Thursday, September 27, 2018

Amway Creates Debt?

One of the pitches used to attract people to the Amway business was to earn enough just to get out of debt. After all, many Americans these days have credit cards maxed out and racking up more and more consumer debt. But the tough question is whether joining Amway will help the situation or only make it worse? In general, Amway products have higher prices than retailers such as WalMart or Costco. Anyone who denies this is either being deceptive or is truly misguided. You can try to argue about Amway's quality of products. Some products are good, but overall, consumers simply don't find enough value in them. Seems that IBOs don't even buy Amway products unless they are pursuing their dreams of going diamond. Once that dream ends, so ends their loyalty to Amway products.

Sadly, for most business building IBOs, the business opportunity and its connected teaching system such as WWDB, BWW, or N21 simply creates more debt for IBOs. Think about it, an IBO will already be spending about $300 a month to earn their defacto 100 PV requirement. If that IBO subscribes to voicemail and no other tools, that IBO will already have a net loss for the month. Factor in ongoing expenditures such as standing orders, functions, open meetings, regional functions, books and other miscellaneous expenses and you have an IBO heading towards tens of thousands of dollars deeper into the debt hole. Most IBOs don't see what's happening because the debt is incurred a few hundred dollars a month, but most IBOs think it's okay because they are convinced that they will recoup the losses and earn a huge surplus in the long run. Unfortunately, only a tiny fraction of 1% of IBOs will ever earn a decent profit from the Amway opportunity. Most will realize they are making their finances worse and end up quitting.

In the few cases where a diamond's financial were exposed, these diamonds were in hock. Even a prominent triple diamond was not earning enough to sustain the lifestyle he and others promoted on stage. It is my guess that these diamonds in financial difficulty is more likely the norm than the exception. Do the math. If a triple diamond earns about a million dollars from Amway and the tools profits, can that income sustain a jet set lifestyle portrayed in functions like dream night? I mean it is a great income, but everything is relative. Someone earning say $70,000 a year can live a comfortable lifestyle without debt. But diamonds portray a lifestyle of excess and almost arrogance. It's no wonder some of them have financial problems.

In the end, IBOs are drowning in debt as a whole. The system nearly ensures that the group of IBOs collectively will end up with a net loss with one or two at the top earning a profit. One's dedication to tools determines how much an IBO will lose. The more dedication, the bigger the losses. If your upline teaches you to get out of debt, that's good. but if they teach you to get out of debt, except for functions and standing orders, take that as a huge red flag.

1 comment:

Anonymous said...

One really evil thing about Amway is the way in which they actually ENCOURAGE debt in IBOs. Sure, they tell you that you should get out of debt to others, but they also tell you that you should take on debt in order to run your Amway fake business.

There's a reason for this. When you are deeply in debt because of your Amway fees and purchases, you are trapped. You can't quit, because Amway is the only life-line you have to the possibility of big money. When you have racked up $10,000 in debt because of functions and tools and fees and all the other stupid paraphernalia of Amway, you then think "I'm already deeply committed! I HAVE to stay and continue!"

This is exactly what happens to compulsive gamblers in Las Vegas or Atlantic City. You've lost a lot of money at the craps table, but now you hang on desperately in a futile attempt to win some of it back. Amway IBOs who are bleeding financially can't quit, because where will they ever get back their loses? And their lying, corrupt, vicious up-line eggs them on, saying "You can't quit now! Success is just around the corner!"

Amway IBOs are like helpless flies caught in a spider web.