How The Teaching Evolves?

 One of the things that is clear. Many Amway recruits are shown fancy cars and toys, along with luxurious vacations and trappings. This is a way to get prospects excited and interested in signing up for the Amway opportunity. Many sign up, and soon enough, the excitement fades and they quit. Either that or the IBO sees monthly losses and no prospects of improvement and quits. Many do little or nothing. But what many people do no understand or realize is that there is a reason for this. Many do little or nothing, I suspect because the business is much harder to build than advertised.

Because Amway has a stigma in the US (and growing in other locations), finding prospects is a daunting task. Add in the high prices of Amway products and you have major challenges that IBOs simply cannot overcome. Most simply quit and fade away into society. Some, like myself were lied to and abused, with upline leaders (WWDB)who were never held accountable for their actions. Thus I blog so others may share my experiences and can decide if they wish to climb insurmountable challenges for a less than 1% chance of financial success.

What many leaders do is evolve their teachings. They start to teach their IBOs that the Amway opportunity may have made them nicer people, better fathers or husbands and other nice to hear stories because it covers up the fact that these IBOs are not making money. Sometimes I wonder how someone can be a better person by deceiving others about the business opportunity, or how you can be a better father or husband when Amway meetings become a priority over your family and friends. Or how you can be a nicer person and leave threatening messages on forums with those who disagree about Amway being a great business opportunity?

Rather that justifying your involvement or looking are side benefits, IBOs should be looking at their bottom line. If your Amway "Business" is not generating enough money to pay for your voicemail and other expenses and leaving you with a net profit, then what exactly is your upline teaching you that is worth the ongoing expense? If you are like most, you are told that Amway has no overhead and has little risk. Well, that becomes untrue after months pass by and you have spent hundreds if not thousands on support materials that do not deliver you a net profit. Additionally, your upline is making a nice income by selling you those support materials and advising you to buy more.

Are you new or a tenured IBO? Has your teaching from upline evolved away from making money as the bottom line? If so, what do you do next? I would run in the opposite direction.

A Life Of Leisure?

 When I was an IBO and was out showing the plan, I often saw my upline diamond driving around town dressed in a business suit. I used to think why does he keep working so much if he can walk away and collect residual income? My sponsor told me that the diamond only works because he 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. (So much for lifelong residual income)

Now Amway has stated that the average diamond earns about $150,000 a year. Amway currently says the average Diamond makes over $500K, but that is the average for aQ12 Diamond (which is the rare exception, thus I believe the average diamond income is still about $150K) 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.

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 IBO.

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. I wonder if some diamonds can even afford to fly first class?

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a middle to upper middle class lifestyle, and probably works as much as a man with a 9-5 job, except that a diamond works nights 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. This is not the lifestyle that diamonds try to portray.

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?

Upline Mentor Or Crook?

 In the Amway business, most active IBOs are advised to trust upline. To think of upline as a coach or a mentor. These upline mentors or coaches are supposed to have your best interest at heart and they will guide you to success if only you will be open to learning. Many uplines, including my former uplines used to coin the term "copy" or duplicate. If you can do that you will be successful. Even the simplest of people can copy. The upline may crack a joke about getting thru school by copying. Thus, many IBOs follow exactly what their upline advises them to do.

But then uplines turn the responsibility away from themselves. Many Amway defenders will also claim that downline should not simply follow the advice of upline. They may make a ridiculous claim that standing orders and functions contain advice that must be discerned. That information is like a buffet. You pick and choose what you need and discard the rest. If you are a new IBO or prospect, let me tell you that is a load of guano (bird crap) that is being heaped on you. Your upline is touted as having experience and wisdom in the Amway business, which is why you are paying good money for voicemail, books, cds/audio files, and functions. So why would their advice be something you pick and choose? How would a new IBO know what to pick and choose?

Imagine hiring a guide for a trek in the wilderness. The guide is supposed to be an experienced outdoorsman, perhaps an expert. So if he recommends that you eat certain plants or fruits, you trust that he is going to guide you right. Imagine eating something that made you sick to your stomach, only to have the guide tell you that he just points out plants and fruits and you have to discern which is good for you and which is not. You would fire the guide and tell everyone you know not to use that guide anymore.

But here we have these "systems" such as Network 21, WWDB or BWW that have been "guiding" IBOs for up to 20 years or more in some cases, and the number of diamonds are negligible. Sure there might be new platinums, but many tool consuming platinums have been found to be losing money or making very little money for their efforts. What's more, it would appear that Amway is losing ground in sales. Amway's sales dropped from 11.8 billion in 2013 down to 8.6 billion in 2017. One can reasonably guess that any new platinums that break are simply replacing the volume for a platinum that no longer exists or a platinum that no longer qualifies. My former upline diamond appears to have all new qualifying platinums from the time I was in the business and here's the kicker. My former diamond had 6 downline rubies. As far as I know, none of these rubies are qualified as platinum anymore, much even in the business.

Uplines also program their downline to take responsibility for the failure. Thus you have IBOs who did everything that was asked of them, only to fail. Yet these IBOs often blame themselves for their failure. It is my opinion that former IBOs who did everything asked of them only to fail should file a formal complaint against their LOS with the better business bureau. Amway defenders like to think that a lack of formal complaints means that the system works when clearly, there is no unbiased substantial evidence to suggest that the system works. It looks like some succeed in spite of the system, not because of.

The catch in all this is uplines skirting responsibility for the outcomes of those they "mentor" and profit from. IBOs should ask if upline really cared about their success, why do you have to pay for any help that you receive from your upline diamond?

Amway IBOs Exploited By Upline?

 Some big companies and some private entrepreneurs have been accused of being "sweat shop owners". This is when they exploit their workers, often in foreign countries by having them work for a very small wage. For example, a foreign operation may have a warehouse full of women and children working all day under poor conditions for a few bucks a day. The owners of these operations can rake in the dough as they save a ton of money in labor costs. There are some big American corporations that have been accused of this.

Some uplines operate just like sweat shop owners, but in many cases, they are worse then sweat shop owners because even exploited workers earn something. At the end of the month, they have a net gain, even if it might be small. In the case of many Amway IBOs, they spend money on Amway products, and uplines take the lion's share of the rebate/bonus that is generated by those sales, and then in turn, these same uplines try to get many of their downline to also become customers of their system of cds, books, voicemail and seminars or functions. In many, probably most cases, uplines will make just as much if not more income from the system, than from Amway. Most downline IBOs would be far more profitable if they simply worked a part time minimum wage job instead of building an Amway Empire.

These same upline will also teach fierce loyalty to the system. Never miss a function. Make sacrifices to buy more books or cds, and make sure you are always looking for people to sponsor to add to the system. Joining the system almost guarantees that you will suffer a net loss in the Amway business. It is why I continue to write about what IBOs and prospects should look for when they are being recruited or indoctrinated into these systems. It is why there are so many defenders of Amway, most of whom are losing money, but think they are still successful because it is what upline teaches. If only the IBOs and prospects could just step back and look at things objectively instead of blindly believing what their upline teaches them.

I know most IBOs won't believe this, but I will say it anyway. IBOs on the system are probably worse off than sweat shop employees because they are paying their upline to do their work. At least sweat shop employees get a small salary. Upline will teach you that it is an honor to drive them around, or to do tasks for them. I saw this firsthand and have no doubt that some or all of it exists today. Many platinums works as free doormen and ushers at meetings and functions, or as taxi drivers to take the diamond to their paid meetings. Upline benefits by maximizing profits from functions. It is pure downline exploitation and I hope eventually that more and more IBOs will recognize this. It is clear for those who are willing to look at it objectively.

For most, a part time minimum wage is a better proposition than Amway.

Amway Or Gambling?

