Wednesday, January 27, 2016

Your Amway Business Dashboard?

When you drive a car, you have instruments on your dashboard that let you know how your car is running and possibly whether you need repairs. For example, you have a gas gauge so you know when to refill the gas tank. You may have a oil pressure gauge, tire pressure, and an indicator to show how warm or cool your engine is running. My car has a light that comes on when I need to change the oil or service the engine.

Your Amway business also has some gauges. Unfortunately, many IBOs are taught by upline to ignore these indicators or made to think that warning signs are not to be heeded. I will explain further, but I believe too many IBOs see the signs, but simply have been trained to ignore these vital warning signs.

Selling products. Are you buying more PV than you are selling? I believe most IBOs do, and AMway numbers confirm this as there is on average, about 1 customer for every 4 IBOs, and only about 4% of Amway goods are sold to non IBOs. No business can sustain itself without selling to customers. Why IBOs think they can succeed without customers is because of bad upline advice or teaching.

Non income producing activity. If you spend a lot of time listening to standing order, reading books, attending meetings and prospecting people, these activities do not produce any income. In fact these activities cost you money. Sure, eventually prospecting may pay off, but are you getting a fair return on your time and money spent doing these activities. If you pay for standing order but are unable to do more than 100 or 200 PV, then your business is not even covering the cost of standing order, not to mention the other costs that your upline may have told you was "needed".

Tools. If your expenditure on tools (cds/meetings/voicemail/website fees) continually exceeds your monthly income, you need to take a look at what it will take in order for your business income to grow. If not, you will simply take a loss month after month. If you are not sponsoring or finding more customers every single month, you are simply running in place and you will expend energy (money) and not get anywhere.

Are you showing the plan? If you are having trouble finding people to see the plan, then you will be unable to sponsor enough people to expand your volume. Also, an inability to show the plan also restricts your ability to recruit potential customers. Do people flinch when you mention Amway? These are signs that should warn you that the opportunity is not palatable to most people, despite what you hear from upline.

The warning signs and gauges are there. IBOs simply need to believe their own eyes.

42 comments:

Anonymous Guy said...

I was taught to pay full retail on my "prosuming" and to put the profit of ibo price into a "business account" and that itself should pay for my tools/costs.

And it works.... But it was just a massive illusion, smoke and mirrors. All of a sudden, 100 PV is costing much much more, BUT IM MAKING MONEY RIGHT?!

Joecool said...

My group was taught the same thing. To charge yourself full retail and keep the profit in a separate account. It is just smoke and mirrors. The "profit" is money that was already yours.

But as you say, it's a slick illusion.

Anonymous said...

Hi Joe, could you please advise if the Amway claim about Nutrilite supplements being of the highest quality, since the raw products come from organic farms, is true. They sales people quote that this is the reason why they are far more expensive than other supplements on the market. Should we believe them ?

Joecool said...

The quality of vitamins is highly subjective. Nutrilite claims to be organic but there really isn't scientific evidence ti show that organic vitamins are any better for you than other vitamins that can be purchased off the shelf at a retailer for a fraction of the cost.

One of the slick lines IBOs use is that nutrilite has phyto nutrients, which is fruit skins.

To that I would say just eat fruits. That's better for you than getting it in vitamin form anyway. If you google this blog and double x, you'll see a pretty comrehensive review on nutrilite vitamins and double x in particular. It's nothing special.

Unknown said...

joe will never confirm anything but just use the world "I think" . All of my Customer register as an IBO, that's why most product are sold to IBOs .62 dollar to sign up and you get 30% discount on price and 3-6 % cash back . Why not ?

Anonymous said...

Nutrilite vitamins (which is how Amway got its start) were invented in the 1940s, long before anyone even knew what the word "organic" meant. The whole thing is nothing but fraud and hype.

Van Andel and De Vos got out of the Nutrilite business in 1958 or 59, simply to avoid legal problems with the FDA. They started Amway to sell soaps and cleanser products, which they figured would keep the government off their backs.

