I’ve seen and heard many debates about Amway and one interesting discussion was about Amway and gambling and the odds of success. The Amway defenders were quick to point out that Amway is not a game of chance and hard work is required to succeed. But let’s look beyond those simple and obvious arguments.
If Amway is not a game of chance, then it is possibly the most difficult business in the world to succeed in. That’s because millions or tens of millions have put forth a lot of time, effort and money into their Amway business only to end up with a net loss. Amway’s own financial disclosures confirm this. Now I didn’t go digging for the most recent figures but Amway’s own stats showed that about 1/4 of one percent of IBOS go platinum. That’s the level where dedicated IBOS allegedly break even or begin to make a profit although many IBOs go platinum but do not requalify for that level again.
So based on information that Amway discloses, you have about a small fraction of one percent of breaking even or making money in Amway. And I repeat the Amway defender’s line that Amway is not a game of chance. Who in the world would want to join a business where you have less chance to succeed than a game of chance? Seriously? If I flip a coin, I have a fifty percent chance of calling the correct outcome of heads or tails.
Even most games in Las Vegas gives you close to a 50 percent chance of winning. Certain games such as black jack can actually favor the player depending on the level of skill. Now I’m not advocating gambling as a good way to make an income but I’m just illustrating how difficult it can be to succeed in Amway.
More food for thought: Vegas builds new hotels and attractions on the losses from losing gamblers. However, most gamblers enjoy gaming knowing they are likely to lose but with a chance to win. Amway diamonds enjoy the diamond lifestyle by selling cds/audios and functions while encouraging downline to move more PV but in the mean time, the down lines are losing money month after month with little chance of even getting small jackpots along the way. The sad part is that Amway is not a game of chance. At least gambling doesn’t require hard work.
Joe, your comments about Amway remind me of a famous line from a W.C. Fields movie.
ReplyDeleteFields (a card sharp) is playing poker with a real dumb sucker. The man asks "Is this a game of chance?"
Fields replies: "No, not the way I play it."
Nobody really has a chance in the Amway racket. If 99% of all IBOs fail to make a profit, what sense is there in it?
What has always struck me odd about Amway is if the products were any good why do you have to purchase so much "educational" material?
ReplyDeleteYou could probably get a MBA for what the ScAmway faithful spend on "motivational" tools in 10 years. From what I have seen of the meetings they are not teaching you better ways to sell overpriced cleaning products. They are just selling you on the ScAmway dream again. Almost as if they know with out constant reinforcement people would come to their senses and leave.
Meetings in Amway are not for education or training. They are only for churning up enthusiasm in IBOs, so that they will stay in the scam and continue to contribute to it. Even the IBO victims admit that the only reason to attend Amway meetings is "to get fired up."
ReplyDeleteThe "tools" are often just CDs that play back the speeches given by big pins at the functions, or just rah-rah-let's-go-team pep talks. Nothing that is said at the meetings or functions is in any way helpful in actually selling Amway products at retail to non-Amway customers.
In fact, the only real information dispensed at Amway meetings is about how best to hook potential recruits, and get them to hear "The Plan." Since Amway is just a pyramid scheme posing as a retail business, the main concern is recruitment of new IBOs. This is what provides your up-line with their real income. Since it is next to impossible for an IBO to sell a significant amount of Amway stuff to the general public, the big emphasis is on "self-consumption" (which means purchasing the products for your own use, and getting your down-line to do the same), and "being a leader" (which means roping more silly people into joining the Amway racket).