This blog post is not about comparing Amway to a game of chance, although sadly, Amway's ultimate results have less success than gambling, For Amway and Gambling, "hope" is the common thread that hooks people and keeps them involved. Why does Amway appeal to some people despite the overwhelming odds? I believe it's the same reason why people enjoy gambling and what keeps people hooked on both. Like gambling, the Amway opportunity (the way it is often presented) represents "HOPE". Hope it is why people buy a lottery ticket. Hope is often the reason why people gamble as well. One pull on a slot machine could result in millions. Amway is not a game of chance but it represents hope. As a young prospect, my sponsor would ask how else any of us could (in reality) become rich or millionaires? The answer was zilch. My sponsor would say that the Amway business represented our "best" chance.

Everyone needs hopes and dreams. It's what keeps most people going. Without hope, many people are susceptible to depression or they may begin to wonder what the purpose of their life is. In some instances where people take their own lives, it is common for that person to have lost or given up hope. Without any hope for better things or a better life, they give up and may do the unthinkable and take their own lives.

Where I believe some Amway leaders are scum is when they give people false hopes and dreams and use it to profit handsomely likely knowing that their downline will never profit in the Amway business. I've heard from some former pins who had witnessed some of the bigger pins making jokes about the dreamers in the audience who keep coming to seminars but will never make it. These folks want success so badly that they literally have tears in the eyes. They will work the business hard but they won't make it. The system is designed to have a few successes with many participants. A good example is the common 6-4-2 plan where all 79 IBOs moved enough volume to earn a bonus, yet only one platinum is created from that volume. The rest, if on the system of cds, seminars, voicemail and books will likely operate at a net loss despite doing the right things and putting in the effort. It's just really sad to know that so many people have big hopes and dreams that will never be fulfilled.

Some groups of diamonds will display a "diamond lifestyle" showing off golf trips, fabulous vacations, mansions, cars and jet skis. Do all of this with no job and the money is unlimited and keeps rolling in. This is what some groups will portray as the goal for many young and newbie IBOs. They'll says things like "anyone" can do it. While anyone can do it, anyone can also win the lottery or anyone can make million in Las Vegas. No, Amway is not gambling, but the representation of "hope" is often what attracts people to gambling, Las Vegas, and Amway. Both (Amway and gambling) have few winners and a multitude of losers.

Are You An IBO Or A Customer?

 I've been debating with others about the concept of customers. Amway's most prolific defender argues that IBOs are customers and holds the position that there are alot of people who register with Amway simply to be customers. Now I don't know how anyone can possibly make that determination, but regardless of whether it's true or not, these folks are still considered IBOs. I don't want to debate the legal ramifications about the 1979 FTC ruling and the 70% rule, although the spirit of the rule was to prevent IBOs from buying their bonus. in the 2016 FTC ruling against Herbalife, the FTC said sales to distributors do not count as retail sales and required Herbalife to changes their operations because of this rule.

Amway apologists apparently contends that IBOs who purchase and then resell to downline are meeting the sales requirements and the downline are customers. Okay, let's go with that. But wait, IBOs do not buy and then resell to their downline. IBOs order directly from Amway do they not? If IBOs order directly from Amway, their upline gets some volume credit for downline purchases but the upline doesn't buy and then resell anything to downline. So are IBOs actually making any sales to non IBOs, save for sympathetic friends and family?

If in fact, IBOs are not selling their goods, and are primarily self consuming them, it means that most of the upline bonus is basically generated from the pockets of the downline. I believe the tools business is a product pyramid as only IBOs are buying standing orders and attending functions. The lack of selling Amway products to the public would put the Amway business opportunity in pretty much the same category. I wonder what the FTC would rule today if that were the case? I wonder what the FTC would rule on the tools systems as it is today?

Something to think seriously about. If you are an Amway business owner, and you are selling little or nothing, where do you think your bonus comes from? It either comes from your own pockets, or it comes from taking advantage of your downline, who then pony up a portion of your bonus from their pockets. In a system such as this, the only way to maximize your bonus is to recruit as many downline as possible. Because the more people you can leverage, the more bonus you can get. The problem with this system is that people realize they aren't making money, and that paying in some cases, ridiculous high prices for "prestigious" soap and vitamins is not worth it, and they quit. When these folks lose their Amway dream of mansions and jets, they somehow lose their desire to keep making purchases.

If former IBOs kept on buying Amway goods, then Amway sales would climb pretty much every year as the former IBO's purchases coupled with current IBO purchases should keep going up, not down. But that's not really the case is it? In what business can the employees or company owners be the primary customers and prosper. The answer is none and Amway is not an exception.

Amway And The BBB?

 I recently saw comments on this blog from an apparent Amway defender. The comments extolled the virtues of Amway partner stores such as Nike and Apple. To be honest, I don't know if Amway actually partners with Nike and Apple but let's say they do. What does the partner store designation mean? All it means is that Amway IBOs get to list Apple and Nike stuff in their catalogues. If they manage to sell any Nike or Apple stuff, they get a commission paid by Nike or Apple through Amway. But of course, because of the IBO bonuses and because Amway needs to make some money on the transaction, the prices of Nike and Apple products in the Amway catalogue cannot compare (in general) to to big retailers or even Internet shops like Amazon.com.

Assuming that Nike and Apple are truly Amway "partners", they have a one-sided partnership. Nike and Apple don't do anything for Amway IBOs except to allow them to sell their products for premium prices on a commission only basis. Meaning is nothing gets sold, Nike and Apple do not have to compensate anyone. It's a no brainer for Nike and Apple. If people sell your stuff for top prices, you pay a commission but if they sell nothing, you pay nothing. It's a great deal for Nike and Apple, again, assuming they really are Amway "partners". Heck, if JoeCool made "I hate Amway" stickers and Amway wanted to be my partner, I would do it too. Nothing to lose and much to gain.

Now, about the BBB. I don't know what Amway's rating actually is because they could be "A' rated in Michigan for example, and not "A" rated in Arizona. The rating has a lot to do with Amway dealing with complaints to the BBB. If they deal with complaints, then they might get a good rating. However, many people are sponsored by friends and family and simply do not register complaints about Amway even if they had a bad experience. But even if they registered, it was likely against an LOS (Line of sponsorship) such as BWW (Britt Worldwide) or WWDB (World Wide Dream Builders) or N21 (Network21). These are for profit third party companies designed to help recruit and train Amway IBOs and who profit even if Amway IBOs lose their shirts. Often these groups are not rated with the Better Business Bureau (BBB). Individual Amway IBOs who do bad and unethical things are also not registered with the BBB so their bad behavior would not be rated by the BBB.

Why do you suppose Amway has such a bad name reputation while their IBOs brag about Amway's alleged BBB reputation? IBOs and their training companies are not Amway. It's very possible that Amway would not approve of the things done by individual IBOs or the training groups but Amway for too long (in my opinion) has profited because of the bad behavior of the lines of sponsorship and the bad behavior of individual IBOs who they claim they can't control. Perhaps if Amway cannot contain the bad behavior, they should not be allowed to profit from this bad behavior and should be fined or have restrictions imposed upon them like Herbalife did last year.

I believe I have thoroughly debunked the partner store and BBB myth, but I'm sure Amway IBOs and defenders will be back to raise the issue again soon. LOL

An Amway Testimony?

 This comment was sent to me by a site visitor. He speaks of an Amway IBO's expenses and some of the trials his family member has gone through:

Hey Joe. Love the blog, read it every week. I have a family member in "the biz" and due to various reasons, it frustrates me but i support this person no matter what decisions they choose to make. I have been to a few meetings, a few get togethers, and have been encouraged to join the "biz" and attend functions on several occasions. I have a decent job, I make decent money and I have no interest in selling crap to people in my spare time.

The products sold by the way are items that are purchased daily by consumers everywhere in the city at various storefronts. There is no shipment to wait for and whether its toothpaste or vitamins, there is a store for that. Honestly, how can you really compete?

