Friday, February 12, 2016

Quitting Amway Is Winning?

I often see commentary about people quitting Amway and Amway loyalists are quick to call them broke, losers, lazy, lacking guts. Ironically, these same lazy and loser types of people were "sharp" and motivated prospects before they signed up for the Amway opportunity. Someone recently left a comment on my blog about how Amway Motivational Organizations (AMOs) should conduct exit interviews with departing IBOs to get to the root of the problems. I think these exit interviews would reveal that people are working hard and applying the AMO teaching, only to lose money,

Based on my years of blogging and Amway experiences, I can honestly say I believe that people quit Amway primarily for one reason. The money isn't there. Amway's own numbers show that the average IBO earns just over $200 a month and that is before taxes and expenses, and that number excludes inactive IBOs. Business building IBOs earn most of the bonuses, but business building IBOs generally have the most expenses, often participating in the system of standing orders, voicemail, books and functions.

When I was an IBO, I did as upline advised and I achieved a fairly significant level (4000 PV), but due to the expenses associated with tools and helping downline, I didn't earn a net profit. This is confirmed by a study done by the Wisconsin attorney general who examined the tax returns of the top 1% of IBOs in the state and found that they averaged a net loss of about $1000 a year. While the study is a bit dated, I would suggest it is still very valid as platinums today, have more tools (business building materials) that they are expected to buy from upline. If I made nothing at 4000 PV, anyone with half a brain can conclude that IBOs below 4000 PV and fully participating on the system would end up with a net loss because their expenses would be similar to mine, but with less bonus money.

The bottom line is that people are very likely quitting because they aren't profitable. If people made a few hundred a month with 8-15 hours of work per week, they would continue to run their businesses. But those who work and make nothing or lose money have no reason or motivation to continue. After all, many people got into Amway to make extra money, not to wind up with a net loss. Thus they simply make a wise business decision and quit. What seemed like a good idea during the presentation simply did not pan out when reality set in. It's also reasonable to conclude that the products aren't that great either because if they were, those who quit would become loyal customers. Even if the sales force turned over, sales would consistently rise as former IBOs would become customers. It's apparent that most former IBOs do not become loyal Amway customers. In fact, for those who later discover they were lied to or deceived about the Amway opportunity, become critical of Amway instead.

Why do people quit Amway? I think the answer is crystal clear. The quitters are the winners!

10 comments:

Anonymous said...

When you quit Amway, you are essentially saying the following: "I am a free person. I will not be enslaved to a system that bleeds me of money every month, and tries to force me to accept a certain lifestyle. I am an independent human being, not a stupid and degraded IBO."

Joecool said...

Absolutely. You would be better off watching TV and doing nothing instead of peddling Amway and attending the meetings and functions. Paying your upline $50 a month and doing nothing else would also make you better off.

Anonymous said...

The real meaning of "Don't Quit" means not giving up in making the right choice. In the case of quitting the amway, you made the right choice.

Why would you enslave yourself to a system in which not only you bleed money but you destroy the relationships with your loved ones by calling them "negative" and listen to an upline that exploits your well-being and worse, your upline is tearing your wallet all the time?

Don't Quit means Quitting for the sake of gaining something better such as seeking better alternatives.

Joecool said...

Spot on. Quitting Amway doesn't mean you've given up on life or trying to make things better for your family. It just means you'll be trying something else.

Anonymous said...

Not only that lower level IBO's lose money month after month, they lose time and their efforts are futile.

Upper level IBO's have to work endlessly to maintain their status level. If they stop at any moment, the network they build will collapse and they lose their bonus and their qualification.

There is no such thing as once a diamond, always a diamond, then?

Joecool said...

The diamonds are recognized as diamonds forever once they get the pin. That's part of the scam.

Anonymous said...

Most diamonds fall back to zero after a few years. This is because the effort needed is too great. Only a few are able to maintain the momentum. To do so you need several hundred people being sponsored into your group monthly. This is because quit rates are very high.

Joecool said...

Once you achieve diamond, Amway recognizes the pin forever so the "residual" income they speak about might be from selling cds, books and seminars rather than income from Amway.

Anonymous said...

It sounds then like "Diamond" is an empty title. You've got the name, but little money to go with it. Typical of Amway.

Joecool said...

Empty, but it's a title. You just have to fool people into thinking it's real. LOL