One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 30%+ of their revenue back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting. If you have no guests to bring, you paid and received no benefit at all. The act of signing up first entitles someone to a lifetime cut of your volume. That doesn't seem like a level playing field to me.
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of the Amway owners and your upline, but not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool and function purchases for the priviledge of giving them bonuses with your product purchases. Dreams are being fulfilled, but not yours.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts and your tool and function purchases. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances. They don't want you to quit because their income is affected. Sometimes in business, quitting is a wise business decision that must be made unless you want to bleed money longer and longer. Quitting Amway doesn't mean you can't try something else to fulfill your dreams and goals. More than likely, any option you choose will be better than losing money in Amway.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 a month or more on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline?
5 comments:
Perfectly stated! How can this concept NOT BE UNDERSTOOD by a new IBO!!!??? It is common sense at minimum!
This is so FALSE on so many levels it's laughable. The profit percentages are paid from Amway's bank account, therefore no one is receiving the "lion's share" of the profit.
As you add more value to ANY organization, your pay goes up! Common sense really. At 99.99% of jobs, there are fewer people at the top, making much more money than the front line works.
With this business opportunity, you at ANY POINT can make MORE money than your "upline". It's a genius model really, because your upline always get a leadership bonus when you succeed. They have a financial interest in your success and the more money you make, they get a very small amount.
Amway is the 2nd largest creators of millionaires in the HISTORY of N. America.
People who don't make money in Amway are the same people that never get promoted at work, never follow through with getting in shape, and have failed relationships. It's all a decision and success is for those who earn it.
To Anonymous at 7:15 AM --
Do you have a problem with reading comprehension?
If Amway keeps 70% of revenue while only 30% is divided among those in the chain of IBOs, then that is, in fact, the "lion's share" going to somebody up in Ada, Michigan.
Moreover, most of that 30% is going to an IBO's up-line. He's only making pennies on a sale. The simple fact is that every Amway IBO is nothing but a salesman working on a very meager commission. His only hope, financially, is to bamboozle a lot of other new IBOs into joining his down-line so that he can rip them off.
Tell us how much money you personally have lost in Amway so far. Or haven't you been keeping a profit-and-loss sheet? And also answer this: if you're such a big fan of Amway, why are you here at an anti-Amway website and blog? Do you have a bad conscience, or are you secretly harboring doubts about the Amway racket?
Yeah, I heard that lie too, that NWM makes most millionaires on the planet. Now stepping down to number 2, right? To make it little more close to reality...:-)
It is bullshit man, but you can always prove us othewise, do you have some evidence? Or you just heard it at the conference?
Maybe you should see this:
https://www.youtube.com/watch?v=inPcztqj9RE
This Chen lady, one of first distributors in China (yeah, always good to be at the beginning) with 10% of all Amway IBOS in her downline makes 8 millions a year?
It means she has 27 dollars per head a year. This is pathetic.
Do you also recruit like hell to get somebody in to get 2 coffes paid a year for your efforts?
Well then you are, politely said, not really smart.
>>They have a financial interest in your success and the more money you make, they get a very small amount.
The financial interest is in your SALES, not your net profit, aka "the money you make" or your success or your bottom line. They sometimes align, but often don't. That is a big problem because some sales can drain your money, like excessive self consumption, or having to drive and make calls, in order to make those sales. Or spending massively on overhead expenses, not justified by the sales.
If you want upline to have financial interest in your success, have him agree to pay all commissions on your sales back to you, in exchange for granting him a share of your bottom line profits (or losses). That is what financial interest in success is. I know that will never happen, but if it would, it is obvious that the advice disposed to downline would have been very different. The main objective of a business is to make net profit, not sales volume nor even gross profit. A business should take advice from a party with an interest in it's sales volume, that is not a shareholder for better and for worse, with extreme caution. A party with interest in sales volume and some overhead expenses (incentivised if you spend more) should be flatly ignored, and run from!
Another way to look at it, is that upline still makes money from you even if you operate at a loss, at the very least from your self consumption sales, and the group leaders make money, even from your overhead expenses. Does that sound like financial interest in your success? The last thing they want from perpetually loss making IBOs is to stop making losses (quit). If they had financial interest in bottom line, they would have begged loss making IBOs who are clearly going nowhere, to quit.
Anonymous at 7:15 AM --don't be fooled. It seems from your grammar, spelling, punctuation (and some reasoning: pay goes up with value) that you are at least reasonably educated, and have the capacity to think, do not suppress it.
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