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.


Anonymous said...

My secret informant at WWDB tells me that Diamonds and other big pins are strongly urged to spend lavishly on the kinds of luxury items that look good when shown on film at various Amway functions. You are instructed that "You HAVE to have a fancy car! You HAVE to live in an impressive mansion! Your wife HAS to wear expensive clothes and jewelry!"

You are also specifically instructed NOT to maintain a large balance in your savings account, since this indicates "a lack of faith" in the Amway system. Only persons who "don't believe" are worried about their savings accounts.

In fact, it's hard to imagine a way of life that is more directed to eventual destitution and bankruptcy than an Amway life. Even that minuscule one percent of IBOs who make money in Amway are expected to spend it lavishly on display and external appearance.

Joecool said...

I agree. If you do the math, showing that diamonds might earn a gross income of say $250,000 to $300,000, is a great income. But after taxes, business expenses, medical insurance, etc, you can easily see by the math that there isn't much left to live a gazillionaire lifestyle. I believe that most diamonds basically live a middle class lifestyle, albeit without a 9-5 job. However, diamonds must work their tails off on the graveyard shift to build and maintain their downlines.

The luxury you see could often be rented, or owned by some higher up diamond. And the trips and vacations that are shown can be ones that are given free by the Amway corporation.

Anon said...

Where are you getting your numbers?
A normal diamond earns no less than 600k
Platinums on average earn about 55k
Rubies done the right way earn around 120k, emeralds are the 200-300k mark.
And honestly when you are earning less than 20k a year, spending like 550 a month for personal use pays for the tools + function ticket + hotel. Cuz you earn money off your own purchases out of your own store.
Idk man this ain't adding up here.

Joecool said...

A normal diamond does not earn 600K. That would be a Q12 damond, which is the rare exception, not the rule.

What doesn't add up is the diamond lifestyle, even if someone earns $600K a year.

Anonymous said...

This "Anon" at December 24 must be a total moron.

He thinks that of you are making only $20,000 per year, an outlay of $550 per month is something that will be easy to do.

Is he fucking kidding us?

An outlay of $550 per month comes to $6600 per year. That's nearly one third of your disposable income. How the bloody hell are you going to get back any sort of refund from Amway to make up for that?

Maybe "Anon" should bone up on his math skills.