Tuesday, July 30, 2019

Amway = Guaranteed Failure?

What many Amway and MLM IBOs do not realize is that the Amway/MLM compensation plan nearly guarantees failure for most IBOs. There, there will always be some people who make money in Amway. Some might even make a nice income, but they are few and far between. But for Amway. all you need to do is look at the 6-4-2 plan and you can easily see how few people can actually succeed.

We know that in the 6-4-2 plan there are 79 IBOs doing 100 PV. We know that many IBOs do little or do nothing, thus a group where 7500 PV is moved, then one can conclude that you would need more than 100 IBOs. I believe many platinum groups consist of 150 to 200 IBOs. Many of these folks quit and need to be replaced, so the platinum is often very busy showing the plan and recruiting downline. In the end, out of these 150 to 200 IBOs, there is one who is making a decent income (the platinum). Well, that platinum represents less than 1% of IBOs. Even if the entire population of the world signed up for Amway, that rate of success would not change because it simply takes that many downline to make a platinum.

Based on the evidence supplied here, you can make a claim that joining Amway or an MLM nearly guarantees your failure. The only exception would be an IBO who signs up and only sells products to actual non IBO customers. These folks can make a profit, but are highly unlikely to make any significant income. However, most IBOs end up joining Amway with an AMO attached (AMO = Amway Motivational Organization) such as WWDB or Network 21. These folks are for profit companies that sell training and motivational materials. But if the system only allows for a fraction of 1% to be "successful" at any given time, no amount of training or motivation will make it better.

The upline leaders who sell these tools often deceive their groups that anyone and possible everyone in the room can succeed. It's simply not true. The system is set up for a limited number of successes. You cannot become a platinum or higher simply by choosing to do so or by wanting it bad enough. Hard work may help but still doesn't guarantee you anything. The system is multi level and it can only yield a small number of "success", just as there can only be so many officers in the Army. Working harder can help someone advance, but the number of leaders (platinums) will only increase relative to the numbers of lower level IBOs. Do the math and the sad picture becomes more and more clear.


Anonymous said...

Let me get this straight -- an AMO (what some call an LOS subsystem of Amway) makes its money from selling tools and training almost exclusively. The AMO really doesn't expect its IBOs to do much more than self-consume the Amway products. Selling retail to non-Amway customers is de-emphasized. Is this correct?

Joecool said...

You're exactly right. Think about it. You're a "diamond". You find that the money is nowhere near what you thought. Your only way to generate more income to portray the "diamond" lifestyle is to promote the tools and self consumption hard. According to Amway, a non Q12 diamond makes less than 200k per year, even though Amway states the "average" income of a Q12 diamond as around $600k. A Q12 diamond is rare.. A non Q12 diamond (the vast majority) needs tool income just to survive. Most of a diamond's income is in the form of an annual bonus so a diamond's monthly income can be quite small.

I believe many diamonds live in debt like the rest of the US while portraying a lifestyle of excess.

Anonymous said...

If an Amway Diamond makes no better than 200K per year, there is no way he could support that lavish lifestyle of fancy cars and private jets and sprawling mansions depicted in videos at all the Amway functions. All of that is pure bullshit. Two hundred thousand is a nice income, but you can't live a jet-set lifestyle on it.

Joecool said...

Even if a diamond had $400k per year, once you factor in business expenses, taxes, and things like medical insurance for your family, you're very likely living a middle class or upper middle class lifestyle at best. It would depend on what kind of mortgage you have. Diamonds are unlikely to be paying for homes in cash, despite claims that they do.