Tuesday, December 1, 2015

Amway Business Expenses?

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of th system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for some uplines than the actual movement of Amway volume. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might run them more than $300. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more. Uplines will then justify the expense by saying the IBO is investing in his/her business.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to $500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stay? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

16 comments:

Anonymous said...

I think it was the English writer David Brear who first compared Amway products to Indian "wampum."

For the American Indians, wampum were belts made of shell beads in various colors and patterns. They had no intrinsic value whatsoever. But they were valued as a kind of proof of wealth or credit or prestige, and were important in trade and commerce among the various tribes. You couldn't consume wampum, but possessing many wampum belts gave you a kind of status.

The same is true for Amway products. Nobody really cares much about them in terms of function or practicality. But if you're in Amway, you simply have to possess them and get them and store them and (when possible) pass them on to others. Can you actually make use of them? Sure -- but as any diamond will tell you, the Amway business goes on without any real reference to the sale of Amway products. The stuff is just "wampum."

This is why at all those Amway seminars and business meetings and stupid "functions" nobody bothers that much about sales. They don't honestly give a shit about selling. Their main concern is for you to get more people hooked up to the Amway wampum system. The real business is spreading the word about the business, via tapes, CDs, books, and various get-togethers.

Anonymous Guy said...

You know, I was guilty of the "lying" part. Or stretching the truth. My friend, who I sponsored was showing the plan. She asked us if we made any money doing this. I said yes, in a fairly productive month some time back. I made over $100. Stretching the truth slightly. That didn't include my expenses of: WWDB $50, KATE 30, digital delivery, 30, 100 pv 300ish. With my one downline hitting some PV that kicked up my bonus check, hitting the 6% bonus woooo big time!

She didn't sign up though.

It's a shame though, if you could plug in the numbers, there is money to be made. But all the pressure is in the system, not the volume!

Joecool said...

Good analogy. Some people call Amway products premium but the reality is that Amway products are basically generic in nature and (likely) quality but charges a premium price. And to be honest, who's interested in the Cadillac of soap, even if it were remotely true?

Joecool said...

IBOs are often taught to "fake it till you make it", in other words, lie or imply that you are successful. They might often mention how much they made gross income, but don't mention that after expenses, they were operating at a loss.

Anonymous said...

Because of intense pressure from up-line, Amway IBOs will say almost anything, or deny almost anything, to get a prospect signed up to "The Plan." There is real desperation at work here, since fewer and fewer persons are being gulled by Amway propaganda than in the past.

Asa result, the competition in the United States to sign up new prospects in your down-line is very fierce. In the old days you could count on only a few people having heard of Amway. Now nearly everyone in America knows that it is a scam and a rip-off. When a company has to change its name three times, and counsel IBOs to never even MENTION the word "Amway," you know they are in big trouble.

Anonymous Guy said...

Looking back, I had the one awesome month and got a check of about 100 or 150. I was so flippin stoked.

Still, as you said. WWDB expense, 50, Kate, 30, 100PV about 300ish. Standing order CDs, about 15. So not including the 100 PV of personal use, it still cost me almost 100 to run my business. Not including time/energy/money to make it to board plans.... fuck.

Then there was DITTO and Nutrilites customized vitamins.... but got to hit 100 pv right!?!?!!?!??!?!?!?!?!?!

Joecool said...

Right so even if you make some money, it went right back to Amway and your uplines.

Joecool said...

Yep, I believe that many Amway IBOs are very desperate to sign up downline but they just can't drum up enough interest.

Anonymous said...

Well I am In South Africa this is where I would share my story I work in poor area's in South Africa I became still am an I.B.O never will quit. Because I know what nutrilite has done for this community I never force anybody too become independant business owners I never force anyone to Become independantly wealthy in fact I love to say dont even try to become an entreprenuer because you will Never become successful unless you decide. I know why I am proud to be an Amway which people would love to puul down this Massive corporation whom FTC try to close down in the seventies. Yes Amway still exsists I proud to be a distrubitor? Yes I am! I heard trash I tell people I have got a corporation which is Entreprenureal Development Corparation under Amway. I sell them cheaply and give some away for free. Customers to me are important NOT abuse them I love eople and my customers know it that is why I am not in this about the money Im in this for life:)

Anonymous said...

You're not in this business for the money? Great -- then you won't be upset when you lose a lot of it.

Qiunan Tang said...

Why you have to join wwdb and pay for those cost if you don't think it would help? Who request you to have 100 pv each month ? We never be told to have those quota . You purchase what you need and learn what you want to sell. Do it as you could afford . The cost of running the business is very very low .

Joecool said...

The 100 PV quota is Amway and not WWDB. Quiran, I'm not sure if you're lying or bullshitting us

Qiunan Tang said...

What happen if you don't make the 100 pv? Did you have to pay amway or do you lose anything? You can agrue that you don't get pay for you time but why you get paid if you wasn't create any value to the company?

Joecool said...

Why should there be a quota? If you sell 50 PV you create value for Amway. If you sell 3 PV you create value for Amway. Why don't you get paid without having a quota?

Qiunan Tang said...

well, it is a bounes pay to those who do a good job . So it is fine to a standard or start line as all other business has. Well, if someone really selling at that low volume, I don't consider they are actually taking it as a job and expect to be paid.

Joecool said...

Amway is not good because you need to exploit your downline in order to make any significant money.