To my loyal blog readers, Joecool will be traveling and walking the beaches of the world for the next couple of weeks. Guess what? I'm paying for it with my J-O-B income and not from Amway. I'll be visiting several different countries and taking in the sights and experiences.
I'll be checking in to publish comments occasionally but there won't be any new articles until after the first week of January. I'd like to take the time to wish everyone a Very Merry Christmas and a safe and Happy New Year!
See you all in 2017! Joecool out!
Friday, December 23, 2016
Thursday, December 22, 2016
The Amway Systems?
If you are an IBO or being recruited to be an IBO, it is almost certain that you are being recruited by an IBO in a "system". Now the system will likely have a name such as Network 21, WWDB, BWW, LTD or some others. Most if not all of these groups or systems will claim they are the best, fastest growing, or the most profitable. Now we know that they all cannot be the fastest growing or whatever. Most if not all of these systems will advise their IBOs to participate in their system. The system generally consists of websites, voicemail, books, cds, standing order cds, seminars and perhaps other workshops. The pressure to participate may varyt amongst groups, but it appears that the more you participate, the greater the pressure placed on you. Sort of like the analogy of boiling the frog.
All of these system companies are for profit companies, and generally the profits go to the diamonds and higher pins who own and run these companies. Some of the system diamonds earn most of their income from the sale of these tools. Now these system promoters may tell you that the system is vital to your success and some may claim that you cannot succeed without them. However, these system companies profit from selling you these materials whether you as an IBO profit or not. These systems profit even if you work hard and still go broke. While the system owners may claim that all success is attributable to the system, the same claim can be made of an even greater number of failures. Even the IBOs who put in an earnest amount of effort have an insignificant rate of success, perhaps lower than 1%. It is easy to conclude this because many and possibly most platinum businesses will consist of 100 or more IBOs. The platinum level is allegedly where an IBO breaks even or starts to make a small profit. Factor in the people who come and go (quit) and it is easy to conclude that the vast majority of IBOs either make nothing or lose money.
When you factor in the system expenses, then the number of IBOs who lose money goes up significantly. Looking at the 6-4-2 plan or whatever version your group uses, the lower levels of IBOs will earn less than $50 in a month, with most IBOs earning less than $20 per month. These IBOs won't even earn enough to cover the cost of their voicemail. If an IBO is participating in all of the system tools such as functions, it is nearly guaranteed that these IBOs will lose money due to the system expenses.
My conclusion is that the system just does not work. There is no unbiased documentation that suggests that the system works. Sure there may be some biased testimonials, but that would probably be it. If you are an active IBO, you can easily see if the system works as there would be new platinums, emerelads and diamonds emerging frequently, but that is not the case. It seems Amway is declining in the US and therefore, any new success (pins) will simply be replacing former pins who fall out of qualification or those who quit. The system does not work. However, I also came to the conclusion that nearly all of these financial systems do not work, including real estate gurus, Kiyosaki etal. It is why when they show success testimonials, there is usually a diaclaimer saying "unique experience".
In most if not all of these systems, including the Amway systems, apparently success is a unique experience. My conclusion? The system is broken. The system does not work. Some people can succeed in spite of the system, but they do not succeed because of it.
All of these system companies are for profit companies, and generally the profits go to the diamonds and higher pins who own and run these companies. Some of the system diamonds earn most of their income from the sale of these tools. Now these system promoters may tell you that the system is vital to your success and some may claim that you cannot succeed without them. However, these system companies profit from selling you these materials whether you as an IBO profit or not. These systems profit even if you work hard and still go broke. While the system owners may claim that all success is attributable to the system, the same claim can be made of an even greater number of failures. Even the IBOs who put in an earnest amount of effort have an insignificant rate of success, perhaps lower than 1%. It is easy to conclude this because many and possibly most platinum businesses will consist of 100 or more IBOs. The platinum level is allegedly where an IBO breaks even or starts to make a small profit. Factor in the people who come and go (quit) and it is easy to conclude that the vast majority of IBOs either make nothing or lose money.
When you factor in the system expenses, then the number of IBOs who lose money goes up significantly. Looking at the 6-4-2 plan or whatever version your group uses, the lower levels of IBOs will earn less than $50 in a month, with most IBOs earning less than $20 per month. These IBOs won't even earn enough to cover the cost of their voicemail. If an IBO is participating in all of the system tools such as functions, it is nearly guaranteed that these IBOs will lose money due to the system expenses.
My conclusion is that the system just does not work. There is no unbiased documentation that suggests that the system works. Sure there may be some biased testimonials, but that would probably be it. If you are an active IBO, you can easily see if the system works as there would be new platinums, emerelads and diamonds emerging frequently, but that is not the case. It seems Amway is declining in the US and therefore, any new success (pins) will simply be replacing former pins who fall out of qualification or those who quit. The system does not work. However, I also came to the conclusion that nearly all of these financial systems do not work, including real estate gurus, Kiyosaki etal. It is why when they show success testimonials, there is usually a diaclaimer saying "unique experience".
In most if not all of these systems, including the Amway systems, apparently success is a unique experience. My conclusion? The system is broken. The system does not work. Some people can succeed in spite of the system, but they do not succeed because of it.
Wednesday, December 21, 2016
The Amway Buffet?
In the Amway business, most active IBOs are advused to trust upline. To think of upline as a coach or a mentor. These upline mentors or coaches are supposed to have your best interest at heart and they will guide you to success if only you will be open to learning. Many uplines, including my former uplines used to coin the term "copy" or duplicate. If you can do that you will be successful. Even the simplest of people can copy. The upline may crack a joke about getting thru school by copying. Thus, many IBOs follow exactly what their upline advises them to do.
But then uplines turn the responsibility away from themselves. Many Amway defenders will also claim that downline should not simply follow the advice of upline. They may make a ridiculous claim that standing orders and functions contain advice that must be discerned. That information is like a buffet. You pick and choose what you need and discard the rest. If you are a new IBO or prospect, let me tell you that is a load of guano (crap) that is being heaped on you. Your upline is touted as having experience and wisdom in the Amway business, which is why you are paying good money for voicemail, books, cds, and functions. So why would their advice be something you pick and choose? How would a new IBO know what to pick and choose?
