Monday, December 31, 2018

Why Amway IBOs Fail?

So many Amway IBOs quit and fail. I think the Amway corporation might need a calculator to keep track. And of the IBOs who work and try hard, most of those IBOs also end up in failure and losing money. After years of blogging about Amway, I believe it is because the uplines and the tools they sell to help IBOs are ineffective. When I was an IBO, I don't recall many tools that contained information teaching me how to run a business or how to run an Amway business. There was no talk about tracking income and expenses. In fact, our group was advised to ignore the facts. The scary thing about this is that it is evident that some groups are still teaching this.

Many IBOs and prospects are lured into the business by displays of illusions of wealth and not because of bonafide and verified business credentials. A friend of mine sold his franchise business a few years ago and part of what he provided to the prospective buyer was the last three years of his tax returns, personal and business returns. But try asking an upline to even see a business profit loss statement or a schedule C business tax return and you are likely to be told it is none of your business. Instead, upline may show off a photocopy of a bonus check which may be an annual or a once in a lifetime bonus. Or upline may show off a sports car as evidence that they are successful. Sadly, some of these uplines might be broke, they may owe back taxes to the IRS and/or they may even be in debt but simply showing off wealth.

Some uplines have the nerve to discourage young people from furthering their education because they would rather they channel their money into Amway and tools. Some people are told to make family sacrifices to attend more functions or to buy more standing orders. I will grant that not all uplines do this but based on my experience, I would say more uplines do this than not. They will apply subtle pressure on new IBOs and the newbies probably don't know much about Amway or business so they basically have to choice but to trust a diamond who has allegedly achieved the pinnacle of success in Amway. Then uplines will often betray their disciples by saying that failure is the personal responsibility of teh IBO. That advice needs to be discerned by the new IBO and bad advice should be discarded, as if a new IBO would know what is good or bad advice.

I aso see experienced IBOs who don't seem to know how taxes work. They think that business expenses are simply recovered hen filing taxes which is clearly not true. I see IBOs who were given the impression that Amway is simple/easy and that they will work once and enjoy the fruits of their labor forever. Oddly, I don't know of a single IBO who did the work once and sat back collecting residual income forever. I find it odd that even tenured crown ambassadors continue to keep busy working schedules. I suppose they could just enjoy this lifestyle but still I find it odd that nobody I know of could specifically name an IBO who achieved diamond and higher and sat back collecting income while enjoying the beaches of the world. Surely there must be some people who would choose this option, unless perhaps it's a myth and doesn't exist?

Seems that IBO turnover and failure is more common than not in the AMO (Amway Motivational Organizations) world. It also appears that incoming IBOs are like fuel to a fire. Without continuous recruitment and replacement of IBOs who quit, the organization would eventually fall apart along with the bonuses that the higher ups enjoy. It is my informed opinion that many IBOs fail because they aren't taught sound business principles, such a monitoring expenses versus income. Despite the constant flow of cds, voice messages and functions and meetings, it doesn't seem as if any practical information is passed from upline to downline. Only messages of never quitting and continuing to dedicate themselves to the system. The result is inevitable and the expected result is failure. And failure is what the vast majority of Amway IBOs achieve.

Friday, December 28, 2018

Why Amway Is Like Gambling?

Let me make a disclaimer right off the top so Amway defenders don't try to discredit the post without reading it. The Amway opportunity is not a game of chance. But I will go on to explain how and why the opportunity can be compared to gambling and why the diamonds can be seen as a casino or the "house".

In the Amway opportunity, the odds against someone going diamond are astronomical. Literally millions of people have attempted to build an Amway business in North America over the years and diamond club for North Anerican diamonds a few years back had 160 diamond-ships represented. Certainly some north american diamonds may have turned down a free trip to Hawaii but I'm guessing that's not a big number.

The odds are also stacked in favor of the diamonds. Casinos are not built by winners, but by the hoards of losers. Just as a diamond business is not built by having a foundation of winners, but layers and layers of IBOs who are losing. The Amway opportunity is simply set up that way. Look at your common 6-4-2 plan or whatever version your group uses. The newest or biggest layer of IBOs make very little and when you factor in expenses such as functions or standing orders, the losses can be staggering.

A diamond, like a casino will attract many young dreamers who think they can conquer the world and will get rich. They use bright lights and profile former winners just as Diamonds show off fancy cars and testimonies to lure in recruits. The newness of the opportunity gets you excited, just as someone walking into a casino might feel the excitement with the sounds of the casino. All you need is some effort and little luck right? Sadly, that excitement is all too often replaced with the harsh reality that most must lose in order for there to be a few winners, both in casinos and the Amway business.

Like casinos and diamond uplines, there is much caring for active IBOs and for players who are spending their money in casinos. But once you walk out of the casino, there is no special treatment, just as an IBO who stops building a business or stops being core quickly becomes forgotten and shunned. In Amway, people who said they were lifelong friends were never heard from again once an IBO missed a few meetings. If you re-emerge, you will find the love again, just as you will get free drinks when you start gambling again.

And yes, there are some exceptional people who can scratch out a nice living by gambling but they are few and far between, just as there are diamonds, but diamonds also have thousands of people who wanted diamond but could not achieve it. Those who can finally make it usually have an exceptional blend of skill and a bit of luck. Some even cheat/lie in order to gain a bigger edge, both in gambling and in Amway.

Like a gambling "system", the Amway opportunity has "systems". In either opportunity, the system doesn't work for the masses. There are an exceptional few who can make it work. Except in gambling, most people understand that the odds are stacked against them. In Amway, many new IBOs are told that anyone and everyone can succeed when it simply is not true.

Can you fulfill your dreams by gambling or with the Amway opportunity? The answer is yes, but the reality is that few will ever do so. Like casinos and Amway diamond-ships, both are built on the backs of those who lose, not on those who win.

Thursday, December 27, 2018

Residual Income?

One of the things that got me interested in the Amway business was the talk about lifelong or even generational residual income. Residual income is something that keeps coming in even if you don't do anything. For example, if you put $100 in the bank, you would earn interest every month. The problem is that $100 would only get you a few cents each month and it would not be enough for you to retire and enjoy the trappings of wealth. But what is a reality is that you will not achieve this in an Amway business, unless you are one of a tiny fraction of 1% who can overcome incredible odds.

The IBO retention rate of Amway IBO is about 50%. Many IBOs last less than a year and only about 5% of IBOs last more than a few years. Thus any hopes of "residual income" is unlikely. You cannot get repeat customers and downline when they are quitting faster than you can recruit them. And certainly, you can conclude that you cannot receive residual income when you cannot retain IBOs. In fact, I don't know of any IBOs who have ever "walked away" from their Amway business to enjoy residual income. Have you even wondered why diamonds and crown ambassadors are still working and none of them have quietly retired? I would guess that they don't retire because they cannot. Once you stop, more than likely your income stops. A diamond lifestyle would take a lot of income to maintain. Thus how can someone walk away and expect to sustain their lifestyle? The answer is obvious to me. You can;t walk away a retire. It is probably why even crowns and all the diamonds continue to work busy schedules. I highly doubt they are working because they "love" their downline.

It's no secret that diamonds earn income from the sale of standing orders, voicemail and functions. But once you stop appearing at functions, I do not believe you would continue to share in tool profits. Also, Amway has a requirement of "side volume" in order for an IBO to receive certain bonuses. How can you maintain a level of side volume without being active and recruiting IBOs? My upline said your downline will do what you do. If you "walk away", so will your downline. The only way for your Amway business to survive is to keep working. Sometimes I wonder if the diamonds even have a plan and enough savings and investments to actually retire someday?

Breaking down a diamond's income is basic math. Even a $250,000 annual income isn't that much when you break down all of the expenses associated with a diamond lifestyle. The diamond lifestyle is an illusion of wealth. One that looks flashy, but I am not convinced that these diamonds are living large behind the scenes. Many professional athletes end up broke within years after their playing careers are over. These athletes earn much more than Amway diamonds. The difference is that diamonds can keep working while pro athletes cannot. But the common denominator in my opinion is living a lifestyle that your income cannot sustain. I hope you see the similarities. To me it is crystal clear.

Monday, December 24, 2018

The Struggle To Move Products?

There's been much debate recently over the issue of IBOs selling products. Now of course in the IBO world, there are going to be some IBOs who are exceptional at selling products and possibly in foreign countries where Amway has not spoiled their reputation as it apparently has in North America, it might be possible to sell some products. But the experience of a typical IBO probably cannot be one where products flow to customers regularly. Now I do not wish to debate the merits of whether or not downline are considered customers as that is an endless and pointless debate because the bottom line would be that uplines are making their income on the backs of their downline, thus confirming the appearance of a product pyramid. Aside from downline, it would appear that the remaining customers are mostly sympathetic family and friends who buy a few token products.

But why do rank and file IBOs struggle to sell Amway products? Surely Amway has some decent and some good products. But in North America, Amway's goods are generic in nature but sell at premium prices. So unless you are convinced that their quality is that great for the price, the average Joe is simply going to buy a similar product at WalMart or a Costco. Also, when you must justify and explain to potential customers that you actually provide a better value due to concentration and/or cost per use, it not only becomes labor intensive, but confusing for the average consumer. Add in the past reputation of the Amway name being associated with a scam or a pyramid and you have an extremely tough sell.

