Monday, March 14, 2016

The Amway Business - Failure By Design?

When I was being prospected into Amway, I saw the 6-4-2 plan. I am fairly certain that most groups still present the Amway opportunity using the 6-4-2, although I am aware that some groups use different variations of this. The plan sounds so simple. Just sponsor 6. The next layer does less than you and sponsors 4, and the next layer does even less and sponsors 2. First of all, most IBOs don't sponsor a single person to begin with. Many IBOs are unable to even show the plan to another person. So if you cannot achieve even the first step, how can you possibly make the plan come to fruition? The answer is you can't.

Only a fraction of 1% of IBOs ever reach platinum. Out of those who do reach the milestone, few are able to maintain the business and even fewer ever go on and achieve higher levels such as emerald or diamond. WIth the attrition rate so high, even recruiting new IBOs basically keeps you even. The effort required to maintain the business can become a full time job or more for some people. My former sponsor was out showing the plan for himself or for downline every night of the week, save for the functions and other meetings. Amway he said, needs to become your life if you want to succeed.

You have so many factors working against you that it takes an exceptional (and possibly lucky) individual to be able to overcome the challenges to reach a recognized pin level. The spotty name reputation of Amway, the higher (on average) prices of their products, the high attrition rate and the fact that any higher level requires a large downline. These factors make it nearly impossible for anyone to go diamond and reach what appears to be the pinnacle of Amway success. Sure, some IBOs may not have such lofty goals, but the "plan" is designed to achieve diamond. I have not ever seen or heard of a plan for an IBO to achieve 600 PV.

In many instances, whether it's a business, or a sports team, or some other activity, you will notice that the winners or the successes often have a great system. Many fast food businesses for example, have a processing system. A great football team might have a great offensive or defensive system. A large business may also have a proven system. This is where the problem lies in Amway. The system is ineffective. The system as shown to many prospects, needs many "lower level" IBOs working in order for someone to achieve the levels such as platinum.

As you cannot control the actions and beliefs of others, you cannot make people join your business. You cannot make them see the plan. Thus in the past, many IBOs resorted to deception and lies to get people in front of the plan. In college, I was invited to a "beer bust", only to walk into an Amway meeting. The person who invited me said we would do the beer bust after the meeting. Thus my first impression of Amway was a bad one. As one can reasonably conclude, Amway IBOs for the most part, end up failing. But they don;t fail for lack of effort. They fail by design. That's how the 6-4-2 plan is set up (or whatever version your group uses). It is in my opinion, failure by design.

15 comments:

Anonymous said...

Well, in one real sense the Amway system DOES work. It works for someone who is a highly competitive, amoral, take-no-prisoners go-getter. He'll get to Platinum, simply because of his aggressive pushiness and chutzpah.

But others in Amway who do not share these unpleasant characteristics won't get to that level. They'll just lose money. But, as you point out, that's an integral part of the system too -- there needs to a lot of money-bleeding losers for the aggressive Amway Platinum to feed on.

Amway has a system alright -- it's just not a system that rewards its IBOs equally, or even fairly.

Anonymous said...

I was invited for a job fair so I went there for workshops and at one point. I asked a person who is musical, has a pleasing personality and dressed with a corporate attire to correct my resume. That person did the correction and asked my number for "career consultation". I did it and I have to met him at a coffee shop. So I went there and instead of the "career consultation" I expected, he talked about marketing literature, e-commerce and then HE TALKS about AM*** and "The Plan" like you know, complicated diagrams. He coerced me to sign up and asked me not to Google about this "secret".

I went to google it when I reached home and I found your blog and Anna Banana's plus other past IBO experiences and I realized I was walking into a trap. The reason I ended up here for an advice was because that sponsor was trying to suck me into "the Plan".

But because the IBO number was not activated. I initiated a refund despite that person who calls me repeatedly although uses a musical tone to convince me that I will be a "business person." but I was quick to resist the offer. The refund was successful and I decided not to go through this kind of "business".

Thank you.

Joecool said...

Spot on. A few will climb the Amway ladder, stepping on others on the way up. You have to. There is no other way to make it. You have to be able to tell people to spend all they have on tools so you can make a profit. But due to saturation, the climb up the Amway ladder gets harder and harder.

Joecool said...

Thanks for sharing your story. I'm glad you were able to get a refund without much problem.

Qiunan Tang said...

You never hear it because you don't come and learn. We hear it everyday and know how to do it.
In short, to make 600 pv all you have to do is selling 2k products . Simple enough ? Can you make 2k sales?

The real plan is simple, learn and use the product you want to sell or you believe it would sell and start selling. And recruit the people on the way along when you are capable to teach them or someone in your system can do so.
I have seen so many lovely "IBO"s even don't know what their selling as they try to recurit people . End of story and their out.

Qiunan Tang said...

I will very agree you even I am doing the business . The one trying to sign you up wont able to guide you to success .

Joecool said...

Simple to selll 2K worth of products? Most IBOs can't sell anything except to a few family and friends who fell sorry fo the IBO.

Qiunan Tang said...

If you can't sell, why you choose direct sell? why I spend time to recruit people can do the job? Well sometimes I might still talk to them but it is no harm to try. You won't always know if you can do it or not until you try it out.

Joecool said...

Amway products are much more costly than comparable products that I can get at retailers. You can argue the quality or whatever but the products I buy at Target or WalMart are just as good or better than Amway products and it's much cheaper.

Anonymous said...

Dear Qiunan Tang --

We do not doubt your sincerity. Perhaps Amway is working well for you.

But please do this: Tell us what country you are working in. It is clear from your words that the situation is MUCH DIFFERENT there than it is here in the United States.

Joecool said...

I think Quinan is from another country. Strange he attends functions but claims his upline don't make much money from functions. I don't believe that.

Anonymous said...

Very true. The whole purpose of Amway functions is to generate cash for the bigshots in up-line. Running a complicated function in a far-off city doesn't make the slightest sense unless there's a big profit in it for the organizers.

There certainly isn't any profit in it for the attendees!

Joecool said...

The attendees are just the rubes used to extract money from. You extract a little bit of cash from large numbers of people. That's how the "diamond lifestyle" is maintained.

Anonymous said...

If they won't be able to guide you success then why bother?

Joecool said...

Good point. Why bother?