Tuesday, May 16, 2017

The Endless Amway Training?

I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible cent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank

2 comments:

Unknown said...

As a new IBO, I do feel the pressure to go to these motivational meetings and seminars. It is difficult at times to make that commitment but they do help to keep me motivated to keep trying. I love the products that Amway has and feel more comfortable showing the product as I feel it can certainly sell itself with more exposure. Not many products lines can say they have been around as long as Amway has.

Anonymous said...

Yeah the motivation is a ploy. I'm an ex-active IBO, I occasionally by a box of XS here and there.

But my expenses were ridiculous. We were instructed to build a business following the Eagle leadership program via BWW system. 150pv be on standing order ( CDs/streaming and book of the month), attend all meetings have 10 downline and minimum 5 need to duplicate you.

Note: Eagle Leadership is more structure than pv, you could be 4000pv and not an eagle.

Expenses: 150pv~$410 (pending on which items you purchased pv to bv ratio) which forces you to select items based on pv versus need for them, some switching of buying habit huh

Monthly streaming~ Full BWW package~ $35.99 for BMP, $36.99 for BWWTV, BSM and Webspace

Major conference: $125-$130
Hotel: varies but can be obviously $120 a night for two or three night conference

BBS conference: $25
Travel: varies depends on vehicle and distance

Book of the month: $18

Weekly association meeting:
$4-$6 a week and will go up to $8 if a Diamond comes to speak

PASE meetings on weekends are free but take up time, 2 hours talking about Products, Association, System and Education

Then buying things like a SAM (skin analyzer machine)or. BAM (body analyzing machine) promoted to you to get to further your Nutrilite sells.

They still Mall hunt, a lot in Virginia, they still go to universities to hunt students. Still never reveal what the concept is until the weekly meeting.

Now they have a new system called posturing where they show you the plan and treat you like an interviewee. And act that you should be lucky they even considered the person. This ensures the person sees that they are serious and they can vet whether the prospect will be a lifer.

They still have late night, night owls at IHOP or so game planning when Diamonds come in town. Everyone ( lots of new people) flock to Diamonds like they are the second coming of Jesus and smile with glazed over eyes.

They still criticize jobs and some time traditional businesses even though they​reference Alibaba, Uber, Amazon, Facebook, and Tesla a lot.

They still have "training" after the open meeting for business owners but it mostly consists of the husband and wife telling one or two jokes, rehashing the 4 basics ( make a list, call and invite, show the plan/follow up follow through, and get them started right) or the 9 core steps or promoting the upcoming conference or seminar...sigh

This business is frustrating and becomes your job essentially.

~Joseph Manman