Partner stores are often used by IBOs to bring name credibility but I wonder how many of these products are actually sold to customers? I suspect that very few products are sold because the price is not that competitive and because many consumers, like myself prefer to touch and feel certain products before making a decision to buy. Even with a money back guarantee, customers don't want to be bothered wuth returning something via the mail. Also, the term partner store seems odd because Amway IBOs sell partner store goods, but "partner" stores don't sell Amway products. The relationship is not a two way street, in other words.

Also, while Amway recently started to market their opportunity and goods with national advertising, I believe the advertising is more of a retention issue. IBOs can say "see, we're on TV, we must be credible". I believe it may be too late in North America. In the past. IBOs would say they had greater bonuses because Amway saved money on advertising. Thus IBOs engaged in the most inefficient manner of moving products. They did it person to person and in the past, door to door. The reason why super bowl commercials are so expensive is because they can reach tens or hundreds of millions of people worldwide. But basically, Amway IBOs to sell the products and the opportunity, must do it one person at a time, and they must also overcome the many negative opinions that North Americans have about Amway. Amway sales have been tanking since 2013. Amway revenues have gone from 11.8 billion at its peak in 2013 and dropped each year with 8.6 billion in 2017 being the most recent numbers.

But it is for these reasons that IBOs probably cannot move many products except to some family and friends. In what REAL business can you make a sustainable living, much less fabulous wealth by selling some goods to family and friends? I can't think of any, and you are seriously mislead if you think you can do this with Amway products and earn untold wealth and riches.

Friday, December 21, 2018

Amway Tools Are Ineffective!

So many Amway IBOs quit and fail. I think the Amway corporation might need a calculator to keep track. And of the IBOs who work and try hard, most of those IBOs also end up in failure and losing money. After years of blogging about Amway, I believe it is because the uplines and the tools they sell to help IBOs are ineffective. When I was an IBO, I don't recall many tools that contained information teaching me how to run a business or how to run an Amway business. There was no talk about tracking income and expenses. In fact, our group was advised to ignore the facts. The scary thing about this is that it is evident that some groups are still teaching this.

Many IBOs and prospects are lured into the business by displays of wealth and not because of bonafide and verified business credentials. A friend of mine sold his franchise business a few years ago and part of what he provided to the prospective buyer was the last three years of his tax returns, personal and business returns. But try asking an upline to even see a business profit loss statement or a schedule C business tax return and you are likely to be told it is none of your business. Instead, upline may show off a photocopy of a bonus check which may be an annual or a once in a lifetime bonus. Or upline may show off a sports car as evidence that they are successful. Sadly, some of these uplines might be broke, they may owe back taxes to the IRS and/or they may even be in debt but simply showing off wealth.

Some uplines have the nerve to discourage young people from furthering their education because they would rather they channel their money into Amway and tools. Some people are told to make family sacrifices to attend more functions or to buy more standing orders. I will grant that not all uplines do this but based on my experience, I would say more uplines do this than not. They will apply subtle pressure on new IBOs and the newbies probably don't know much about Amway or business so they basically have to choice but to trust a diamond who has allegedly achieved the pinnacle of success in Amway. Then uplines will often betray their disciples by saying that failure is the personal responsibility of teh IBO. That advice needs to be discerned by the new IBO and bad advice should be discarded, as if a new IBO would know what is good or bad advice.

I also see experienced IBOs who don't seem to know how taxes work. I see IBOs who were given the impression that Amway is easy and that they will work once and enjoy the fruits of their labor forever. Oddly, I don't know of a single IBO who did the work once and sat back collecting residual income forever. I find it odd that even tenured crown ambassadors continue to keep busy work schedules. I suppose they could just enjoy this lifestyle but still I find it odd that nobody I know of could specifically name an IBO who achieved diamond and higher and sat back collecting income while enjoying the beaches of the world.

Seems that IBO turnover and failure is more common than not in the AMO world. It also appears that incoming IBOs are like fuel to a fire. Without continuous recruitment and replacement of IBOs who quit, the organization would eventually fall apart along with the bonuses that the higher ups enjoy. It is my informed opinion that many IBOs fail because they aren't taught sound business principles. Despite the constant flow of cds/audios, voice messages and functions and meetings, it doesn't seem as if any practical information is passed from upline to downline. Only messages of never quitting and continuing to dedicate themselves to the system. The result is inevitable and the expected result is failure.

Thursday, December 20, 2018

Don't Quit Your Day Jobs?

So many Amway IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.

I also see and hear many IBOs popping off about how someone in their upline earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.

Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream Night" where they show off lavish displays of wealth. Well, it is my informed guess that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.

While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts Microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.

Food for thought. If diamonds have so much free time and money to burn, why don't we see slide shows of them donating $10.000 checks and volunteering to help the less fortunate more often?

Wednesday, December 19, 2018

Charitable Contributions To Amway IBOs?

I know Amway defenders will talk about some of the sales they make, and that's fine and good, but when I look at the kinds of sales they make, it is usually insignificant. I recently read some comments that sort of made me laugh. A prospect apparently was invited to an Amway recruitment meeting by a friend, and out of courtesy, sat through the presentation (which nobody else attended) and politely declined to register. The commentator went on to say that after the meeting, he felt sorry for his friend and purchased something off of his friend's IBO website, and it felt like making a charitable contribution. Makes me wonder since Amway's products are mostly likely consumed by IBOs themselves and I believe very few of Amway goods actually made it into the hands of a non IBO customer.

But now I wonder out of the tiny amount of IBO retail sales, how many of those sales are basically charitable contributions made to IBOs by family and friends who simply feel sorry for their acquainted IBO? When I first declined to join Amway under my eventual sponsor, they did ask me to buy some of their goods. But being a single male, my age group demographic didn't really match me with the products they were pushing. If I remember correctly, I ended up buying the liquid Amway car wax. While the car wax worked as well as the other leading brands, I recall that I paid about $12 for it back in 1995 or so. I can currently get a jumbo sized bottle of Nu-Finish or Astroshield liquid car wax for $7.99 at Target or other local retailers, and at times, the store puts them on special sales for $5.99. So basically, I am getting about twice as much car wax for the price if I purchase my car wax on a store special. I know Amway zealots will want to compare the price with an online source, but as I said, I make my purchase in person and wait for store specials which occurs every couple of months.

I know at times, I have seen other family and friends involved in MLM. And while I was once there, I now see their attempts as somewhat pathetic, especially when they are basically walking the same path I did about 12 years ago as an IBO. I do not discourage them, but simply decline to see their plan or register as a downline. I have at times, also made charitable contributions to some friends who had become involved in MLM. If nothing else, just to be supportive of a friend. Ultimately, these MLM friends eventually figured things out on their own and quit as I did. Some of them follow my blog and some just quietly faded into the sunset. They do not run an informative blog as I do, but not everyone can or will. (Sound familiar?)

However, after reading the comments about the polite friend who bought an Amway product from a friend, I have to wonder whether IBOs are making true retail sales or merely receiving charitable contributions from friends and family in the form of Amway product purchases?

Tuesday, December 18, 2018

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/audios, standing order cds, seminars and perhaps other workshops. The pressure to participate may vary among 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, emerlads 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 disclaimer 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 rarely ever because of the system.

Monday, December 17, 2018

Amway Is Life Changing?

One of the things that was heavily promoted when I was an Amway IBO, and I believe is still promoted, is the control of time and money. I recall hearing that "broke" people often have lots of time, but can't do much because of a lack of money, or how a very hard working man might have money but a lack of time as he is working 80 hours per week. So why not join Amway, work hard for 2-5 years and have all the time and money you need for life?

Well, it sounds good on the surface, but how many people actually do that? I don't know of any IBO who worked the business 2-5 years and walked away from their business to enjoy control of time and money forever. And there are reasons for that. Attrition. Most IBOs who join don't do much and more than half of all IBOs won't even be in business for more than a year. IBOs also need to be active and moving side volume in order to qualify for some of the bonuses. It is why I believe that there aren't any diamonds who left to enjoy their time and money because of passive ongoing Amway income. Diamonds and above must continually work the business or their businesses will fall apart like the waves would erode a sand castle at the beach.

For many IBOs ironically, what they desire most, time and money, is what they have less of because of their involvement in the Amway opportunity. It is because of the way many IBOs are taught by the systems such as WWDB, BWW or N21. Many of these groups will teach a defacto PV requirement of 100 PV which costs about $300 monthly. In some cases, you are getting a small box of goods for the same amount of cash that would have gotten you a cartload of goods at WalMart or Costco. For system IBOs, you are also paying for instruction that basically tells you that this is a great idea and that you should never quit.

So now when your family and friends have backyard barbecues or birthday parties, you are absent because you are securing your financial future. Your kids surely won't mind you missing their baseball games or sending them to the sitters while you attend a function. Your family and friends will be wowed when you retire next year and throw them a party to end all parties. It all seems surreal, and for most, it truly is. There may be $10 or even $50 monthly checks rolling in from Amway but is never covers the cost of your expenses. You can't quit because success might be right around the corner.