Imagine hiring a guide for a trek in the wilderness. The guide is supposed to be an experienced outdoorsman, perhaps an expert. So if he recommends that you eat certain plants or fruits, you trust that he is going to guide you right. Imagine eating something that made you sick to your stomach, only to have the guide tell you that he just points out plants and fruits and you have to discern which is good for you and which is not. You would fire the guide and tell everyone you know not to use that guide anymore.
But here we have these "systems" such as Network 21, WWDB or BWW that have been "guiding" IBOs for up to 20 years or more in some cases, and the number of diamonds are negligible. Sure there are many new platinums, but many tool consuming platinums have been found to be losing money or making very little money for their efforts. What's more, it would appear that Amway is losing ground in North America based on sales. One can reasonably guess that any new platinums that break are simply replacing the volume for a platinum that no longer exists or a platinum that no longer qualifies. My former upline diamond appears to have all new qualifying platinums from the time I was in the business and here's the kicker. My former diamond had 6 downline rubies. As far as I know, none of these rubies are qualified as platinum anymore, although I have heard that some of these are still active.
Uplines also program their downline to take responsibility for the failure. Thus you have IBOs who did everything that was asked of them, only to fail. Yet these IBOs often blame themselves for their failure. It is my opinion that former IBOs who did everything asked of them only to fail should file a formal complaint against their LOS with the better business bureau. Amway defenders like to think that a lack of formal complaints means that the system works when clearly, there is no unbiased substantial evidence to suggest that the system works. It looks like some succeed in spite of the system, not because of.
The catch in all this is uplines skirting responsibility for the outcomes of those they "mentor" and profit from. IBOs should ask if upline really cared about their success, why do you have to pay for any help that you receive from your upline diamond?
But then uplines turn the responsibility away from themselves. Many Amway defenders will also claim that downline should not simply follow the advice of upline. They may make a ridiculous claim that standing orders and functions contain advice that must be discerned. That information is like a buffet. You pick and choose what you need and discard the rest. If you are a new IBO or prospect, let me tell you that is a load of guano (crap) that is being heaped on you. Your upline is touted as having experience and wisdom in the Amway business, which is why you are paying good money for voicemail, books, cds, and functions. So why would their advice be something you pick and choose? How would a new IBO know what to pick and choose?
Imagine hiring a guide for a trek in the wilderness. The guide is supposed to be an experienced outdoorsman, perhaps an expert. So if he recommends that you eat certain plants or fruits, you trust that he is going to guide you right. Imagine eating something that made you sick to your stomach, only to have the guide tell you that he just points out plants and fruits and you have to discern which is good for you and which is not. You would fire the guide and tell everyone you know not to use that guide anymore.
But here we have these "systems" such as Network 21, WWDB or BWW that have been "guiding" IBOs for up to 20 years or more in some cases, and the number of diamonds are negligible. Sure there are many new platinums, but many tool consuming platinums have been found to be losing money or making very little money for their efforts. What's more, it would appear that Amway is losing ground in North America based on sales. One can reasonably guess that any new platinums that break are simply replacing the volume for a platinum that no longer exists or a platinum that no longer qualifies. My former upline diamond appears to have all new qualifying platinums from the time I was in the business and here's the kicker. My former diamond had 6 downline rubies. As far as I know, none of these rubies are qualified as platinum anymore, although I have heard that some of these are still active.
Uplines also program their downline to take responsibility for the failure. Thus you have IBOs who did everything that was asked of them, only to fail. Yet these IBOs often blame themselves for their failure. It is my opinion that former IBOs who did everything asked of them only to fail should file a formal complaint against their LOS with the better business bureau. Amway defenders like to think that a lack of formal complaints means that the system works when clearly, there is no unbiased substantial evidence to suggest that the system works. It looks like some succeed in spite of the system, not because of.
The catch in all this is uplines skirting responsibility for the outcomes of those they "mentor" and profit from. IBOs should ask if upline really cared about their success, why do you have to pay for any help that you receive from your upline diamond?
Monday, December 19, 2016
Sharp Amway Prospects?
One of the things taught to our group by upline was to recruit "sharp" people. And in general, I agree that many/most IBOs were sharp people. Most of them nice, motivated and wanting more in life. Certain Amway defenders wrongly claim that I am against Amway and IBOs to a degree where I am maniacal against them. I am not. I recall that most of my group and my crossline were mostly educated and had decent jobs. We all hoped to achieve the dream of walking away from our jobs and living in luxury. We got the idea that is was very reasonable and achievable if only we did as upline advised and immersed ourselves in the "system", which in my case, was WWDB. We were told that WWDB had much fruit on its tree and at the time I was an IBO, that appeared to be true.
However, we did not know that some WWDB leaders made significant income from selling us tools. You see, we were lied to and speakers at major functions told the audience that nobody made a cent from tools and that upline makes pennies only after you earn dollars. We know know that this is not true and that these speakers were lying. What's more, these leaders were never made accountable for their lies. They just revised history and acted like nothing happened. Sadly, many downline IBOs simply accepted the explanation and continued to buy tools. Currently, the WWDB tree is getting barren, with little "fruit". There are very few new diamonds from WWDB in the US, and some of their more apparently dynamic leaders have left WWDB to start their own systems. Thus it looks like WWDB is left with the same old tired speakers today, as the ones who were around prior to my involvement with Amway.