Anyway, I could go on and on but I would like to share with you some things I have seen from these ibo weirdos that are expenses. So yeah, I went to a few meetings and wow, what a bunch of bs. They want you to buy cd's and books etc. from motivational speakers (yes I have listened to a few briefly) that basically make people feel bad about themselves and how they live (that's all i hear anyways)....and the ibo weirdos eat it up and actually BUY it. The stuff isn't cheap either so if you had profit you are losing some there. These people drive to meetings every week, and pay an entrance fee so they can watch videos on how you can get rich, listen to motivational assholes (they actually take notes) and actually purchase new products so they can try them out for themselves.

All I see there is expenses....tally it up, entrance fee, gas money, babysitters, stationary items, books, cds, and hell even the clothing they show up in to project their image of success....its all an expense. I was invited to a couple of functions and on the cheap side, it would have cost anywhere from $300 to 500 just to get wherever it was and to get in the door....and for what? I was told to get the information I needed to succeed. Ha! What information? It's all just some rich (or rich acting) person flaunting the shiny new shit they supposedly have and telling you to your face more or less that you are a useless bag of shit unless you are like me. More expenses for nothing. Wow. Ibo weirdos also like to buy(through the biz none the less) fancy new electronics that will help them to make more money by working the internet angle. Ummm....BIG expense, how long till it pays for itself? I have gone to a few bbqs and get together type deals because I was invited (only cause they have to invite me due to family ties lol) and ill tell ya, not one home i have seen is that of someone successful. We are talking some low income housing my friend, and guess what you ALWAYS notice? Huge dry erase boards, filing cabinets, books and cds galore, projection monitors hooked up to computers ( with some amway logo as the screensaver), amway products displayed in every room, and yes even home phone "business" lines......ALL of them expenses.

Yet, in these homes sadly there is little else. I mean, damn you have to live a little. Your entire life can't become engulfed in this crap can it? These ibo weirdos hate me, that's for sure. I refuse to be a part of their "biz" and I have a large furnished home, several toys, vehicles, and cash in my pocket, and I do it all because I have a JOB, and you know what? There are no expenses and i do better than any of the members in their team! Oh yeah, does amway provide any dental, vision, or medical? EXPENSE! The biggest expense I see is the amount of time they lose with their families. Every spare moment is used on a phone call, on the internet, at a function, at a meeting, setting up to display items at different locations, throwing crappy house parties to get more suckers, etc. etc. Talk about freedom huh? So, I will continue to support my family member, as I am not her "owner" and want her do what she pleases and what makes her happy. But it works for me because each time I have to attend a crappy bbq (no more meetings though, we came to an agreement lol) or some get together functions, it is a great reality check for me. I always walk away knowing I am doing something right, that i truly am successful, my family members are all taken care of, and my expenses are 3/4 of a tank of gas a week. Hmmmm.....so what do you think joe? What ibo expenses have I missed?

Diamond Secrets?

 One thing that I was unaware of as an IBO was that our uplines were massively profiting from our tool purchases. I was in WWDB at the time, and I was told very clearly that nobody made money from the tools and in fact, I was also told that WWDB was a non-profit organization. Both of these statements were bold lies told by WWDB leaders and they have never been held accountable. We were told that upline cared about us and our success, thus they spent their own money to fly to functions to teach us how to succeed. Turns out they were all lies.

Eventually, the internet and other media made it impossible to cover up these lies and uplines finally admitted that they profited from tools. However, it looks like the upline downplayed the magnitude of the tool profits. I believe some upline may have made most of their income from tools, especially leaders who may have fallen out of qualification. Now days, the upline admits they make some profits from tools, but there is still a great deal of secrecy in the tools business. Has anyone ever seen a written agreement on tools compensation? So say you qualify diamond and your crown ambassador decides you don't get tool money, what legal recourse do you have?

What makes the whole thing with tools ironic is that the uplines are not supposed to entice Amway prospects into joining by using the tools money as a draw, but at the same time, they are told that tools are vital to their success. Uplines also show off trappings and lifestyles to attract recruits, but I believe that these trappings were likely obtained with supplemental tool income. I often wonder if the diamonds actually own the toys they show off? I suspect that some rent cars or houses to make the show attractive. And tool income has a higher profit margin than Amway products and fewer people participate in the pay plan so it makes perfect sense. Let's take Dream Night. It costs about $75 per person, but I can schedule a fancy dinner in a hotel for about $25 to $30 per head. The rest is profit. Same with FED, but FED probably costs less as there's no dinner and the fee is about $125. That's where the real money is made.

I wonder how many prospects or IBOs would be fired up about buying tools if they knew that their uplines might not currently be qualified at the level they claim to be. Amway recognizes a diamond forever, or once a diamond, always a diamond. How would you feel knowing that the uplines will make a ton of money whether or not you make a cent as an IBO? Also, some uplines are shameless in pushing the tools on downline. Sure they might cut the newest guy a break and loan them some cds, but once that IBO decides to start building downline, they are likely to be told that a real business owner buys their own tools, or that a business owner needs to be a leader and purchase extra tools for their downline.

How would you feel if your upline is touting themselves as a financial genius but in the background, their homes are foreclosed or they have financial difficulties? What if your upline touts their morals and you find out they are divorced or getting a divorce? What if your upline said Amway saves marriages? Your upline certainly won't say they are perfect, but conversely, they should be held to the highest standards if they are using their status to be able to sell tools and make large profits.

These are some Amway secrets that your upline doesn't want you to know about.

Amway Diamonds Pay Cash For Everything?

 When I was an Amway IBO, I was always taught that diamonds pay cash for everything. That one day, after following the foolproof WWDB system, that I too, would be strolling on the beaches of the world, with cash rolling into my bank account with no worries in the world. We were told that diamonds pay cash for all purchases, even homes and other large ticket items. As evidence, the diamonds would show slideshows of mansions and sports cars, golf club memberships and other lavish items. All paid for in cash we were told. I have reason to believe that WWDB still teaches this except that it is more than likely a bunch of lies.  

You know what's really sad? Shortly after I left Amway and WWDB, I bought a home (in Hawaii) for about $300K. My sponsor was my friend and the real estate agent also contacted him to see if he was interested in purchasing a home. He declined because he said he would only buy a home if he was able to pay his home off in cash. Well, it is now about 25 years later, and my home is now worth well over a million dollars and my former sponsor is still renting a home. This is just an example of how dangerous it can be to follow upline's advice.

First of all, in looking back, our group really had no way of knowing what was paid for or not. We just assumed that diamond made so much money that everything the diamonds spoke of were true. However, there have been events, some fairly recent, that exposed some of the apparent lies told by these diamonds. There were two (2) diamonds whose home foreclosures became public knowledge and a prominent triple diamond who was involved in bankruptcy (chapter 7) proceedings. Now your home cannot be foreclosed if it's paid for in cach right? Technically, nobody would care whether a diamond's home was mortgaged or paid for, but when diamonds parade in front of a crowd bragging about wealth, and then telling the audience that they too will achieve the same success by following the system and upline advice, well that's a bit misleading in my opinion. So many people in the audience are practically crying because they want (so badly) what the diamonds are flaunting, except that possibly, many of these diamonds don't even have what they are selling.

An average (non-founders) diamond might make about $150,000 (according to Amway) and let's just say another $150,000 from selling support materials. When you factor in taxes and business expenses such as travel to and from functions, what's left over certainly is not going to allow you tp purchase million-dollar mansions. Some higher up pins might make a bit more, but still, purchasing mansions and other luxuries in cash is a stretch. It would be my guess that most diamonds indeed have a mortgage on their homes and may even have car payments. That's not a crime but it is unethical, and it is illegal to lie about your income in order to recruit new downlines.

For IBOs and other newbies, if your uplines are bragging about paying for homes and other things in cash, ask them to show proof of these claims. I can show you pictures of multi million dollar mansions and sports cars, it doesn't mean that I paid for them in cash. But then again, admitting to having a mortgage or having monthly car payments aren't quite as attractive or exciting as claiming to pay for these things in cash.

The Game You Can't Win?

