There’s a website called “The Truth About Amway”, which I find ironic as it’s run by an Amway apologist who uses a lot of misinformation and obfuscation to prop up Amway as a business opportunity. The theme of that website is that there’s a good Amway out there where IBOs actually sell products and make a net profit, but where is this good Amway?
Amway’s own disclosures show that about half of IBOs do nothing and approximately 90+ % of IBOs do not last for more than a few years. Thus diamonds make their money by selling tools and functions to IBOs before they snap out of their Amway trance and quit. Thus is called the churn and I write about it in yesterday’s article.
The churn is the reason why diamonds basically don’t give a crap about your success nor do they care if you make a red cent in Amway. All they want is for you to adore them and blindly continue to buy tools and functions because that’s what funds the diamond lifestyle.
So what is the truth about Amway? The truth is that Amway revenues have been down or flat for many years and now with covid, I can’t imagine there was a sudden surge in demand for overpriced generic products. The truth is that diamonds make significant income from tools and functions and push these on down line with no consideration as to whether an IBOs business justifies the expense. The truth is that diamonds at times have broken away from their beloved uplines to start their own tool groups.
Basically the Amway business is two businesses. One is Amway which is the front for the tools and function businesses. Sort of like how the crime mob would use a restaurant as a front for their criminal activities. But it’s a symbiotic relationship because Amway benefits from diamonds teaching 100 PV minimum and product loyalty in addition to the massive recruiting done by the rank and file and in return, the diamonds soak their downline selling useless tools and functions right under Amway’s nose and Amway allows it.
That’s basically the truth about Amway. Believe it or proceed at your own risk.
There are a few You-Tube presentations called "The Truth About Amway," and they are very strongly against Amway and all MLMs. So that name has been changed by Amway at its official website to something else, like "Get the Real Facts About Amway.."
ReplyDeleteI remember that Amway apologist you mention. He called himself "IBOFightBack," but his real name was Steadman, I believe. He was a paid flack for Amway (and later on, for other MLMs) who ran all over the internet attacking anyone who dared to criticize the company or anything that it did. At Anna Banana's website, I began the custom of calling him "IBOFartBack," and that name stuck. The last I heard he was living in Sweden, and trying to set up his own MLM there.
The real truth about Amway (and almost all MLMs) is exactly what you say, Joe Cool. The serious money is not in moving products, but in the tool and function fees, and in the constant churn of IBOs in and out of the business.
"Products" in Amway are essentially meaningless. They serve solely as a symbolic wampum that is passed along the down-line to camouflage the fact that practically nothing is being sold to retail customers. The products are either self-consumed by IBOs, or left to gather dust in garages and basements. The only hope that any IBO has in Amway is to convince others to be in his down-line, and to pressure them to do the same for themselves.
Any big pin in Amway has no real financial interest in anyone in his down-line rising to his level. It is MUCH more profitable if IBOs just keep on paying fees endlessly, dropping out in despair, and being replaced by new IBOs who are just as stupid. This is why you will seldom see a Platinum or a Diamond retire from Amway. They have to keep the "churn" going.
Spot on comments. Thanks!
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