What Are Your Chances In Amway?

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

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

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

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

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

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

Ashamed Or Not?

 To this day, I still see people who like to hide the Amway name when recruiting others. I believe this tactic has been a major factor in why Amway has a bad reputation in North America. When I was recruited, I was lied to as well. I was invited to a "beer bust" only to find out it was an Amway meeting.  To be polite, I never complained about it during the meeting, but I went home that night thinking WTF was that? They lie to us and then expect us to join the business. And to this day, I believe this practice continues.  

Over the years, IBOs have tried all kinds of ways to disguise the Amway opportunity. It was network marketing, e-commerce, online shopping mall and the corporation even changed Amway in North America to "Quixtar" at one time. Sadly, the name change to quixtar did not work, probably because the same tactics were used when recruiting new IBOs into Quixtar. Amway eventually changed the name back to Amway. I believe this bad reputation in North America is why Amway seems to be enjoying the most business growth overseas where people either do not know the Amway name, and likely because there haven't been enough former Amway/AMO victims to soil the name in other countries.  But conversely, Amway sales tanked for a while and apparently only started a minor recovery recently.  

So, Amway IBOs, how can you expect someone to trust you and do business with you if you are deceitful or outright lie about the Amway opportunity? Are you ashamed of the Amway name? If you are ashamed or scared to drop the "A bomb" on people, how will you ever be able to show any plans, let alone sponsoring anyone into the business? My former sponsor used to tell our group that the biggest challenge is overcoming the name Amway. To be fair, Amway the corporation is not the only reason for the bad reputation. It is the unethical and bad behavior of IBOs that lead to a bad reputation buy on the other hand, it's not the like Amway police have been cracking down and visibly taking action against the violators so Amway is also guilty to some degree. 

Conversely, people who come right out and talk about Amway are unlikely to net any decent results either because of the past reputation. It's an almost no-win situation for IBOs and prospects. For these reasons, I believe it to be nearly impossible to build and maintain a group, especially if your goal is to reach diamond. It seems as if more diamonds have left Amway in recent years than there have been new diamonds. I believe this to be spot on for WWDB, my former LOS. So IBOs, are you ashamed of Amway? If not, why are there still so many IBOs using trickery and deception in recruiting prospects?

Business Equity?

 Many many people see the Amway plan, sign up in the hopes that Amway income will help them fulfill their dreams and that they will walk away from their jobs and collect lifelong residual income while walking the beaches of the world. Sadly, most IBOs will never even sponsor a single downline. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. The fact that many people sign up and do little or nothing is a problem that seems to go ignored by many.  

But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth. I mean a diamond could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business? What would an Amway business be worth? You don't really own equipment or a building. You probably don't have employees. Your Amway business likely has little or no equity. You don't own your downline, although their volume passes through your business. But if they do nothing, you get nothing, which is why people cannot just "walk away" and collect income forever. 

I believe diamonds quit and resign because their business is worth very little or nothing. And most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your Amway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business? Why not just do nothing and let the downline be defaulted to you?  

So IBOs, I ask you. What is your business worth? Food for thought....

Integrity In Amway?

I used to follow the blog of a WWDB IBO named "Shaun". He runs the blog called "Expeditions Of Truth" http://expeditionoftruths.com/..  The blog is not running any longer as Shaun has now quit Amway (imagine that?  He swore he would be a double eagle ruby making well over 100k.  What could possibly go wrong?)

He seemed to think that not only is he in business with people full of integrity, he also thought that he was going to retire in November 2011. Is this now February 2023?  While I think doing business with people of integrity is a good thing, I also know of many successful people in business who are ruthless. So are Amway and in particular, WWDB people full of integrity or are they just as ruthless as other businesspeople? Does it matter? In my opinion, it doesn't matter except for the fact that WWDB people seem to think that they have integrity filled leaders.

