Your Upline Car Salesperson?

 When I saw the Amway plan, it made perfect sense at the time, at least on paper, because the diamond who made the presentation made everything seem sensible. Make money and/or save money. On the surface, you would have to be nuts to not want to make or save some money right? . But it is the reality that is the problem. The reality is for business building IBOs is financial damage or financial disaster from the ongoing costs of the system expenses. I saw crosslines go bankrupt and more than one couple lost their homes to foreclosure by "doing whatever it takes" to get to the next function.

Our group (WWDB) edified people who bought extraordinary amounts of extra tapes/cds, extra function tickets and made superhuman efforts to get to functions. Looking back, I remember an IBO who was edified for coming all the way to a family reunion function in Portland Oregon when he was diagnosed with terminal cancer. The speaker said he could have been miserable spending time at home but here he was making a difference in people's lives. WTF? I wrote a post earlier this month about how IBOs think they are saving the world and helping people when in reality, the masses of IBOs are only "helping" their diamonds to attain material wealth by purchasing function tickets, voicemail, standing orders and other materials.

I would agree that some training and information can be helpful for new IBOs but I do not see any value in a never ending supply of cds and and endless number of meetings and functions. The very thing (support materials) that uplines claim is your key to success is the very thing that nearly guarantees business building IBOs to financial struggles. Our upline wanted IBOs to be out of debt, which is good, but they would also say in the same breath that it was okay to go into hock if it was to attend functions or to purchase additional support materials. WTH? Sadly, many IBOs do not see through this self serving advice.

Most people, including myself are very wary when we deal with car salesmen. We are wary because we know that the salesman is out to make money off of us and will try to sell us every option in the book. Thus we negotiate and reject the car options that we don't really need to or. Guess what? Your uplines are like car salesmen except that they sell you different options such as premier club, standing order, book of the month, function tickets, voicemail, open meeting tickets. Just like a car buying customer, taking all the options maximizes the car salesman's commission and the car dealer's profit. Buying all the support materials increases your upline's profits. Imagine the car salesman telling you that the extended warranty was vital to owning the car. You'd think twice about buying it. (If the car is so good, why do I need an extended warranty?) But uplines will tell you that functions are vital to your Amway business and many IBOs buy it hook line and sinker. I hope this analogy will encourage IBOs to think of support materials as options on the car. You don't need any options to make the car work. Just as you don't really need support materials to buy and sell Amway products, and to get some downline to do the same.

We are wary of car salesmen. In my opinion, downline and prospects should be just as wary of uplines who promote tools as "vital" to your success in Amway. Keep in mind that a sponsor is obligated to help train any downline, regardless of whether they are on the system or not.  This is something many downline are unaware of.

Why I Oppose The Amway Opportunity?

 Once upon a time I was an Amway IBO. This was back in the 1990's. My first brush with Amway was being invited to a "beer bust" while I was in college. I remember showing up to the party only to see my friends in the house wearing suits and with a white board set up. I recall thinking WTF?? Anyway, so as to not be rude to our friends, I stayed and saw the plan and left afterwards thinking what a dirty trick it was to invite us to a beer party to show us the plan. It sucked.

Some years later an old friend of mine contacted me and wanted to explain a business proposition to me. He showed me the Amway plan and of course, I only had a bad experience with it. I told my friend to call me later if he actually makes any money off it. About a year and a half later, my friend calls me and tells me he is now a platinum. So it got my interest as he said it was not hard and he could easily guide me to do the same. So I bit an joined. I actually moved up the ranks, reaching the 4000 PV level. But I also realized that moving up was exciting but my net profit was still practically zero. And along with zero profit, my upline expectations went up. I was supposed to "submit" and do what they say. And there were extra meetings and functions.

That's when I realized that the whole game is a scam. Yeah, I figured that the diamonds had it good, but for everyone else, it was a scam. Sure, you can out gain your sponsor and sometimes, a person even breaks through and goes diamond. But it's quite rare and people who achieve diamond can easily lose it, as evidenced by all the former diamonds.

But what I realized that for the rank and file and even the platinums, it's a scam. You are basically selling false hopes and dreams. You get some young and motivated people to join but the reality is that an excess of 99% of them will fail and most of t hem will lose money, some lose significant money. But for most, they never even had a chance when they signed up. That's because to perpetuate the scam, prospects are told only the best case scenario and not what's likely. They aren't told that most people do nothing or that most cannot sponsor anyone. Products are difficult to sell and that a neutral price comparison would be damaging to Amway.

Instead, we were told to be open minded, don't talk to family and friends abut the Amway opportunity, listen only to upline (who have a conflict of interest), and to never quit. This is all great advice for the upline diamonds who greatly benefit from this advice. Especially since they profit from almost everything you do. They tell you lies about being a nicer person or strengthening your marriage through Amway but once you are signed up, it's rarely about how much money you are making. They want you to enjoy riches vicariously by living your upline's dreams. They often think their diamond walks on water when in reality, they are just lying and deceiving downline in order to sell they tools and functions.

Your diamonds might be living their dreams, but they do so by taking advantage of their downline while pretending to be their trusted advisors and mentors. And that's one of many reasons why I dislike Amway.

Success Waiting Around The Corner?

 When I was an Amway IBO, I heard the saying over and over. Never quit, success might be right around the corner. There were countless stories by diamonds and emeralds of how they were on the verge of quitting, but stuck it out and somehow "made it". I also heard stories about why people should not quit because even if you were told "no" a thousand times, the next prospect might say "yes" and turn your entire business around. This mindset is almost like a gambler who thinks the next hand or the next roll of the dice will suddenly start the beginning of a good run.

I believe these are all heartfelt stories. However, I believe that many stories are embellished and made to order. Or in other words, made to fit a standing order. If you listen carefully to many of the standing orders, you will notice that the higher pins were consistently sponsoring people and generally achieved the platinum level in 18 months or less. There are exceptions of course, but the majority of stories I heard seem to have had the same theme. Those who were destined for success achieved some significant level in less than 2 years.

But for IBOs and new recruits, if you aren't constantly bringing in new people to the open meetings, and sponsoring new people, then you are very unlikely to ever achieve much in Amway. Statistically, less than one half of one percent ever reach platinum. Thus if you are unable to grow your organization or group, then you are unlikely to be that one who "makes it". Success is not around the corner as some uplines will have you believe. If you take 100 "no's" and then someone finally says "yes" then chances are that person who said yes, will "do nothing", or do little and wind up quitting. Chances are that person won't sponsor anyone or show anyone the plan. Chances are that person won't even be in the business a year later.

It might be a good idea for IBOs to take a step back and take an unbiased look at their business and their business activities. Is your group growing consistently? Is your volume increasing each month? Are you able to get people interested in seeing the plan on a consistent basis? If you answered "no" to any of these points, then you are unlikely to progress and achieve in the Amway business.

