Amway’s own stats show that the vast majority of IBOs fail. When you factor in additional expenses such as standing orders and functions, the losses can add up to significant amounts of money. I haven’t looked recently but the average IBO earned like $200 a month before expenses but that average is deceiving because it includes the “millionaire” diamonds and dies not include IBOs that did nothing. When you factor in all of the business expenses, it’s possible for a large group to lose money collectively with only one higher up diamond or other pin profiting.
But what is truly scary and goes unnoticed by the rank and file is the idiotic advice that diamonds give their down line IBOS. The advice fir a failing IBO is not to limit expenses or perhaps to stop purchasing tools. Often these down line are advised to spend even more on tools. That more Amway education will ultimately lead to success. Sadly it just results in more business losses and rarely will the advice to spend more when your business is not profitable will rarely help a failing Amway business.
Additionally, upline will push the down line to sponsor others. Thus an IBO ends up recruiting more failing Amway businesses as a means to succeed. But for the upline diamond, the churn is just fine. As long as the newbies buy an Amway kit, perhaps some products and maybe some tools and functions. Fir the diamonds, this works just fine as long as you can keep replacing the quitters with new recruits.
All the whole, any persistent IBOs will keep churning until they finally realize that their efforts are futile and finally walk away. Sometimes there are IBOs who get a good start and sponsor others and might have some momentum. The diamonds will capitalize on this by building up that IBO until they ultimately fizzle out.
But it’s clear that the upline advice serves the diamonds better than the down line. It’s crystal clear to me but not so much to the newbies or dedicated IBOs who haven’t seen through the scheme yet. My hope is that prospects or even seasoned IBOs will see this article and see through the bad upline diamond’s advice.
4 comments:
Amway (along with all other MLMs) is the only business where you are expected to recruit YOUR OWN COMPETITION, by signing up persons who will then be working to sell products and recruit new members whose interest will be financially opposed to your own. This is especially true if Amway is being promoted in a small town.
And it is also true that one's up-line is essentially indifferent to this fact. Whether you recruit a new member or someone else recruits a new member is unimportant to them. All they care about is the upward flow of cash. Your fierce competition with other IBOs only means more money for them.
LuLaRoe collapsed because too many women in small-town America were in savage competition to sell the products, and there wasn't enough customer base to generate a profit for all of them. The greed-driven couple who started the business didn't care -- they just pushed tons of unsellable product on their members, and emphasized endless recruitment.
The biggest lie that all MLMs push is the absurd notion that you are "helping others" when you join up.
LTD is having a summer conference in June by webinar and charging each person $115 per ticket. They are also encouraging people to recruit strangers on LinkedIn. LinkedIn is for real professional networking and I wish they would ban these MLM predators. These people are getting desperate.
As a former member of the LTD cult of Amway, I am not surprised they are charging full price for a live streamed function. Also not shocked they are now hunting people on LinkedIn which is gross since that site is for REAL entrepreneurs, business owners, and people who work legit jobs. Before I left Amway/LTD in late 2018, my upline started talking about recruiting "higher quality people" and using sites like LinkedIn. This was brought on by the fact that a lot of people in the scheme were dropping like flies (mostly people in their early and mid 20's) and others who were in their early 30's (like myself ha). Really wish they would ban these con artist. What more proof does the FTC need to see that this is a thinly veiled pyramid scheme????!!!
It will be very hard for anyone in LTD to convince a stranger to spend $115 for some "webinar." Since most of these Amway functions are just festivals of fantasy and rah-rah-hype, any stranger seeing that will immediately demand a refund of his money.
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