Wednesday, March 8, 2017

Is Amway Fair Or Not?

One of the bogus things my upline taught us was that the Amway opportunity was fair. That it was a completely level playing field. On the surface, that sounds right because "everyone starts at zero". While everyone does start at zero, the compensation plan is unfair to those who "do the work" and in my opinion, should be revamped so lower level IBOs make more money. It would probably help with IBO retention and maybe, some higher level leaders wouldn't have to work so hard to keep replacing people who quit.

If you are a new IBO, then you might not be really familiar with the Amway compensation plan. Amway pays out about 30+ percent of their gross as bonuses. Thus if you move 100 PV in goods, or about $300 in sales, then Amway pays out about $100 in bonuses. You as a new 100 PV IBO, would receive about $10 and your uplines, some of whom don't even know you exist, will split up the remaining $90 in bonuses. It truly is not a case of doing the work and getting paid. You are doing the work so upline gets paid. To add insult to injury, upline wants you to purchase materials that tries to convince you that this is a good deal.

And something very significant to think about. In what other sales profession are you compensated so low (3%)? I can only think of real estate, but in real estate, your sales are likely in the hundreds of thousands of dollars. In just about any other sales related profession, you get a much higher cut than 3%. Yes, your bonus or comission can be higher if you move more volume, but then you are likely receiving more money because you are now exploiting people doing 100 PV who get only $10 back.

Even after you consider the unfair compensation, you must factor in the cost of tools. Most uplines promote tools (cds, voicemail, functions) as vital to an IBO's success. Some uplines push the tools harder than others. But the tools purchases will often be the primary cause of IBO financial losses because the cost of tools will normally exceed an IBO's bonus. It is very common in the US for monthly tool purchases to exceed $200 a month on average, and very very few IBOs will ever reach a high enough level in the Amway compensation plan to earn enough just to break even. Also, the tools apparently do not work. There is no unbiased evidence to suggest that tools have any causal relationship to IBO success.

With Amway's spotty reputation and the unfair compensation plan, IBO retention is spotty. Many IBOs sign up and do little or nothing, and many IBOs don't even last a full year before they quit. What happens is IBOs begin to figure out that recruiting downline is next to impossible and therefore, generating more volume is nearly impossible, even for individuals with skills. If you are a new IBO or a prospect, I encourage you to sit down and really look at the math and factor in the cost of tools. There are many ways to earn a dollar, I just don't feel that Amway is an efficient way to do that.

6 comments:

Alberico Lopes said...

Seu problema é que você é um frustrado, fraco e sem perspectivas, vive de olhar a vida dos outros, ao invés de trilhar a sua. Sou um 9% estou há dois anos aqui no Brasil e não tenho está visão micro do negócio, trabalho com vendas montado projetos de redução de custos para empresas com nossos produtos onde de cada empresas fechada recebo 25%, então meu amigo faça favor de ficar calado e vá se ocupar em trabalhar, se quer vantagem é ganhar dinheiro fácil vá se cadastrar numa que seja pirâmide.

Anonymous said...

Bueno, yo como agente de seguros, recibo una comisión media (depende del producto) del 20 %, y luego tengo unos "rappel" por volumen de entre el 1,5 % o el 4 % (si llego a los volumenes especificados).
En Amway, desde que se empieza, se tiene un margen de comercialización del 30 ó 35 %, y luego un "bono" equivalente al "rappel" por volumen del 3 % al 21 % (en USA creo que el 25 %). Siendo qdemás, que para conseguri el "rappel o bono", el volumen que cuenta no es solo el propio, sino el del equipo.
¡Bien por Amway!

Anonymous said...

This article is completely bogus.

Anonymous said...

To Anonymous at 9:13 PM:

Why don't you tell us what part of it is bogus? Or are you afraid?

Anonymous said...

Sounds to me like the person who writes such an article has either failed and gave up or never even tried it...either way, too many people who are in it and have the success have one thing better than the person who writes this article: they never quit.

Anonymous said...

According to Amway's own literature 99% of IBOs fail to make money in the scheme. Some of them stay on for years losing money to their up-line. Many "CORE" Amway types stay in forever, and they don't make money.

So who the hell do you think you're kidding, buddy? Success in Amway is about as uncommon as winning the Mega-Bucks lottery

Joe Cool worked in Amway for years, and was at a 4000 PV level. He knows more about the Amway ripoff than you ever will.

And tell us -- just how much money have you personally lost in Amway so far? We're waiting.