One important thing for people to note is that there are many ways to achieve your financial goals and dreams. Amway is probably not the best vehicle for most. The numbers speak for themselves. If less than one half of one percent ever reach platinum, where allegedly, IBOs finally see a profit, then I would say your chances of success are better elsewhere, even if that is a second job. The average "active" IBO earns about $200 a month according to Amway. Considering all IBOs, then the average income is probably about $100 a month. You can earn much more than that working 4-5 hours a week at minimum wage.

Is success right around the corner? I doubt it.

Alternatives To Amway?

 One of the humorous things that IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will offer some. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your due diligence and your own soul searching, here are my opinions on what may be better than Amway:

1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of Starbucks for example. Disciplined saving and investing. Eliminating certain optional expenses can add up to a lot of money over the course of a month or a year. Even giving up a soft drink with your lunch can save you money and water is better for your health anyway.

2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. Try to find a job that's not so stressful and something you may have fun with. For example, working part time at a sporting goods or a hardware store would be something that I might enjoy.

3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.

4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. Doing nothing also takes far less effort.

5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.

There you have it folks. There are some ideas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.

Buy Your Way To Riches?

  One thing I can credit Amway diamonds with is coming up with the most bat sh@t crazy ideas that sound sensible to IBOs but utter madness to anyone else.  One that I heard about was how you can buy your way to prosperity.  Buy your own Amway products and get others to follow and you’ll soon be on the road to early retirement and residual income.   As if anyone got wealthy by purchasing products, much less Amway products. 

Have you ever seen a store or business prosper when the major of sales are simply to the business owner and employees?   The answer is no because such a business does not exist.  It’s amazing that people actually believe that you can get rich buying from yourself.  But it works on the downline so the diamonds perpetuate the storyline.  And the downline believe it because they want t believe that it's true.

One thing I saw at a live function was the diamond telling IBOs to ask prospects if they like selling stuff and whether the answer was yes or no, your response would be “great, then this business is perfect for you”.  Of course, actual stories of significant retail sales were rare and my own experience suggested that sympathetic family and friends comprised most of whatever sales took place and I found myself at times selling items at my cost just so the expenses of moving 100 PV wasn’t all on me.  

The strategy of buying your own stuff seems to work because most people do not like selling stuff and especially not to friends.  But many will give it a run because they are hopeful that Amway will deliver the wealth that upline seemingly promises.  The sad thing about a that dreams of wealth is all you get and there’s very little success to speak of.  From function to function it’s the same old diamonds time and again.  

The diamonds might say they want downline success but they don’t.  They just want to keep replacing quitters with new members as long as they can churn in new tools and functions subscribers.  That’s the real game of diamonds and that’s why the emphasis of the tools and functions is recruiting new people into the game. It’s an elaborate scheme that prospects and new IBOs don’t see because they have Amway dreams clouding their thoughts.   

A Straight Answer?

 One of the humorous things about Amway IBOs is their ability to say a whole lot without having any substance. They'll talk about how great the business is and how much they have learned and then when you ask if they made any money, you either get dead silence or you get some answer about how they've seen a copy of a check from someone's upline diamond or something like that. But it's very rare that an IBO will be upfront about their earnings. Of course I can understand that someone brand new might not have made a whole lot, but I have seen some IBOs outright lie and say they've been in Amway a month and they're making $5000 a month or some other tall tale like like.

Even when discussing some Amway released information such as the average earnings of an IBO, you can hear all kinds of excuses provided by Amwayers. They will make excuses like most IBOs do nothing. As if that isn't a problem in itself. Or they make stupid analogies about people signing up for a gym membership and then not doing anything. As if owning a business and exercising are the same thing. I even hear questionable claims about how so many people sign up as IBOs to get lower prices. I chuckle when I hear that because Amway's prices in general, are not competitive with big retailers. I believe that is because Amway must add the cost of IBO bonuses in the cost of their goods and services. While an IBO might save from the full retail price of Amway products, you can (in most cases) find the same or a similar product cheaper online or at Walmart.

Another area where IBOs like to divert the discussion is when the discussion is about the success rate of IBOs in general. Based on Amway's own numbers, less than one half of one percent of IBOs reach the level of platinum. Platinum is the level where allegedly, an IBO either breaks even or starts to make some net profit. It would depend on whether the IBO is involved in the tools and to whet level of participation. But IBOs like to downplay this fact as if people simply did not work hard enough or did not learn enough, rather than simply acknowledging that the system itself might be flawed. 

The last area I see issues is when talking about selling products. I suspect that product sales to no IBOs is relatively small. I believe there may be some exceptional people who can sell, but people in general, do not like to or do not possess the skills to sell products. Yet I see IBOs making all kinds of stories about "selling" to customers. I rarely get a straight answer about product sales as well. The fact that many Amway IBOs can't give a straight answer is quite telling.

Amway IBOs Talk The Talk , But Don't Walk The Walk?

 Having blogged for a number of years now, I have observed that Amway IBOs talk a good game about retailing, sponsoring and doing Amway business activities. They will tell you to set yourself up with 20 customers, sponsor 6 frontline, show a number of plans and set up certain follow ups with contacts, and doing other activities supposedly to build an Amway business. I find if humorous when these same IBOs start throwing insults or diverting the discussion when someone asks if they are actually making money. Of course it would be understandable if a new IBO would admit they had not made a fortune as of yet but it seems that even that response is not forthcoming from IBOs.  

It seems that the Amway business is simple enough. Buy some products, sell products and try to sponsor some downline in order to leverage your volume with your downlines. IBOs mistakenly believe that you can build it once correctly and that the income will flow into future generations. What goes unnoticed is that IBOs come and go with such a high frequency, that a business generating residual income would be like a sandcastle on the beach. You might build it nice and big but the waves of attrition would quickly turn that sandcastle into nothing. The same would be true of an Amway business. The IBOs dropping out would wipe out your business unless you are constantly replacing the people who quit. IBOs like to talk about Amway sales and how the company is growing in sales, but the Amway sales have no relationship with making IBOs more profitable. 

IBOs may also toss in comments about how they are nicer people or how they are improving their marriage because of the Amway business. I often wonder how that can be when functions and meetings take you away from your family and spouse. I suppose it could be because the uplines talk about people being nicer or tossing out lies about Amway and the AMOs saving marriages. I remember a WWDB diamond talking about how WWDB members had a 2% divorce rate while the rest of society has a 60% divorce rate. Ironically, that diamond's marriage ended in divorce. I believe this crap is still taught as a WWDB IBO who blogs, had mentioned this tidbit on his blog last year. I don't believe Amwayers or anyone else has a higher or lower rate of divorce than society but it becomes an issue when uplines teach it and their downlines repeat it. 

So it would seem that IBOs talk a good game. They know what to say and how to act, but they're like poker players who are bluffing. If you call them on it, they are likely to fold in their hands because they don't have the goods. It is why many Amway discussions turn into a insult contest, when the IBO suddenly gets confronted with facts that are contrary to upline teaching. It's usually quite funny but I wonder if these folks question their upline or go on their merry way repeating uplines lies? It becomes apparent to everyone but the IBO when they are repeating crazy stuff taught by their upline. Good luck to anyone who tries to build this business against nearly insurmountable odds.