Suddenly your sponsor or upline might tell you that the Amway business is not about money. You might be told that you are a nicer person or a better parent (even if you neglect your kids to attend functions), or that the business opportunity has saved your marriage. Which leads to my question. What have you achieved in the Amway business that has given you more control of time and money? Do you have less time and money as a result of your involvement with Amway?

During my involvement with Amway, my life was changed, but not for the better. And it wasn't because of Amway. It was self serving teaching by WWDB leaders designed to suck the life out of IBOs. We were to attend all meetings. All means all. We were to submit to upline. Check your ego at the door. We were to buy extra tapes/cds because you can;'t listen to the same ones each day. Wives and husbands needed separate standing orders. If downline quit, you don't cancel standing order. It is why I saw crosslines go bankrupt, lose a home to foreclosure and many ended up quitting and with large financial loss.

I hope this message of personal experience helps information seekers.

Friday, December 14, 2018

Amway And Dreams?

One of the things that Amway leaders use to attract new IBOs is to talk about the dreams that these folks have. They may talk about how having a job will wear you out and dreams that you once had as a child or young adult gets suppressed and/or completely forgotten. They try to revive some of these dreams in the hopes that they can convince prospects that Amway is the only way, or the easiest or best way to accomplish these dreams. They also try to instill the notion that people can choose to succeed in Amway. Being that success in Amway has so many variables out of the direct control of an IBO, nobody can simply choose to make it big in Amway anymore than they can choose to win the lottery. And by the way, the chances of going diamond and maintaining it is about as remote as winning a lottery.

What is somewhat cruel is reviving dreams that for many, will never come to fruition, no matter how much work is done, and no matter how many tools are consumed. There are many instances where no matter how big the dream, it will never come to pass because of physical and financial limitations. For example, as a child, many of us had dreams of playing professional football, hockey or basketball, and living in the glory of winning. However, no matter how many hours you put in and no matter how hard you work, the vast majority of people will never be pro athletes. And even out of the ones who become pro athletes, very few are considered "elite".

Yet the Amway promoters will have people believe that just buying a few products and selling a few products and 2-5 years of "hard" work, people will join the financially elite in the world. As if home care, beauty and nutritional products moved from person to person is going to make you achieve your dreams. That you will quit your jobs and walk the beaches of the world while the cash rolls in by the barrel full. Sadly, many young people become attracted to a proposition that allows them a shortcut to retirement instead of working until age 62 or whatever the standard retirement age is. They are basically promoting false hopes and promises to the vast majority of people who get involved. I believe those who are deemed as "dream stealers" might be doing their family and friends a favor by stealing their dream, which will not come to pass anyway.

With about 1 out of 240 IBOs reaching platinum (the alleged break even point) and about 1 in 20,000 IBOs reaching diamond, the dream is a stretch indeed. Even for the select few who can overcome major challenges and hurdles, maintaining their status often becomes impossible and and not worthwhile (many diamonds have quit).
Also, if you do make it, you will leave behind a trail of people who could not or did not come close to that level of success. It means that in many cases, your success will come at the expense of those you sponsor. It is why many claim that Amway is a legal pyramid.

Having dreams and goals is a good thing. But do you want to accomplish your ultimate dream by hurting (financially) those who trusted you and agreed to be your downline? Is it your dream to go diamond and have 500 to 1000 or more downline IBOs losing money? Is it your dream to be wealthy by exploiting people who trust you and believe that they can achieve the same level of success, when the opposite is true?

What is your dream? Are you willing to hurt others to achieve it?

Thursday, December 13, 2018

Choosing To Succeed In Amway?

Many Amway IBOs seem to think that success in business or in other aspects of life is simply a choice. They mistakenly believe that you can actually choose to succeed or not. They apparently believe that persistence and choosing to win will eventually land them a premiere spot at diamond club. If that were truly the case, wouldn't we see hoards of new diamonds each and every year? Instead, we see one here and one there, and while there are a few new diamonds in the US every so often, we see others quitting, dropping out or leaving Amway for greener pastures. Make you wonder if the prize is worth pursuing in the first place.

But IBOs and information seekers should understand quite clearly. You cannot simply "choose" to win or succeed. In a football game, both sides can believe and choose to win, but still, only one can be the victor. In Amway, it is common for a platinum to have 100 to 200 downline. Thus to be a platinum, you need to be in the top one half of one percent of IBOs. To be a diamond, you will need to be in the top 600 to 1200 IBOs, not counting the masses of IBOs who register and do nothing or register and do a little and quit. Only one in about ten to twenty thousand will ever reach diamond in North America.

Sure, of the Amway speakers at functions may highlight some touching story like the movie "Rudy". Basically a nobody who dreamed of playing football for Notre Dame. He busted his butt and did whatever it took to make the team and the movie ends with him getting in a game, making a sack and being carried off the field by his teammates in a blaze of glory. A great and inspiring movie. But what you don't see is the possible tens of thousands of young men who had the same dream, may have worked every bit as hard but circumstances and situations prevented them from achieving the same limited success. Uplines want you to think these kinds of stories can happen to everyone, but the fact is that there is only a little room at the top. If stories like Rudy were common, then there would have been nothing special about it. An elite athlete like a Michael Jordan or a Tiger Woods only comes along once or twice in a lifetime. It is like achieving diamond. It happens but it is a rare occasion, especially in North America where Amway appears to be shrinking instead of growing.

In the Amway business, many prospects and IBOs are motivated and driven to succeed. Many of them are fine young men and women who want more in life. But the vast majority of those who try will not achieve their dreams via the Amway opportunity no matter how hard they work and no matter how badly they want it. The reason is because there are too many variables that are not in direct control of the IBO. The Amway reputation in North America is spotty at best so sponsoring downline is nearly impossible. And when you can sponsor, chances are your downline will do little or nothing. Many new IBOs will work hard, but quit because they are faced with the challenges I just mentioned. And even if you can overcome the overwhelming odds, you still need to keeping working hard constantly to maintain the business, all for an unstable average diamond income of $146,995, which doesn't consider taxes, medical insurance and other perks you may receive at a job. All told, I believe the diamond income is not all it's cracked up to be when you consider the charade you must play to display the diamond lifestyle. Do the math and you will be able to see for yourself.

In the end, it seems as though the prize isn't as great as it seems, and the trail to success is one that most cannot endure. And even if you achieve diamond, you can lose it quite easily as others have discovered. The bottom line is that you cannot simply choose to succeed in Amway or any other endeavor. Good luck if you decide to attempt it anyway.

Wednesday, December 12, 2018

The Amway "Catch"?

In the Amway business, most active IBOs are advused to trust upline. To think of upline as a coach or a mentor. These upline mentors or coaches are supposed to have your best interest at heart and they will guide you to success if only you will be open to learning. Many uplines, including my former uplines used to coin the term "copy" or duplicate. If you can do that you will be successful. Even the simplest of people can copy. The upline may crack a joke about getting thru school by copying. Thus, many IBOs follow exactly what their upline advises them to do.

But then uplines turn the responsibility away from themselves. Many Amway defenders will also claim that downline should not simply follow the advice of upline. They may make a ridiculous claim that standing orders and functions contain advice that must be discerned. That information is like a buffet. You pick and choose what you need and discard the rest. If you are a new IBO or prospect, let me tell you that is a load of guano (bird crap) that is being heaped on you. Your upline is touted as having experience and wisdom in the Amway business, which is why you are paying good money for voicemail, books, cds/audio files, and functions. So why would their advice be something you pick and choose? How would a new IBO know what to pick and choose?

Imagine hiring a guide for a trek in the wilderness. The guide is supposed to be an experienced outdoorsman, perhaps an expert. So if he recommends that you eat certain plants or fruits, you trust that he is going to guide you right. Imagine eating something that made you sick to your stomach, only to have the guide tell you that he just points out plants and fruits and you have to discern which is good for you and which is not. You would fire the guide and tell everyone you know not to use that guide anymore.

But here we have these "systems" such as Network 21, WWDB or BWW that have been "guiding" IBOs for up to 20 years or more in some cases, and the number of diamonds are negligible. Sure there might be new platinums, but many tool consuming platinums have been found to be losing money or making very little money for their efforts. What's more, it would appear that Amway is losing ground in sales. Amway's sales dropped from 11.8 billion in 2013 down to 8.6 billion in 2017. One can reasonably guess that any new platinums that break are simply replacing the volume for a platinum that no longer exists or a platinum that no longer qualifies. My former upline diamond appears to have all new qualifying platinums from the time I was in the business and here's the kicker. My former diamond had 6 downline rubies. As far as I know, none of these rubies are qualified as platinum anymore, much even in the business.

Uplines also program their downline to take responsibility for the failure. Thus you have IBOs who did everything that was asked of them, only to fail. Yet these IBOs often blame themselves for their failure. It is my opinion that former IBOs who did everything asked of them only to fail should file a formal complaint against their LOS with the better business bureau. Amway defenders like to think that a lack of formal complaints means that the system works when clearly, there is no unbiased substantial evidence to suggest that the system works. It looks like some succeed in spite of the system, not because of.