Well, let's look at some of these leaders. Back in the 1990's, the current batch of WWDB leaders swore that nobody made a profit on tools. Nobody knew the truth at the time. We now know that this was a lie. Is this integrity? We know that Greg Duncan was in chapter 7 bankruptcy proceedings. Not paying for your obligations is integrity? We know that Greg Duncan and David Shores had homes foreclosed (Public information). Is that a move filled with integrity? With the tons of money Duncan and Shores make, couldn't they have made an effort to pay off their debts?
If you look at a blog linked to this one "Rocket's Rants", there's a youtube video of "crown" Brad Duncan telling rank and file IBOs that they can make "hundreds of thousands of dollars" a month. First of all, I wonder if Brad Duncan has achieved this himself, let alone any others? Even if someone had achieved it, it would be illegal or unethical to portray that kind of success as achievable to a prospect.  

Brad Wolgamott used to talk about how WWDB had a low divorce rate. Is it full on integrity for WWDB leaders to separate or divorce when they talk about integrity and how Amway and WWDB saves marriages? What about Dean Kosage? Another divorcee? Are they full of integrity? What say you Shaun Guthrie of WWDB? What about Howie Danzik whose website doesn't mention that he was once married to Susan? Is it integrity to say you built the business as a single when Howie previously built the business with his former wife Susan?

Amway's owner Rich DeVos acknowledged that the "tools" were likely a pyramid scam and Amway did nothing after sales dropped following some attempts to clean it up. Is that an integrity move? I don't know but it sure seems as if WWDB and Amway have some issues where integrity is concerned.

Fake It but Don't Make It?

 One of the things I was taught as an Amway/WWDB IBO was to "fake it till you make it". I believe this is probably still true today, based on my interaction with and observation of IBO behavior. If you have followed the trials on various upline leaders such as Shores or Duncan and their financials, you can likely conclude that even the diamonds can be in financial difficulty. Some former diamonds who have left the business or quit have also expressed some similar sentiments. 

But if you examine functions like "Dream Night", where the diamonds show off pictures of mansions, sports cars, boats and jet skis, you can conclude that the diamonds are implying that all of these goodies are a part of their regular lifestyles, including the notion of waking up at noon and never having to work. I believe for most diamonds, this is just a facade, or an exercise in deception of the downline. I recall the diamonds urging the crowd to "come join us". Some IBOs want it so bad that tears roll down their cheeks as they watch the presentation. They honestly believe that 2-5 years working the system assures them of success.

The sad reality is that most IBOs, even with some hard work, will end up making nothing, or if fully engaged in the system of functions and cds and books, will end up with a loss. IBOs who stick around for a few years might see losses in the thousands or tens of thousands. All the while their upline may have been telling the group the perserverence is the key or that you will "make it" if you don't quit. Nothing could be further from the truth. There's no evidence that working hard and never quitting will result in anything but financial losses.

If diamonds and high pins are putting on a show, what about the average rank and file IBOs? I believe that many of them are also fakes. They may wear suits and talk about success, but ask one of them if they actually make a net profit and you'll get more excuses than answers. The typical answer will be that it's none of your business, or that their results are not indicative of yours because it depends on effort. This is just a diversion. If someone is promoting the opportunity and then flaunting a lifestyle that can allegedly be attained through the opportunity, then the folks making the claim should be able to qualify their claims. It is normal in everyday business for potential business partners or investors to seek evidence or proof that the business produces what is being advertised. Why Amwayers believe otherwise is puzzling, but not surprising. I believe it is because many Amwayers are fakes, starting from the top.

Amway Friends?

 You hang out with friends, generally people you like and have similar interests. You have good and bad times, but your true friends are there for you when you need them. You move residences, your friends are there to help you move. They may play a round of golf with you, or watch some sporting events, dinners, backyard cook outs, etc. These are folks you will likely end up retiring with and enjoying your golden years. Sure, circumstance may break apart some friendships. or moves made out of necessity. But these folks will likely remain your friends for a long time to come.