But what's puzzling, or maybe not, is why aren't there more successes if many, possibly most IBOs are "sharp" people? Surely large groups of smart and motivated people can accomplish much, but for whatever reason, they are unable to accomplish much in Amway and WWDB. In fact, many of these shapr people cannot sponsor a single downline and have difficulty in selling Amway products. After many years of blogging and analyzing the Amway opportunity, my conclusion is that Amway products are priced too highly and cannot compete with similar products on the open market. Sure, Amway defenders will cite quality or concentration as reasons why Amway is competitive, and in some cases, Amway is competitive, but the general public doesn't care, they just want cheap stuff and Walmart fulfills that need better than Amway. It leaves the majority of Amway sales being made to active business building IBOs. Apparently the artificial need to buy Amway goods disappears when the diamond dream disappears.
Also, the zany and sometimes deceptive behavior of past and some present IBOs gives the Amway name a bad reputation, making it difficult to get anyone to see the plan, and sponsoring becomes nearly impossible. It is for this reason, I believe Amway is growing in foreign countries and not in North America, where saturation has occured. When you factor in all of these variables, it is easy to conclude that large groups of sharp people fai is not because they are not capable, it is because the Amway opportunity comes with so many handicaps that even sharp people cannot overcome them. It is why so many former IBOs, including myself, ahve done quite well for themselves after leaving Amway. Did I learn some things about business while in Amway? yes, I did learn some things of value, but I also learned that I was lied to and deceived by WWDB leaders and for that reason, my blog continues......
However, we did not know that some WWDB leaders made significant income from selling us tools. You see, we were lied to and speakers at major functions told the audience that nobody made a cent from tools and that upline makes pennies only after you earn dollars. We know know that this is not true and that these speakers were lying. What's more, these leaders were never made accountable for their lies. They just revised history and acted like nothing happened. Sadly, many downline IBOs simply accepted the explanation and continued to buy tools. Currently, the WWDB tree is getting barren, with little "fruit". There are very few new diamonds from WWDB in the US, and some of their more apparently dynamic leaders have left WWDB to start their own systems. Thus it looks like WWDB is left with the same old tired speakers today, as the ones who were around prior to my involvement with Amway.
But what's puzzling, or maybe not, is why aren't there more successes if many, possibly most IBOs are "sharp" people? Surely large groups of smart and motivated people can accomplish much, but for whatever reason, they are unable to accomplish much in Amway and WWDB. In fact, many of these shapr people cannot sponsor a single downline and have difficulty in selling Amway products. After many years of blogging and analyzing the Amway opportunity, my conclusion is that Amway products are priced too highly and cannot compete with similar products on the open market. Sure, Amway defenders will cite quality or concentration as reasons why Amway is competitive, and in some cases, Amway is competitive, but the general public doesn't care, they just want cheap stuff and Walmart fulfills that need better than Amway. It leaves the majority of Amway sales being made to active business building IBOs. Apparently the artificial need to buy Amway goods disappears when the diamond dream disappears.
Also, the zany and sometimes deceptive behavior of past and some present IBOs gives the Amway name a bad reputation, making it difficult to get anyone to see the plan, and sponsoring becomes nearly impossible. It is for this reason, I believe Amway is growing in foreign countries and not in North America, where saturation has occured. When you factor in all of these variables, it is easy to conclude that large groups of sharp people fai is not because they are not capable, it is because the Amway opportunity comes with so many handicaps that even sharp people cannot overcome them. It is why so many former IBOs, including myself, ahve done quite well for themselves after leaving Amway. Did I learn some things about business while in Amway? yes, I did learn some things of value, but I also learned that I was lied to and deceived by WWDB leaders and for that reason, my blog continues......
Friday, December 16, 2016
When Do You Have Enough Amway Tools?
One of the things that many Amway defenders will claim is that too many IBOs do not apply what they are taught, thus they do not succeed. While I agree with this in principle, I believe that there are many many more problems with the Amway systems that have nothing to do an IBO's willingness to apply what they are taught. I believe the system just doesn't work and the IBO's end up shouldering the blame for a flawed system.
For the record, I will be referring to IBOs who actually make an effort to build the business. I know many IBOs do little or nothing, but that in itself is a whole different issue, probably stemming from deception in the recruitment process. But okay, let's look at the systems.
Voicemail. The voicemail systems used by many groups are not only expensive, but completely unnecssary. Most newer IBOs do not even earn enough money from Amway to pay for their voicemail, and frankly, in an internet based type of business, I don't see why email or skype or social media is not utilized, except for the fact that eliminating voiemail would be eliminating a profit center for many uplines. In fact, if voicemail must be used, why aren't IBOs using the Amway version of voicemail so IBOs can gain PV/BV? The excuse that KATE may be better doesn't fly because I'm sure Amway could make improvements to the system they have. But overall, email or facebook would still be just as efficient at no cost.
Standing orders. If you attend functions, why would you need an endless supply of cds or tapes? Most of these are recorded at functions anyway, thus upline is hitting you twice as you pay for the function and then get hit up for the standing order again. And how many standing orders give you specific and practical advice on running a profitable Amway business? I am guessing that very little practical advice is given on these standing orders. Why do you need a new supply every week?, except that it is a big profit center for upline.
Functions. If standing orders are so valuable, why do you need to spend money on functions, especially functions where airfare and hotel expenses are needed? Why wouldn't there be less major functions and more regional functions? If the true intent of these meetings is to generate IBO success, then shouldn't the IBOs be able to attend functions closer to home to reduce cost and to make them more accessible to the rank and file IBO? But keep in mind that major functions are a huge profit center for upline.
All in all, I believe that some tools have little value and they rarely teach IBOs sales techniques, and I also believe that tools are overpromoted in many LOS groups, to the financial detriment of many IBOs. If IBOs were made profitble in their first month or months of business, there would be less need for so much motivation. When do you have enough tools? According to upline, the answer is never. And that's because the upline makes a significant portion of their living from tools.
For the record, I will be referring to IBOs who actually make an effort to build the business. I know many IBOs do little or nothing, but that in itself is a whole different issue, probably stemming from deception in the recruitment process. But okay, let's look at the systems.