The catch in all this is uplines skirting responsibility for the outcomes of those they "mentor" and profit from. IBOs should ask if upline really cared about their success, why do you have to pay for any help that you receive from your upline diamond?

Tuesday, December 11, 2018

Amway Or A J-O-B?

One of the things Amway leaders apparently do is to disparage people with jobs. Oh, they would say we needed people to wait on our tables and clean our toilets, but in general, jobs were put down and basically the group was told that Amway is their best chance at achieving financial freedom, giving them the ability to flush their jobs. Ironically, IBO's jobs are what funds their Amway businesses. Most IBOs would be out of business within weeks if not for their job income funding their Amway businesses.

The key selling point appears to be the 2-5 years of part time work rather than working a job for 30 - 40 years and then retiring on social security which may or may not be there when you retire. This plants a fear in people about the future and then the Amway opportunity is presented in a positive light because the Amway opportunity comes with a low start up cost. What uplines do not mention is how the opportunity can become a money pit as the monthly defacto 100 PV quota starts to add up. It is my guess that if people only bought items they truly needed, these IBOs would likely move 100 PV every three months, unless they are actively selling goods to non IBO customers, which does not appear to be very common.

When an IBO finally agrees to register, it is then that the hidden costs are revealed. Many uplines will introduce standing orders and functions and present these tools as vital to IBO success. Most new IBOs don't know better and feel subtle pressure to conform and give it a try. Some upline may loan some tools to downline in the beginning but eventually, the IBO will be encouraged to be a "serious" business owner who should be purchasing their own tools to loan to their downline and the cycle goes on. Upline relies on people joining and giving the business a go and the churn of new people is what keeps the business flowing, although long term sustainability is difficult unless you are working the business in the trenches non stop.

If you examine some version of the Amway recruitment plan, you will see that most IBOs are at the 100 PV level, which will reward you with a monthly bonus of about $10 or so. If that same IBO subscribes to the tools system, than IBO will likely be losing over $100 a month not including the product purchases. And because many IBOs have been convinced that working a job is so horrible, that they can be convinced that this condition of losing money is temporary and that untold wealth is right around the corner. Sadly, for most, this condition is the norm and even the sponsorship of a few downline, the losses continue to mount. Yet many are convinced that this is better than a job because they are hopeful that the Amway business will deliver the promises that they hear from the leaders.

Ironically, a job allows people to pay their monthly bills, feed their families and many people enjoy their work and co workers. While upline leaders may convince you otherwise, it is this very same excuse upline leaders use when asked why they are still working instead of walking the beaches of the world collecting massive amounts of residual income. I would encourage IBOs to truly analyze their efforts in Amway and determine if it is beneficial to your finances. In most cases, your Amway efforts ONLY benefits your upline's finances. For most who get involved, the Amway opportunity is not better than a job. Analyze the facts, not the hype.

Monday, December 10, 2018

Are Amway Diamonds "Broke"?

I recently read an article on what constitutes wealth. Some say an annual income of $100,000 would make them wealthy, some say assets exceeding $4 million would do it, and some estimated that $2 million would make them "rich". Of course, everything is relative and someone earning $25,000 a year would think that $100,000 a year is wealth, etc. College students might think $40,000 a year is awesome because many have little money to begin with. I'm sure someone like Bill Gates would not consider $4 million to be astonishing. It's all relative. If you are content with what you have, you are likely relatively well off already.

But let's talk about Amway diamonds. I say diamond because it is basically the pinnacle of success. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond earns about $150,000, according to Amway. Now $150,000 sounds like a lot of money to young people or to those with lower wage types of jobs, or those who are just starting out in their careers. But we also know that diamonds earn income from the sale of tools. Some groups advertise (verbally) that someone might earn $100,000 a year from the tools/speaking income.

Let's be generous and say the diamond earns $300,000 a year from Amway and tools income. Income tax and medical insurance for the family will eat up about 40% of that right off the top, leaving about $180,000. Fantastic you might say? Well, a diamond certainly would live in a million dollar mansion, which would give you about a $6000 a month mortgage or $72,000 a year, leaving $108,000. (Although many - a - diamond pays for their homes in cash) Fantastic right? Well, diamonds are constantly traveling to various functions, flying first class and staying only at 5 star hotels right? So an average of 1 trip per month with a family, first class and a 5 star hotel would probably cost about $5000 or more per trip, or about $60,000 a year, now leaving $68,000 for this diamond's yearly budget. A good diamond with a family surely consumes 300 PV per month for household goods, or about $900 a month or about $11,000 a year, leaving $57,000 for the rest of the year. A good diamond is often a Christian who would faithfully tithe 10% of his income, or about $30,000 a year, leaving the diamond with $27,000 a year, or about $2250 a month to pay for their monthly electric and utility bills, gas, car payments, meals and entertainment.

Yes, some expenses may be slightly higher or lower, but what I am trying to illustrate is that even an above average diamond with tools income is more likely to be broke than wealthy if they live the lifestyles porttrayed at functions such as dream night or other major functions. Do the math. It is unlikely that diamonds pay cash for everything and it is unlikely that fabulous lifestyles can be sustained on a diamond income. There is plenty of evidence out there. Diamond's homes foreclosed, diamonds behind on income taxes, a prominent triple diamond in bankruptcy proceeding, many diamonds selling off their homes in a bad real estate market.

I truly believe that it is quite possible for many diamonds to be broke. Living a "diamond" lifestyle is a life of excess and simply doesn't appear to be sustainable on diamond income. Some tenured long time diamonds might be okay but newer diamonds are very likely not rolling in money as they would have you believe.

Friday, December 7, 2018

Trading Hours For Dollars?

One of the things I heard as an Amway IBO, and I believe still taught today is that a job is a disaster, or "just over broke". Uplines apparently use this tactic as a means to get prospects and IBOs to buy into the concept that a job limits your earning potential and that a business mentality doesn't look at an hourly wage. While it may be true that many business owners do not earn a wage, you can bet that they are aware of how much time they put into their business against how much they take in. A true business owner, if he determines that he isn't earning enough for his return on his investment of time and money, will often make adjustments to what is done to become more efficient, or fold up the business and start another one, or may even get a job. Amway IBOs conversely, are told to spend more on training and functions when they are succeeding, which is a powerfully bad business practice.

It appears to me, that the context in which IBOs are told not to look at their business as a job is because many/most IBOs don't earn a net profit, and the few that do, probably earn less than a minimum wage equivalent when factoring in the hours spent building the business and costs associated with doing so. But hey, it's ok because you think like a "business owner", right? This appears to be just another distraction given to IBOs so they overlook monthly losses, just as how IBOs think the business is about being a nicer person, or that running the business actually makes you a better spouse or parent, when in fact, the opposite may be true.

In this day and age, there is nothing wrong with having a job. There is nothing wrong with earning an honest living trading hours for dollars. Many people live comfortable lives and have even amassed wealth with a job. The problem for many, as I see it is that they do not currently earn enough to fulfill the dreams that they see displayed on the stage at a function. For example, a job that pays $10 an hour will gross you about $1600 or $1700 a month. Certainly not enough to retire at the age of 30. But what if you earned $1000 an hour. That would bring you $160,000 to $170,000 a month. Would that make a job enticing? Of course! So the problem is not that you trade hours for dollars, the important factor is how much you earn per hour. The same goes for a business.

Real business owners look at the bottom line. For example, if you earned $6,000 a month in a business, but you spent 80 hours a week to earn that, then your hourly pay is less than $20 an hour. But if you spent 10 hours a week to earn that, you are now getting about $150 an hour equivalent. Many Amway promoters will tell you that the business will take up 10 to 15 hours per week, but the average IBO, according to Amway, earns just about $115 a month (and most earn less than that), which averages out to less than $3.00 per hour on average. This is why your upline might be saying don't look at an hourly wage as a way to rate your business, because the income is embarrassing.

IBOs and information seekers, do the math. Ask tough questions and demand answers. Don't be discouraged if you have a job. Most IBOs have jobs, Don't worry about trading hours for dollars. It is very likely that trading hours for dollars is a more efficient way of earning money than what you are being presented with.

Thursday, December 6, 2018

Why Amway Isn't Sustainable?

One thing that is very clear to me after having researched and blogged about the subject of Amway and the Amway Motivational Organizations (AMOs) is that most Amway businesses are not sustainable. It is why I believe there is such a high drop out rate and why there are so many people who have formed a bad opinion about Amway. Now a real business relies on income from customers. The customers purchase goods and services from a business, and it they like it and/or find value in the goods and services, they become repeat customers and as long as there continues to be value in the goods and services, sales are made.

In the Amway, business, there appears to be a "perceived" value to the goods and services. In many groups (such as BWW or WWDB), the perceived value is that the purchase and use of Amway products will lead to untold wealth and the possibility of early retirement. Sadly for most IBOs, the reality sets and and the IBOs end up quitting, and more often than not, the products that had great value and price to an IBO, suddenly becomes expensive and irrelevant to non IBOs. If former IBOs had continued to buy Amway products, the company growth would be significant even with the high attrition rate. It appears that the dreams and aspirations of a new IBO are directly related to their dedication to Amway products.