Pigs Don't Know Pigs Stink?

 I recently came across some comments on a blog indicating that they had recently heard comments about "Pigs don't know pigs stink". This stems from a tape recorded by a diamond named Dave Severn. The slogan was quite popular when I was an IBO and I'm sure that some IBOs still toss around the phrase. It was basically used to describe people who weren't in Amway. They worked hard at their jobs but they were "broke" and weren't getting anywhere. 

At least the Amway IBOs (who were also broke) were doing something about their financial situation (Amway!). So the ignorant rest of the population didn't know any better, thus the term pigs don't know pigs stink. Having been out of the business and having done a great deal of research about Amway and the Amway groups such as WWDB and BWW, I can say the exact same thing about IBOs. IBOs don't know IBOs stink. 

Of course I don't mean that literally, but business building IBOs order their products each month. They pay for their standing orders and attend all the functions. They try to recruit new prospects and they use all the catchy phrases taught by their upline or off a cd. They are very likely losing money each and every month, all the while thinking they are becoming successful and better or nicer people. 

At the end of the year, they sometimes suffer massive losses in the thousands because purchasing all of the tools and training materials add up to a tidy sum of cash after a while. At the functions, they smile and act positive, even when they are losing their shirts. Upline will edify their dedication and teach them two very important, but self serving advice. They will teach IBOs to never quit, and that if IBOs quit or fail, it is always their own fault, even if they did everything upline taught them. In this manner, upline removes any responsibility for the IBO's failure. Ironically, upline is quick to accept responsibility for any success (even if there is little). 

All the while, IBOs are attending all the meetings, doing all the steps they have been taught. They act alike and in many cases, look alike. Most of them also share a common result. They are losing money, and many are losing lots of it. They are simply taught to ignore the losses and to remain positive. Most people eventually figure it out and walk away from Amway. Most will never mention their involvement again and because many are sponsored by friends and family, will never file any formal complaint or discuss their displeasure. The IBOs continue to associate with their positive and active fellow IBOs, all the while their bank accounts are shrinking and transferring funds to upline. Pigs don't know pigs stink indeed.

IBOs Miss The Point?

 There are still a handful of Amway defenders who continue to defend Amway as if it's the greatest thing since sliced bread. No doubt that Amway works wonders for their owners, who are billionaires, and a select few leaders who make handsome profits from selling tools (standing orders, functions, voicemail) as well as Amway bonuses.   The real business of the Amway diamonds is to sell business support materials which is obvious to me, but too many starry eyed prospects and new IBOs only see the possibilities and not the reality.  But the main point seems to get lost.

The main point is that, even if the Amway owners and some Amway leaders make a nice income from Amway, it doesn't change the fact that the masses lose a lot of money attempting to build an Amway empire. What's more, many of these leaders earn money directly from the pockets of their trusting and faithful downline. The downline are taught to trust the leaders and to do what is advised. Often, that advice is to buy more and more tools regardless of how an IBO's business is progressing. There is no business analysis or a look at profits and losses and a return on investment. IBOs are taught to be happy, avoid negative, and keep consuming those tools and functions.

Failures in Amway appear to be rampant, but leaders absolve themselves of blame by claiming that the failures are the result of laziness, not enough effort, not doing things right, or lack of follow through on the part of the IBO. Sadly, many IBOs believe this and blame themselves, even if they did work hard and follow upline's sage advice. I believe that over the years, billions of dollars have been lost by millions of IBOs who chase the dream sold by upline. Because many IBOs are sponsored by friends and family, those who quit tend to fade away without much fanfare, leaving Amway and the upline leaders clear of any responsibility.

Too many IBOs miss that point. Hard work and following upline advice doesn't necessarily lead to success, and in fact, more people end up at a loss than those who gain a positive experience in the Amway business. I challenge IBOs to analyze their efforts and their income versus expenses. You are more likely to be expending more on support materials than the amount of income that is received. That's the real point and too many IBOs miss it. Losing money is not success. 

Becoming a nicer person or strengthening your marriage might be something that uplines sell as a side benefit of Amway but the entire purpose of running a business is to make money.  And the vast majority of Amway IBOs make nothing or lose money.   That is the entire point?

Do You Own A Joke (Amway) Business?

 I hear Amway supporters often mention that you will have a real (Amway) business if you treat it like one. It is my informed observation that most IBOs do not treat their businesses like a real one, despite following the advice of their trusted upline. It is also my opinion that the Amway business itself is flawed and many IBOs, in their zeal to sponsor downline, do crazy things at times, such as tricking people into meetings or being deceptive about what they are doing. Many IBOs never sell a single product and never sponsor any downline. How can anyone build a business under those conditions? Yet that is the most common experience for newbies.

Many IBOs do not bother to qualify their prospects. They will sponsor anyone who is breathing. It could be due to uplines making the business seem easy. For example, I have heard that going platinum is so easy that someone's dog can go platinum. Another mistake IBOs make is they do not look at the likelihood of an IBO succeeding. They will sponsor anyone, anywhere. Like real stores, opening a new one creates competition and I don't know of any IBOs who take this into consideration before recruiting a new prospect. The solution to a faltering business is apparently to attempt to open more "Amway stores" despite a lack of sales. Or the solution is to buy more tools and training, as if spending more money will help a faltering business.

New recruits are also encouraged to partake in the teaching system, regardless of their expectations and business goals. This participation in the system is what often leads to IBO failure and business losses. They spend more on tools than what they generate in income. This heavily contributes to the poor retention rate among IBOs. Even IBOs who can progress and make some money will be channeling their profits to upline by their tool consumption. It is my informed opinion that an IBO must reach the 4000PV level or platinum level before they start to break even. And If I might add, according to Amway's stats less only about 1 in 400 IBOs reach the platinum level so you are already facing overwhelming odds just to reach the break even point in Amway.

Here's the real test for an IBO. Walk into a bank. Speak to a loan officer and show the loan officer the 6-4-2 or 9-4-2 plan, whichever plan your group uses. And see if the loan officer will grant you a business loan based on that plan. It is more likely that you be laughed out of the bank. Seriously, the plan only makes sense, apparently to people who are unable to properly evaluate a business plan. That's because the presentation is more about selling dreams and hopes than about business and actually generating a profit.

Do you have a real business or a joke?

An Amway Defender, A Shameless Lying Amway Shill?

I decided to re-post this article about "IBOfightback.  He was Amway's biggest defender, but mostly what looked like lies and misinformation.  During my encounters with this clown, he seriously appears to lie through his teeth.  In my contacts with him, he's claimed to be an internet specialist, a psychologist, business expert and Amway expert.  He's made other claims about being a social scientist, behavioral scientist and other unverified claims.   I was wondering what happened to him so I recently googled his name.   He is now claiming to be an epidemiologist on twitter.  Now I suppose he could be accredited in all these fields but I find his social media claims to be highly suspect, much like his Amway claims.  I will completely retract this article if he can verify his claims.  Hey David, when did you become an epidemiologist?   Did you study that after you achieved financial freedom from Amway?