 When people see the Amway plan, it sort of makes sense. You need to find six people to go direct, in 2-5 years and you have residual and willable income for life. You are then financially free and can spend your days walking on exotic beaches while checks keep coming in. This is what lures many prospects to take a better look and maybe even test the waters and give Amway a shot. After all, who wouldn't be interested in financial freedom and the ability to fulfill some of your ultimate dreams? Only a fool would turn down such an opportunity, right?

While Amway looks good on paper, too many things derail this plan for financial freedom and untold wealth. Over the years I've been blogging, I've challenged Amway supporters to name a couple of people who are financially free and walking the beaches while income rolls in. Very predictably, nobody has identified a single person who achieved some high level in Amway and is sitting back relaxing while money keeps coming. We even see crown ambassadors passing away while still working the business.

So why can't IBOs achieve what they aspire to? Because in my opinion, the odds are stacked against them. Sure, a rare individual might go diamond but the occurrence is very rare and almost as rare as winning the lottery, even though Amway is not a game of chance. I will go and list the reasons why IBOs are playing a game they can't win, even though they think they can. That is the sad part, that the upline is motivating downline to "never quit" even though they will "never succeed".

The system is set up for very few to succeed. Even in the common 6-4-2 plan where everyone did enough to earn a bonus, there is one person at the highest level with 78 downline who earn less. In real life, most IBOs do little or nothing. At Amway.com, you can see income disclosures that show how few people reach the higher levels. It's a tiny fraction of 1% that reach the higher levels. Even reaching platinum is a lofty achievement and platinums might not even see a net profit due to business expenses.

Business expenses such as product packs, catalogs, cds, books, voicemail and functions add up to significant expenses in the course of a month. If you're hoping to achieve financial freedom, you'll be expected to participate in the teaching system and more than likely, these expenses will be the reason for your business losses. Beware of upline who encourage you to go in debt to purchase training.

The products in general are not competitive. Sure, the Amway IBOs may give you some pitch about products being concentrated or of high quality but let's face it, consumers don't care about high quality soaps and household cleaners. There is nothing wrong with the similar products that you can purchase at Target or WalMart at a fraction of the cost. When your products can't compete on a level playing field, on what basis do you expect to sell these products? For that reason, many IBOs become "self consumers" and wind up with no actual customers.

Amway's reputation is soured. Most people know or know someone who had a bad experience with Amway. Due to past IBO behavior, people have developed a negative view of Amway. People being tricked or lied to in the past may have contributed to this issue. Add that to the fact that so few people actually make money turns this business into an almost insurmountable challenge. Even those who achieve often find themselves out of qualification shortly after.

For these reasons, my conclusion is that the Amway opportunity is a game that IBOs simply cannot win, even for those who learn from upline and put forth tremendous effort. And the longer you play. the bigger your losses become. Do your due diligence before undertaking any business opportunity.

Amway Wealth Creation?

 Amway can make you rich is what many uplines will proclaim. Many IBOs say they were told that Amway was not "get rich quick". But obviously, someone must have given them the impression that Amway would eventually make them rich, otherwise, why would anyone join? Why would anyone want to work that hard and embarrass themselves in front to friends and family to promote a business that will more likely get you funny looks than money. But can Amway actually make you rich?

Well, yeah, Amway can make you rich if you are a diamond selling voicemail services, books, standing orders and function tickets. Amway can make you rich if you own Amway and sell to millions of IBOs who "buy from themselves". Amway can make you rich if you write a book that millions of IBOs purchase. Amway can make you rich if you can get enough loyal downline to keep purchasing products so that you can get the bonuses. But aside from these few people who I just described, the Amway opportunity is more likely to make you broke, or at least lighter in the pockets. The facts are there. Amway published them. It's called income disclosures. The average IBO earns around $200 a month, which is after "non active IBOs" are disregarded. Thus the average income of all IBOs is about $100 a month, which included the diamonds, platinums and crown ambassadors. Do the math.

Most Amway IBOs do not even earn enough to cover their monthly voicemail expenditures, much less the other support materials that are pushed on the downline in groups such as WWDB or BWW, or N21. These materials are touted as the "key to success" in Amway when in reality, it is the key to success for the uplines who share in the profits from these materials. The real kicker is despite claims that these materials are key to success, the uplines get their followers to blame themselves if the system doesn't work for them. Kind of like tossing a coin and saying "heads I win, tails you lose". Upline wins as long as you buy support materials from them, and your results are of no consequence to them. In fact they probably don't want new diamonds as they would then have to share the tool money.

So can Amway make you rich? I would guess it is possible, but it is also possible for you to win the powerball lottery. It takes normally, over 100 downline IBOs to create a platinumship. And a platinumship is .26% according to Amway, which is roughly 1 in 400 IBOs. And at that level, you likely make a little profit or break even. Where is the wealth created by the Amway business?   The wealth is created by the side business of selling business support materials.  That's the dirty little secret that your upline is unlikely to disclose to you.

The 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 the Amway fiscal year). Q12 diamonds are the exception and not the normal rule in Amway. Amway no longer mentions "regular" diamonds but I have no reason to believe that the average diamond in Amway increased or decreased in income 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 its own workers or sales force purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ Amway IBOs 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.

The Bait And Switch Scam?

 In my informed opinion, Amway is a huge bait and switch scam run by the diamonds. The crowd sees the diamonds as someone to be worshipped. The arrive to standing ovations when they appear to show the plan and/or to speak at a function. The diamonds speak of untold wealth beyond the reach of most people. They show slide shows of fabulous trips and events that they attend and possibly golf outings and other fun things that are associated with people who have money. The diamond often has some sports car or a nice sedan such as a Lexus or Mercedes. And all of this alleged wealth comes from Amway. Just join and get the secrets to wealth from the diamonds and you too will be living in fabulous wealth. 2-5 years, build it right and build it once is what I heard.

But it's a bait and switch scam. They show you wealth and speak of their large incomes (without verification of course) and people tend to believe what they are told. The diamonds claim to have the key to the secret of success. All you need to do is get plugged into their system and you are nearly assured of success. Right? Listen to those diamonds. They are the pinnacle of success and all you need to do it copy what they have done. So simple even a dog can become a platinum. All you need is 2-5 years, do it right and do it once and you're set for life.

So you subscribe to their system of voicemail, books, standing orders (audios/CDs), meetings and functions/seminars. In the teachings, the theme seems to be similar. Never quit, and the answer to most Amway problems are to consume more tools and functions. If you are struggling and losing money, the solution seems to be to invest more in tools and functions. It's like a struggling business spending more on overhead without simply trying to increase sales. This is why so many IBOs quit, because they struggle to make sales and/or to sponsor downline. Despite all of the teaching and tools and seminars, it is apparent that very few IBOs make any profit.

What people don't see is that the Amway business itself is just a shill for the real business. Amway IBOs unknowingly recruit prospects into Amway thinking they can make a fortune in Amway. In the meantime, the diamonds are raking in the dough by selling monthly subscriptions for voicemail, books, audios and meetings and seminars. Additionally, the diamonds put on a "major" function each quarter where they can make possibly hundreds of thousands of dollars in a single weekend. I believe some diamonds make way more income from the tools and functions than from Amway. A diamond is a lifetime achievement so someone could qualify diamond for 6 months, never qualify again, but still make a nice living from speaking honorariums and selling other tools. The tools business is the real business. The Amway business is like a "front" to conceal the real business, much like the Italian restaurant is a front for the mob. The restaurant is a legal business that helps conceal the illegal activity. And that my friends, is the Amway bait and switch scam.

Life As An Amway IBO?

 I send this message to inform Amway IBOs that they should be aware of their circumstances in their Amway business. What are your expenses and income like? What I mean is when you are a new IBO, it is common for you to buy/sell your 100 PV, and perhaps listen to some cds. If you basically did what your sponsor or upline advised, you made your 100 PV bonus level and you will receive a bonus from Amway for about $10 or so. If you did as advised by your upline/sponsor, then you likely made a name list and started contacting some potential business partners aka prospects. You're probably a bit excited because things are going as you hoped. You did your part and a bonus is on it's way to your doorstep. Heck, you may have even sponsored a friend or relative because of your newly found excitement and enthusiasm.