But why aren't most Amway businesses sustainable? Isn't it simple? Do your 100 PV and get others to do the same? In my opinion, this is what has destroyed the Amway reputation. All too many IBOs in the past have done all kinds of crazy and in some cases, deceitful or unethical things in an attempt to recruit other IBOs. What probably in mentioned, but not a meaningful way is the absolute need for IBOs to get customers, and plenty of them. Even groups that may teach some need to get customers do not advise IBOs focus primarily on customers. They still advise many/most IBOs to sponsor downline. The lack of customers means that the diamond wealth seen on stage at functions comes primarily from IBO purchases of Amway goods and business support materials (standing order, voicemail and functions)

But you may wonder why a diamond appears so successful? It's because a diamond business has many customers. All downline who purchase voicemail, standing orders, books and functions are all customers of the diamonds. The are all generally repaet customers as well. A diamond or higher may have hundreds to even thousands of downline who purchase support materials (on the diamond's advice). That is why in many cases, a diamond will seem successful, because they have all their downline as customers or potential customers. However, with the apparent illusion of a diamond lifestyle, even that diamond income may not be enough to sustain the "diamond lifestyle". It appears that the downturn of growth in north america may have affected the north american diamonds (bankruptcy, foreclosures, etc).

And if a diamond may not have enough customers to sustain their business and lifestyle, what chance do you have with little or no downline, and little sales to people who are not IBOs? I suspect if you're reading this, you already know the answer.

Wednesday, December 5, 2018

The Amway Warning Signs?

Having been involved in many Amway discussions for some time now, I recognize the many warning signs of a bad upline or a bad LOS. While not all uplines are the same, I do not believe that any LOS (Line of Sponsorship such as WWDB or BWW) is free of bad teaching, regardless of what you hear. Some of these points are simply clues that you could be in a bad LOS, you still need to think as an independent business owner and watch out for your own best interest because these folks will say they have your best interest at heart but they really have their own best interest at heart.

When you were prospected or recruited, was your sponsor upfront about the Amway opportunity or were you told about some new e-commerce opportunity or the like? Were you told that selling products was important or were you told that buying from yourself is the way to succeed? Did you know that some some uplines make most of their income from selling business support materials and not from Amway? Were you told that functions and other tools were vital to your success? Were you told that the system was "optional, but so is success"?

Were you told that a college education was not important to your success in Amway? Were you told that buying from yourself can result in a profit? Did someone say that the Amway opportunity helps save marriages or makes you a better person? Was the Amway opportunity used to preach religion or politics to you? Did anyone tell you to ignore facts if you have a dream? Were you told to submit to upline? Or were you told to check your ego at the door? Did you get the impression that your upline was a divine being? Did you give the speaker a standing ovation when they entered a meeting or function? Did you ever wonder why?

Were you told that you save money on Amway products only to realize that they are not generally cheaper than other retailers? Were you told that you have joined the best or the fastest growing LOS? Were you shown fancy cars or other luxuries and told that you can also achieve these lifestyles if you follow the system? Did your upline or sponsor tell you and verify how they are performing in the Amway opportunity or were you simply shown a photocopy of some check from an upline? Did you hear that you should always avoid "negative", or that people who are not in Amway are broke or losers?

These are some warning signs that you could be in a questionable LOS. In many cases, an LOS's priority is simply to sell you tools. Tools that are supposed to help you succeed in Amway, but more often than not, they help the person selling the tools to profit, regardless of whether you make a cent in Amway or not. It is important to look at facts, to track your progress and to keep track of expenses. If you are not progressing as the plan was shown, you may want to take a look and make sure that you are not overspending on tools that aren't helping you. Or if you are unable to sponsor downline, you may have to ask if this business is for you.

The business has warning signs. It is up to you to see them or to ignore them.

Tuesday, December 4, 2018

Lifelong Residual Income?

Do the work once and reap the rewards for life. Lifelong willable passive/residual income. These are some of the things that attracted me to the Amway opportunity. That I could do the work, and have the option of sitting back, enjoying a fabulous lifestyle of riches and never have to work again. I could wake up at noon if I chose to, and/or I could stay out late hanging out with my "free" Amway buddies.

It sounds great on the surface, however, when you analyze an Amway diamond's income and look at things carefully, you can see where this lifestyle is just not possible. Even if a diamond earned $250,000 a year from Amway and the tools income, after considering taxes, business expenses and other necessities such as medical insurance and retirement savings, you don't have enough left to live what is often portrayed as a "diamond" lifestyle. Also, keep in mind that a lot of a diamond's income is received in the form of an annual bonus so a diamond's monthly income might be relatively small.

One could also wonder why there aren't any diamonds (that I know of) who have actually walked away from their businesses and continue to collect any significant income from Amway. With more than half of all IBOs not staying in business for a year and about 95% of the rest of the IBOs being gone several years later, it would be an insurmountable task to keep your income rolling in with that poor retention rate. As far as I know, an IBO also need to have a minimal amount of side volume in order to qualify for certain significant payments/bonuses. That is a lot of volume to move when IBOs are quitting the business daily, and these days, it seems as though there are fewer IBOs getting involved, at least in the US and Canada.

It is for that reason, I believe these crown ambassadors and higher level pins are still working. Once you stop, it is very likely that there is no tool income, and once your downline starts to suffer attrition, then you Amway income and bonuses will eventually dry up as well. I believe there is no true residual income in Amway. Sure, build a big business and walk away. You may continue to receive some income for a while, but eventually, it will disappear. It is like building a sandcastle on the beach. The bigger you build it, the longer it will last, but it is for certain that the tide will eventually wash the sand away, just as time and attrition will eat away your Amway business. If you are popular and charismatic enough to attract a large downline, once you leave, so will your downline.

As far as I am concerned, I believe the residual income claims from Amway is just a long running myth used to attract recruits. I don't know of anyone who built a large Amway business and then walked away, and is still collecting a significant income. Do you?

Monday, December 3, 2018

Amway IBOs Are Funny?

I get a kick out of IBOs who make outlandish claims and then mumble and stumble to back up their claims, or to offer at least a verbal explanation of their claims. I believe many IBOs, newbies in particular are loaded with enthusiasm, but lacking in actual Amway business knowledge. Certain groups have a certain philosophy, which sometimes comes out in a conversation. But I believe in most cases, the philosophy is one of talk and not action. Amway's own numbers seem to back up many of the claims made by critics, such as the low amount of sales to people who are not IBOs.

I recently saw a blog post by a WWDB IBO who says he got a nice tax refund from the government, mainly because of his business deductions. He also claims that his Amway business is booming and that he is making money. Now I'm not a tax genius, but if you are writing off losses on your business, you would get a refund, and if you were actually making money, then you would actually be paying more taxes because you taxable income would then be higher. It's amazing how some IBOs will try to fake success in ways that clearly show they are putting up a facade.

Other obvious ways are IBOs who say they are brand new in Amway but are making over $5000 a month. Now I do believe that it can be "possible" to make some money in Amway, and obviously some people do make a nice income from Amway, but generally, these will be tenured higher pins. The vast majority of IBOs do not make any significant money from Amway and if these same IBOs were participating in the teaching systems such as Network 21, WWDB, or BWW, then they are likely ending up with a net loss because the monthly expenditures for voicemail, functions, books and standing orders exceed (by far) the monthly income for most IBOs.

Even diamonds who want to flash fancy cars and gadgets. I believe many of these diamonds are not making as much as they want you to believe and in fact, if you just get a calculator and figure out what a flashy lifestyle costs, you will see that it will simply not be sustainable on Amway income, even when you factor in the tools income. Some diamonds whose incomes were exposed when they quit or had legal proceedings indicate that while a diamond (or higher) income may be nice, it will not sustain the kinds of lifestyles they speak about at Dream Night functions, or other functions where great wealth is displayed.

They may be fooling (some) new prospects, but they do not fool me and I hope they do not fool you. But it is funny when you see it happening.

Thursday, November 29, 2018

The Amway "System"?

"Tools are optional, but so is success" One of the things that seems to be the common reason for IBOs losing money in Amway is the tools system. While IBOs may say that the system is optional, it certainly is not promoted that way. In my opinion, it is a defacto requirement. Especially when you may be told that nobody succeeds without the system, but you can be the first to try. Or that your upline double diamond accomplished that level with dedication to the system, but if you think you know better, you can try it on your own. To a prospect or new IBO, that certainly would not sound like the system is optional.

For most new IBOs, there really is not much of a choice is there? If you're lucky, maybe your upline will loan you some cds or books, but eventually, if you are to be a "serious" business owner, you will have to buy your own. Some uplines may compare these tools to a carpenter who needs a hammer and nails, or it might be compared to a college student who needs books to complete their coursework. But a carpenter certainly doesn't need 100 hammers and a student would not need multiple copies of the same book. And a carpenter can get many years of work out of a single tool whereas IBO's consumption of tools in endless.

