Monday, December 28, 2015

Less Than A 1% Chance In Amway?

Many people consider the platinum level in Amway as a significant achievement in Amway. While it may be nice to achieve that level and gain recognition from the Amway corporation, I will point out that there was a study done in Wisconsin where the attorney general analyzed and found that platinums on average, lost money. The study is somewhat dated, but I will also point out that today, there are MORE expenses associated with running an Amway business than before. (Voicemail, books, functions, standing orders, shipping). I would guess that it's possible that platinums lose more today than when the Wisconsin study was done.

A typical platinum group often has 100 or more downline IBOs. Thus a logical conclusion is that less than 1% of IBOs can reach that level. It is also, apparently rare to maintain that level. Factoring in people who quit, one can conclude that only a fraction of 1% ever reach platinum. My former upline diamond had 7 frontline platinums in his heyday. Actually, 6 of them were ruby level. None of them hold the platinum level today. So you have a less than 1% chance of reaching platinum and then you are unlikely to be able to maintain that level.

What serious prospective business owner would even consider opening a business where you have such a tiny chance of success? Even those who achieve platinum are likely to lose that level. If platinums cannot maintain their level, then it's easy to see why there are former diamonds as well. It seems that people are willing to take a chance on an Amway business because the start up cost is low. But what is the point of doing all of that when the chance of making money is negligible?

To compound the problem, many IBOs spend a lot of time and money building an Amway business that is unlikely to give them any return on their investment. I'd guess that the average serious IBO would spend $250 a month or more on tools. That money invested over a number of years in mutual funds would give you a much better chance of achieving some dreams. Even putting the money in the bank would make you better off than the vast majority of IBOs. A serious business owner would want to know their realistic chance of making money. For some strange reason, prospects and IBOs seem to ignore this reality. They dream of only the best case scenario or what is possible. They seem to ignore what is likely.

It is because uplines are in the business of selling tools and distributorships. They are not truly interested in your long term sustainable success. If you don't believe me, try to stop purchasing standing orders and function tickets and see how much longer you are edified and given help from upline. Seriously, would a real business owner be interested in a less than 1% chance of success?


Anonymous said...

At another website I read a former Amway Platinum's account of his required workload. It involved a tremendous amount of energy, labor, oversight, organization, planning, morale-boosting, traveling, teaching, and supervision of new and prospective IBOs. This Platinum said that the entire structure of Amway depended on its Platinums and their intense work, but that the rewards were meager and unstable, for precisely the reasons that you mention.

He also suggested that moving upwards from Platinum to the more elevated levels was very frequently a function of in-group politics and favoritism rather than actual achievement. In other words, Amway didn't want anyone at the Diamond level who didn't "fit in" properly with Amway's whitebread middle-class Evangelical self-image. You had to have the right kind of wife, the right kind of political views, the right kind of cultural habits, the right kind of standardized clothing, and above all the right kind of up-line sponsorship and approval before you would be accepted as a Diamond or higher.

So it's not just that only 1% of IBOs ever get to be Platinums. That's true. But the big picture is that Amway is a rigged game, even for those who strive hardest to make a go of it.

Joecool said...

Not sure about not but I know that in the past, the upline had the ability to manipulate PV/BV to help certain people to qualify for various levels.

Anonymous said...

I am so amazed that ignorant people uses the internet to influence people with their un-informed views about this business and businesses in general. You genius, are you working for yourself or are you working in some good big company, who determine your income level, who determine your leave, you earn your money by just sitting in your chair doing nothing? You genius, how many in your company or people working for you or with you are top managers, are earning top income, how many of your informed friends you pulled down to your level are not making a living, because they were in the Amway business? How many people can you offer something to eat from your ill informed views. You genius, can you tell the world that you do not buy any products from your local shop, can you tell the world that none of your local shops ever failed to stay open? How many people in your organisation work very hard, get to their big dream of being a manager, an entrepreneur and failed to stay in business because of restructuring in their good jobs or their business that just did not get up and running? In your job you are getting promoted just because of... or was it because you have invested in yourself many hours and study material to better your knowledge, you never have had any situation that somebody was promoted into the position you wanted? How many jobless people are in your country, how many jobless, highly educated people are there in the world, who have spend many thousands to get educated. You genius, can you even try to offer many people any income, or can you perhaps sponsor needy organisations, like the red cross?
I am a proud Amway business owner. I have been in many jobs to try and make a living, just to get retrenched and to find a new Job, this business will not fire or retrench you if you stay with the rules, many people quit their realistic jobs, highly educated people quit their so called good business, so will it be in any business, this business are helping so many people to have an income. Many people register into the business and does not do anything except paying for their products and training material and then telling the world that they have lost so much money?? I am 1 year in this business and already earning money, it is so far from the truth that we manipulate or that in-group politics and favouritism determine your level of achievement. It happens more in your real world than in this organisation. With hard work any person on planet earth can have a better life through this business, but 95% of people will always listen and belief in moronic information, and then quit the opportunity that could give them income. I am buying my products, and pay for my training materials and earn double what I have spend. You genius, do you get anything back from your local shop where you buy your products, can you tell the world that after all the years you ever equal or better your income from your expenditure on your products and your studies? I am sure the platinum level in this business is only the start of greater things, with your realistic information you want to tell the world that you only start getting money on platinum level, I am already earning twice my expenses, thus the information you are giving to the world is totally incorrect. You are so right that there are realities, your moronic reality against the real thing. How many people have lost their money in the recent downfall of the world economy, how many businesses are out of business today and Amway still growing by the day. How many of your local shop owners are now rich because of you and your fellow un-informed living creatures supporting them and this is ok with you and all of them, but because this organisation helps millions of people to have a better life, you can influence the people that could make a living from this business. Can you provide for the many you influenced negatively any income?

