Tuesday, June 14, 2016

Amway Facts?

So many people get duped into thinking that they will somehow get wealthy by becoming an Amway IBO. Many recruiters will tell stories about how they were once broke, but signed up, endured challenges and now they are diamonds enjoying untold wealth and luxuries. They even "show" you pictures of mansions and cars as *proof* that they are wealthy. People get caught up in "dreams" and are often encouraged to ignore the facts. People running businesses should pay close attention to the facts because it tells you much about your business and your likelihood of success. But what are some facts about the Amway business that many people don't know about? I have outlined a few important ones for those who harbor dreams of going diamond.

1. The average diamond, according to Amway, earns around $150,000 a year. Yes, some of this may be supplemented with money from the sale of tools, but after taxes and business expenses such as travel to and from the many functions that a diamond attends would probably leave a diamond living an ordinary middle class lifestyle, not one with mansions and sports cars as portrayed in many functions or meetings. Yes, a Q12 diamond would have more earnings, but a Q12 diamond is the exception, and not the rule. You could argue that a diamond's job of speaking at functions is easier than 9-5 with a boss, but still, a diamond basically has a job.

2. Most IBOs are NEVER able to sponsor a single downline. Pretty hard to develop six (6) downline platinums when most people cannot sponsor anyone. Even those who can sponsor a few people, will find that attrition will make it impossible to keep these IBOs involved and active. It's also difficult to overcome Amway's reputation and uncompetitive pricing.

3. Most Amway products are purchased by IBOs and not sold to customers. Name a real business that sustains itself by having it's own workers or salesforce purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why probably 99%+ Amwayers lose money when factoring in tool puchases.

4. For most IBOs, the cost of functions, standing orders and other support materials represent the reason why most business building IBOs lose money and it also represents a significant profit for some of the diamonds who sell the materials. A serious conflict of interest in my opinion.

5. Not working hard is not necessarily the reason for someone's failure. But conversely, working hard does not equate success in Amway. I would guess that out of those who work hard, it is still a fraction of 1% of hard working IBOs that ever attain a significant profit. Doing nothing won't get you anywhere, but in this business, working hard often gets you nowhere as well. It is my informed opinion that the cost of the support materials is the direct reason why so many IBOs lose money, even out of those who work very hard.

I could go on and on, but these are a handful of facts that IBOs and information seekers should be aware of.

4 comments:

Anonymous said...

I am friends with a couple that is very obsessed over Amway now. They really do think this is the answer to all their problems and that they WILL indeed become rich if they stick around. They have been in it for six months now. My only question is: why does amway people think and say that they are making a difference in this world and leaving a real legacy behind? Where does that come from?

Joecool said...

Amway groups sometimes act like a cult. They worship the leader (diamonds) and it is them against the world. They believe they are making the world better and they believe they are saving and helping people.

They believe that they can become significant. If you google an find WWDB diamond Scott Harimoto, his profile says his goal is to live a life of significance.

Not sure how scamming people out of their money is significant in any way.

Ben Dover said...

Anonymous,

You asked some very important questions, and to elaborate on what Joe started with.

You asked -- "why does amway people think and say that they are making a difference in this world and leaving a real legacy behind? Where does that come from?"

At the functions and meetings they project to the future life you will have. They will morph to your ideal view, cherish it with you, fine tune it so that you can clearly see the goal, then give you the words you absolutely want to hear. Those words are something along the lines of, our mentors will help teach you how to be successful, they can give you that dream, they can make you what you deserve to be etc. etc. It is a two part process of identifying exactly what you want, and then giving a vague response along the lines of, we are going to help make it come true. For some people that means creating a sustainable income for themselves, and leaving a great foundation/opportunity for their children. For others it may be as superficial as getting to travel the world and buy everything they ever dreamed of.

Now, you asked where does that come from? It comes from a longing for that people naturally have. People are born to always want more, and I know there will be people who will say...I have everything I need and blah blah blah...which can be true, but the natural human response is to want what others have. This is where they install the pictures of success (mansions, trips, jewelry, cars). When people see these artifacts, they become covetous, and it gives the people showing the pictures a wonderful amount of credibility. They no longer have to explain details, because you can see they are successful...and when they say you can do it too, and they give you direct meaningful eye contact, and hear everything you have to say...they create value within you and give themselves more credibility. They have mastered the art of manipulating the human condition, and they use it as a strength to extract your money, while continuing to give you emotional rewards.

Joecool said...

Ben, good assessment. One other angle the upline uses is "who can afford a conventional business like McDonalds"? Amway is cheap and low risk, and Amway might be your only hope for a better future.

If you bite and believe that Amway is your only hope, then you will do whatever is needed to succeed. That includes buying your 100 PV quota or more, and buying the tools and attending the meetings.

This belief that Amway might be your only hope is also what keeps people from quitting. If Amway might be your only hope for a better future, quitting Amway is like quitting on your future.

The psychology used by the diamonds is quite powerful.