Basically, the system never ends for Amway IBOs, unless they quit the business. And obviously, that explains why many IBOs quit, because they never recover the expenses they shell out for the system. What is also scary, is if you have a pushy upline who may encourage you to hyper consume tools. We were advised to purchase additional tapes/cds every week because they would help you grow and because you were to pass them out to prospects. We were told that you should not cancel standing orders (an audio subscription) if your downline quits because it was too much trouble to call upline to cancel the standing order. We were encouraged to buy extra function tickets because you don't want to sponsor someone just before the function only to have the function sold out.

What was also scary was how some diamonds would talk about how long someone could skip mortgage payments before a foreclosure would occur. I am guessing because IBOs could then skip a payment in order to attend a function. IBOs were told to go in debt if it was to invest in their Amway business (Meaning it was okay to go in debt to buy tools). IBOs were edified if they made it to functions at any cost. I recall a man dying of cancer being edified because he left his (real) family to attend a major function while he was basically dying (literally).

Amway implemented an accreditation program some years ago to try and curb some of these abuses, but I believe at least some, and possibly most/all of these abuses still occur, under Amway's radar. My hope is that someone seeking information might recognize the warning signs I have posted and can decide for themselves if their upline is leading them astray.

Wednesday, November 28, 2018

Amway IBOs Are Sharp People?

One of the things taught to our group by upline was to recruit "sharp" people. And in general, I agree that many/most IBOs were sharp people. Most of them nice, motivated and wanting more in life. Certain Amway defenders wrongly claim that I am against Amway and IBOs to a degree where I am maniacal against them. I am not. I recall that most of my group and my cross line were mostly educated and had decent jobs. We all hoped to achieve the dream of walking away from our jobs and living in luxury. We got the idea that is was very reasonable and achievable if only we did as upline advised and immersed ourselves in the "system", which in my case, was WWDB. We were told that WWDB had much fruit on its tree and at the time I was an IBO, that appeared to be true.

However, we did not know that some WWDB leaders made significant income from selling us tools. You see, we were lied to and speakers at major functions told the audience that nobody made a cent from tools and that upline makes pennies only after you earn dollars. We know know that this is not true and that these speakers were lying. What's more, these leaders were never made accountable for their lies. They just revised history and acted like nothing happened. Sadly, many downline IBOs simply accepted the explanation and continued to buy tools. Currently, the WWDB tree is getting barren, with little "fruit". There are very few new diamonds from WWDB in the US, and some of their more apparently dynamic leaders have left WWDB to start their own systems. Thus it looks like WWDB is left with the same old tired speakers today, as the ones who were around prior to my involvement with Amway.

But what's puzzling, or maybe not, is why aren't there more successes if many, possibly most IBOs are "sharp" people? Surely large groups of smart and motivated people can accomplish much, but for whatever reason, they are unable to accomplish much in Amway and WWDB. In fact, many of these sharp people cannot sponsor a single downline and have difficulty in selling Amway products. After many years of blogging and analyzing the Amway opportunity, my conclusion is that Amway products are priced too highly and cannot compete with similar products on the open market. Sure, Amway defenders will cite quality or concentration as reasons why Amway is competitive, and in some cases, Amway is competitive, but the general public doesn't care, they just want cheap stuff and Walmart fulfills that need better than Amway. It leaves the majority of Amway sales being made to active business building IBOs. Apparently the artificial need to buy Amway goods disappears when the diamond dream disappears.

Also, the crazy and sometimes deceptive behavior of past and some present IBOs gives the Amway name a bad reputation, making it difficult to get anyone to see the plan, and sponsoring becomes nearly impossible. It is for this reason, I believe Amway is growing in foreign countries and not in North America, where saturation has occurred. When you factor in all of these variables, it is easy to conclude that large groups of sharp people fail is not because they are not capable. It is because the Amway opportunity comes with so many handicaps that even sharp people cannot overcome them. It is why so many former IBOs, including myself, have done quite well for themselves after leaving Amway. Did I learn some things about business while in Amway? yes, I did learn some things of value, but I also learned that I was lied to and deceived by WWDB leaders and for that reason, my blog continues......

Tuesday, November 27, 2018

The Amway Bait And Switch Scam?

In my informed opinion, Amway is a huge bait and switch scam run by the diamonds. The crowd sees the diamonds as someone to be worshipped. The arrive to standing ovations when they appear to show the plan and/or to speak at a function. The diamonds speak of untold wealth beyond the reach of most people. They show slide shows of fabulous trips and events that they attend and possibly golf outings and other fun things that are associated with people who have money. The diamond often has some sports car or a nice sedan such as a Lexus or Mercedes. And all of this alleged wealth comes from Amway. Just join and get the secrets to wealth from the diamonds and you too will be living in fabulous wealth. 2-5 years, build it right and build it once is what I heard.

But it's a bait and switch scam. They show you wealth and speak of their large incomes (without verification of course) and people tend to believe what they are told. The diamonds claim to have the key to the secret of success. All you need to do is get plugged into their system and you are nearly assured of success. Right? Listen to those diamonds. They are the pinnacle of success and all you need to do it copy what they have done. So simple even a dog can become a platinum. All you need is 2-5 years, do it right and do it once and you're set for life.

So you subscribe to their system of voicemail, books, standing orders (audios/CDs), meetings and functions/seminars. In the teachings, the theme seems to be similar. Never quit, and the answer to most Amway problems are to consume more tools and functions. If you are struggling and losing money, the solution seems to be to invest more in tools and functions. It's like a struggling business spending more on overhead without simply trying to increase sales. This is why so many IBOs quit, because they struggle to make sales and/or to sponsor downline. Despite all of the teaching and tools and seminars, it is apparent that very few IBOs make any profit.

What people don't see is that the Amway business itself is just a shill for the real business. Amway IBOs unknowingly recruit prospects into Amway thinking they can make a fortune in Amway. In the meantime, the diamonds are raking in the dough by selling monthly subscriptions for voicemail, books, audios and meetings and seminars. Additionally, the diamonds put on a "major" function each quarter where they can make possibly hundreds of thousands of dollars in a single weekend. I believe some diamonds make way more income from the tools and functions than from Amway. A diamond is a lifetime achievement so someone could qualify diamond for 6 months, never qualify again, but still make a nice living from speaking honorariums and selling other tools. The tools business is the real business. The Amway business is like a "front" to conceal the real business, much like the Italian restaurant is a front for the mob. The restaurant is a legal business that helps conceal the illegal activity. And that my friends, is the Amway bait and switch scam.

Friday, November 23, 2018

Amway Sales?

One of the things IBOs like to tout is how Amway had over 8 billion dollars in sales. That's great for Amway. The Amway corporation surely made a good profit from those sales. I'm pretty sure that the DeVos and Van Andel families would use Amway products. But I'm also sure that their purchases are an insignificant portion of the Amway Global sales. Most of their sales are to IBOs and to customers of IBOs. After paying operational costs and their employees, Amway makes a nice profit, which is why the families who own Amway are (last I heard) registered as billionaires.

IBOs, regardless of level, make up the sales force for Amway. But IBOs do not work for Amway. They are "Independent Business Owners". They are supplied products from Amway and receive their bonuses from Amway for the amount of volume they move. They can also sponsor downline which helps them to move more volume since downline's volume is also credited upline.

Many IBOs however, in the past and even today, hold the philosophy of "buy from yourself and get others to do the same". I believe this method of running an Amway business was created because many people do not like the prospect of selling products, especially when the business often requires a "personal touch". Thus many IBOs simply buy from their own business and hope to sponsor a lot of downline. Sadly, most IBOs cannot sponsor anyone and cannot or do not sell Amway products.

Many IBOs are taught to move at least 100 PV, which is equal to about $300 in sales. However, if an IBO fails to sell any products, then effectively, the $300 in sales belongs to Amway and the IBO had nothing, rendering the IBO as a customer.
If the IBO sells a few items and consumes the majority of their 100 PV, then Amway still gets most of the sales and the IBO gets the rest.

The point is this. If your consumption dollars exceed your sales dollars, then whatever income you receive, is simply coming out of your own pocket. It would be like clipping coupons and then when you use them at the store, you count the coupon value as profit. Ridiculous right? But sadly, it is what many IBOs have done, and continue to do today. What makes things worse is when an IBO spends their hard earned money to purchase standing order, voicemail, and seminar tickets where they teach this garbage. It's like paying your upline and Amway for the privilege of consuming and selling Amway products. Everyone makes a buck except the lower level IBOs.

Amway had over 8 billion dollars in sales last year. How much net profit do you think they would have if the DeVos and Van Andel families consumed most of that volume? Right, they would have massive losses. What makes IBOs think they are any different?

Wednesday, November 21, 2018

The Real Purpose Of Amway Tools?

As an Amway/WWDB IBO, I was told that I "needed" to attend all functions. Attending all functions meant "all" is what I was told. Brad Duncan once had a tape in the true north series where he said that downline should not cancel standing orders even when IBOs quit, because there would then be an urgency to replace that person. I was in WWDB and while not everyone in WWDB may have taught this, our group was told that we should purchase 5-7 additional tapes/cds/audios in addition to standing order because we needed to listen to new material daily and because we should be passing out these materials as they will sponsor new people. To date, I do not know of anyone who passed out a tape or cd and had someone decide to join the Amway business as a result of listening to that tape or cd.