There's no doubt that IBOFightback, AKA IBOFB, AKA Insider, AKA Icerat, AKA Insider201283, AKA David Steadson is easily the most prolific defender of Amway on the internet. Any comments about Amway send him running as if the comments are some sort of "bat signal" that prompts him into action. He literally has tens of thousands of comments all over the internet in defense of Amway, MLM and recently, Herbalife. He even went so far as to say that Karen O'Neil, the rules administrator for Amway.com.  was wrong and that he was right. His lies and propaganda still sit on many blogs and forum. The now defunct Qblog forum had many of his most shameless lies, but unfortunately, I didn't save screen prints.

Now Mr. Steadson claims that he is not paid for his defense of Amway and other MLMs, but a recent site visitor here made some comments that has me thinking. He said that he was at an Amway meeting recently where the IBO leaders are encouraging IBOs and prospects to visit Mr. Steadson's website to get information about Amway and about critics so they can avoid critical websites. Now Steadson has ads on his website and the ability to accept donations. It could be possible, I suppose, that Steadson earns some income from the ads and augments that with donations from brainwashed IBOs who view him as some typs of authority figure in Amway. He would be like a Kiyosaki. Someone who isn't really building Amway (and maybe not capable of doing so) but is able to profit (directly or indirectly) by promoting Amway. If a diamond told their group to visit the website and donate a few bucks, I could see it being a fairly nice venture for the Amway shill.

What Amway IBOs and prospects do not recognize is that many of Mr. Steadson's articles are nice anecdotal stories and most of his work doesn't reflect the reality that the vast majority of IBOs are going to make nothing or lose money regardless of how hard they work. Out of those who work very hard, the vast majority, probably more than 99% lose money. Mr. Steadson also downplays the tool scam. The real business of Amway is selling cds and functions. Pretty much only those who profit from the functions make any real money in Amway. The tools and functions have a much larger profit margin and only a few qualified people share in the profits. It only makes sense that significant income is derived from the tools.

The Amway shills will have you believe that "anyone" can succeed in Amway. That is just as true as "anyone" can win the lottery. The reality is that very few, less than 1% of IBOs even reach platinum, And only a tiny fraction of platinums ever reach diamond. And those who reach diamond often cannot sustain it. People are not making livable income from Amway. People are not walking away to collect residual income from Amway and the business is a near assurance of failure. That is the "Truth About Amway".

What Is The Amway/WWDB Eagle Program?

 Eagle Parameters:

Signed Counsel Sheet to Upline Diamond
300 PV personal use/retail for couples, 200 PV personal use/retail for singles
6-5-3 (PB/SO/MF) - Explained below
6 legs at 100 PV or higher
5 legs on standing order
3 legs attending major functions

What is Eagle? Basically, Eagle is a made up goal. I believe it was originally made up by WWDB. In fact, I think Eagle was around when I was an IBO back about 25 years ago. The reason why I say it is a “made up goal” is because it is. It was not a part of the Amway sales and marketing plan. You receive ZERO additional compensation from Amway for achieving the designated level of Eagle, aside from your volume rebate. In a previous post (recently), I broke down the numbers, giving the IBOs the benefit of the doubt in sales, and the only conclusion I could arrive it was that most Eagles must be losing money.

The Amway sales and marketing plan, as shown in many groups, assume that an IBO will move 100 PV in volume, though a combination of personal use and selling of products to family, friends and customers. To be an Eagle, you are expected to move 300/200 PV (Couples/singles) in personal volume. In many, and probably most cases, an IBO typically will consume most of that 100 PV by him or herself. That means the Eagle program artificially inflates the need for Amway products. If you disagree, name one former Eagle (and I am one) who consumes Amway products to the tune of 300/200 PV per month. *crickets chirping*

I believe the Eagle program was simply the brainchild of some LOS leader who wanted to create some kind of incentive to prove an IBO’s loyalty to upline and to secure a certain level of tool purchases from downline. If you do the math, and consider that fact that IBOs on standing order and attending functions are somewhat serious business builders, then every individual in the Eagle program is likely to be losing money. The person designated as “Eagle” may be duped into thinking they have a net business profit, but when you factor in the extra 200/100 PV that you are expected to move, you are losing money, possibly lots of money, unless you are selling that extra 200 PV. If not, you are simply absorbing an extra $300 to $600 worth of products that you probably do not need, If Eagle was truly something worth attaining, wouldn’t it be promoted by Amway and given some kind of financial incentive?

As an IBO, you are MUCH better off simply by moving your 100 PV with a combination of personal use, and selling to friends, family, and most importantly, retail customers. In fact, someone simply selling 200/100 PV in products at full suggested retail price is likely to be better off than someone who is at 1000 PV with an Eagle structure, but self consuming the majority of the 300/200 PV personal circle that is in the Eagle parameters. I challenge anyone to show how a group can be better off financially by maintaining an Eagle structure. *crickets chirping*.

The Freedom Myth?

 When I was an Amway IBO, I often saw my upline diamond driving around town in the early evening dressed in a business suit. I used to think why does he keep working if he can walk away and collect residual income? My sponsor told me that the diamond only works because he loves and cares about his downline and wants to help them. So there are two possible scenarios, the diamond is working to help his downline out of a genuine concern, or possibly he is working because he has to! The only difference now is that the diamond works the night and/or graveyard shift, because many IBOs are building the business after they complete their day jobs. **We should also note that my former upline diamond dropped down to the emerald level around 2005 and has since re-established his diamond level. He also moved from Hawaii (he said he loved the ocean) to Washington State and lives in a middle class neighborhood.

Now Amway has stated that the average (non Q12)diamond earns about $150k a year. That is a decent income, but after taxes and paying for basic expenses such as medical and dental insurance, the average diamond probably lives a very middle class lifestyle. Keep in mind that a large portion of a diamond's income comes in the form of an annual bonus, thus a diamond's monthly income may be quite small. Yes, diamonds may have other sources of income such as speaking engagements and income from standing orders and functions. But this income depends on the diamond's continued appearances and efforts. Stop "working" and the income stops also.

So is it likely that a diamond is "free"? I would have to conclude that a diamond is not free, and may actually have to spend more time maintaining his group than if the diamond simply had a 9-5 job. For one thing, a diamond needs to maintain a personal group to keep qualifying for bonuses. With a poor retention rate in Amway, I am fairly sure that a diamond spends much time recruiting personally sponsored IBOs to maintain this group. Additionally, a diamond must help his six or more groups of downline platinums to maintain their businesses or face the possibility of falling out of qualification. My former diamond dropped down to the emerald level but has since re-qualified at diamond. A diamond must also dedicate time to reward up and coming movers and shakers, to keep them motivated. I got to spend time with my upline diamond when I was considered a promising up and coming pin.