Years later, when they had enough money and power to influence government decisions, they bought back the rights to Nutrilite and started flogging it again.

Joecool said...

So where are your actual customers? In the recent FTC Vemma ruling, without 51% of sales to actual customers, you're running a product pyramid.

Anonymous said...

Getting a 30% discount on a product that is up to 150% overpriced is hardly a great deal. That's where they "getcha". And why finding customers is so hard, thus just a lot of self-consuming by the IBO's.

Joecool said...

I will add that IBOs will self consume when they have the dream of untold wealth and early retirement, but once that dreams fades, go goes the desire for Amway products.

Anonymous said...

3% - 6% cash back? Just get a cash back credit card instead. Credit card rebates are way better than buying overpriced products from amway.

Joecool said...

Not to mention that there is no minimum quota to get cash back on a credit card.

Unknown said...

My customer is my customer , I just sign them all up as IBOs. It is sound business decision. There is no point to explain why to you guys who are not understand how to run amway business.
To Mike, first I am not paying any of those monthly staffs you listed. None of those , I have a a overhand a little over 40 dollars per month and I already get it covered pertty well.
And if you really do the research, amway is the very few company pay science to test the product. It could be verify by independent labs and publish 200+ research paper on qualify journey . Do the work before you say something. To the degree I known today , fda has not business in supplements and no one get fda approved. However, as amway product is selling worldwide , it has been tested required by law in many other counties.

Joecool said...

MLM companies don't have FDA apporvals because mst of them sell snake oil. You can see it in the disclaimer where they say the product is not meant to cure, prevent or diagnose any disease.

There is no unbiased evidence that the expensive nutrilte vitamins are any "better" than the ones you can buy cheaper at Walmart.

Unknown said...

There is also no unbiased evidence show organic fruit better than non-organic ones too.

Joecool said...

Yes Quiran. That's why nutrilite vitamins are a rip off. Why pay $80 for a one month supply of double x when I can buy 90 days worth of multi vitamins at Costco for $20?

Unknown said...

You are welcome to learn why nutrilite is better and see all the evidences. By the way, double X cost 62 dollars only and also we have 21 dollars months package for male and female too.

Joecool said...

62 dollars is IBO cost. A customer would be paying $80.

Read the link. Double x is not all that:

http://energyfanatics.com/2007/09/17/nutrilite-double-x-multivitamin-review/


Unknown said...

The website you provide just a review website, anyone can make one.

Unknown said...

But here is what we have done http://www.nutrilite.com/en-us/Science/NHI/BestOfScience/clinicals.aspx?
Don't just take it as it is from a review website. The author of a review website won't be liable to what they write. However , everything listed on amway company website would be considered as part of ADs. And their are hold accountable BY LAW if they are laying.

Joecool said...

The review website is no different than the one from Amway. Refute the facts please.

Joecool said...

IBOs who do attend functions are nearly assured to lose money. The ones who do nothing still lose money on the registration fee unless yjeu seek a refund.

Unknown said...

As I said I f you utilize all IBO benefit , which make you money right the way. We don't promote it but it is there (as we all know that speeding is illegal) .
Bottom line is you won't loss money when you sign up as IBOs , you make money right the way. I just showed how you can to it and I was doing it for many many friends. After I done that for them they would most likely listen to me as least to some degree, and might purchase some product. It get into selling skills detail but anyway , you can't lose money at all.

Unknown said...

What fact ? The review site said it tested the product , but how would you know they tested it , in what method , by whom, and so and so on . The review site said "a research show...." but don't show the reference. In the amway website , first we provide facts that can be verified, our claims are all based on documented traits follow hight standards and done by quality person. We post peer reviewed papers . That call reliable source of facts. That website you provide have non of this. In fact if I cited anything from the website joe provide in my college paper, I lose one letter grade.

