Wednesday, October 26, 2016

Fake Financial Gurus?

Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, all show testimonials of sucessful people. Obviously they do not show you the vast majority of people who try their systems and fail. Many have the disclaimer that success is a "unique" experience. There's a good reason for that.

It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cashflow business, the vast majority of people who try these systems do not make any kind of significant income or any net income at all for that matter. Sure, some do, and those are shown as the possibilities. But if you watch infomercials, you will see many testimonials from smiling people who claim they made money using the alleged system. What you won't see if whether the income made is sustainable and the tens of thousands of people who may have tried the system but were unable to generate any income.

Some Amway diamonds have been heard saying that doers do, and those who can't do, teach. So what do you think Amway diamonds and alleged financial gurus like Kiyosaki are doing? They are teaching and not "doing", are they not? If Kiyosaki could make millions by doing his own methods, he wouldn't need to pimp his books and seminars. I'm pretty sure he's not writing books and pimping seminars out of the pure goodness in his heart to help people. Same goes for the Amway diamonds. But if you only take away one point from this message, it's that the diamonds themselves are teachers and not doers.

These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the lower level IBOs. In the common 6-4-2 plan, there is 1 platinum and 78 downline who aren't. And that flawed plan assumes that all IBOs actually did enough to earn a bonus.

So what can someone do? Well, it may not be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who sell them.


John Doe said...

Hey Joe,

Awesome blog post! I just wanted to mention one thing your post made me think of when I read the bottom of it. It reminded me of Mark Cuban, and his philosophy on people wanting to share their "system" for getting you fabulously rich.

"There are no shortcuts. NONE. With all of this craziness in the stock and financial markets, there will be scams popping up left and right. The less money you have, the more likely someone will come at you with some scheme . The schemes will guarantee returns, use multi level marketing, or be something crazy that is now “backed by the US Government”. Please ignore them. Always remember this. If a deal is a great deal, they aren’t going to share it with you."

If there is anyone to listen to about this subject, it is Mark Cuban. People need to start taking responsibility for checking the backgrounds of these supposed "gurus", and stop blindly believing that the first person who sticks their hand out is going to be interested in being helpful. Question everything, and don't take things for granted. There is nothing wrong with asking hard questions when it comes to your future and finances. If someone is trying to help you, then ask what they are going to get in return, because everyone has an agenda.

Joecool said...

Not a single diamond or upline will verify their earnings because you will see what a scam Amway is. You'll see that at least half of their income is from the tools and functions and not Amway. That's why they'll show you a copy of a one time check they may have received.

In real business, it is very common for people to show their tax returns as a way to prove their income claims. If you are being asked to invest time and money into this business, you have every right to ask and expect to see the information you request. If not it's a red flag.

Amwayers claim they don't consider Amway a get rich quick scheme (because upline says so) but what do you call a 2-5 year pan for residual lifelong income? I'd call it get rich quick. Reality is you don't get rich at all.