Voicemail. The voicemail systems used by many groups are not only expensive, but completely unnecssary. Most newer IBOs do not even earn enough money from Amway to pay for their voicemail, and frankly, in an internet based type of business, I don't see why email or skype or social media is not utilized, except for the fact that eliminating voiemail would be eliminating a profit center for many uplines. In fact, if voicemail must be used, why aren't IBOs using the Amway version of voicemail so IBOs can gain PV/BV? The excuse that KATE may be better doesn't fly because I'm sure Amway could make improvements to the system they have. But overall, email or facebook would still be just as efficient at no cost.
Standing orders. If you attend functions, why would you need an endless supply of cds or tapes? Most of these are recorded at functions anyway, thus upline is hitting you twice as you pay for the function and then get hit up for the standing order again. And how many standing orders give you specific and practical advice on running a profitable Amway business? I am guessing that very little practical advice is given on these standing orders. Why do you need a new supply every week?, except that it is a big profit center for upline.
Functions. If standing orders are so valuable, why do you need to spend money on functions, especially functions where airfare and hotel expenses are needed? Why wouldn't there be less major functions and more regional functions? If the true intent of these meetings is to generate IBO success, then shouldn't the IBOs be able to attend functions closer to home to reduce cost and to make them more accessible to the rank and file IBO? But keep in mind that major functions are a huge profit center for upline.
All in all, I believe that some tools have little value and they rarely teach IBOs sales techniques, and I also believe that tools are overpromoted in many LOS groups, to the financial detriment of many IBOs. If IBOs were made profitble in their first month or months of business, there would be less need for so much motivation. When do you have enough tools? According to upline, the answer is never. And that's because the upline makes a significant portion of their living from tools.
Thursday, December 15, 2016
A Better Option Than Amway?
One of the humorous things that IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's just not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will go one step further and offer some. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your due diligence your own soul searching, here are my opinions on what may be better than Amway:
1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of starbucks for example. Disciplined saving and investing. This may not sound exciting, but many people who are real millionaires did things in this manner. Success doesn't happen overnight so thinking it will in an Amway business is dangerous thinking.
2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. One thing I did when I finished college was to work 2 jobs and my 2nd income was mostly invested for my golden years.
3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.
4. Do nothing. Since most business building Amway IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. You will also save your time, which can be used for more productive things.
5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities. It's ironic because many people join Amway with a desire for more time and money, but end with less time and money because of Amway.
There you have it folks. There are some ideaas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.
1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of starbucks for example. Disciplined saving and investing. This may not sound exciting, but many people who are real millionaires did things in this manner. Success doesn't happen overnight so thinking it will in an Amway business is dangerous thinking.
2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. One thing I did when I finished college was to work 2 jobs and my 2nd income was mostly invested for my golden years.
3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.
4. Do nothing. Since most business building Amway IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. You will also save your time, which can be used for more productive things.
5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities. It's ironic because many people join Amway with a desire for more time and money, but end with less time and money because of Amway.
There you have it folks. There are some ideaas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.
Wednesday, December 14, 2016
Amway And Debt?
One of the pitches used to attract people to the Amway business was to earn enough just to get out of debt. Afterall, many Americans these days have credit cards maxed out and racking up more and more consumer debt. But the tough question is whether joining Amway will help the situation or only make it worse? Afterall, in general, Amway products have higher prices than retailers such as WalMart or Costco. Anyone who denies this is either being deceptive or is truly misguided. You can try to argue about Amway's quality of products. Some products are good, but overall, consumers simply don't find enough value in them. Seems that IBOs don't even buy Amway products unless they are pursuing their dreams of going diamond. Once that dream ends, so does their loyalty to Amway products.
Sadly, for most business building IBOs, the business opportunity and its connected teaching system such as WWDB, BWW, or N21 simply creates more debt for IBOs. Think about it, an IBO will already be spending about $300 a month to earn their defacto 100 PV requirement. If that IBO subscribes to voicemail and no other tools, that IBO will already have a net loss for the month. Factor in ongoing expenditures such as standing orders, functions, open meetings, regional functions, books and other miscellaneous expenses and you have an IBO heading towards tens of thousands of dollars deeper into the debt hole. Most IBOs don't see what's happening because the debt is incurred a few hundred dollars a month, but most IBOs think it's okay because they are convinced that they will recoup the losses and earn a huge surplus in the long run. Unfortunately, only a tiny fraction of 1% of IBOs will ever earn a decent profit from the Amway opportunity. Most will realize they are making their finances worse and end up quitting.
In the few cases where a diamond's financial were exposed, these diamonds were in hock. Even a prominent triple diamond was not earning enough to sustain the lifestyle he and others promoted on stage. It is my guess that these diamonds in financial difficulty is more likely the norm than the exception. Do the math. If a triple diamond earns about a million dollars from Amway and the tools profits, can that income sustain a jetset lifestyle portrayed in functions like dream nite? I mean it is a great income, but everything is relative. Someone earning say $70,000 a year can live a comfortable lifestyle without debt. But diamonds portray a lifestyle of excess and almost arrogance. It's no wonder some of them have financial problems.
In the end, IBOs are drowning in debt as a whole. The system nearly ensures that the group of IBOs collectively will end up with a net loss with one or two at the top earning a profit. One's dedication to tools determines how much an IBO will lose. The more dedication, the bigger the losses. If your upline teaches you to get out of debt, that's good. but if they teach you to get out of debt, except for functions and standing orders, take that as a huge red flag.
Sadly, for most business building IBOs, the business opportunity and its connected teaching system such as WWDB, BWW, or N21 simply creates more debt for IBOs. Think about it, an IBO will already be spending about $300 a month to earn their defacto 100 PV requirement. If that IBO subscribes to voicemail and no other tools, that IBO will already have a net loss for the month. Factor in ongoing expenditures such as standing orders, functions, open meetings, regional functions, books and other miscellaneous expenses and you have an IBO heading towards tens of thousands of dollars deeper into the debt hole. Most IBOs don't see what's happening because the debt is incurred a few hundred dollars a month, but most IBOs think it's okay because they are convinced that they will recoup the losses and earn a huge surplus in the long run. Unfortunately, only a tiny fraction of 1% of IBOs will ever earn a decent profit from the Amway opportunity. Most will realize they are making their finances worse and end up quitting.