But what happens after a few months have passed? If you are still doing 100 PV and have no downline, then what are the chances that you will ever achieve anything? Your excitement is wearing off and now the Amway opportunity is becoming "work". You are also starting to notice that it is starting to get expensive to continue to purchase products, many of which you never purchased before. For example, were you buying cases of energy drinks and "high end" vitamins before Amway? Did you buy $50 cases of bottled water before Amway? Supposedly their laundry soap and other cleaners are highly concentrated, therefore your main consumables are the nutrition/vitamin products.

Even if you managed to find some downline, are they duplicating what you do? Are they also moving volume and sponsoring downline? If not, what are your chances of fulfilling the 6-4-2 plan or some similar version of it. When I saw the plan, I thought it was reasonable and I was on my way to platinum. What I discovered though, is that as you progress, upline has greater expectations of you and that includes more tool purchases. (I was in WWDB). In the end, my recommended tool purchases ate up any profits I had and at the 4000 level, I was just about breaking even, which means I was at a loss when factoring in my time spent and other miscellaneous expenses such as gas money, etc, not to mention the time spent trying to build the business.

Where are you at? If you're been in for more than a year, are you on schedule to become platinum or are you at 200 PV with one downline? Maybe you have a small group with 600 PV? You still aren't close to a net profit. For the vast majority of people, success is not right around the corner. What's around the corner for most is more time lost, more money expended, and no profits. If your group is not growing each and every month, you are sliding backwards. If you don't constantly have new IBOs coming into the group, you are probably stagnant. With about half of IBOs dropping out each year, keeping a group together is a tremendous task.

IBOs, where are you at after a few months? Where are you at after a year? If you haven't gone platinum, it is nearly a certainty that it will never happen, despite what your upline might say. The facts are there, it's a matter of whether you want to believe it or not.

The Real Cost?

 One of the common things Amway leaders apparently do is to disparage people with jobs. Oh, they would say we needed people to wait on our tables and clean our toilets, but in general, jobs were put down and basically the group was told that Amway is their best chance at achieving financial freedom, giving them the ability to flush their jobs. Ironically, IBO's jobs are what funds their Amway businesses. Most IBOs would be out of business within weeks if not for their job income funding their Amway businesses.

The key selling point appears to be the 2-5 years of part time work rather than working a job for 30 - 40 years and then retiring on social security which may or may not be there when you retire. This plants a fear in people about the future and then the Amway opportunity is presented in a positive light because the Amway opportunity comes with a low startup cost. What uplines do not mention is how the opportunity can become a money pit as the monthly DeFacto 100 PV quota starts to add up. It is my guess that if people only bought items they truly needed, these IBOs would likely move 100 PV every three months, unless they are actively selling goods to non-IBO customers. With Amway products being so concentrated and efficient as IBOs claim, why would you need to replenish these products so often?

When an IBO finally agrees to register, it is then that the true, but hidden costs are revealed. Many uplines will introduce standing orders and functions and present these tools as vital to IBO success. Most new IBOs don't know better and feel subtle pressure to conform and give it a try. Some upline may loan some tools to downline in the beginning but eventually, the IBO will be encouraged to be a "serious" business owner who should be purchasing their own tools to loan to their downline and the cycle goes on. There is also the cost of additional cds, books, voicemail and other business-related costs that are not mentioned until later which the prospect doesn't necessarily know prior to start up.

If you examine some version of the Amway recruitment plan, you will see that most IBOs are at the 100 PV level, which will reward you with a monthly bonus of about $10 or so. If that same IBO subscribes to the tools system, than IBO will likely be losing over $100 to $250 a month not including the cost of the product purchases. And because many IBOs have been convinced that working a job is so horrible, that they can be convinced that this condition of losing money is temporary and that untold wealth is right around the corner. Sadly, for most, this condition is the norm and even the sponsorship of a few downline, the losses continue to mount. Yet many are convinced that this is better than a job. And this is just the financial cost, not the time and effort spent pursuing a false hope and dream that Amway IBOs and recruiters promote.

Ironically, a job allows people to pay their monthly bills, feed their families and many people enjoy their work and co workers. While upline leaders may convince you otherwise, it is this very same excuse upline leaders use when asked why they are still working instead of walking the beaches of the world collecting massive amounts of residual income. I would encourage IBOs to truly analyze their efforts in Amway and determine if it is beneficial to your finances. In most cases, your Amway efforts ONLY benefits your upline's finances. For most who get involved, the Amway opportunity is not better than a job.

Amway Early Retirement?

 One of the humorous things I read is when a Amway IBO says he or she is 19 years old and will be "retired" at the age of 24 because of the Amway business. I personally don't know of anyone who has retired primarily on residual Amway income, as many seem to claim. I am not suggesting that nobody has ever done this, but I suspect that there are so few people who may have done it that it is not noteworthy. Even the Crown Ambassadors appear to not only be working, but have very busy schedules where they are constantly on the run. In recent years, some crown ambassadors have passed away while still on the job. Why don't we see any Amway retirees? I know retired teachers, police, fire fighters and such. I don't know of any Amway retirees.  Where are these mysterious retirees?   It's like Sasquatch.  People have heard about them, some people claim to have seen and encountered them but there is not actual evidence that they exist.

The poor retention rate of IBOs would suggest that even a sizable Amway business could fall apart rather quickly without a constant replacement of IBOs. It is for this reason that I suspect that Amway folks never retire. They need to keep working or their businesses will fall apart. If you are a diamond, one downline platinum falling out of qualification could drop you to emerald status. Diamonds are not forever, especially in Amway. They may carry the diamond pin, and could be speaking at functions, but they might be a former diamond with a small downline group.

I ask this of IBOs. Is your upline diamond, or someone in between you and the diamond retired because of (primarily) Amway income? Do you as an IBO have a projected date when you will "walk away" from the business and retire? When I was an IBO, I always wondered why nobody "walked away" from their business after they went diamond. I believe the answer is crystal clear. Because IBO turnover is so high, if a diamond were to walk away from the business, he would probably fall out of qualification in less than a year, if not much sooner. The bonuses would disappear, and the diamond would probably have to look for a job. There are many examples of diamonds who have quit Amway altogether, and in some cases, went back to work.  Nobody would quit or resign if they could walk away and collect residuals.

Many unsuspecting prospects may be lured into the Amway business with the hope of an early retirement. Amway recruiters may mention that control of time and money is the key to success, but ironically, for most who sign up, will end up with less time and money than if they did not join at all. For many people. especially young people, it might be a good idea to seek financial advice from a professional and to make long term investment goals. Am investment of about $200 a month can net you close to a million bucks after 30 to 40 years.

Yes, there may be "some" people who retired early due to (primarily) Amway income. But I don't know any. And not a single Amway defender has ever been able to name one. It reminds me of bigfoot/sasquatch. Many reports and allegations are there that these creatures exist but there is no real evidence to support that such a creature actually exists.

Losing Your Shirt In Amway?

 One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 30+% of their revenue back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting plus you pay for your guests.

Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the privilege of giving them bonuses with your product purchases. How is that a good business deal in any way, shape or form?

It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downlines to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime, though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.

Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you anywhere from $100 to $500 or more, depending on your level of commitment. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline diamond, who profits from tool sales?

The (Defacto) Amway Quota?

 Most LOS groups that I know of, use 100 PV as the benchmark when promoting the Amway business. Many groups also teach that you simply "change" your shopping habits and you can easily reach 100 PV. This teaching creates an artificial demand for Amway products, and I believe that Amway sales would take a huge dip if not for this teaching. I also am of the opinion that for this reason, Amway had/has done little to reign in LOS abuses of downline.

