Saturday, November 14, 2015

How To Boil A Frog (Amway IBO)?

I heard a story about how someone boils a frog. They slowly warm up the water until the frog is relaxed and then when the frog is relaxed and muscles all soft, you turn up the heat and boil the frog. Amway leaders once told this story to describe how we as people, become complacent in life and how we can get into a rut. We relax and slowly, the bills add up and next thing you know, you're working harder than ever but living in debt.

That's because we live in a society where keeping up with the Joneses and consumerism with no delayed graitification is prevalent in US society. Your friend buys a new car and you not only want a new car, you probably want a better one. It's very common in the US, which is why so many Americans are living in debt, paycheck to paycheck. Thst doesn't make anyone a bad person, but it makes you a paycheck away from financial disaster.

I recently went to a retirement planning seminar and saw that many people don't or won't even have $100K saved up for retirement. It's a sad state of affairs and one that isn't likely to change anytime soon. I hope our readers here keep that in mind and plan accordingly.

But what does this have to do with Amway? Well, what Amway leaders are doing is boiling frogs. Or, if you will, boiling their downline. They get you to relax and trust them and then suddenly, you need to be a serious business owner, attending ALL seminars and buying ALL tools. They'll also lure you into commitment by showing you pictures of their alleged diamond lifestyle. They might show you a copy of someone's bonus check, but they won't show you a profit loss statement. They'll show you a picture of a Ferarri, but won't show you the ownership papers. They'll show you a mansion, but not the mortgage papers they signed.

The diamonds will likely make you think they are financially free, living on their terms with no financial worries in the world when the reality may reveal a very different picture. When you consider that a diamond who might earn $500,000 a year is worshipped, but when you factor in taxes, business expenses, medical insurance, etc, what's left is not a jetset lifestyle, but one closer to middle class, where you need to keep working. You could argue about how hard a diamond's "job" is, but having to be somewhere at particular time to earn money is not financial freedom.

So IBOs are actually the frogs being boiled, one function or one cd at a time. They just don't realize it.


Anonymous said...

@Joecool, good post. This reminds me of an article I read once about reasons why NOT to play the lottery and one of them is that it might make you less likely to do the things you actually need to do to become financially successful. Same thing with coming to believe in the fraudulent Amway scheme. If Amway can instill in you the fantasy that you will one day drive that Ferarri, live in that mansion and walk the beaches in your spare time with all that residual Amway income then you won't be likely to plan (there is no viable Amway plan) and save for the future. At least the lottery can be fun in small doses and there actually is a minuscule chance of getting rich. There probably hasn't been a start up Amway IBO in the last 40 years or so who has been able to retire rich on their Amway residual income alone but the company still plays it to the hilt. Amway is not a victimless enterprise by a long, long shot.

Joecool said...

Great comment. The sad partis that Amway takes work and costs money. At least with the lottery, you just buy a ticket and no other effort required to win. Sadly, Amway IBOs in the system spend a lot of time and money chasing a dream that will not materialize and they actually set themselves back financially thinking Amway is the answer.

Lucky for me, even when I got sucked into Amway, I never stopped or reduced my contribution into my 401K and I will be able to retire earlier than most people and in a comfortable fashion because I always had a backup plan for Amway. But Amway did set me back some cash.

I feel worse for those who go all in and lose tens of thousands of dollars or more, like my former sponsor.

Anonymous said...

It would be interesting to learn what the official Amway attitude is towards the current very low or next-to-zero interest rates in America.

These criminally low rates discourage savings by individuals. But if persons don't have a 401K or an IRA that will allow their savings to grow, they might be desperate enough to join the Amway fraud.

I'll bet that Amway is secretly happy about these low interest rates.

Joecool said...

Yes, the Amway leaders could claim that your money won't grow in the bank so you might as well "invest" in your Amway business which will return more. Of course that's a bold faced lie.

Anonymous said...

Joe -- I understand, from several postings here and elsewhere, that Amway up-line frequently tells IBOs NOT to have a backup plan for their financial security. According to up-line, this shows a "lack of faith" in the business. So go ahead and liquidate your IRA or 401K, and use that money to "grow your business."

This sort of atrocious lie, which will no doubt lead to the financial ruin of many IBOs and their families, is a crime worthy of lynching,

Joecool said...

Yes, I heard simlar teachings in Amway. One was that ou should get out of dent, but it was okay to go in debt if it was to invest in your Amway business. They would be okay if you took out a second mortgage or even skipped mortgage payments if it was to attend a function or buy more tools. I saw some people lose their homes following upline advice.

It really is a sad thing to witness.