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.


Frustrated said...

Ok I'm freaking out wife has become 100% involved with this WWDB $hit. She will no longer return to work and be a "slave to the man like I am". She talks to me like she's regurgitating these books or cd's. All day on the phone listening to KATES or audios. She has no income so apparently I am financing this voyage into hell. I try and reason with her and pose questions to her regarding the legitimacy of this "business" but she won't indulge in the slightest negativity towards her and or her people. Are there support groups or detox clinics for these people? Like my marriage will most likely end because of this scam. (Especially once my "slave-paychecks" are rerouted from the joint account to my personal).

Joecool said...

Frustrated, Ifeel your pain but the sad reality is that most Amway folks need to "snap out of it" on their own and no amount of logic or information will change their minds. There's also a chance that her upline will advise her to ditch you because you are "negative" on the "business". You can try this but you need to think about it and use your discernment because you know your wife best.

Tell her that any business needs to have sales and that those sales is how the business stays alive. Give her a month and tell her that her Amway business must sustain itself by its sales. In other words, if there are no sales (selling to yourself doesn't count), then no more functions or tools because a business must be able to make sales to keep running or call it quits.

In your case, it is your job that keeps her business running, not product sales to real customers. As I said, only you can determine what might work or not. Let me know what happens. Thanks!

concerned mom said...

joecool, it sounds like you have some experience that would be helpful for me to learn from. i don't know the term upline, is that like a coach or manager? are there other organizations that are not amway being run out of seattle that encourage students to quit college? how can i be certain it's amway? i am wondering how you came to know so much? thank you tons for your suggestions.

concerned mom said...

Joecool and Anna Banana,
I am so glad i found you!! Can you help me determine if my daughter is involved with Amway? Is it possible that she grew up knowing that Amway was a scam and still be led into it through a boyfriend? How can I be sure? Tonight i was reading that it appeals to new immigrants and immigrant students which both my daughter and her boyfriend are. Also since she has met him last year, I have seen very little of her, at first I thought she was just loving college life until she dropped out with 10 credits to go, and started attending a very evangelical church with her boyfriend which was something she very much opposed prior to meeting him. And her style of dress is extremely conservative and business casual..not at all hip and fun like it used to be. Does any of this sound familiar? Recently she has recruited another young man who is a dreamer who had just registered for community college which he is no longer planning on attending despite the fact that staying in college is the only pathway for him to stay in the country that's been home for him since he was 5. I am taking a break from sharing my concerns with her since the last conversation didn't go so well...thank you for anything you can offer!!

Joecool said...

Concern mom, an "upline" is basically someone who joined before you. Usually, an upline is considered a coach or mentor.

In Seattle, it's more than likely an organization called World Wide Dream Builders or WWDB. I have heard of them operating like a cult and encouraging students to not start college or to drop out to pursure the Amway business. You see, if you are in school, you need to spend money on books and tuition. The "upline" want you to spend all your money on Amway training, which they profit from. Thus they are ruthless enough to tell young students to quit school to pursue the Amway business, even though they know that most will fail.

Sadly, there's not much you can do. Most people snap out of it on their own after a short time, but some people get sucked in for a long time and the recovery is difficult for many. I wish you well and you can contact me by email if you go to my profile on this website, my contact information is there.

Good luck.