amway products is this: they over overpriced, overhyped, and over there -- in an IBO's storage facility.
LOL, that is true,.although I can't say I've looked through people's garbage. LOL
Spot on!! If you read several business literatures, prospecting a client is the most difficult part of the business process.
To add on it, even 1 prospect is hard to catch. How do you prospect 100 or 1000 people in a short span of time?
Keep up the good work.
Thank you! It is hard to recruit even 1 downline so if you need 100 ore more to be successful, it's nearly impossible, Mo former sponsor was able to sponsor 100 people but they kept quitting so all he did was churn through them but got nowhere.
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