In the few cases where a diamond's financial were exposed, these diamonds were in hock. Even a prominent triple diamond was not earning enough to sustain the lifestyle he and others promoted on stage. It is my guess that these diamonds in financial difficulty is more likely the norm than the exception. Do the math. If a triple diamond earns about a million dollars from Amway and the tools profits, can that income sustain a jetset lifestyle portrayed in functions like dream nite? I mean it is a great income, but everything is relative. Someone earning say $70,000 a year can live a comfortable lifestyle without debt. But diamonds portray a lifestyle of excess and almost arrogance. It's no wonder some of them have financial problems.
In the end, IBOs are drowning in debt as a whole. The system nearly ensures that the group of IBOs collectively will end up with a net loss with one or two at the top earning a profit. One's dedication to tools determines how much an IBO will lose. The more dedication, the bigger the losses. If your upline teaches you to get out of debt, that's good. but if they teach you to get out of debt, except for functions and standing orders, take that as a huge red flag.
Tuesday, December 13, 2016
Amway Numbers?
One of the things Amway IBOs are taught is to ignore facts, or to ignore numbers. I believe this is because the numbers are not pretty when you take a business like approach to the math behind the Amway business, for most IBOs. It is why upline teaching often "evolves" into things such as Amway saves marriages, or Amway makes you a nicer person, or that Amway is not about money, it is about friendships. That is a load of garbage. Business is about making a profit. If you hear some of these lines from your upline, it should be a red flag. Upline may also feed you other deceptive lines such as an IBO being successful because they showed up at a function, or because they just signed up for standing order. These are all just false lines to encourage an IBO who is not making money.
When you take a good look at the Amway presentation, the majority of IBOs are at the 100 PV level. At that level, they are spending about $300 monthly to reach 100 PV and for their efforts, they receive approximately a $10 check from Amway. Most IBOs will be encouraged to participate in some kind of system, often consisting of voicemail, websites, cds, books, seminars and other meetings. MOST IBOs will not recoup enough cash to cover any of these expenses, let alone all of them. At a glance, the system expenses may appear nominal such as $6 for a cd, $6 for an open meeting, $100 to $125 for a major function, $12 for a book. It is how upline gets you involved, and then after a while, an IBO starts to notice the negative cashflow and then a tough decision needs to be made. Either quit and cut the losses, or press on hoping that the system will eventually deliver on its promises.
What most IBOs don't notice, is that less than one half of one percent ever reach platinum. A fraction of one percent! And in many cases, platinums might break even or even suffer losses! So why would IBOs want to work so hard to reach platinum? They have less than a 1% chance of reaching that level. They have a tiny chance of maintaining that level, and they are still unlikely to earn any significant income at that level. A stody done by an attorney general in Wisconsin (Bruce Craig) revealed that platinum level IBOs averaged a net loss of about $900 annually. While Amway defenders will decry that the study is a bit dated, I will say this: The basics of the Amway business has not changed since that study was done, AND there are actually more system expenses today than there were back then, thus platinums may actually be losing more money annually than before. While not all platinums will lose money, I believe hard core dedicated platinums would stand to lose money.
As an IBO, I hope you are tracking your expenses versus your income. Most IBOs will see a negative cashflow month after month. Even though the Amway business is often promoted as low or no overhead, the system expenses (overhead) eventually begin to add up. Beware and please follow the numbers.
When you take a good look at the Amway presentation, the majority of IBOs are at the 100 PV level. At that level, they are spending about $300 monthly to reach 100 PV and for their efforts, they receive approximately a $10 check from Amway. Most IBOs will be encouraged to participate in some kind of system, often consisting of voicemail, websites, cds, books, seminars and other meetings. MOST IBOs will not recoup enough cash to cover any of these expenses, let alone all of them. At a glance, the system expenses may appear nominal such as $6 for a cd, $6 for an open meeting, $100 to $125 for a major function, $12 for a book. It is how upline gets you involved, and then after a while, an IBO starts to notice the negative cashflow and then a tough decision needs to be made. Either quit and cut the losses, or press on hoping that the system will eventually deliver on its promises.
What most IBOs don't notice, is that less than one half of one percent ever reach platinum. A fraction of one percent! And in many cases, platinums might break even or even suffer losses! So why would IBOs want to work so hard to reach platinum? They have less than a 1% chance of reaching that level. They have a tiny chance of maintaining that level, and they are still unlikely to earn any significant income at that level. A stody done by an attorney general in Wisconsin (Bruce Craig) revealed that platinum level IBOs averaged a net loss of about $900 annually. While Amway defenders will decry that the study is a bit dated, I will say this: The basics of the Amway business has not changed since that study was done, AND there are actually more system expenses today than there were back then, thus platinums may actually be losing more money annually than before. While not all platinums will lose money, I believe hard core dedicated platinums would stand to lose money.
As an IBO, I hope you are tracking your expenses versus your income. Most IBOs will see a negative cashflow month after month. Even though the Amway business is often promoted as low or no overhead, the system expenses (overhead) eventually begin to add up. Beware and please follow the numbers.
Monday, December 12, 2016
Amway Products Have Great Value?
It appears to me that Amway sales in the US have gone down. Globally, Amway sales declined to 9.5 billion after hitting a high of 11.8 billion a few years ago. However, if Amway didn't have expansion in China and India, I wonder what their sales would be like? I do not believe there has been signifcant growth even in the days of "Quixtar". I believe that mist Amway sales are simply to Amway IBOs who are taught "buy from yourself" or "be your own best customer". IBOs purchasing products is not a problem, unless they are purchasing more than they actually sell, especially in light of the recent FTC vs. Herbalife settlement.