When I was in the business (In WWDB), our group was told that WWDB was a non profit organization. That was quickly retracted, but still, the WWDB leaders stood on stage in front of tens of thousands of IBOs and said nobody made a profit from tools. We now know that it was a lie. We also know that many of these leaders are still teaching, and as far as I know, not a single WWDB leader has ever been accountable for these lies. Some of these lies may have caused untold financial damage to downline. I'm certain I would have been less dedicated to tools if I had known that some uplines made most of their income from tools and that their advice was a conflict of interest. Some Amway defenders are currently talking about how some negative misinformation about Amway is hurting their business, but ironically, it would appear that most damage to Amway has been done by IBOs themselves, such as tricking people to meetings. As far as I know, not a single person has ever been held liable for the financial damages to downlines and former IBOs who lost money by being told lies about Amway.

Now I also would like to emphasize that I do not believe the tools work and do not produce any results. While Amway defenders will claim that most if not all new emeralds and diamonds are on the system, they fail to mention that there are also tens or hundreds of thousands of people who work the system without results. As far as I know, there is no bonafide unbiased evidence that suggests that the system produces any results. It is why IBOs end up later talking about being a nicer person of how their marriage was strengthened by joining the system. While these are nice side benefits (if true), these reasons are not why you started a business. A business exists to make a profit, yet uplines make all kinds of excuses as to why IBOs did not profit, even placing the blame on the IBOs who trusted them.

It brings me to the real purpose of having tools. The REAL purpose of tools is to make profits for your upline. I believe the tools were invented as a way to motivate and train new and distance IBOs, but apparently, GREED eventually set in and many uplines started emphasizing tools, not because they wanted downline success, but because their tool businesses were wildly successful with thousands of captive downline dedicated to the system. I believe it is why I saw many IBOs who worked hard, never missed a meeting or function, did nto sponsor any downline, but were still told they needed more and more tools.

I believe the real purpose of having tools is so your upline's tools business can be profitable.

Tuesday, November 20, 2018

Amway Losers?

Over my years as a blogger, many - an - IBO has called me a loser. I decided to look at for a defintion and here's what I found:

los·er (lōō'zər)

One that fails to win: the losers of the game.
One who takes loss in a specified way: a graceful loser; a poor loser.
One that fails consistently, especially a person with bad luck or poor skills: "losers at home seeking wealth and glory in undeveloped countries" (Arthur M. Schlesinger, Jr.)
One that is bad in quality: That book is a real loser

And: an inept person; an undesirable or annoying person; a social failure. : Those guys are all losers. They'll never amount to anything.

The owner of Amway, Rich DeVos made a speech sometime ago, stating that IBOs should not refer to people not interested in Amway, as losers. And it is not the Amway corporation or Amway employees that call others "losers". It is some IBOs in some LOSs that coined the phrase. But when I took a closer look at the definition, I could see that truly, it is IBOs who fit the definition better than the rest of the population. Amway's biggest defender, IBOfightback, is the one who said many times that "most" IBOs don't do anything, not even place an order. Wouldn't that already make these IBOs "losers"? What about those who try very hard but never make profits? Wouldn't that make them "losers"?

The average IBO earns less than $200 a month (Amway's figures) which is well below the US poverty line. Does that make the average IBO a "loser"?

Diamond is the pinnacle of Amway success, if you have ever seen an Amway 6-4-2 or 9-4-2 "plan". But only 1 in 10,000 or 20,000 ever reach diamond. (Those figures may be lower) Are the rest of the IBOs "losers"? Those functions must be filled with losers?

If IBOs and AMO leaders wish to continue to use the term "loser", perhaps they should learn the definition and look in the mirror before using the term?


Monday, November 19, 2018

The Merits Of Your Amway Business?

So many IBOs like to point out that Amway has a satisfactory rating from the better business bureau, or that Amway owns title sponsorship of Amway arena where the NBA's Orlando Magic plays. But what so many IBOs fail to remember is that they are not Amway. Amway has over 8 billion dollars in sales but IBOs are not Amway. And IBO stands for "Independent Business Owner". Amway supplies you with products and bonuses based on movement of volume, and Amway also sets the rules by which you can advertise and market your goods. Amway also sets the rules by which disputes are settled.

A big part of being an IBO, is to recruit other IBOs. This is an important focus for many because an individual cannot generate enough volume to reach the higher levels of the business where significant bonuses kick in, along with the recognition and the ability to speak at functions and other types of meetings. When some IBOs reach this level, it is apparently expected that the IBO, who may now be an "emerald or "diamond" will show off the fruits of success, or may show a copy of some bonus check. IBOs like to use these things to entice others to join. The entire process is ridiculous. Can you imagine being enticed to work for a company by seeing the paycheck of the company CEO? If you saw the CEO's home or car, would that entice you to work for a company? Of course not because the CEO's salary has nothing to do with you as an employee, just as a diamond's success is no assurance of a new IBO being able to achieve diamond.

But why do IBOs use these methods to attract others? Is it because their Amway business cannot stand on it's own merit? I believe that to be true. I believe that even the platinum level IBOs mostly lose money. The State of Wisconsin attorney general did a study of all platinum (direct distributor) IBOs in their State and found that they lost $900 a year on average. While the study is a bit dated, I would suggest that nothing has changed. In fact it is very likely that platinums lose even more today because there are more tools and functions that platinums must attend.

It would be very easy for a platinum or a higher level IBO to simply open their books and reveal their schedule C (business tax return) which is common among REAL business owners. But I suspect that most platinums lose money and therefore can't do this, and I also suspect that the higher level pin winners do not make as much income from Amway as they like downline to believe, and do not want to reveal how much they earn from the sales of business support materials (such as voicemail or functions). In a few cases where a diamond's income was revealed, there was less earnings than expected and in some cases, debt where there should have been none.

Can your Amway business stand on it's own merits? Do you use the curiosity approach and leave the Amway name out of your pitch? Are you upfront with prospects when they ask you about what you earn? If not, then your business does not stand on its own merits.

Friday, November 16, 2018

The Amway Quota?

Most LOS groups that I know of, use 100 PV as the benchmark when promoting the Amway business. Many groups also teach that you simply "change" your shopping habits and you can easily reach 100 PV. This teaching creates an artificial demand for Amway products and I believe that Amway sales would take a huge dip if not for this teaching. I also am of the opinion that for this reason, Amway had/has done little to reign in LOS abuses of downline.

100 PV is roughly equal to about $250 to $300 worth of products. Of course your cost may vary, depending on whether you purchase a lot of CORE Amway products such as laundry detergent, and nutrilte vitamins. For many people, the 100 PV benchmark is seen as the minimum for a business building IBO. The problem for many is that Amway products are not competitively priced, thus it is a hard sell. If I can buy the same or a similar product elsewhere for a fraction of the price, I will. And most consumers feel the same way.

It is why some LOS groups adopted the "buy from yourself and get others to do the same" philosophy. Since most people do not like selling, and because of the high prices of Amway products, simply telling prospects to buy from yourself made the concept palatable. The problem with buy from yourself is that it reaches the borders of being illegal, in my opinion. That is because in a buy from youself environment, the only way for an IBO to make a profit, is to recruit downline to benefit from the volume rebates. That is because there is no outside customers to bring in cash from outside the circle of IBOs.

What makes this issue even worse is when you have LOS groups such as WWDB creating an even greater problem with programs such as eagle. If 100 PV is an inflated demand for Amway products, incentive programs such as eagle make it worse. How can a single person reasonably be expected to move 200 to 300 PV when most of it is personal consumption? The upline leaders use these programs as an incentive for downline IBOs, but in turn, they benefit financially by having more downline volume, as well as potentially enhanced tools sales by dedicated downline IBOs.

I challenge any IBO or prospect to take a close look at your Amway purchases. Are you truly just changing your shopping habits and achieving 100 PV or are you buying things to give away, or buying things that accumulate somewhere? Unless IBOs are selling half of their purchases, they are probably overbuying Amway products. I believe it is simply because of upline teaching which creates a defacto 100 PV quota and an artificial demand for Amway products. I challenge you to examine this closely and make your own conclusions.

Wednesday, November 14, 2018

The Amway/WWDB Eagle Program?

Eagle Parameters:
Signed Counsel Sheet to Upline Diamond
300 PV personal use/retail for couples, 200 PV personal use/retail for singles
6-5-3 (PB/SO/MF) - Explained below
6 legs at 100 PV or higher
5 legs on standing order
3 legs attending major functions

What is Eagle? Basically, Eagle is a made up goal. I believe it was originally made up by WWDB. In fact, I think Eagle was around when I was an IBO back about 12-13 years ago. The reason why I say it is a “made up goal” is because it is. It was not a part of the Amway sales and marketing plan. You receive ZERO additional compensation from Amway for achieving the designated level of Eagle, aside from your volume rebate. In a previous post (recently), I broke down the numbers, giving the IBOs the benefit of the doubt in sales, and the only conclusion I could arrive it was that most Eagles must be losing money.