100 PV is roughly equal to about $250 to $300 worth of products. Of course your cost may vary, depending on whether you purchase a lot of CORE Amway products such as laundry detergent, and nutrilte vitamins. For many people, the 100 PV benchmark is seen as the minimum for a business building IBO. The problem for many is that Amway products are not competitively priced, thus it is a hard sell. If I can buy the same or a similar product elsewhere for a fraction of the price, I will. And most consumers feel the same way.

It is why some LOS groups adopted the "buy from yourself and get others to do the same" philosophy. Since most people do not like selling, and because of the high prices of Amway products, simply telling prospects to buy from yourself made the concept palatable. The problem with buy from yourself is that it reaches the borders of being illegal, in my opinion. That is because in a buy from youself environment, the only way for an IBO to make a profit, is to recruit downline to benefit from the volume rebates. That is because there is no outside customers to bring in cash from outside the circle of IBOs.

What makes this issue even worse is when you have LOS groups such as WWDB creating an even greater problem with programs such as eagle. If 100 PV is an inflated demand for Amway products, incentive programs such as eagle make it worse. How can a single person reasonably be expected to move 200 to 300 PV when most of it is personal consumption? The upline leaders use these programs as an incentive for downline IBOs, but in turn, they benefit financially by having more downline volume, as well as potentially enhanced tools sales by dedicated downline IBOs.

I challenge any IBO or prospect to take a close look at your Amway purchases. Are you truly just changing your shopping habits and achieving 100 PV or are you buying things to give away, or buying things that accumulate somewhere? Unless IBOs are selling half of their purchases, they are probably overbuying Amway products. I believe it is simply because of upline teaching which creates a defacto 100 PV quota and an artificial demand for Amway products. I challenge you to examine this closely and make your own conclusions.

Brainwashed IBOs?

 Sometimes it happens to the nicest of people and it often happens slowly and subtly. These are the signs that you are becoming indoctrinated, and you are likely annoying your friends and loved ones at this point. I hope this helps you. But seriously, the Amway IBOs begin to believe anything upline tells them and they begin to act out what they are taught and are in danger of becoming Amway zombies. Here are some warning signs:

*You're driven to recruit everyone you know. You may even resort to deception or outright lies to get people to meetings. Before you know it, your family and friends avoid you like the plague. You end up spending time at malls and other public places such as Starbucks desperately stalking and scouting for recruits. Much of your time is spent doing this activity when you're not getting more brainwashed at rah rah meetings.

*You're encouraged to develop an unreasonable, irrational zeal for the products. Even so far as to justify the quality of toilet paper or to call the products prestigious. You may even argue the quality of energy drinks or about phytonutrients, something you may not even know about. You even argue about concentration values in dish soap or laundry detergent.

*A whole bunch of demands, promises, subtle threats of failure if you don't try hard enough are made in the promotional material and motivational seminars. i.e. If you quit, you are a loser destined to die broke and unhappy. Or you let someone steal your dream. These ridiculous claims are how your upline keeps you hooked. There is constant pressure to never quit and to keep on pimping Amway to recruits.

*Because the system is touted as the way you're going to make yourself fantastically rich, you're under constant pressure to drop any conflicting or competing interests such as your bowling league or golf club. Nothing else in life has importance except for the quest of financial freedom. All activities in your life must enhance your Amway business and have an affect on your financial future. No other activities matter to you unless it affects your dream filled Amway financial future.

*Your upline soon becomes your most trusted friend. Your thoughts and feelings are shaped in part by the cds, meetings and functions.

Do you recognize these behaviors? Hopefully you aren't displaying these behaviors.

The Job Pyramid?

 One of the things I take issue with is how Amway uplines will create an us versus them mentality in the Amway business. Thus friends and family who care about you suddenly become "negative" and association with them should be limited or cut off completely. In some cases, people are discouraged from excellence in their jobs or professions because it takes the focus off of their Amway business. What I was told was to do my job, but my radar should always be on for new prospects. Some cross line IBOs turned down promotions at work because they did not want to have to work longer hours or take the focus off of their Amway businesses.  So in these, Amway related teaching had a direct relationship to hurting someone's future.   Exchanging career advances to chase the impossible Amway dream? 

In some cases, the speaker at open meetings or functions will put down people's jobs. A commonly used acronym was J-O-B = "Just Over Broke". Some leaders also would say that my job was a pyramid because you will never earn more than the boss. A completely ridiculous comparison because someone's job has no relationship with how people view the Amway business (i.e. an Amway pyramid) and in a job, every employee gets paid and has a net gain at the end of the month. Not true in Amway. If IBOs only use KATE for example, an IBO at 100 PV or less will already be at a loss, and that is not considering any other expenses that IBO may have. And while a job may have a hierarchy, or chain of command, the business owner and CEO or manager earns their salary from customers, not directly from the pockets of their employees, unlike how the lines of sponsorship (LOS) teach their downline.

Some uplines will laugh about people's jobs, stating that they wake up at the "crack of noon". What these same uplines may not tell you is that they wake up at noon because they are up at 3:00 in the morning doing night owls for their groups and looking for recruits. These same uplines possibly can't do much with their downlines since their downlines mostly tend to have 9-5 jobs. An Amway diamond still has a job, but they work the graveyard shift because the mainstream world works during the day. The part about waking up at the crack of noon is because your upline diamond has to sleep in since he's working the overnight shift.

So if you are of the opinion that nobody should criticize the Amway opportunity or IBO behavior, maybe uplines and IBOs should not criticize family and friends who disagree with or are not interested in the Amway opportunity. And maybe the same uplines and IBOs should not criticize people who choose to work jobs. Don't most IBOs rely on their jobs? More than likely their Amway income is not sufficient to even pay for their Amway business related expenses, let alone anything else. It is most often someone's job that winds up supporting their Amway business, which is truly ironic.

Walking The Beaches?

 One of the battle cries I heard as an Amway IBO was how one day, we would all be financially free and walking the beaches of the world. Being free and not having to own an alarm clock and not reporting to a boss. I mean it sounded like a cool deal. All you had to do was work the system 2-5 years and follow the proven system of success. At the time, I thought honestly that I was going to do just that. But as time passed, I started to notice things said and taught by the upline leaders that just did not make sense.

For example, why would we constantly be told to get out of debt and live below our means, but it was okay to go deeper in debt to attend a function or to buy more standing orders? If debt is bad, then debt is bad. There wasn't much talk about using your business to generate profits to reduce debt. Just more recruiting and sponsoring. I suspect it's because it's just not feasible to generate enough sales to make any serious income from selling generic brand products for top premium prices.

Of course now I know about how upline's apparent greed was what led to this type of advice. Or we were taught that God was our top priority, followed by our spouse, family, job and then the Amway business. But when anything conflicted with am Amway function or a meeting, the Amway function was ALWAYS to be the priority. "Never miss a meeting, period" was the advice we got from upline. Attend "all" functions. All means all. So much for prioritizing God, family and our jobs before Amway. It was just talk without any action.

Which leads me to ask prospects and IBOs. What progress are you making? When will you be walking the beaches of the world? Why aren't any of your upline leaders retired from Amway, collecting mountains of cash and walking the beaches of the world? Why doesn't Amway advertise residual income as a benefit of the business if it were true? Can you even name one or two people who built an Amway business and actually walked away from their business and collects income? Surely a 50+ year old business with this benefit must have hoards of people realizing this wonderful benefit? Why can't people name a single diamond who built the business, walked away and enjoyed this benefit that's used as a selling point for Amway?

What many people, including IBOs don't know is that you can never go inactive in Amway. Amway, as far as I know, will only pay bonuses on an active business, thus if you ever walk away, someone will have to run your business. You will also need to move a certain amount of volume in order to qualify for some of these bonuses, and you will have to hope that none of your downline ever quits or stop ordering products, or else your bonuses will dwindle down to little or nothing very quickly. For the higher up diamonds, if you stop, not only will your Amway business fall apart, but you will not receive tool money because you aren't participating. Thus diamonds work until they are physically incapable or until they pass away. That is not freedom.

