Thursday, October 22, 2015

Get Out Of Debt?

One of the things that many 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. While getting out of debt is a good idea, the same upline may advise that person to go deeper in hock to participate in Amway and the functions and tools systems.

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?

As a 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 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. 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.

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.

4 comments:

Anonymous said...

Getting totally free from debt is wonderful. But most IBOS won't achieve that the way Amway is currently run.

Amway has two separate definitions of debt:

1) Debt that you owe to outsiders: BAD.

2) Debt that you owe to Amway: GOOD.

Of course such a division is absurd. When you owe money, you owe it, and it is a net debit from your resources. Once again, Amway tries to sugar-coat an unpleasant reality by calling it something other than what it is. That's why your up-line, in a really criminal and irresponsible way, will urge you to miss a mortgage payment in order to afford something truly stupid and useless like a big rally in a far-off city. Or they'll tell you skip payment on outstanding bills so that you can place a bigger order for Amway goods. Or they'll suggest that you liquidate a child's college fund, or sell family heirlooms, or dispose of a piece of real estate -- all just to be able to funnel more cash to your greedy up-line! All this sort of debt doesn't could as debt in Amway's eyes. It's "Building your business!" The whole thing would be funny if it weren't so tragic for so many trusting types who get sucked into the Amway scam.

AMWAY IS LEGALIZED THEFT.

Joecool said...

True story. When I was in Amway, I sat in a meeting where the diamond taught how long you could skip a mortgage payment before the bank would foreclose. The concept was you could skip a payment to attend a function. They also would teach that it was okay to go into debt, but only yo buy cds or function tickets.

I even heard a diamond teach people to just quit their jobs if they could not get time off for a function. They would say you can easily find a new job when you get back to the function. As if you can walk into a new job and get paid the kind of salary you had with a company that you had invested time in already.

You're right, some of these Amway leaders are legalized criminals.

Anonymous said...

Frankly, in my opinion Richard De Vos is horrified at the monstrosity that Amway has become. He and van Andel created something that has now morphed into a Frankenstein monster in the hands of lunatics like Britt, Yager, and Duncan. But it's too late for De Vos to do anything about it. There's just too much money at stake. So the Amway bigshots basically turn a blind eye to all of the evil nonsense that is being done in their name, and which is being roundly criticized all over the internet. They are really in an impossible position, morally speaking. They know the tool scam is very wrong, but they can't resist getting rich off it,

Joecool said...

Right. I think at one time, DeVos wanted to clean up the mess but the leaders protested and sales dropped off. It was a decisive moment for DeVos and unfortunately, he chose the money and ignored the problem. That decision has caused likely millions of people to lose billions of dollars.