But suddenly, you get enticed to join Amway. You see the "chance" to get rich, with a shortcut (not get rich quick, but a "shortcut"). You sign up and your sponsor is your new "best" friend. Most of the people you enjoyed being with think Amway is a questionable venture to get involved in. Suddenly, because of what you have been told or taught, you view these same nice people as "broke" or "losers", simply because they do not share the same ambition of untold wealth working 12-15 hours a week. Suddenly, you friends become prospects, or people you want to sponsor so you start recruiting them. Some may join, but most won't. Suddenly you are immersed in recruitment meetings, functions, and avoiding "negative", which is people and events that do not support your Amway business.

Now you are missing birthday parties, cook outs and other social events. Your social events are now recruitment meetings, seminars and Amway business related events. You are taught that these events can be put off and your gratification delayed. You can do whatever you want when you go diamond. (Even though there me be only one (1) diamond out of every ten or twenty thousand IBOs) Your dedication will pay off right? Sadly, for most people, even very dedicated people, all they will see is losses on their yearly tax returns, mainly due to the purchase of cds, books, voicemail and function tickets. But these are your "friends" right?

Here's my take on it. Try missing a few meetings or functions. Stop buying cds and see how many "friends" remain from the business. It is likely that your upline will claim that you walked away from the friendship by slowing down on the "system". If that happens, then you have conditional friends, or fair-weather friends. They are your "friends" while you are pursuing the same cause. They are your friends when you are attending functions. Are they there for you in bad times?

A short while after I attended my last function (I was still an IBO, just not a business builder), my dad passed away. Not a single one of my IBO "friends" bothered to attend the memorial service. Not a single one of my IBO friends called or dropped by the home to pay their respects. All of my "real" friends, who saw through the AMO smoke and mirrors called to talk to me and/or attended the memorial service.

Are your IBO friends conditional friends? Mine were.

Amway IBOs "Help" People?

 One of the things my Amway upline said at nearly every meeting, function or night owl was how we were helping people by sharing the dream and showing others the Amway plan. "Helping people". He claimed that IBOs became better people and were doing good for the community by helping people. I always thought this was odd because the only people we really "helped" were those who got into the business. We didn't hang out with or help anyone else. We certainly didn't do anything for the community or for charities.  It's more like Amway IBOs are actually helping themselves in reality.

How do you help someone when your life is dedicated to buying and selling Amway products, recruiting Amway prospects and attending Amway related meetings to learn how to recruit more Amway IBOs and to motivate yourself to never quit the business. I used to think about people doing volunteer work, or community service projects, or even outreach through their churches. These are the real everyday heroes who are helping others. While an outreach volunteer feeds the homeless, IBOs are in meetings. When people are doing community service projects, IBOs are showing the plan or prospecting the malls for new recruits. Who is actually helping people?  

Yes, I am aware that IBOs at times, contribute to Easter Seals and the like, but do they invest the kind of time that others do? And I'm not faulting IBOs, but simply pointing out that the Amway business activities can eat away at your time and prevent you from spending quality time with family and friends and prevent you from actually "helping others". While the Amway business is no different that other businesses and the like in that regard, I do not feel that the tiny average earnings of IBOs make it worth their while to spend all of that time in meetings and recruiting to make their return on their investment a worthwhile activity. 

So, in all of the activities you engage in as an IBO, are you helping people? Or are you only helping people who might be interested in joining your Amway business? Are you really helping them or recruiting them under the guise of helping them? Do you continue to try and help them if they aren't interested in Amway? Isn't the IBO saying, "some will", "some won't", "so what, next"? Doesn't that mean that prospects are expendable once they have said "no" to Amway? That's what I recall from my IBOs days. I really don't think much has changed.

Joecool On Vacation

 Joecool will be traveling the West Coast of the mainland US from the day after the Super Bowl until February 22nd.  I'll try to return to blogging ASAP.  Please enjoy the super bowl and the President's day weekend!

I'm enjoying my non Amway freedom!

See you all in a few weeks!

There Is No Defense?