In order to continue to receive tools income, a diamond must also travel to numerous functions and speaking engagements. Although the tools income allegedly doubles a diamond's income, it also adds a lot of expenses, especially if the diamond and his family travel first class to show off the diamond lifestyle.

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a middle class lifestyle, and probably works as much as a man with a 9-5 job, except that a diamond works nites and weekends. A good portrait of this is shown in Ruth Carter's book (Amway Motivational Organizations: Behind The Smoke and Mirrors). In the book, the diamond had a net income of over $300,000, but lived in debt, could barely pay his mortgage, and was always on the run from one function to the next. Is that financial freedom?

I believe that diamonds may actually be busier at the diamond level than an average Joe who has a 9-5 J-O-B. The difference is that the diamond works the night shift. Is this the freedom you are seeking?

Same Old Amway?

 A friend of mine and former downline (when I was an IBO) told me that his daughter recently joined Amway and WWDB. Despite his warnings and objections, she joined anyway, and insists that things are different in Amway today. That gave me some food for thought. What is different between Amway of today and the Amway I was in? The products are basically the same, perhaps with some new packaging. The concepts are the same. Buy your own stuff and try to get others to do the same. And recruit like crazy. That part of the business hasn't changed at all.   

But what also hasn't changed is the same old Amway reputation that hinders the ability to sell products and/or to recruit others and to show the plan. Seems as if people joining and quitting without doing much is still the same. There is still an emphasis of the consumption of tools and functions by the rank and file IBOs, and why not? The diamonds make nice profits from the sale of business support materials and unlike the Amway compensation plan, the rank and file IBOs get no compensation for the tools.

It sure seems as if the same old - old diamonds are around. The Duncans, Puryear, Leslie Wolgamott (Divorced from Brad - WWDB saves marriages?). Harimoto, Tsuruda, Danzik.   I heard Hawaii has a new diamond named Mandy Yamamoto but from I gather, her husband is not hook line and sinker in Amway.  I wonder why?    Aside from Mandy, where are the new diamonds? It might also be significant to note that Amway revenues have declined significantly from 11.8 billion in 2013 to 8.6 billion in 2017.   Today the sales are nowhere near the peak in 2013.   And that is while the US economy has been doing fairly well. Perhaps perhaps people are seeing Amway for what it is? A poor business opportunity where your chance of failure is nearly 100%. And it's not because of a lack of effort or motivation. The Amway system is just set up for failure.   Technically, Amway should have seen sales go through the roof as they are similar to Amazon with the online ordering and mail delivery of products.  Why didn't Amway go the roof during covid?  Could it be that Amway products are just not in demand?    Could it be that covid limited the ability for IBOs to recruit, which is where a lot of volume comes from?  (IBOs who sign up, buy some stuff and quit.  Commonly referred to as the "churn") 

A quick look at the common 6-4-2 plan is 79 IBOs. One platinum and a whole bunch who aren't. And this plan doesn't factor in that many people join and quit without doing much of anything. Thus there can only mathematically be a small fraction of 1% who make anything with a whole bunch of wannabes who never make it. And that is what Amway is. The same old sorry ass Amway opportunity where the diamonds sell you false hopes and dreams while their dreams come true from your tools and function purchases.

Rose Colored Glasses?

 One of the things Amway IBOs get attracted to is how uplines will promote traditional family values. They may talk about the "Leave it to Beaver" days where the man works a job and the wife takes care of the home and drops the kids off at school. While some of these values are great, they are not reality in today's world. The speakers at some Amway meetings may recruit others by saying you can have this out of the box lifestyle if you will only build your Amway business. This gets the wives or girlfriends excited as they would love to not have to work a 9-5 job.

Ironically, an IBO's desire for more time and money, more often than not, will result in less time and money for an IBO and the IBO's family. They will take time off to show the plan, attending countless numbers of meetings and to attend functions. They also have other meetings and night owls, and open meetings where they recruit prospects. They are taught to "delay" gratification, but many do not realize that they are permanently delaying gratification by participating in the "systems". Sadly, the vast majority of people in Amway, will never receive any monetary gratification. More likely, losses will be the net result.

An IBO's belief is often compartmentalized into thinking that showing the plan, listening to standing orders, submitting to upline's advice and attending all functions will result in guaranteed success within 2-5 years. Anyone who speaks a differing opinion of this is "negative" and should be avoided. Sadly, those who put forth such dedication and invest in the system are rarely rewarded with success. Even those who achieve the platinum level may often find that the net profit they realize is less than a minimum wage job with the same number of hours put forth. And maintaining a platinum level is a daunting task. Is this the success you seek?

My former sponsor achieved the platinum level in less than two years, but he never achieved Q12 status, and he never went beyond the platinum level. He has been involved for nearly 20 years now, and last I heard, is below the platinum level. All of that work and effort and I wonder if he even has a net profit of $1.00 for all of his efforts? I suspect he's got net losses of money and time for all of his efforts. It's a waste of your life, a waste of your time.

Yet, many IBOs continue to see the world through rose colored glasses, thinking that they will succeed if only they will never quit. They disregard the fact that 2-5 years has come and gone. They do not see that their bottom line is nowhere near what they were led to believe. But they believe that Amway will be their financial savior, even though there are facts and red flags pointing to the obvious reality that they will never achieve what they initially set out to achieve.

I hope my blog will get a few IBOs to take off the rose colored glasses for just a second.

Spend More To Fix A Failing Business?

 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 does 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 higher up pins 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.

8-12 Hours Per Week To Financial Freedom?

 One of the myths that our upline used to, and likely still perpetuate is the silly claim that you can build an Amway mega empire on 8-12 hours per week. I'm venturing an educated guess that this number is used because while it still represents time, it is probably less hours than working a part time job. But let's take a closer look at this 8-12 hours per week.

If you listen to one (1) cd/audio per day as recommended by upline and read one of their "success" books 15 minutes each day, you already close to nine hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and produce no tangible result and no income. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers. If you spend 8-12 hours of non income producing activities, how will that turn into financial freedom? The answer is simple. It doesn't. That activity primarily benefits your upline diamond who profits from selling you cds/audios or function tickets, or voicemail.

What about attending meetings and functions? These are also non income producing activities. It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, there non income producing activities such as listening to a cd, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. Attending functions and meetings are promoted as learning activities but again, how does it benefit an IBO to spend money instead of making money?

You sell the prospect the dream of financial freedom. You tell that that Amway is their best chance. You tell them that you can help them and that the tools of the business (standing order, voicemail, books, functions) are the key to their success. Those who are serious enough to commit to the system likely won't quit without making some effort and will allow uplines to earn some nice profits before these downline eventually realize they aren't profitable and quit. Because many IBos are sponsored by family and friends, you don't see many formal complaints about the business. Most people chalk it up as a life lesson and do not complain or file complaints.

