Sunday, September 12, 2021

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.


David said...

Hi Joe Cool:
You said that Amway has revealed the only 4% of all Amway products are sold to non-Amway people. What publication and when did Amway reveal this? It is surprising to me that they would make such a stark admission. My experience has been that they are very secretive about such information. A number of years ago, Dick Devos Jr. when asked by a reporter what Amway’s sales and profits were for the year replied that he didn’t have to disclose that information because Amway is a privately owned company. This is like the “none of your business” response you get when you ask a diamond what he’s making in the business. Thanks.

Joecool said...

That comment was a bit dated, but came from a corporate blogger. I don't think a link to that post exists anymore. But based on my own personal experience and observations, and the notion that Amway diamonds taught "buy from yourself" and gets others to do the same, it's very plausible that few Amway products are sold to non Amway related customers.

If not, Amway sales should have gone through the roof during covid, just like Amazon. But that certainly doesn't seem be the case.

Anonymous said...

It's a pain in the ass for a consumer to buy Amway products, because you have to place an order with some IBO, then he has to order and take delivery from his up-line, and then the product has to be delivered to you.

Who needs all this red tape? Just go to the corner store, pharmacy, supermarket or hardware outlet and get what you want in one quick trip.

Anonymous said...

The reason is that there is very little actual consumer demand for Amway products, at any time.