Many IBOs and Amway defenders claim that Amway products are simply the "best". Some even go so far as to call Amway product superior to big box retailer's products. In the past, some unbiased reviews of Amway products compared to name brand had some Amway goods rated as average, some were very expensive, and some were satisfactory. Of course, quality is subjective and it certainly seems that whether or not one is an IBO determines that quality. But retail consumers have spoken. Price is an important consideration. WalMart proves this.
But here's the definitive question. If Amway products are so good, why do former IBOs rarely continue to buy them? I mean Amway sales would continue to climb steadily each year if former IBOs kept buying products. And here's another angle on all of this. If some former IBOs do purchase Amway goods, I would bet that they do not purchase 100 PV or more each month as they do when they are IBOs. It would appear that uplines are able to manipulate or create an artificial demand for Amway products amongst the active IBOs. This is a point of contention between Amway defenders and Amway critics because an artificial demand toes the line on legality issues.
There are tens of millions of former IBOs. There are less than 200 qualified diamonds in the US. I believe there are more lottery winners than qualified diamonds. But if there are tens of millions of former IBOs and hundreds of thousands of current IBOs why aren't the Amway sales consistently growing? I believe it's because Amway IBOs are the primary consumers of Amway products and former IBOs are not. And because information is easily available on the internet, prospects who are approached an easily google up Joecool's blog or other sites full of information and make an informed decision. I believe that is partly why sales are down in the US, because recruitment and sponsoring of new IBOs is down.
So if Amway products have such great value, why don't most former IBOs continue to purchase them?
Many IBOs and Amway defenders claim that Amway products are simply the "best". Some even go so far as to call Amway product superior to big box retailer's products. In the past, some unbiased reviews of Amway products compared to name brand had some Amway goods rated as average, some were very expensive, and some were satisfactory. Of course, quality is subjective and it certainly seems that whether or not one is an IBO determines that quality. But retail consumers have spoken. Price is an important consideration. WalMart proves this.
But here's the definitive question. If Amway products are so good, why do former IBOs rarely continue to buy them? I mean Amway sales would continue to climb steadily each year if former IBOs kept buying products. And here's another angle on all of this. If some former IBOs do purchase Amway goods, I would bet that they do not purchase 100 PV or more each month as they do when they are IBOs. It would appear that uplines are able to manipulate or create an artificial demand for Amway products amongst the active IBOs. This is a point of contention between Amway defenders and Amway critics because an artificial demand toes the line on legality issues.
There are tens of millions of former IBOs. There are less than 200 qualified diamonds in the US. I believe there are more lottery winners than qualified diamonds. But if there are tens of millions of former IBOs and hundreds of thousands of current IBOs why aren't the Amway sales consistently growing? I believe it's because Amway IBOs are the primary consumers of Amway products and former IBOs are not. And because information is easily available on the internet, prospects who are approached an easily google up Joecool's blog or other sites full of information and make an informed decision. I believe that is partly why sales are down in the US, because recruitment and sponsoring of new IBOs is down.
So if Amway products have such great value, why don't most former IBOs continue to purchase them?
Friday, December 9, 2016
Are Lies Needed To Build Your Amway Business?
The first time I was prospected for Amway, I was in college. I actually didn't know much about Amway but I had somehow formed a negative opinion of it. Needless to say, when I was invited to a beer bust and it turned instead to an Amway meeting, by impression of Amway got even worse. I eventually did join because a close friend of mine had achieved platinum and he had assured me that it could be done and that he would make sure that I would also achieve it. I did achieve a level just below platinum (4000 PV), but I quit for several reasons. First of all, I didn't make a net profit as the tools ate up my profits. Secondly, the more I progressed in the busines, the more and more my upline wanted control of my life. For example, we were told that we should check upline before getting married, buying a car, or even having children, etc. I thought that was very strange and I eventually left the business.
But in the US at least, I believe Amway's name to be so battered that an IBO cannot sponsor downline and build a business without lies and deception. There are hoards of stories confirming testimony that lies and deceit are common in prospecting potential IBOs. This was extremely rampant when Amway changed their name to Quixtar. IBOs would deny the connection or IBOs would say they are with network 21or WWDB and claim something ridiculous such as Amway simply being their supplier. The promotion of perfect water also brought on silly antics about a $50 case of water being capable of performing miracles. If the opportunity could stand on its own merits, then IBOs would not have to resort to such desperate measures.
Even the Amway presentation if often filled with deception and lies. I remember seeing the presentation and they said shopping through Amway, an IBO would save 30%over local retailers. When I actually saw the catalogs, I wondered where the savings was. The 6-4-2 plan or similar variations are made to sound easy and the presenter talked about lifelong residuakl willable income, which I also find to be deceptive if not an outright lie.
But can Amway be successfully promoted without lies and deception? It is my opinion that an IBO has no chance of building a business by being completely upfront and honest about Amway and about being an IBO. Even with lies and deceit, many IBOs still cannot get people to see the plan or to buy products. An Amway rep has stated that very little Amway products are sold to non IBOs. So if you cannot sell products and you cannot get people to see the plan, you cannot build a business and if you are purchasing tools, you are simply digging yourself a financial hole that will only grow larger as time passes. The cost of 100 PV is alreay more than what most families and/or singles spend in a month on household products. This means that most people simply cannot sustain themselves in the business and it explains why most IBOs drop out in the first year.
It is why lies and/or deception are needed for an IBO to have a chance at promoting and building an Amway business.
But in the US at least, I believe Amway's name to be so battered that an IBO cannot sponsor downline and build a business without lies and deception. There are hoards of stories confirming testimony that lies and deceit are common in prospecting potential IBOs. This was extremely rampant when Amway changed their name to Quixtar. IBOs would deny the connection or IBOs would say they are with network 21or WWDB and claim something ridiculous such as Amway simply being their supplier. The promotion of perfect water also brought on silly antics about a $50 case of water being capable of performing miracles. If the opportunity could stand on its own merits, then IBOs would not have to resort to such desperate measures.