 I've been blogging for many years now and one of the conclusions I have made is that there really is no defense for debating the merits of an Amway business when the IBO is participating in a system such as WWDB or Network 21. I have no issues with IBOs who sign up and sell actual products to non IBO customers, but these sales oriented IBOs are very rare. Most IBOs who are entrenched in a system are often focused on sponsoring downline because that is the only way an IBO can achieve certain levels such as emerald or diamond. The emerald or diamond level is the goal of many because it is allegedly the level where an IBO can "walk away" and enjoy barrels of cash rolling in for the rest of their lives. I find it ironic that even crown ambassadors keep busy schedules and have not walked away into a quiet life of retirement and uncountable amounts of money. Instead, we read about these crowns passing away while still on the (Amway) job.

In general, it would take about 100 IBOs or so to make up a platinum level business. That's 1% at best and even less when you factor in IBOs who do nothing or IBOs who start and quit. In my estimation, a very dedicated hard-core IBO would only begin to break even or make a little bit of income at the 4000 PV or platinum level. Of course, your business structure would be a factor in determining how much you can earn. Sponsoring width gives you more profit and sponsoring depth allegedly gives you some stability. Thus, you could reasonably argue that about a fraction of 1% of IBOs break even or make a little bit of income. What real businessman would even consider opening a business where your chance of making a profit is less than 1%? Yes, you can argue that Amway is a business and not a game of chance, but a prudent decision also factors in your realistic chances of success.

Other factors that would make Amway unattractive is that the products are priced higher (in general) than comparable or the same products that are available at people's local retailers. Yes, Amway folks will argue quality and concentration factors, but those arguments are simply justification for the higher prices. The vast majority of people are satisfied getting cheaper prices at Walmart. And seriously, WalMart products aren't of a lesser quality than most products you get from Amway in the first place. Also, IBOs are restricted from advertising their goods, thus are relegated to person-to-person advertising, which is probably the least effective method of getting the word out to the masses. Higher prices and unfamiliar products result in what many groups have - IBOs who "buy from themselves" in order to earn their bonuses. Also, any bonus that is earned by most IBOs is just a partial refund on having overpaid for a product. Not to mention unless you are at a higher level in the business, your upline(s) get most of the bonus, whether they helped you or not.

Yes, it is possible for some people to make some money in Amway. Yes, some people do make some good money from Amway. It is not possible for all IBOs to make money unless they are selling products to non-IBOs and we know that most IBOs don't sell anything or sell just a few items to others. We also know that the tools systems generally eat away any small bonuses IBOs earn and leave them with a net loss. For the truly dedicated IBOs, the losses can mount into thousands of dollars and more, depending on you consumption and dedication level.

Can someone make a living with Amway? The answer is that it's possible but not likely. But as to whether the Amway business and associated tools is a good idea? For that there is no reasonable defense.

Guaranteed Failure?

 What many Amway and MLM IBOs do not realize is that the Amway/MLM compensation plan nearly guarantees failure for the vast majority of IBOs. There, there will always be some people who make money in Amway. Some might even make a nice income, but they are few and far between. But for Amway. all you need to do is look at the 6-4-2 plan and you can easily see how few people can actually succeed.

We know that in the 6-4-2 plan there are 79 IBOs doing 100 PV. We know that many IBOs do little or do nothing, thus a group where 7500 PV is moved, then one can conclude that you would need more than 100 IBOs. I believe many platinum groups consist of 150 to 200 IBOs. Many of these folks quit and need to be replaced, so the platinum is often very busy showing the plan and recruiting downline. In the end, out of these 150 to 200 IBOs, there is one who is making a decent income (the platinum). Well, that platinum represents less than 1% of IBOs. Even if the entire population of the world signed up for Amway, that rate of success would not change because it simply takes that many downline to make a platinum.

Based on the evidence supplied here, you can make a claim that joining Amway or an MLM nearly guarantees your failure. The only exception would be an IBO who signs up and only sells products to actual non-IBO customers. These folks can make a profit, but are highly unlikely to make any significant income. However, most IBOs end up joining Amway with an AMO attached (AMO = Amway Motivational Organization) such as WWDB or Network 21. These folks are for profit companies that sell training and motivational materials. But if the system only allows for a fraction of 1% to be "successful" at any given time, no amount of training or motivation will make it better.