But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. Look at your return on investment and/or your profits and losses at the end of the month. What you will see is a consistent net loss because of the system and no profit, also because of the system.

Most IBOs Will Fail?

 Most IBOs fail. That is not a wild guess. That is a fact. Failure would mean doing nothing or trying hard and not making a net profit equal to minimum wage for the hours expended. Amway supporters will argue that many IBOs do little or nothing, and while that might be true, even the remaining IBOs who work hard, still find little or no success. The system is set up that way. If you see a diamond "walking the beaches" as the cash rolls in, that means someone is putting forth the effort to make that happen. It is the downline IBOs who purchase Amway products and tools that allow these diamonds to enjoy what they portray as success. By the way, does anyone actually know one of these diamonds who are retired and doing nothing while cash rolls in? 

We also know that some diamonds overhype their success. There has been evidence that the diamond lifestyle is often not what people think it is. If you could truly earn residual income by the bucket load, why do diamonds quit, resign, lose homes in foreclosure proceedings, and even wind up in bankruptcy court? One could argue that some diamonds are failures. The diamond lifestyle is an illusion created by upline leaders as a means to entice recruits. I would venture a guess that many diamonds are living in debt or struggling to make ends meet. 

Many Amway zealots and apologists try to make ridiculous claims comparing a company owner to a diamond. The big difference is that a company owner has employees who get a regular paycheck. These employees generally wanted the job and probably applied for the work. And if and when an employee leaves, there are other applicants who are willing to step in and do the work. Thus the business continues to meet their demands and continues to profit. 

In the Amway opportunity, the IBOs spend money purchasing products, and then upline leaders expect these same folks to spend even more money to learn how to be motivated to do the Amway business. But in reality, if IBOs made profits, that would likely be sufficient motivation to run their businesses. Because it is hard to find enough (suckers) prospects to join the business and fork out cash while they lose money, other IBOs have resorted to trickery, deception and outright lying at times, in order to attract potential downlines. This has damaged Amway's reputation. 

The 6-4-2 system ensures that the majority of business builders must "do the work" to uphold their platinum, who (probably) barely earns a net profit. And then you need 3 or 6 groups of IBOs losing money in order to maintain an emerald or diamond. Amway has revealed that less than 4% of product moves to non IBOs. The absence of non IBO customers nearly guarantees that most IBO groups will lose money or make very little. Most IBOs are destined to fail. And it is not necessarily the IBO's fault. The system itself comes with many flaws which most IBOs cannot overcome, even for those who put forth much effort. It is why most IBOs fail. It is why I hope prospects will find and read this information before making a final decision to sign up or not.

What Are Your Chances In Amway?

One thing that many Amway promoters don't like to talk about is what your realistic chances of success are. I will define success as Diamond because that is what the outcome of the 6-4-2 and 2-5 year plan. Of course you may be able to earn some income at lower levels, but my understanding is that diamond is where the real money from Amway and the tools start rolling in. And I can also understand why people promoting Amway do not discuss your realistic chances of winning. After all, lottery promoters do not show you the millions of losers, they only parade the winners in front of you.

Many people, including Amway enthusiasts will agree that many IBO do little or nothing. Some people never even place an order or make any attempt to do any business. For the purpose of this article, I am not speaking about these folks. I am talking about people who actually put in some effort to the business.

For many people who want to make an earnest effort, they will purchase and hopefully sell a few items with the goal of reaching 100 PV. For that effort, you will receive approximately $10 from Amway and whatever profit you might have earned by selling products. Here's the catch. You will likely need to pay website fees in excess of the $10 you earn from Amway. For the more dedicated IBOs, you may be payin for voicemail, standing orders, book of the month, and possibly attending functions. These expenses will exceed your income month after month unless you are able to increase your volume by selling enough products and/or sponsoring downline who buy and sell products.

Because Amway has to include the IBO bonuses in their prices, the products come at a premium price. Thus sales to non IBOs are relatively low. Without sales to non IBOs, the only other way to generate more volume is to sponsor people who will buy and sell products. But due to past unethical IBO behavior, getting people to see the Amway sales and marketing plan may be a challenge. Also, most IBOs are unable to sponsor a single downline.

Some Amway enthusiasts will claim that if you do their CORE steps for 2-5 years consistently, that you are likely to succeed. Sound easy, but because of the factors I have identified, some of these steps are impossible to do consistently. It's not like walking a mile each day where you have control of the step. People will likely fail in showing the plan and sponsoring others because they cannot find enough people who are willing to see an Amway plan. Many, possibly most other IBOs can and will do certain steps consistently such as listening to a CD daily and reading a success book. But because of a spotty reputation in the US, IBOs will very likely fail to be able to show enough plans to succeed.

Your realistic chance of success? My informed guess is less than 1 tenth of 1 percent. That's the likelihood of going diamond. Your chance of going platinum? My informed guess will be less than 1/2 of 1 percent. If you think you can beat those odds, go for it. For most people, it might be wise to look into other opportunities.

IBOs Chasing Losses?

 One thing that many Amway IBOs likely suffer from is having invested too much into the business to quit. They may have spent months or even years working the system hard and they start to realize that the system isn't working out or that the business is just not producing the results that were advertised. You see obvious problems in the business, but you reach a very tough fork in the road.

To quit would mean failure, as presented by many uplines. To quit is to be broke for life. To give up hope. Quitters are failures and are labeled as losers by the Amway IBOs. What hopes do you have of retirement and walking the beaches once you quit? Are your dreams of success shattered? This is a very difficult decision that must be dealt with by Amway IBOs, or maybe even those considering the business. Often the "sunken cost fallacy" plays a role, where you feel that you've invested too much to just walk away. although in many cases, making a business decision to stop is the only way to stop the financial losses.

I encourage IBOs and/or prospects to completely take the emotion out of this decision. Do not think about dreams, walking the beaches and early retirement. Do not think about what you upline may or may not have promised you. Stop and think only about your Amway business and the results that it has produced or not produced. Has your business been increasing towards your goal of financial independence or are you seeing losses month after month? Do the math. Are you on target to reach your financial goals or are you headed towards bankruptcy? Don't think only about what happens if you quit. Think about what happens if you continue. Are there prospects of making a profit or is that next major function around the corner and likely to put you deeper in the hole?

This post is not about encouraging people to quit or to walk from the business. But certainly, business owners should think like business owners and they should make an honest and realistic assessment about their continued participation, especially if their bottom line is red ink. If you are not making a profit now, what will change next month to make things better? If you repeat what your upline advised. your results are not going to magically get better. Use facts to make an informed decision.

Some Inconvenient Facts?

 So many people get duped into thinking that they will somehow get wealthy by becoming an Amway IBO. Many recruiters will tell stories about how they were once broke, but signed up, endured challenges and now they are diamonds enjoying untold wealth and luxuries. People get caught up in "dreams" and are often encouraged to ignore the facts. People running businesses should pay close attention to the facts because it tells you much about your business and your likelihood of success. But what are some facts about the Amway business that many people don't know about? I have outlined a few important ones for those who harbor dreams of going diamond.