Even the Amway presentation if often filled with deception and lies. I remember seeing the presentation and they said shopping through Amway, an IBO would save 30%over local retailers. When I actually saw the catalogs, I wondered where the savings was. The 6-4-2 plan or similar variations are made to sound easy and the presenter talked about lifelong residuakl willable income, which I also find to be deceptive if not an outright lie.
But can Amway be successfully promoted without lies and deception? It is my opinion that an IBO has no chance of building a business by being completely upfront and honest about Amway and about being an IBO. Even with lies and deceit, many IBOs still cannot get people to see the plan or to buy products. An Amway rep has stated that very little Amway products are sold to non IBOs. So if you cannot sell products and you cannot get people to see the plan, you cannot build a business and if you are purchasing tools, you are simply digging yourself a financial hole that will only grow larger as time passes. The cost of 100 PV is alreay more than what most families and/or singles spend in a month on household products. This means that most people simply cannot sustain themselves in the business and it explains why most IBOs drop out in the first year.
It is why lies and/or deception are needed for an IBO to have a chance at promoting and building an Amway business.
Wednesday, December 7, 2016
Why Amway Isn't Sustainable?
One of the selling points of the Amway business is for people to do the work once and then reap financial benefits for life. But that simply does not happen for the vast majority of IBOs. The reason why most IBOs do not have a sustainable business is because their business is not based on sales to genuine customers with a genuine need. Most IBOs themselves will not buy Amway products once their affiliation to Amway is over. They don't mind paying inflated prices while they have dreams of untold wealth, but their desire for those products fade as their dreams fade.
If you are an IBO doing your 100 PV monthly, then your only way to increase volume is to sponsor downline in hopes that they will also do their 100 PV as shown in the plan. And even if you are somehow able to accomplish this and sponsor a bunch of people as shown in the plan, chances are that many IBOs will "do nothing" and of the remaining, some will move 100 PV, but they will likely quit in one year or less.
In many or possibly most cases, IBOs are only selling the Amway opportunity and not Amway products. They sell the possibility or hope that they will build a business, walk away and collect untold wealth for the rest of their lives. It isn't going to happen. Say for example, you sold 100 PV monthly on a consistent basis to customers. These customers will automatically go online and make purchases when they run out of their products. If you are lucky, they will also refer friends to make purchases. But most IBOs do not sell products, they are selling the opportunity. Making residual income sounds like a good idea, but paying for overpriced vitamins and other goods "wears out its welcome" once an IBO realizes that their Amway business will not deliver lifelong residual income.
That brings up the next point about why an Amway business is not sustainable for most. The products cost more than most other retailers. That will limit the potential for customers and referals. Amway defenders like to cite quality issues, but most customers who shop online aren't familiar with Amway products and have no way to know whether Amway has quality products or not. That leaves them to decide based on prices. And Amway in general, costs much more than Walmart for the same or similar products. A tough sell indeed. And quality is subjective, so most people will decide on price alone. And on that basis, Amway cannot compete.
If you are an IBO doing your 100 PV monthly, then your only way to increase volume is to sponsor downline in hopes that they will also do their 100 PV as shown in the plan. And even if you are somehow able to accomplish this and sponsor a bunch of people as shown in the plan, chances are that many IBOs will "do nothing" and of the remaining, some will move 100 PV, but they will likely quit in one year or less.
In many or possibly most cases, IBOs are only selling the Amway opportunity and not Amway products. They sell the possibility or hope that they will build a business, walk away and collect untold wealth for the rest of their lives. It isn't going to happen. Say for example, you sold 100 PV monthly on a consistent basis to customers. These customers will automatically go online and make purchases when they run out of their products. If you are lucky, they will also refer friends to make purchases. But most IBOs do not sell products, they are selling the opportunity. Making residual income sounds like a good idea, but paying for overpriced vitamins and other goods "wears out its welcome" once an IBO realizes that their Amway business will not deliver lifelong residual income.
That brings up the next point about why an Amway business is not sustainable for most. The products cost more than most other retailers. That will limit the potential for customers and referals. Amway defenders like to cite quality issues, but most customers who shop online aren't familiar with Amway products and have no way to know whether Amway has quality products or not. That leaves them to decide based on prices. And Amway in general, costs much more than Walmart for the same or similar products. A tough sell indeed. And quality is subjective, so most people will decide on price alone. And on that basis, Amway cannot compete.
Monday, December 5, 2016
The Job Pyramid?
One of ths things I take issue with is how uplines will create an us versus them mentality in the business. Thus friends and family who care about you suddenly become "negative" and association with them should be limited. In some cases, people are discouraged from excellence in their jobs or professions because it takes the focus off of their Amway business. What I was told was to do my job, but my radar should always be on for new prospects. Some crossline IBOs turned down promotions at work because they did not want to have to work longer hours or take the focus off of their Amway businesses.
In some cases, the speaker at open meetings or functions will put down people's jobs. A commonly used acronym was J-O-B = "Just Over Broke". Some leaders also would say that my job was a pyramid because you will never earn more than the boss. A completely ridiculous comparison because someone's job has no relationship with how people view the Amway business (i.e. an Amway pyramid) and in a job, every employee gets paid and has a net gain at the end of the month. Not true in Amway. If IBOs only use KATE for example, an IBO at 100 PV or less will already be at a loss, and that is not considering any other expenses that IBO may have. And while a job may have a hierarchy, or chain of command, the business owner and CEO or manager earns their salary from customers, not directly from the pockets of their employees.
Some uplines will laugh about people's jobs, stating that they wake up at the "crack of noon". What these same uplines may not tell you is that they wake up at noon because they are up at 3:00 in the morning doing nite owls for their groups and looking for recruits. These same uplines possibly can't do much with their downlines since their downlines mostly tend to have 9-5 jobs.
So if you are of the opinion that nobody should criticize the Amway opportunity
or IBO behavior, maybe uplines and IBOs should not criticize family and friends who disagree with or are not interested in the opportunity, and maybe the same uplines and IBOs should not criticize people who choose to work jobs. Don't most IBOs rely on their jobs as their Amway income is not sufficient to even pay for their Amway business related expenses?