Build It Right, Build It Once?

 I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank.

Don't Quit Your J-O-B?

 So many Amway IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure, it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.

I also see and hear many IBOs popping off about how someone in their upline earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.

Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream Night" where they show off lavish displays of wealth. Well, it is my informed guess that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.

While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts Microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.

Food for thought. If diamonds have so much free time and money to burn, why don't we see slide shows of them donating $10.000 checks and volunteering to help the less fortunate more often?

Important Information For Amway Recruits?

 One thing that I was unaware of as an Amway IBO was that our Amway uplines were profiting handsomely from our tool purchases. I was in WWDB at the time, and I was told very clearly that nobody made money from the tools and in fact, I was also told explicitly that WWDB was a non-profit organization. Both of these statements were bold lies told by WWDB leaders and they have never been held accountable. We were told that upline cared about us and our success, thus they spent their own money to fly to functions to teach us how to succeed. Nothing was further from the truth and in fact, significant incomes are made from the sale of Amway tools and functions, with some diamonds making more from tools and functions than from Amway!   Keep in mind that tools and functions have a higher profit margin than Amway goods and some diamonds may not even be currently qualified (once a diamond, always a diamond).   

Eventually, the internet and other media, including social media made it impossible to cover up these lies and uplines finally admitted that they profited from tools. However, it looks like they downplayed the magnitude of the tool profits. I believe some upline may have made most of their income from tools, especially leaders who may have fallen out of diamond qualification. Now the upline admits they make some profits from tools, but there is still a great deal of secrecy in the tools business. What makes the whole thing ironic is that the uplines allegedly are not supposed to entice Amway prospects into joining by using the tools money as a draw, but at the same time, they are told that tools are vital to their success and that they too, can profit from it someday.

I wonder how many prospects or IBOs would be fired up about buying tools if they knew that their uplines might not currently be qualified at the diamond level, or whatever level they claim to be, and knowing that the uplines will make a ton of money whether or not you make a cent as an IBO? Also, some uplines are shameless in pushing the tools on downline. Sure, they might cut the newest guy a break and loan them some cds, but once that IBO decides to start building downline, they are likely to be told that a real business owner buys their own tools, or that a business owner needs to be a leader and purchase extra tools for their downline. And that is when the expenses (and business losses) start to add up for an Amway IBO.

How would you feel if your upline is touting themselves as a financial genius but in the background, their homes are foreclosed, or they have financial difficulties? What if your upline pushes their morals on you and you find out they are divorced or getting a divorce? What if your upline said Amway saves marriages? Your upline certainly won't say they are perfect, but conversely, they should be held to the highest standards if they are using their status to be able to influence people in their personal lives and at the same time, sell tools and make large profits from the people they influence. That makes it a conflict of interest in my opinion.

My suggestion is for prospects to remove the hype and flashy presentations. Look at numbers and look at your profits versus losses. If you are not making net profits, what will change in order for that net profit to be attainable? Most likely it will be to quit Amway altogether or to stop using the tools and functions which is likely your biggest business expense in Amway.  It's very cut and dry if you look at facts and numbers and not listen to hype and conjecture.  Good luck to you if you join anyway.

Fighting For Dreams?

 One of the many things that IBOs are badly misguided on is the concept of dreams and fighting for dreams. A dream is basically a long-term goal. Someone might dream about playing in the National Football League. To accomplish that dream, one might play high school and/or college level football. For the vast majority, the dream will end. No matter how much someone wants to play in the NFL, only so many people are proficient enough to be able to make the team.  Sometimes you even need a bit a luck to find the right situation to be able to make the team.  Even fewer are elite players that become stars. So while you might fight for your dreams, there is also an alternate reality. 

In the Amway business, via the "systems" such as WWDB or Network 21, the leaders will often sell hopes and dreams to the downline. That the downline can be retired at the age of 29, walking the beaches of the world while the income just rolls in forever and ever. These kinds of "dreams" would be the same as hoping to win the powerball lottery. You may have seen a few who did it but the chance of you duplicating it is very unlikely. Slim to none is your chance in reality. Even those who might achieve diamond will find it difficult to maintain.  The truth is that there are many people who went diamond and are no longer diamonds and no longer receiving "residual income".

Another thing uplines will often do is tell anecdotal stories about crabs keeping each other in a bucket when one tries to escape, or about monkeys preventing each other from grabbing bananas at the top of the pole. While the stories may be interesting and even true, it doesn't necessarily apply to the Amway business. While it is true that an IBO may have friends and family who are skeptical about Amway, it is with good reason. Many people have gone through the Amway business with no success. Many people have lost money doing everything they were advised to do by upline. There is a track record of financial disasters associated with Amway and the attached "systems". It's not like there's a long list of people who have walked away from Amway with the cash rolling in and not a care in the world. Ever wonder why none of the crown ambassadors have exercised the option to "walk away"?   Instead, crown ambassadors die on the job.

I think people should have dreams. I think people should pursue their dreams. I also think people need to know that certain dreams can come true. There also needs to be a degree of reality in their dreams. There will always be some inspirational person such as a "Rudy" who overcame great odds to accomplish a dream, but the untold reality is that there were probably many many young men who dreamed of playing for Notre Dame that year. Likely, no one else accomplished the unlikely dream like a Rudy. What I am saying is that earning a nice income and having the option of early retirement can be accomplished in many ways. You might be choosing to use Amway to accomplish your financial dreams and that is your right. But the reality is that very few people have made all their financial dreams come true due to the Amway opportunity, as compared to the tens of millions who have tried. 

Keep fighting for your dreams, but keep in mind that you might need a plan B and a dose of reality.

Making Your Millions?

 I was sponsored into Amway by a good friend back in the 1990's. My friend had gone "direct" at the time so he recruited me by saying that going direct was "easy" and that he could easily show me how to do it. I had been recruited by an Amway IBO before and it was not a good experience where I was lied to in order to get me to "see the plan". I was in college and a friend had invited me to a "beer bust". I attended the meeting wearing a T-shirt and jeans only to arrive to see people wearing suits and ties and I was thinking WTH? My friend who invited me assured me that we would down some beer after the meeting. I was mad even though I stayed for the meeting.   That was my first impression of Amway and it wasn't a good one.

A friend and I talked about it but I didn't join and my friend eventually told me that he may not be able to hang out with me in the future because he would be rich and may not have time to hang out with the old gang anymore. I went home a bit mad and spoke to my friend who I came with. We talked about whether money could be made in Amway and decided that the Amway opportunity was likely saturated so we decided not to join.

Fast forward to the 1990's and a friend of mine has gone "direct". I didn't really know exactly what that was but I knew that the term "direct" meant you accomplished a significant level in Amway. I decided to join and see if my friend could deliver on his promise that he could show me how to go direct. I should have taken it as a red flag when I asked him about his Amway income and he told me it was none of my business. But he smoothed that over by assuring me that we would both be "Millionaires" traveling the world together in the future.

I worked really hard and managed to sponsor 12 frontline legs in about 7-8 months and I was climbing the Amway ladder. I was considered a "mover and shaker" so I got exclusive time with the upline Diamond. I even got to attend special meetings and house "plans" with the diamond.

The ironic part of thei story is that I purchased a home in about the year 2000 and I made the purchase for about $300K. My real estate agent also knows my Amway sponsor and contacted him about purchasing a home on Oahu (Hawaii). My former sponsor told the agent that he would only buy a home in cash (Amway/WWDB teaching). Fast forward to 2022 and my $300K home is worth more than one million dollars so my home equity alone nearly makes my net worth well over a million dollars. When you add in my cash savings and investments, I am worth well over a million dollars. Nothing to brag about, especially in this day and age, and it's still not a life of luxury, but my former sponsor from Amway who is a physician is still renting a home and is nowhere close to retiring. I am retire, with enough cash to live comfortably, which includes frequent travel other luxuries.  Covid curtailed some of my travel, but I hope that changes very soon.