Joecool said...

I'm glad you are a proud Amway business owner. You claim to be earning twice as much as you spend on products and tools, but you don't say what that is. I sense you are completely bull shitting us because you would have to be at a pretty high level to earn twice your expenses. More likely you're a fairly new IBO who believes in the lies that your upline told you about the Amway business.

Your statement that Amway helps millions have a better life is bullshit. Amway has only 3 million IBOs worldwide and most of them do nothing. Out of the rest, most of them earn nothing or lose money because of business expenses.

Yeah there might be a handful of diamonds making some money, but they do so because you buy products and training materials from them.

In other articles on this blog, I've shown where Amway is actually a financial drain on IBOs overall, and collectively, IBOs suffer losses so a few can live the diamond lifestyle.

Of course, you are free to return and prove that you actually make money. Not a single person has ever done so on this forum.

Anonymous said...

@ Anonymous

At your first point: It's not like you're working for yourself either. You do what your upline "advise" you to do, which is kinda stupid. They're essentially saying "Do this or you won't be successful" which is the equivalent of a bank robber saying "Give me the money or I"ll shoot you. You don't HAVE to give me the money but if you don't.... well....". Second, do you know why people higher up in a traditional company get to decide the wage of the people below? People lower down in the hierarchy know less, know how to do less, have less skills and talents, and less qualifications. With your logic, you're essentially saying "Let's pay Mark Zuckerberg the same wage as the janitor that cleans Facebooks HQ's office." You're an idiot. If you want to be payed as much as the people higher up in the hierarchy, maybe you should've gained the skills/talents/qualifications/experience to be payed that much.

"How many people can you offer something to eat from your ill informed views"? Ummmm it's not like you're "offering" people to eat either. What the hell are you even talking about? I swear, all you IBO's are always just diverting away from the point being made and you just bring it stuff that doesn't even help the discussion progress. Please go study some basic logic and language, cause you have none.

"How many jobless people are in your country, how many jobless, highly educated people are there in the world, who have spend many thousands to get educated" There's jobless people everywhere, what's your point? That education is pointless? That more education should = more money/ not being jobless? If you know a lot but don't know HOW to do a lot, what's the point? You're right, there are people that are well educated that don't have a job, but that doesn't mean they deserve every job in the world. If you're well educated and you're willing to do something with it, there's no doubt that you can get a job. Who the hell WOULDN'T want to hire the PHD over the Associates Degree? There's just too many factors. This point didn't have anything to do with his original post, so why do you bring it up? Instead of raising points that have ABSOLUTELY nothing to the original post, why don't you counter argue by showing us articles of evidence that what the original post said aren't true? Oh wait, you can't.


Anonymous Guy said...

I'm probably wasting my time here but, do you see how smugly you're talking about people not involved in the Amway business? Creatures? That doesn't sound very humble at all.

If you're making double your expenses, fucking awesome man/girl. Are you just including your monthly membership costs? Are you including 100PV? Are you including voicemail/Kate, business material, functions, meetings, gas, babysitters, or all of the above? So you're making about $800-$1000? Pretty awesome! So you're about at an Eagle/D.Eagle parameters right? Running close 2000-3500 PV?

If you are, keep at it and you'll do big things!

If you're making $100 and only manipulated your expenses to being 50 a month, part of the problem.

Anonymous said...

So if you are making money just tell how much you are making. And lets gave a laugh. Nobody makes money in amway and i am sure you are no different. This blog does not criticise amway. Ht juSt tells it as it is. There is nothing wrong with Amway. Whats Wrong is a few king pins oranising a large number of people to promise others they can get rich. Its impossible to get rich in this business. Except fir a handfull. So in 50 years only a few made money while seceral millions tried

Joecool said...

Anonymous at 1:06 PM, I was an IBO at 4000 PV with eagle parameters. After my business expenses, I wasn't making any money and that doesn't include the money I spent on Amway products.

Anonymous said...

The Anonymous poster at 2:38 A.M. is clearly a non-native speaker of English. Since he uses British spelling for some words, he's either French-Canadian (unlikely, since they are usually bilingual) or more likely from some part of the non-Anglophone world where British English is the standard thing taught in school. Isn't it interesting that when we get a really fired up Amway defender here, he isn't from the United States?

I guess there isn't anyone left in the U.S. who is anxious to defend the Amway rip-off.

Joecool said...

It looks like the comment came from South Africa.