In some cases, the speaker at open meetings or functions will put down people's jobs. A commonly used acronym was J-O-B = "Just Over Broke". Some leaders also would say that my job was a pyramid because you will never earn more than the boss. A completely ridiculous comparison because someone's job has no relationship with how people view the Amway business (i.e. an Amway pyramid) and in a job, every employee gets paid and has a net gain at the end of the month. Not true in Amway. If IBOs only use KATE for example, an IBO at 100 PV or less will already be at a loss, and that is not considering any other expenses that IBO may have. And while a job may have a hierarchy, or chain of command, the business owner and CEO or manager earns their salary from customers, not directly from the pockets of their employees.
Some uplines will laugh about people's jobs, stating that they wake up at the "crack of noon". What these same uplines may not tell you is that they wake up at noon because they are up at 3:00 in the morning doing nite owls for their groups and looking for recruits. These same uplines possibly can't do much with their downlines since their downlines mostly tend to have 9-5 jobs.
So if you are of the opinion that nobody should criticize the Amway opportunity
or IBO behavior, maybe uplines and IBOs should not criticize family and friends who disagree with or are not interested in the opportunity, and maybe the same uplines and IBOs should not criticize people who choose to work jobs. Don't most IBOs rely on their jobs as their Amway income is not sufficient to even pay for their Amway business related expenses?
Friday, December 2, 2016
Amway Prosperity Preachers?
I remember pretty clearly, some of the things touted by upline to sell IBOs and recruits on the Amway business was to stress family values. That the man would do the work and that the wife would care for the children. I also heard prosperity preaching from various uplines as they spoke about how God wants you to be rich, or that Amway is a God pleasing business. Or that the business is more about friendships than about money.
I wonder how God would feel about uplines who lied to their groups about tools profits? I wonder how God would feel about uplines taking advantage of their downline in order to prosper? I wonder how God would feel about uplines advising downline to skip paying their rent or mortgages to pay for a function. Or how about having your family skip meals so you can buy more standing orders? I wonder how God would feel about IBOs worshipping the diamonds and money/material goods? As crazy as this sounds, these are actual things I heard as an IBO, and what’s crazier is that I believe some of these things are still taught today. There is ample evindence and testimony out there to indicate that many of these practices occur today.
The Good book (The Bible) says the love of money leads to all kinds of evils. (Timothy) I believe that the upline at one time truly wanted to develop training for their business. But what happened was GREED took over and corrupted the systems. It is why there are many lawsuits of diamonds versus diamonds. Diamonds moving their entire groups to form their own training systems, or diamonds even moving a another MLM altogether. It is quite evident that many uplines hearts are full of greed. It is why you hear blanket statements like never quit, or do what it takes to get to that next function, or that nobody can succeed without tools.
Power and adoration can be alluring. I believe many – a – diamond has become corrupt and greedy. Their needs come before those they pretend to serve. They are wolves with a nice suit and a nice smile. Their greed knows no bounds. They will tell you touching stories to tug on your heart. They will tell you anything that will increase their bottom line.
The most disturbing thing about these leaders is that they do these evil deeds under the pretense that they are serving God and/or promoting family values.
• Proverbs 22:16 - "He who oppresses the poor to increase his wealth and he who gives gifts to the rich — both come to poverty."
• 1 Timothy 6:7-10 - "For we brought nothing into this world, and it is certain we can carry nothing out. And having food and clothing, with these we shall be content. But those who desire to be rich fall into temptation and a snare, and into many foolish and harmful lusts which drown men in destruction and perdition. For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows."
• Luke 18:22-25 - "... it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God."
• 1 Timothy 6:3-5 - "If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain."
I wonder how God would feel about uplines who lied to their groups about tools profits? I wonder how God would feel about uplines taking advantage of their downline in order to prosper? I wonder how God would feel about uplines advising downline to skip paying their rent or mortgages to pay for a function. Or how about having your family skip meals so you can buy more standing orders? I wonder how God would feel about IBOs worshipping the diamonds and money/material goods? As crazy as this sounds, these are actual things I heard as an IBO, and what’s crazier is that I believe some of these things are still taught today. There is ample evindence and testimony out there to indicate that many of these practices occur today.
The Good book (The Bible) says the love of money leads to all kinds of evils. (Timothy) I believe that the upline at one time truly wanted to develop training for their business. But what happened was GREED took over and corrupted the systems. It is why there are many lawsuits of diamonds versus diamonds. Diamonds moving their entire groups to form their own training systems, or diamonds even moving a another MLM altogether. It is quite evident that many uplines hearts are full of greed. It is why you hear blanket statements like never quit, or do what it takes to get to that next function, or that nobody can succeed without tools.
Power and adoration can be alluring. I believe many – a – diamond has become corrupt and greedy. Their needs come before those they pretend to serve. They are wolves with a nice suit and a nice smile. Their greed knows no bounds. They will tell you touching stories to tug on your heart. They will tell you anything that will increase their bottom line.
The most disturbing thing about these leaders is that they do these evil deeds under the pretense that they are serving God and/or promoting family values.
• Proverbs 22:16 - "He who oppresses the poor to increase his wealth and he who gives gifts to the rich — both come to poverty."
• 1 Timothy 6:7-10 - "For we brought nothing into this world, and it is certain we can carry nothing out. And having food and clothing, with these we shall be content. But those who desire to be rich fall into temptation and a snare, and into many foolish and harmful lusts which drown men in destruction and perdition. For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows."
• Luke 18:22-25 - "... it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God."
• 1 Timothy 6:3-5 - "If anyone teaches false doctrines and does not agree to the sound instruction of our Lord Jesus Christ and to godly teaching, he is conceited and understands nothing. He has an unhealthy interest in controversies and quarrels about words that result in envy, strife, malicious talk, evil suspicions and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain."