Tuesday, April 18, 2017

Flawed Amway Teaching?

One of the biggest pieces of garbage taught by some upline is the nearly exclusive "buy from yourself" philosophy. I'm not saying that supporting your business is a bad idea, but are you really supporting yout own business? If your upline teaches this, you are being mislead and I will explain why.

When you think you are buying from yourself, you are really buying from Amway. Amway makes the profit from the sales. If you buy enough, they toss you a small rebate. An IBO is in reality, a distributor or a middleman. Also, if you are a new IBO at the 100 PV level, you will receive 3% in the form of a bonus while your uplines and sponsor will split up approximately 29 to 30% in bonuses off your efforts.

The reason why upline teaches this is because most people are not turned on by the thought of promoting and selling products. And that's not to mention that you must also promote the Amway business opportunity if you want to make any significant money from the Amway opportunity. I have never heard of anyone maintaining a large Amway business based only on sales and not sponsoring other people.

But let me toss out a relatable example: Think of it this way. If your spouse was in the business of making and selling cookies, would you make money by eating all of the cookies? Even if you received a small rebate for cookie making materials, you would not profit by eating all the cookies yourself. You would have to sell the cookies to customers to have cash in your pockets. I truly do not understand how IBOs get duped into thinking they can be successful and earn money buy purchasing and consuming Amway products without selling much. Amway's own numbers suggest that IBOs do not sell much, except to their own downline and to themselves. And if you are counting on selling to downline, then you need to have downline, and those faithful downline will be losing money so you can make a profit. It is partly why there is so much attrition in Amway. IBOs are not profitable and cannot easily sell products, and quit.

And uplines who sell tools that teach this method are more than likely selling you a flawed system that nearly guarantees you will lose money. A rare few IBOs will emerge now and then who can overcome overwhelming odds and barriers and reach higher levels in the business, but I would have to say that more than 99% of IBOs who sign up will never even get close to emerald or diamond. Sadly, the buy from yourself system will only profit the higher level distributors, as well as your purchase of tools, which rewards upline for teaching a flawed system.


Anonymous said...

Your absolutely correct. I am an IBO and have been for years. If I did not like the product so well and feel like I can buy at cost, I would have been out years ago. For several years I had to use market products and just hated laundry soaps. (that is all I order) Amway does have a product line I swear by and feel is cost effective. I do not push it to make money. I am considered a dead leg. After this year, I probably will not re up.

Anonymous said...

Another angle on where the 29% bonus ends up, As mentioned after a downline purchases a product that person gets 3% of the bonus (which is really his/her own money) and a portion of the 29% of the bonus ends up in many upline’s pockets and in other areas above the downline.

Clearly Amway has to make a profit to stay in business right? And they make a profit when products are sold. The biggest purchasers of Amway products are the downline IBOs. Therefore the amway customer is the downline IBO for the most part.

Amway as a company must be getting a cut of the bonus (their revenue) generated when a product is sold (aka an IBO buys the Amway products). We have already stated what a bad deal it is to join Amway as an IBO. There are no benefits, no insurance, no 401k, no paid vacations, etc.

Ok, has anyone noticed that amway actually does have employees working for them AND to attract qualified talent, they offer the following benefits below. This is public information that is directly from the amway website and available for anyone to review.

Search for the amway website > Bottom under corporate info > careers > shutdown the video that pops up > select job postings > click explore open positions > search all jobs > scroll down and select a position > scroll to the bottom of the job description and you will see for the position that amway offers: medical, dental, prescription, vision, 401k participation, PROFIT SHARING (OMG!!!!!), Bonus Eligibility, Fitness Center, and product discounts (say what????? I thought everyone overpays for amway products. Apparently not the employees).

So let’s get this straight. The IBO gets no company benefits but the amway employee does. Amway needs to pay a salary to these employees and pay for their company benefits and that is done with the revenue generated by Amway. Again it was concluded that revenue is generated when products are sold. Who is buying the Amway products? As mentioned in this blog on many occasions, IBOs mostly and specifically downline IBOs. Can we conclude that the IBO is the one funding the employees’ salary and stated company benefits? It appears so.

Think about that. A downline IBO is buying amway products with his/her after tax dollars that funds his/hers upline’s piggy bank AND amway employees 401k and profit sharing account along with the rest of the benefits listed and the IBO gets NO BENEFITS – NOTHING.

For me? That is the ultimate slap in the face to an IBO. You are good enough to hire for free, consume your time, control your life, expect you to spend your money on over priced products but you are not worthy of all the benefits that others identified as employees are receiving at the company.

Anonymous said...

Yes, this is quite correct. Amway's real employees get all of the normal benefits and perks that come with an actual "J.O.B."

IBOs, on the other hand, get nothing.

This merely confirms what has been said at these anti-Amway sites over and over: the Amway "Plan" as presented to prospective new IBOs is a totally fake and make-believe business. IBOs wear their cheap business suits and go around with phones attached to their ears, but all of it is pure fakery. They aren't "Independent Business Owners" at all -- they are just customers for Amway products.

Amway's basic scam is to tell people who sign up with Amway that they are "in business," when in fact these people are merely indulging in an expensive hobby. Being a member of a buying club isn't being "in business."

When you join Amway you are just a commissioned salesman who gets a small discount on overpriced stuff. That's all.