1. The average diamond, according to Amway, earns less than $150,000 a year. Yes, some of this may be supplemented with money from the sale of tools, but after taxes and business expenses such as travel to and from the many functions that a diamond attends would leave a diamond living an ordinary middle class lifestyle, not one with mansions and sports cars as portrayed in many functions or meetings. Update: Now Amway lists the average earnings at nearly $600k, but that is for Q12 diamonds (qualify diamond for all 12 months in Amway fiscal year). Q12 diamonds are the exception and not the normal in Amway. Amway no longer mentions "regular" diamonds but I have no reason to believe that the average diamond in Amway increased or decreased significantly.

2. Most IBOs are NEVER able to sponsor a single downline. Pretty hard to develop six (6) downline platinums when most people cannot sponsor anyone. And how do you grow and maintain a group when most of your group won't be able to sponsor anyone despite all of the training?

3. Most Amway products are purchased by IBOs and not necessarily sold to customers. Name a real business that sustains itself by having it's own workers or sales force purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ Amwayers lose money.

4. For most IBOs, the cost of functions, standing orders and other support materials represent the reason why most business building IBOs lose money and it also represents a significant profit for some of the diamonds who sell the materials. Because Amway doesn't say which diamonds are currently qualified, you easily could have "former" diamonds who are still speaking at functions who make more on tools and functions than from Amway.

5. Not working hard is not necessarily the reason for someone's failure. But conversely, working hard does not equate success in Amway. I would guess that out of those who work hard, it is still a fraction of 1% of hard working IBOs that even attain a significant profit. Doing nothing won't get you anywhere, but in this business, working hard often gets you nowhere as well. It is my informed opinion that the cost of the support materials is the direct reason why so many IBOs lose money, even out of those who work very hard.

I could go on and on, but these are a handful of facts that IBOs and information seekers should be aware of. I welcome differing thoughts and opinions, unlike many pro Amway supporters.

Behind The Scenes?

 One of the things that the Amway Diamonds and some other leaders do to attract new IBOs is to put on a dog and pony show. They want prospects to think that you can consume Amway products and get others to follow your lead and in a few years, you will be set for life financially, speaking on stages and securing the future for generations to come. They might use props such as pictures of mansion. slideshows of cars, jets, yachts. It looks impressive but based on what I know now, who knows whether the diamonds actually own this stuff or if they are simply showing you a slideshow of "lifestyles of the rich and famous". The reality is very likely that many diamonds are actually living in debt or bonus check to bonus check. It is a fact that more than half of NBA basketball pros end up broke less than 5 years after they retire, and they earn tons more cash than diamonds. Why would a diamond be different than the average Joe, especially when they appear to live beyond their means?

In the few cases where diamond income was exposed, we can see that they were not making the kind of money they would have you believe.  A Triple diamond (documented) was making about half a million a year from Amway. A nice income for sure, but not what people would think, and not enough to save that diamond from chapter 7 bankruptcy. Another WWDB diamond apparently lost a home to foreclosure. Another diamond, unnamed but documented in the book "Amway Motivational Organizations, Behind the Smoke and Mirrors", talks about a diamond who had a gross income of over 3 million dollars, and a net of about $320,000. This diamond was in debt, had back taxes owed to the government, and was working hard to portray the diamond lifestyle while living in serious debt.

Some of these leaders also use religion or Christianity as a means to justify their involvement in the business. For those who know, the Bible is clear that the love of money can lead to destruction. When you have functions such as Dream Night, what does that say? I would also like to note that in cases where these diamond's financials were exposed, there were no significant contributions to charity. I wonder if these charlatans talk a good game but do not contribute time or money to worthy causes? Where are the ten thousand dollar checks they talk about donating to charity? These leaders often refer to themselves as mentors, but any help they provide to downline results in some kind of compensation for them. This is not a mentor, but more like a paid consultant who is not getting effective results.  

Behind the nice suits and the glitz of the functions, I believe that IBOs and prospects would see a world they truly would not want to be a part of. A world where deceit is practically needed to succeed. Where you take advantage of people who trust in you. Where you pretend to be wealthy and free, but in reality a slave to the mighty dollar. Where you traded a 9-5 job for a job that works the graveyard shift. If you look objectively behind the scenes, you might see what I see.

Not Trying Hard Enough?

 I believe there's a gigantic myth that people who ultimately fail in Amway simply didn't work hard enough, or didn't put in enough time, and ended up quitting too early. Based on personal experience and observations of others, I truly believe that to be NOT true. Now I agree that many IBOs do little or nothing, but generally, these folks don't complain and their losses are generally limited to the sign up fee or kit. Most do not seek refunds, file complaints and simply chalk up the loss as a learning experience.  

I myself, put in some months of very dedicated work towards building a business. I had a decent sized group and was headed for platinum. But the fact of the matter is that even though my group was growing, I wasn't making a net profit. I seriously doubt that any of my downline made a net profit, primarily because of the business and tools expenses. I drove the miles, I showed the plan and I attended all the meetings and functions. I did what I was advised by my upline. My net profit at 4000 PV was little to nothing with a net loss when all the business expenses were factored i such as gas money, functions, standing orders, etc.  

My upline also did a lot of work, and he put in the hours, drove the miles and attended everything. He told me his net profit was not any of my business. (If you hear that, it's a huge red flag). I suspect my upline and sponsor also broke even or lost money despite working very hard and doing what they were advised to. I later read the assessment made by the Wisconsin attorney general Bruce Craig, who examined the tax returns of (I believe it was platinums/direct distributors) of IBOs in his state and they averaged a net annual loss of $900. While the study is a bit dated, the business has not really changed except that there are more expenses and tools associated with the business today, than back when the study occurred.  

I also question the validity of Amway defenders who claim that people did not work hard enough or did not run their business properly. I seriously doubt that anyone has done a comprehensive study of people who actually made an effort to build an Amway business, to determine why they may not have the success they desired. However, I can make my own conclusions. Many IBOs are taught to buy from themselves with little sales. They're taught to buy tools, even when they aren't making progress in the business. People who are struggling in Amway are often told that they need to sponsor more people, show more plans. (A struggling business opens new stores to improve business?).

In my opinion, hard work and success in Amway have little relationship. Sure, there is work needed. But working hard doesn't assure you of anything. You need to be able to develop a following. Just working hard has nothing to do with long term sustainable success. There are plenty of examples of hard workers who lost money. What I believe happens, is that IBOs get excited, get started and contact people and show plans. But Amway has the reputation of "pyramid" or "scam" and people quickly get discouraged and stop building the business. Those who try to sell Amway goods find that a month's supply of multi vitamins ($80) double x is a tough sell, or $50 cases of bottled water. They also get discouraged and quit.  

