Wednesday, May 16, 2018

The Real Amway Pitch?

Many people have experienced some kind of pitch by an Amway IBO. My first Amway pitch was an invitation to a beer bust while I was in college. I arrived to the meeting expecting beer and pizza only to see people in suits giving a presentation. THey spoke about how you could generate income by eliminating the middle man from product distribution. Creating efficiencies was a way to generate money and Amway was it. On the surface, it can seem as if everything the speaker said made sense, although real life practice doesn't bear it out.

Sell and use consumables. Consumables need to be re-purchased so obviously it is a good way to run a small business. What wasn't discussed was the higher prices of the products. What manny people do not see is that Amway's generous bonuses have to be built into the price of the products. For this reason, Amway cannot compete with big retailers who don't have to add sales people bonuses into their prices.

But if you look beyond all of this and still think Amway is a good opportunity, then the real Amway pitch comes in. People get excited about working part time, 2-5 years to earn will able and residual income which will allow someone to retire early and leave a legacy to future generations. This is the point where the Amway presenter makes the pitch about people needing training.

You need tools. After all, a carpenter can't build a house without tools right? So many people who think Amway will make them rich, start to invest in their "tools". Sure, the Amway functions and some other materials can make you feel good or motivated, but in the end, the tools are supposed to help you generate sales and to increase your business revenue. What goes unnoticed in many cases is that the Amway tools are the reason for an IBO's net losses. The upline will justify this by telling stories about how success is right around the corner or that you should never quit and you will eventually make it.

All of this rhetoric from Upline is nice, but people who don't quit have no assurance of making it. Look at the fruit on the tree.
My former LOS, WWDB, has fewer diamonds now than when I was an IBO 20 years ago. My former sponsor is still active in Amway after 25 years and he's not even a platinum. You don't see many new diamonds except for in foreign countries. To me, this is evidence that Amway is saturated and there is little chance of future success. This is why there are mostly tired old diamonds working until they pass away. If the diamonds were so "awesome", why aren't all of their kids and close friends also in diamond club?

The answer is that the Amway pitch can sound good, but it doesn't work. From 2013 to now, Amway revenues are down abot 25%. From a peak of 11.8 billion in 2013 to 8.6 billion in 2017. I believe Amway is a sinking ship. Beware of the Amway pitch,

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