The Amway sales and marketing plan, as shown in many groups, assume that an IBO will move 100 PV in volume, though a combination of personal use and selling of products to family, friends and customers. To be an Eagle, you are expected to move 300/200 PV (Couples/singles) in personal volume. In many, and probably most cases, an IBO typically will consume most of that 100 PV by him or herself. That means the Eagle program artificially inflates the need for Amway products. If you disagree, name one former Eagle (and I am one) who consumes Amway products to the tune of 300/200 PV per month. *crickets chirping*

I believe the Eagle program was simply the brainchild of some LOS leader who wanted to create some kind of incentive to prove an IBO’s loyalty to upline and to secure a certain level of tool purchases from downline. If you do the math, and consider that fact that IBOs on standing order and attending functions are somewhat serious business builders, then every individual in the Eagle program is likely to be losing money. The person designated as “Eagle” may be duped into thinking they have a net business profit, but when you factor in the extra 200/100 PV that you are expected to move, you are losing money, possibly lots of money, unless you are selling that extra 200 PV. If not, you are simply absorbing an extra $300 to $600 worth of products that you probably do not need, If Eagle was truly something worth attaining, wouldn’t it be promoted by Amway and given some kind of financial incentive?

As an IBO, you are MUCH better off simply by moving your 100 PV with a combination of personal use, and selling to friends, family, and most importantly, retail customers. In fact, someone simply selling 200/100 PV in products at full suggested retail price is likely to be better off than someone who is at 1000 PV with an Eagle structure, but self consuming the majority of the 300/200 PV personal circle that is in the Eagle parameters. I challenge anyone to show how a group can be better off financially by maintaining an Eagle structure. *crickets chirping*.

Tuesday, November 13, 2018

What's Better Than Amway?

One of the humorous things that Amway IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will offer some. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your due diligence your own soul searching, here are my opinions on what may be better than Amway:

1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of Starbucks for example. Disciplined saving and investing. Are you trying to "keep up with the Joneses"? Are you racking up consumer debt?

2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. I did this when I was in my 20's and I am now seeing the rewards adding up.

3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.

4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders, book of the month and/or voicemail and audios.

5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.

There you have it folks. There are some general ideas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.

Friday, November 9, 2018

When Will Amway IBOs Be "Walking The Beaches Of The World"?

One of the battle cries I heard as an Amway IBO was how one day, we would all be financially free and walking the beaches of the world. Being free and not having to own an alarm clock and not reporting to a boss. I mean it sounded like a cool deal. All you had to do was work the system 2-5 years and follow the proven system of success. At the time, I thought honestly that I was going to do just that. But as time passed, I started to notice things said and taught by the upline leaders that just did not make sense.

For example, why would we constantly be told to get out of debt and live below our means but it was okay to go deeper in debt to attend a function or to buy more standing orders? If debt is bad, then debt is bad. There wasn't much talk about using your business to generate profits to reduce debt. Just more recruiting and sponsoring. I suspect it's because it's just not feasible to generate enough sales to make any serious income from selling generic barnd products for top premium prices.

Of course now I know about how upline's apparent greed was what led to this type of advice. Or we were taught that God was our top priority, followed by our spouse, family, job and then the Amway business. But when anything conflicted with am Amway function or a meeting, the Amway function was ALWAYS to be the priority. "Never miss a meeting, period" was the advice we got from upline. Attend "all" functions. All means all. So much for prioritizing God, family and our jobs before Amway. It was just talk without any action.

Which leads me to ask prospects and IBOs. What progress are you making? When will you be walking the beaches of the world? Why aren't any of your upline leaders retired from Amway, collecting mountains of cash and walking the beaches of the world? Why doesn't Amway advertise residual income as a benefit of the business if it were true? Can you even name one or two people who built an Amway business and actually walked away from their business and collects income? Surely a 50+ year old business with this benefit must have hoards of people realizing this wonderful benefit? Why can't people name a single diamond who built the business, walked away and enjoyed this benefit that's used as a selling point for Amway?

What many people, including IBOs don't know is that you can never go inactive in Amway. Amway, as far as I know, will only pay bonuses on an active business, thus if you ever walk away, someone will have to run your business. You will also need to move a certain amount of volume in order to qualify for some of these bonuses, and you will have to hope that none of your downline ever quits or stop ordering products, or else your bonuses will dwindle down to little or nothing very quickly. For the higher up diamonds, if you stop, not only will your Amway business fall apart, but you will not receive tool money because you aren't participating. Thus diamonds work until they are physically incapable or until they pass away. That is not freedom.

Thursday, November 8, 2018

Nothing Changes In Amway?

If I'm not mistaken, Amway was booming in the mid 90's. Their sales had hit a new high of around 7 billion at that time. Recruitment was up and there seemed to be new diamonds and emeralds popping up all over the US. I joined the Amway business around 1997-1998 and the wave was still going. I later quit, discovered the lies and fraud that was used to entice me to join and eventually became an advocate for the truth about the AMOs (AMO = Amway Motivational Organization such as WWDB, BWW, etc) and some of the AMO leaders.

One of the things used by Amway defenders is that the experience of people who are critical of Amway are invalid because the experience may be dated, or because some people who are critical of Amway have never actually been IBOs. I don't buy that argument because you can be quite knowledgeable about certain things without having done them. I know that I would not put my hand on a hot stove because my hand would get burned. Even if I have never burned my hand on a stove before, I know this. Or if I burned my hand on a stove 15 years ago, would my experience be different if I put my hand on a hot stove now? Unlikely. I also know that jumping off a 10 story building would not be good for my health, although I haven't done it myself.

Yes, the Amway business has undergone some changes over the years. Most groups do not use the call in and pickup method of product movement anymore, although my understanding is that some groups still do this for standing orders and other tools. There is accreditation process for the tools which may have helped, but even with this, there is evidence of unethical practices going on, just that these issues are going on on small meetings rather than recorded functions. Many groups still focus on recruiting new IBOs and not on selling products for a profit. Many groups still focus on selling their downline tools and not ensuring profitability for new IBOs.

My former group, WWDB, apparently still has many of the leaders who were present when I was an IBO. There have been very few new diamonds in the last 15 years or so, relative to the number of IBOs that have come and gone. The lies and deception by the upline leaders were never accounted for. They have been exposed as basically frauds. Leaders who taught "pay by cash only" are found to have debts they cannot pay. leaders who swore that Amway saved marriages are getting divorced. Those who swore that tools were the key to success have little or no success to show for all the tools they sold. There is little "fruit on the tree", which was a common phrase back in my IBO day. The tree is close to barren.

What has changed in the Amway business in the last 15 to 20 years other than a name change to Quixtar and then back to Amway? Not much when you look at the big picture. The masses are still losing money today.

Wednesday, November 7, 2018

Amway Or A Job?

I recall many meetings and functions where the diamonds talked about how your job was making you "just over broke" or "jackass of the boss". They tried to put down jobs, as if working a job were some kind of cruel punishment for the masses. In reality, IBOs could not feed their families, pay their bills and they could not make the diamonds rich without their jobs. I remember seeing videos of people shooting their alarm clocks or a limousine pulling up to someone's place of employment and whisking off someone who recently went diamond or reaching some other pin level.

I suppose that for someone young, who may be in their 20's or 30's, the prospect of working another 30 years seems like a daunting task, thus a "shortcut" such as working 2-5 years sounds like a good alternative. It makes sense, until you actually start trying to build the business and find the name reputation and products difficult to sell. At some point, your investment into standing orders and functions starts to add up. You start to wonder if you made a mistake in trying to find a shortcut to financial freedom. You start to wonder if financial freedom even exists in the Ama-world. Why are the diamonds still working? Why don't any of them "walk away" and collect residual income for life while walking on the beaches of the world?

Luckily, you did not quit your job. While your current job may not equip you with financial freedom, you are likely able to pay your bills and put food on your dinner table. That is more than most people can say about the income they receive from Amway. I used to wonder how much money these diamonds actually make. While they may earn a nice income (if they are actually qualified), a diamond lifestyle can render them even more broke and in debt than the people they recruit into Amway. I believe many diamonds are living month to month, worrying about their finances because they portray a lifestyle that cannot be sustained on the kinds of incomes that Amway reports (i.e. $147,000 average diamond income). A recent triple diamond in bankrupt proceedings revealed that while they earn a nice income, they may not be able to sustain an excessive lifestyle, and certainly not without making a significant income from selling functions and other tools to downline.

Rather than getting excited about seeing a Mercedes Benz, ask your diamond how much they earn from Amway. Ask them why there aren't any diamonds taking advantage of residual income for life, thus walking away from the Amway business? While working a job and saving money may not sound that attractive, it is still a much better alternative than working a job while channeling your income into standing orders, voicemail and functions that do nothing except make your bank account lighter. Financial security and long term sustainability takes hard work and discipline. Many who promote Amway trick prospects into thinking that Amway is a shortcut to get rich. It isn't, save for the owners of Amway and a few old time Diamonds who control the systems. The facts are there, you just need top recognize them.