Friday, March 2, 2018

I'm A Business Owner?

Many people get prospected into Amway and think it's a cool idea to be a business owner. "I own a business". And technically, it would be cool for someone to own a business they can call their own. But what Amway distributors fail to see is that they aren't business owners. If they sign up, they are commission only sales people for Amway. These sales people take all the risk and expense of moving Amway products, and if you meet a minimum quota, then you get a small commission.

These commissioned sales people however, are allowed to sponsor down line (additional sales people) which allows them to increase volume, possibly resulting in higher commissions. To illustrate, someone who moves 100 PV receives a 3% bonus. On 100 PV, a 3% bonus is about equal to $10. But if that same sales person sponsors 2 people and they all move 100 PV, that would be 300 PV which is now a 6% commission. A 6% commission on 300 PV is about $36 overall. The 2 down line each receive $10 and the person who sponsored them keeps the rest, which is about $16. This is the reason why Amway sales people are so desperate to sponsor down line, because it gives you an opportunity to increase your overall volume, assuming these down line are active in the business. This in itself wouldn't be a problem if Amway products were easy to sell, but most people find that they don't really like selling products and wind up being their own best customer. That results in most people making nothing or losing money.

So why are the diamonds called business owners? Because the diamonds are business owners, even if the rank and file distributors are not. This is because the emeralds and diamonds and some other higher ups are in the business of selling tools. They might sell voicemail and cd subscriptions, books and seminars and other materials designed to allegedly help you succeed in Amway. Given the dismal rate of new diamonds around, I'd say the training is ineffective. I believe there are fewer new diamonds in Amway North America now than when I was in Amway 20 years ago. I've also seen diamonds walk away and quit (as opposed to walking away and collecting residual income). I've also seen diamonds get divorced (Amway saves marriages?) and I've seen diamonds have homes foreclosed (diamonds pay cash for everything?).

The problem for the rank and file Amway sales person is that they believe the diamond holds the key to success so they hang on their every word and will buy all the training thinking they will also go diamond and receive untold wealth and early retirement. But in reality, the diamond is selling snake oil that puts money in their pockets while draining the pockets of their down line. And the diamond needs this money because it is highly unlikely that the "diamond" lifestyle would be affordable on a diamond's income. The average diamond as reported some years back by Amway was about $150,000 a year gross income, not including business expenses. If you do the math, you will easily see that after taxes and expenses, a diamond is not living the high life. It's the tool income that helps to augment the Amway income. Some diamonds make as much money on tools as they do from Amway and some make more from tools than from Amway. This is the secret to success. Sell materials to large groups of people on an ongoing basis.

But don't be fooled into thinking you own a business as a rank and file Amway distributor. You are just a commission only sales person for Amway. If you stop and really think about it, how can you see it any other way? You move products and if you meet a quota, Amway pays you. You must follow Amway's rules and if you violate it or if Amway feels you were in violation, they can discharge your membership and your income will stop. You cannot innovate or advertise without Amway's permission. Don't fool yourself. Take this information to heart if you are being prospected into Amway.

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