Thursday, December 6, 2018

Why Amway Isn't Sustainable?

One thing that is very clear to me after having researched and blogged about the subject of Amway and the Amway Motivational Organizations (AMOs) is that most Amway businesses are not sustainable. It is why I believe there is such a high drop out rate and why there are so many people who have formed a bad opinion about Amway. Now a real business relies on income from customers. The customers purchase goods and services from a business, and it they like it and/or find value in the goods and services, they become repeat customers and as long as there continues to be value in the goods and services, sales are made.

In the Amway, business, there appears to be a "perceived" value to the goods and services. In many groups (such as BWW or WWDB), the perceived value is that the purchase and use of Amway products will lead to untold wealth and the possibility of early retirement. Sadly for most IBOs, the reality sets and and the IBOs end up quitting, and more often than not, the products that had great value and price to an IBO, suddenly becomes expensive and irrelevant to non IBOs. If former IBOs had continued to buy Amway products, the company growth would be significant even with the high attrition rate. It appears that the dreams and aspirations of a new IBO are directly related to their dedication to Amway products.

But why aren't most Amway businesses sustainable? Isn't it simple? Do your 100 PV and get others to do the same? In my opinion, this is what has destroyed the Amway reputation. All too many IBOs in the past have done all kinds of crazy and in some cases, deceitful or unethical things in an attempt to recruit other IBOs. What probably in mentioned, but not a meaningful way is the absolute need for IBOs to get customers, and plenty of them. Even groups that may teach some need to get customers do not advise IBOs focus primarily on customers. They still advise many/most IBOs to sponsor downline. The lack of customers means that the diamond wealth seen on stage at functions comes primarily from IBO purchases of Amway goods and business support materials (standing order, voicemail and functions)

But you may wonder why a diamond appears so successful? It's because a diamond business has many customers. All downline who purchase voicemail, standing orders, books and functions are all customers of the diamonds. The are all generally repaet customers as well. A diamond or higher may have hundreds to even thousands of downline who purchase support materials (on the diamond's advice). That is why in many cases, a diamond will seem successful, because they have all their downline as customers or potential customers. However, with the apparent illusion of a diamond lifestyle, even that diamond income may not be enough to sustain the "diamond lifestyle". It appears that the downturn of growth in north america may have affected the north american diamonds (bankruptcy, foreclosures, etc).

And if a diamond may not have enough customers to sustain their business and lifestyle, what chance do you have with little or no downline, and little sales to people who are not IBOs? I suspect if you're reading this, you already know the answer.

4 comments:

Unknown said...

You highlight another fallacy of the Amway dream - the products apparently don't stand on their own merits. Otherwise, why would nearly every Amway person who quits also stop buying Amway products?

Joecool said...

If the products were so great, you'd think there would be millions and millions of loyal former IBOs who keep buying.

But it seems clear that once the dream of untold residual income ends, so ends the desire for Amway products.

If not, Amway sales would just keep going up and up. Instead, Amway's had about a 25% decline from 2013 to now.

Unknown said...

To believe is the best maneaure to succeed in lif

Anonymous said...

"Maneaure"?

Are you sure you don't mean "horse manure"?

Because that's exactly what the Amway racket is.