The upline leaders who sell these tools often deceive their groups that anyone and possibly everyone in the room can succeed. It's simply not true. The system is set up for a limited number of successes. You cannot become a platinum or higher simply by choosing to do so or by wanting it bad enough. Hard work may help but still doesn't guarantee you anything. The system is multi-level and it can only yield a small number of "success", just as there can only be so many officers in the Army. Working harder can help someone advance, but the number of leaders (platinums) will only increase relative to the numbers of lower level IBOs. Do the math and the sad picture becomes more and more clear.

Nonsense: I Can Outearn My Sponsor?

 One of the reallt silly defenses that Amway supporters use to defend their business is that it must not be a pyramid, or the Amway business must be legitimate because you have the opportunity to earn more than your sponsor. While many downlines in fact do earn more than their sponsors, it's likely because about half of all IBOs quit in a year or less.   Those who stay for even a year, when you factor in the business expenses for those who are on tools, the reality of suffering business losses also causes people to exit the business. It's not that hard to earn more than people who quit. But even at that, someone who quits is often better off than IBOs who continue because those on the system are losing money.  Then there is also the countless number of IBOs who sign up and do absolutely nothing.

An IBO at the 100 PV level will earn about $10 in bonus income from Amway. If they are attending functions, buying standing orders and voicemail, they will operate at a loss. Thus, unless their business grows each month (highly unlikely, even if they do as upline advises) then they will suffer losses each month and those who quit will be better off. It is why I have stated that doing nothing or staying home and watching television can honestly be better options than joining Amway and the systems such as WWDB, N21 or BWW. It is why reasonable people can conclude that working for minimum wage, even a few hours a week makes you better off than joining Amway and the systems.

The defense that someone can out earn their upline is silly. The true benchmark of this statement would be for a new guy to start a business, and in 2-5 years, out earn someone like Bill Britt. It will never happen because upline has direct influence over the fortunes of their downline, even at the diamond level. It is why you have seen diamonds quit or split from their upline to start their own training systems. They cannot affect change from downline, without upline consent, thus the breaking away from their "mentors" or leaders. At times there have even been lawsuits over the tool's income. Do people really sue their mentors? Don't diamonds teach you that suing people is wrong? That you don't get something for nothing?

You can surely out earn your sponsor. All it takes is for your sponsor to quit or for your sponsor to sign you up and then do nothing else.  However, your sponsor quitting might mean you don't out earn your sponsor. See my example above. Taking net business losses is not out earning someone. Keep in mind that everyone in Amway is equal. You are all unpaid commissioned Amway salespeople, bound to Amway's terms and agreements. You don't own your downline. You don't really own much as an independent business owner. You can out earn your sponsor, but that means squidly diddly when your sponsor makes nothing or takes a loss. Come back and chirp when you out earn your upline diamond. Do I hear crickets chirping now? :-)

Amway IBOs Talk A Good Game?

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

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

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

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

The Amway Road To Perdition?

 When I saw the Amway plan, it was presented sort of as a road to riches. Yes, the presenter was careful not to say it was "get rich quick", but 2-5 years is relatively quick when compared with working 40 hours a week for 40 years as the business plan was shown to us. And while some exceptional people do achieve diamond, there is a massive trail of IBOs who suffer losses, some of them staggering. In our own group, I know of at least one couple who lost their home following upline advice, and another couple to ended up filing for chapter 7 bankruptcy. I must state that the bad advice leading to bankruptcy and foreclosure most likely came from upline leaders. I also know of a gal who quit her job to attend a function, faithfully following upline advice from WWDB. It took her a while to recover from that bad advice. 

So what is the experience of many CORE IBOs? I'm not talking about those who "do nothing", but IBOs who actually make an effort. Well, if they do their 100 PV, then they are spending about $300 a month on Amway stuff and dedicated IBOs will typically spend about $200 a month or more on average for tools. This is for a single person. A couple or family would be expected to do more, thus spend more. So for these 100 PV IBOs, they will expend about $500 a month or more and get back maybe $10. Of course, if they were not in Amway, they would still have some expenses for household goods, but not anywhere near $500 a month. 