Only those who can somehow recruit and replace those quit end up having a chance to grow their group large enough to sell them tools, which then makes selling Amway products less important. But I don't buy for a minute that people simply do not succeed in Amway primarily because they don't work hard or smart enough. I challenge anyone to prove that a lack of work is the reason for Amway failure. The system is designed for only a few to succeed. Examine the 6-4-2, there is 1 platinum and 78 downline, and that's assuming everyone "did some work".

IBOs fail in vast quantities, but not because they don't do any work or didn't try hard enough.

Amway Warning SIgns?

 Having been involved in many Amway discussions for some time now, I recognize the many warning signs of a bad upline or a bad LOS. While not all uplines are the same, I do not believe that any LOS (Line of Sponsorship such as WWDB or BWW) is free of bad teaching, regardless of what you hear. Some of these points are simply clues that you could be in a bad LOS, you still need to think as an independent business owner and watch out for your own best interest because these folks will say they have your best interest at heart but they really have their own best interest at heart.

When you were prospected or recruited, was your sponsor upfront about the Amway opportunity or were you told about some new e-commerce opportunity or the like? Were you told that selling products was important or were you told that buying from yourself is the way to succeed? Did you know that some some uplines make most of their income from selling business support materials and not from Amway? Were you told that functions and other tools were vital to your success? Were you told that the system was "optional, but so is success"?

Were you told that a college education was not important to your success in Amway? Were you told that buying from yourself can result in a profit? Did someone say that the Amway opportunity helps save marriages or makes you a better person? Was the Amway opportunity used to preach religion or politics to you? Did anyone tell you to ignore facts if you have a dream? Were you told to submit to upline? Or were you told to check your ego at the door? Did you get the impression that your upline was a divine being? Did you give the speaker a standing ovation when they entered a meeting or function? Did you ever wonder why?

Were you told that you save money on Amway products only to realize that they are not generally cheaper than other retailers? Were you told that you have joined the best or the fastest growing LOS? Were you shown fancy cars or other luxuries and told that you can also achieve these lifestyles if you follow the system? Did your upline or sponsor tell you and verify how they are performing in the Amway opportunity or were you simply shown a photocopy of some check from an upline? Did you hear that you should always avoid "negative", or that people who are not in Amway are broke or losers?

These are some warning signs that you could be in a questionable LOS. In many cases, an LOS's priority is simply to sell you tools. Tools that are supposed to help you succeed in Amway, but more often than not, they help the person selling the tools to profit, regardless of whether you make a cent in Amway or not. It is important to look at facts, to track your progress and to keep track of expenses. If you are not progressing as the plan was shown, you may want to take a look and make sure that you are not overspending on tools that aren't helping you. Or if you are unable to sponsor downline, you may have to ask if this business is for you.

The business has warning signs. It is up to you to see them or to ignore them.

Rich Beyond Belief?

 One of the things so many Amway IBOs and others do is assume that their upline diamond is rich beyond belief. At meetings, the speaker would be introduced as being in the top one tenth of one percent income bracket. While it may or may not be true, nobody ever questioned it, they just assumed it was true because people saw pictures of mansions and copies of 5 year old bonus checks. Even I never went and studied how the diamond bonuses worked. Most people just assumed that the money would be huge at the diamond level. But looking back, I can recall some things that make me believe that the diamonds were cutting corners and needed their platinums working free at meetings and functions in order to maximize profits.

The diamonds in our group often did not stay in hotels when visiting for meetings, but in the home of another diamond or some lucky downline platinum. The diamonds rarely rented a car. Instead, a downline platinum or higher would be lucky enough to be the unpaid and uncompensated chauffeur for the weekend. The platinums basically were the doormen and ushers at the functions and in many cases, probably didn't even get to hear the speakers since they were busy working. Their reward for their troubles was "spending time" with their uplines.

The downline are like unpaid volunteers. For example, ever see diamonds actually renting a moving van and hiring movers? I believe most of them had downline groupies who did the work for free, just for the honor of being near their upline. Just my opinion, but if these folks had mountains of cash, why wouldn't you hire movers so your downline didn't have to use up a valuable Saturday or Sunday to do that work? That's like owning a chain of stores but having all of their stores closed. No products sold, no new recruits prospected. If Ray Kroc moved his residence, would all the nearby McDonald's owners close their stores to help him move?

Another things IBOs and prospects should note is that pictures of mansions, sports cars and jet skis doesn't mean someone is wealthy. Someone could have all those things on credit or rented after all. And many people who truly are wealthy, do not show off their wealth. It is possible that many diamonds live mundane middle class lives on their income but need to portray wealth to lure in new IBOs. While your upline diamonds may act and look rich, how would you really know? I can take a homeless guy, clean him up an put him in a suit and a sports car and he would probably look like a diamond.

If your uplines are implying that they are so wealthy ask them to verify some of the claims. I'm not talking about their personal income, but in business, verifying business income is very common. If you are being invited into the business and a business system such as WWDB, BWW or N21, you have every right to check your upline's credentials. Avoidance of the truth, or an answer such as "none of your business" should be a red flag. It is your business if you are being asked to join, invest your time and money, and follow upline advice.

A Straight Answer?

 One of the humorous things about Amway IBOs is their ability to say a whole lot without having any substance. They'll talk about how great the business is and how much they have learned and then when you ask if they made any money, you either get dead silence or you get some answer about how they's seen a copy of a check from someone's upline diamond or something like that. But it's very rare that an IBO will be upfront about their earnings. Of course I can understand that someone brand new might not have made a whole lot, but I have seen some IBOs outright lie and say they've been in Amway a month and they're making $5000 a month or some other tall tale like like.

Even when discussing some Amway released information such as the average earnings of an IBO, you can hear all kinds of excuses provided by Amwayers. They will make excuses like most IBOs do nothing. As if that isn't a problem in itself. Or they make stupid analogies about people signing up for a gym membership and then not doing anything. As if owning a business and exercising are the same thing. I even hear questionable claims about how so many people sign up as IBOs to get lower prices. I chuckle when I hear that because Amway's prices in general, are not competitive with big retailers. I believe that is because Amway must add the cost of IBO bonuses in the cost of their goods and services. While an IBO might save from the full retail price of Amway products, you can (in most cases) find the same or a similar product cheaper online or at Walmart.

Another area where IBOs like to divert the discussion is when the discussion is about the success rate of IBOs in general. Based on Amway's own numbers, less than one half of one percent of IBOs reach the level of platinum. Platinum is the level where allegedly, an IBO either breaks even or starts to make some net profit. It would depend on whether the IBO is involved in the tools and to whet level of participation. But IBOs like to downplay this fact as if people simply did not work hard enough or did not learn enough, rather than simply acknowledging that the system itself might be flawed. 

The last area I see issues is when talking about selling products. I suspect that product sales to no IBOs is relatively small. I believe there may be some exceptional people who can sell, but people in general, do not like to or do not possess the skills to sell products. Yet I see IBOs making all kinds of stories about "selling" to customers. I rarely get a straight answer about product sales as well. The fact that many Amway IBOs can't give a straight answer is quite telling.