Many people consider the platinum level in Amway as a significant achievement in Amway. While it may be nice to achieve that level and gain recognition from the Amway corporation, I will point out that there was a study done in Wisconsin where the attorney general analyzed and found that the top 1% of Amway IBOs lost money. The study is somewhat dated, but I will also point out that today, there are MORE expenses associated with running an Amway business than before. (Voicemail, books, functions, standing orders, shipping). I would guess that it's possible and even very likely that platinums lose more today than when the Wisconsin study was done.
A typical platinum group often has 100 or more downline IBOs. Thus a logical conclusion is that less than 1% of IBOs can reach that level. It is also, apparently rare to maintain that level. Factoring in people who quit, one can conclude that only a fraction of 1% ever reach platinum. My former upline diamond had 7 frontline platinums in his heyday. Actually, 6 of them were ruby level. None of them hold the platinum level today. So you have a less than 1% chance of reaching platinum and then you are unlikely to be able to maintain that level.
What serious prospective business owner would even consider opening a business where you have such a tiny chance of success? Even those who achieve platinum are likely to lose that level. If platinums cannot maintain their level, then it's easy to see why there are former diamonds as well. It seems that people are willing to take a chance on an Amway business because the start up cost is low. But what is the point of doing all of that when the chance of making money is negligible?
To compound the problem, many IBOs spend a lot of time and money building an Amway business that is unlikely to give them any return on their investment. I'd guess that the average serious IBO would spend $250 a month or more on tools. That money invested over a number of years in mutual funds would give you a much better chance of achieving some dreams. Even putting the money in the bank would make you better off than the vast majority of IBOs. A serious business owner would want to know their realistic chance of making money. For some strange reason, prospects and IBOs seem to ignore this reality. They dream of only the best case scenario or what is possible. They seem to ignore what is likely.
It is because uplines are in the business of selling tools and distributorships. They are not truly interested in your long term sustainable success. If you don't believe me, try to stop purchasing standing orders and function tickets and see how much longer you are edified and given help from upline. Seriously, would a real business owner be interested in a less than 1% chance of success?
3 comments:
I was approached by this man at a book store & started chatting about our jobs. Told him about my 9-5. He Then offered me an opportunity. Said we don't even have to talk about that, let's just get to know each other. I was excited to potentially gain a new friend. Met up days later. We were chatting at a Starbucks(of all places) & shared common interests. We are both artists & love drawing. I wanted to keep talking to him about that & know more, but didn't take long for him to make his pitch. Went along as he was being very vague on what the "opportunity" was. So He gave me the biz of the 21st century to read. Read it. Opened my eyes to new perspectives fersure. Then Invited me to a talk & dress sharp to the effin' teeth. In my head I prayed it wasn't one of them triangle schemes as they say..Got to the meeting at a married couples house in their living room.The guy kept going on "joking" how what we do is not a cult, i felt uncomfortable as everyone started laughing so I nervously started to laugh as well. How it's not a pyramid scheme cus this business is all about "equal opportunity." hmm, okay wtf is this then. He then says, "this isn't a meeting about amway either. We're not here to recruit you, we're here to help shape your future & get you to be financially free." (there were a lot of "Mhmm's being hummed throughout the presentation all around me. everytime he'd talk about how being in the e & I quadrant is like being a slave, etc.)Later in his presentation he said we shouldn't listen to our close friends or family when they say its a bad investment & waste of time,etc. They all have an employee mindset.(mindset, ohhh that word has been thrown around like a used spunk sock throughout that night)"they don't know what we know. How can they see the bigger picture if they can't connect all the dots. You need a new group of like minded people to be around & motivate you. We want you to stop being a chicken & reach your potential to become an eagle!" Then started going on about how he recruited his own parents & friends?How they, "don't wanna stop the momentum now that they are fully invested in it! It's like they want to surpass me!" His wife later comes up pointing out the room full of young ambitious 19-20 somethings. Saying that we're so fortunate to have found ourselves in their living room. That we were all there for a reason & to Thank the person who invited us there. At the end of the meeting they gave me a package with another book to read & brochures about amway. A bunch of dates of upcoming meetings & that I should do everything I can to get to them..I can't help but to feel like a used dish sponge already. Since i am getting bombarded with all these promises & dreams of wealth.They keep pushing me to meet with them again. But at the end of the day I just thought I was gonna make a new friend & that the opportunity was gonna be something related to the arts business. I think this experience has only pushed me even more to start selling my "own" products.Via social media platforms & creating a personal brand for myself, Rather than selling some beauty, household products & vitamins that I don't fully believe in.
Point is, I found this blog.. & am super fortunate to have crossed paths with it. I was meant to find this blog & wake up to the reality of my procrastination. I have always thought.. I'm not a professional yet. So how Can I start my own business If I don't know anything about running a business. From what I've seen & read about amway, is that most ibo's got the blinders on so tight that they gave up their actual dreams. I kinda feel sorry for the young man who was trying to recruit me cus he told me he doesn't have time to draw anymore. & that right there hurt me more than it probably hurts him. I would never put my practices on hold to perfect my crafts. F*Dat
Thanks Joecool for these posts & sharing your story! It's nice to see both sides of the coin
Anonymous,
You're very welcome and your comments are my compensation for keeping this blog going all these years. You friend, sadly has probably given up his drawing for now because it's what was taught. When I was an IBO back in the 1990's, I was told to give up all my hobbies because later when I went "diamond", I would have all the time I wanted to do what I wanted, when I wanted.
In the end, I wasted a good part of a year of my life. Luckily, because I sponsored some people, my losses were not as great as some others who had a brush with Amway. Back when I joined, the internet was fairly new and not much information was available. I'm so glad that this blog can stand here for years and allow information seekers to read about my experience and opinions on why the Amway opportunity just doesn't work for the masses.
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