Over the course of a few years, these expenses add up and can become staggering losses. Hard core IBOs might expend even more. The only way a rank-and-file IBO can gain relief is to sell products (which is difficult given the prices and the Amway name reputation) or to sponsor downline who will then suffer some of the losses for you. It would be my estimate that an IBO might break even at about the 4000 PV level. However, at 4000 PV, you might have significant expenses associated with running a group, such as showing distance plans for your group.  

Over the years, I would suspect that millions of IBOs have come and gone through the Amway opportunity, and probably lost billions of dollars. But many of those who lose money think they are successful, because many upline will edify those who buy tools, regardless of IBO results. After a few months, if your group and PV are not growing consistently, it is highly unlikely that you are headed for success. 

IBOs and newbies, are you on the road to riches or financial disaster? Keep in mind that a net loss is not success, despite what you upline mentor may tell you.

CORE, Guaranteed Amway Success?

 Analysis Of CORE?

Breakdown of CORE and why it doesn’t work. Here are the CORE steps. Some groups may have variations of CORE, but this is generally what many groups use:

1 - Show the Plan (10-15 per month)
2 - Retail the Products (10 customers @10 PV each)
3 – Tapes/cds
4 - Books
5- Functions (attend all)
6 - Accountability
7 - Counsel with Upline (Be teachable!)
8 - Buy 100% of your own products
9 – Communikate (voicemail)  (Who the heck needs voicemail these days?)

Many upline will tell you that your success is nearly 100% guaranteed if you follow these steps for 2-5 years. Some Amway enthusiasts will tell you that 6 months of this activity will nearly assure you of a platinum level business. Certain steps are within the IBO’s control, such as reading every day and listening to cds, and attending functions. It is also easy enough to be accountable, counsel with upline, buy your own products, and use KATE (voicemail).

Here’s where an IBO’s efforts will break down. Showing the plan and retailing products. And remember, if you cannot do these steps then you are not considered “CORE” and your upline will likely tell you that it is your own fault and that you simply haven’t been CORE, therefore you did not achieve success. There is some truth in this but let me expose the system in a different angle.

Amway has a spotty reputation in the US. I don’t think anyone can dispute this fact. Therefore, for the vast majority of people, being able to show the plan 10-15 times per month is a nearly impossible task. If you are able to do this, you are a really good salesman or a good liar. In this scenario, the IBO is already successful, but not because of CORE, but simply because the IBO has the gift of being able to convince people into seeing the plan. But for many IBOs, they may contact hundreds of people and not be able to get anyone to see the plan. Even IBOs who follow upline advice on how to contact will probably not be able to show 10-15 plans per month. Thus this IBO, who is doing the work, will not be able to succeed. The system will blame the IBO, but the reality is that the IBO has too big of a disadvantage to overcome.

Secondly, with high prices (on average) and with a spotty reputation, most IBOs are unable to retail products. Amway itself has admitted that less than 4% of Amway products are sold to customers (non IBOs). Thus most IBOs are unable to sell products, therefore they are not CORE, therefore upline will blame the IBO for failure..

What if an IBO contacts 1000 people and cannot get 10 people to see the plan? Upline will claim that IBO is not CORE and therefore it is personal failure of the IBO. IMO, the only reason why upline can claim that CORE works is because in order to do the CORE steps consistently, you have to already be at a certain level of success. The vast majority of IBOs cannot and will never be able to reach that level.

That is the myth and the deception that many uplines will use to attract recruits. That each IBO can do the CORE steps. When only a fraction of 1% ever reach the level of platinum or higher, the numbers strongly support what is written here. Apologists are welcome to try and prove me wrong, but they can't.

Your Upline's Credentials?

 I recently read a comment from an Amway apologist on another forum. She mentions that someone's credentials must be considered when looking at information that is presented by critics. I will comment that upline showing me a sports car or a fancy suit is not proof of financial success. Telling the audience that you buy homes in cash is not proof either. In fact, some of these boasting diamonds were found to have their homes foreclosed and some had financial difficulty, even though they at times had shown off pictures of their lifestyles. I believe that many diamonds are likely to be more like the general US population - in debt. In debt trying to portray a lifestyle that is unsustainable with their Amway and Amway related income.