While I may not be a diamond living the "diamond" lifestyle you see at functions on a slide show, I suspect that I'll be better off that some. possibly most of the diamonds who live "bonus check to bonus check" trying to portray a lifestyle of "keeping up with the Joneses". Diamonds portray an excessive lifestyle of wealth, but I suspect that many of them cannot truly afford the lifestyle they portray. There have been "factoids" that support my claims. The fact that a triple diamond in WWDB declared chapter 7 bankruptcy (2009) and another diamond had a home foreclosed (around 2009) (diamonds pay cash for everything?) shows that diamonds may not be as financially free as they claim.

So who's making millions in Amway? IMO, the folks selling CDs, voicemail, functions and books, and of course, the folks who own Amway.

Tools And Functions? Your Upline's Fundraisers?

 A recent comment left on my blog inspired this article. The comment was that basically, IBO's are "donating" to their upline on a monthly basis. You start by donating to your upline in the form of monthly purchases. Your 100 PV is roughly equal to $300 and most of the bonus generated by that volume goes somewhere upline. This will go on forever until you either quit and stop buying, or unless you somehow manage to sponsor enough downline who will then "donate" to you.

If you attend those open recruitment meetings, you are again donating to the upline's coffers. As an IBO, I was strongly encouraged to attend these meetings even if I had no new prospects to bring. And of course, there was an entrance fee at the door. I don't think this was a major profit center but still, a room with perhaps 1000 attendees = $6000 collected and a room with chairs and a speaker doesn't cost that much for an evening.

If you purchase standing orders, you are not donating to your upline on a weekly basis. If the upline can reproduce cds for 50 cents to a dollar a piece, this is a very healthy profit center. Also, most upline recommend that you listen to a cd each day, thus you need to purchase some additional cds in addition to the standing orders.

Voicemail and book of the month are also monthly donations. Who in the world needs voicemail these days? But uplines still recommend it as they make some serious coin from it. The book of the month might have some value but the uplines are still making profits from these. Think about it, these diamonds claim they want your success but they make you pay for just about any help you receive, regardless of whether that help is beneficial to your business or not.

The regional and major functions are like the monthly fund raisers for the diamonds. Major functions can have thousand or tens of thousands of people in attendance. If they pay $100 (or more) each, it is a serious money maker for upline. A convention center or arena has costs in running events but those costs (while they vary) might be $10 to $25 per person. The rest is pure profit for the diamonds.

All in all, the profit margin is much higher for these tools and functions than from Amway products. Thus it's perfectly reasonable to think that the diamonds can make much more money from selling tools than from Amway itself. For groups where current qualifications are not required for a cut of the tools, these diamonds might make nearly all of their money from tools and functions. It's more like a diamond fundraiser than a function to help IBO's. Afterall, who gets the biggest financial benefit from the tools and functions? The diamonds or the IBO's?

The Fallacy?

 (Reprint of a popular article)

There has been much debate by both critics and Amway IBOs and supporters recently over an issue regarding a WWDB Dream Night function. The issue was an honest question over the cost of a Dream Night Ticket. Well, needless to say, the IBO in question ended up deciding that his blog will no longer accept comments. And while that is certainly his right, he made a statement that IBOs may be told, but makes no sense. Here is the statement:

"Here is a tip when doing research, if you have a question about a company why not give the actual company a call? Wow what a concept."

While on the surface, that me seem logical. If you have a question about how a company works, that might make perfect sense. But the Amway opportunity, along with the attached motivational tools companies, make that a touchy situation. What are you supposed to do? Call WWDB and ask if they are a good company? Call WWDB and ask if they scam downline? What if you call and ask WWDB if most IBOs on their system make money or lose money? If you look at the average income of the majority of IBOs and factor in expenses such as voicemail, standing orders and functions, I can only conclude that the vast majority of IBOs on the system have to be losing money. The longer you stay in the system, the more you lose. Furthermore, I believe there are more people winning the power ball lottery in the US than the number of new WWDB diamonds emerging in the US in the last dozen years ago or so.

Imagine if you had questions and simply asked the person? Hello? Mr. Al Capone, I heard you were a gangster in charge of organized crime. But I thought it would only be fair if I got the answer directly from you. What's that? You're not a gangster and you go to church? Okay, I see. Well that clears that up. Mr. Capone is not a gangster, I confirmed that by asking him. Do you see the ridiculous justification of just asking the person in question? Isn't a better way to ask a neutral third party?

Many IBOs will also suggest that you check the better business bureau. Well, Amway has a good mark from the better business bureau. But Amway isn't selling you voicemail and other support materials right? That would be WWDB or some other motivational group, or a particular double or triple diamond, whose business may not have been registered or known to the better business bureau.

I believe IBOs, information seekers, and prospects can find a ton of information on the internet using google. Upline leaders discourage this because too much frank and disparaging information exists about the Amway opportunity. But much of that information is real life true experiences. I was an up and coming "mover and shaker" in WWDB. This blog reflects much of my real experiences and the realizations I came to after having left Amway and WWDB. Sadly, my experience was not a good one, but more and more I see evidence that what I was taught many years ago is still taught today, and by some of the same leaders. I hope my experience can help others.

Walking Away To Easy Street?

 One of the things that many Amway IBOs mistakenly believe is that they will build their Amway business and then they will have the ability to "walk away" from the business while the massive income continues to flow in. I believe if there was such an incredible benefit such as lifelong residual income that could be achieved from Amway, I'm fairly certain that Amway would advertise this as a benefit of being an IBO. But Amway does not. It is very likely that your LOS such as WWDB or one of the others will promote this benefit while telling you that your best chance to achieve it is by subscribing to their "system".   The system will be touted as the key to success and that it really isn't optional to avoid the system unless you want to fail.

One thing that goes unnoticed all too often is that there seems to be nobody who is actually retired and living off the efforts of having built a big Amway business once upon a time. Seems that even the crown ambassadors still have busy lifestyles running from function to function and participating in other business-related activities. While many of these leaders may claim they love their downlines or some other bunk, it is my belief that these leaders keep working their Amway businesses for one reason only. That is they need to keep working in order to keep the income flowing in.  In recent years, we've seen the passing of some crown ambassadors in Amway who were still "working the business".

The diamond lifestyle that is often portrayed may seem like a great goal or dream to achieve, but the fact of the matter is that a "diamond lifestyle" cannot be sustained on diamond income. The average diamond, according to Amway, earns about $150,000 a year. While that may seem like a great amount of income, it's not nearly enough to sustain the kind of lifestyle portrayed by diamonds. Even if that income is supplemented by income from the sale of tools, you can't fly your family around the country first class to do all kinds of functions and still end up with much leftover to own fancy homes and cars.

Now there will be IBOs who claim that the average income of a diamond is closer to $600,000, but if you look at the fine print, that income belongs to "Q12" diamonds, who are very rare.  The exception, not the rule.

If I deposited $1000 in the bank and never touch the money, the bank would pay me a certain amount of interest each year, guaranteed. That is residual income. In Amway, you can basically earn income in two ways. You can sell products for a profit, but there are problems with this. First off, Amway products in general are more expensive than local retailers. It is why you hear so many justifications about quality and concentration, because you are hard pressed to argue cost. Secondly, you are severely restricted from advertising, thus selling can be difficult. The other way to generate more income is to build a downline in hopes that the downline will help you to leverage your volume. But then your downline will have the same problem that you had in moving products. That being said, even if you achieve some level such as emerald or diamond, your business will immediately begin to fall apart once you stop working because attrition will take its toll. It is why there are hoards of "former" platinums. If platinums are not sustainable, then neither is any other level.

There are many many instances of diamonds quitting, resigning, or falling out of qualification. People come and go in this business every day. Do you really think you can bank on retirement and residual income under these circumstances? If you believe that, I have some swamp land in Florida to sell you.