Joecool said...

Most IBOs sign up do nothing. That's still losing money

Unknown said...

If you are doing nothing why you sgin ? You can sign and and make no sell and no purchase but just for use those discount , you still make money by saving a little bit.

Joecool said...

It's no worse than the information Amway provides. That's why FDA approval would be more credible.

Joecool said...

People sign up and do nothing because they quickly realize that Amway is a bad idea.

Anonymous said...

If you do nothing in amway and just use your membership to buy products you don't make money....compare prices...a case of 24 bottles of perfect water is 40 dollars for an IBO so you save 12 dollars as an IBO ...a case of 24 bottles of water at Walmart is 4 dollars....you don't need a degree in accounting to do the math....and although I agree perfect water tastes great it is not worth an extra 36 dollars....you'd have to be pretty brainwashes to think that is a good deal

Unknown said...

Then go back and get a refund . I made nothing from signing someone up so a refund would be my suggestion.

Joecool said...

Easy to say. Plenty of people has said it wasn't that easy to get a refund and since they are usually sponsored by family and friends, they just give up and don't complain about it.

Joecool said...

That is a good explanation of my point.

Unknown said...

You can find many good deal among our 500+ product line which don't mean you would buy prefect water. I hardly never hear anyone promote that. If someone find that they want to pay for the taste then there is nothing wrong with it. I sold a lot XS drink as they tast well and the cost it among the simlar product. SA8 and loc also sells good. 21 men's or female nutrition pack also selling good. I don't go blind with amway product , I am using Other toothbrush over amway, I don't buy prefect water. I wasn't going to promote a product that I am not using.
BTW, prefect water is consider as a liquid form of supplement rather than a bottle water if you read the lable carefully enough , it is also a favor drink Rather than a just pure water. How can you compare the price with just bottle water ? If your logic holds up, then I can get free water instead to be rip off by Walmart.

Unknown said...

For whatever reason FDA stay out of all supplements , you should ask them to step in. However , look worldwide, for example , China require all supplement must be tested by traits to prove it works as it said.
FDA is good, but it is not all. They are too busy already to add supplement in their testing list.

Joecool said...

Perfect water has some flavors but the plain bottled perfect water is a rip off. A lot of Amway producs are a rip off too. If you do a neutral comparison with other products, Amway stuff is ridiculously overpriced.

Anonymous said...

Joe, you have hit the nail right on the head.

If Amway products are so damned good, why just not sell them in stores and make a profit that way? Why all the complicated rigmarole of MLM marketing?

The plain fact is that Amway is only secondarily interested in selling its products. It is PRIMARILY AND FUNDAMENTALLY interested in selling its "Plan."

Joecool said...

Right. Amway IBOs are primarily selling the business opportunity first and the products are only there to give the business the look of legality.

Unknown said...

Lol, where you get this from ? Only moving product makes money.

Joecool said...

Most IBOs, when they sign up are buying a kit that includes products. At least they do in the US. You can't sell it if you don't use it right?

Anonymous said...

Dear Joe and Mike --

It pretty clear that Qiunan Tang is doing something very different from what goes on in Amway USA. He seems to be sincerely dedicated to "moving product" (something that Amway defenders who come to this blog often jeer and sneer at). Whatever Oriental nation he is writing from might have a totally different take on MLMs than the kind of vicious deception that we are familiar with here.

Because English is obviously a second language for him, it's not always easy to follow his argument.

Joecool said...

That's possible for sure, but I see things in his posts that don't add up such as his talk about his attendance at functions.

Anonymous said...

If moving products really make money, then why do you sign up all IBO's, force them to pay memberships, force them to attend functions. This confirms the fact that you need income from tools other than product income to sustain your expenses and therefore, the real income comes from tools and not products, Right, Joe and Mike?

Joecool said...

That was my point. If you really had retail customers, what would be the motivation to sign them up and lose your 30% retail profit?