I find this subject ironic because not one single upline leader, as far as I know, has ever supplied bonafide credentials about themselves. The audience assumes that the person on stage has success and certain credentials, but do they really? I will say that certainly, if someone is wearing a diamond pin for example, that this person has at least achieved the diamond level as recognized by Amway, but the level may not be current, and the level doesn't indicate the kind of income this person earns from Amway. (Joecool is criticized for being outdated even though I was at 4000 PV at one point in my Amway career)

What many people assume is that the diamonds buy homes and cars in cash, that they wake up at noon every day and participate in leisure activities all day while the cash rolls in. I have heard from some new IBOs, that their upline makes more money taking a crap in the morning than a critic makes in a whole year at a job. That IBO became quiet when some critics offered to take that bet. (Do the math people)

But the truth of the matter is that as far as I know, only former diamonds have come clean about their Amway income. They are the only ones who spoke of credentials and accomplishments. Even critics of Amway will often openly speak about their experiences and achieved levels in the business. In the REAL business world, showing business tax returns and credentials are a normal part of doing business. It appears that only in the world of Amway is the supply of credentials and financial statements a big secret. Now I am not suggesting that IBOs or upline leaders should disclose their financials to the entire world, but certainly prospects and some downline should be able to see how their upline is doing financially in Amway, especially if that is the basis for purchasing their standing orders and function tickets. And I refer to business (Amway and Tools) income and expenses only, not from other personal sources.

I believe that IBOs and upline leaders do not disclose that information because it would not be beneficial to them. If it were, they would likely publish it freely, just as they flash around copies of checks. IBOs and prospects should take this to heart and ask upline the tough questions.

Fact Check: The Vast Majority Fail?

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

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

Many Amway zealots and apologists try to make ridiculous claims comparing a company owner to a diamond. The big difference is that a company owner has employees who get a regular paycheck. These employees generally wanted the job and probably applied for the work. And if and when an employee leaves, there are other applicants who are willing to step in and do the work. Thus, the business continues to meet their demands and continues to profit.  If not then that business would fail.

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

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

Who's Responsible?

 One of the extremely disturbing things I have noticed about Amway IBOs and IBO leaders is how they will advise downline to trust them. To trust them as they have already blazed a trail. No need to re-invent the wheel. Just ride the coattails of your upline to success. The system is proven. Many IBOs take this to heart and put forth tremendous effort. Then when they fail, upline will shun them and tell them that the failure is their own. That they are personally responsible for failure.  And that is despite the fact that many IBO follow upline advise to a "T" and still fail.  

Now I am not talking about IBOs who sign up and do nothing, or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I do not recall ever seeing an IBO do nothing and then complain that Amway was a scam or anything like that. But what about the hordes of people who put forth a serious effort only to fall short?  Why aren't the upline leaders held to account?  

I have found, during my blogging experiences, that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted or promised, or in some cases, guaranteed. My former sponsor was still active, last I heard and has been in Amway for over 25 years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business, or big losses if you are dedicated and sold out to the system. Factor in the time spent by husband and wife and these folks are breaking even or losing money or making a fraction of minimum wage. Is this the dream that will allow you to buy mansions with a cash payment?

What is also disturbing is how upline will tout the system as responsible for any success but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every minimal success, there are hundreds if not thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very few in relation to the number who try. Going diamond is probably less common in the US than winning the lottery.  It's sad that a business opportunity success rate can actually be compared to the outcome of a lotttery.

Succeed and the systems and upline take credit, but fail or quit and it is your own responsibility. Are these the kinds of leaders or mentors you want advice from? Where is the personal responsibility of these leaders?   It's likely because most people who quit just walk away and never bring up the subject again.  I am not one of those.  That is the reason I am still blogging.  I want to provide insight and personal experiences to help others who may fall into the same trap and pitfalls that I did.